Jan 8 2010
Centene Corporation (NYSE: CNC) announced today its 2010 financial guidance. As previously disclosed in our December 10, 2009 press release, the discussions below reflect anticipated start-up costs associated with the new Mississippi contract, announced pharmacy carve-outs in Indiana and Ohio, and the impact of January 2010 rate changes; but do not reflect the potential impact of federal healthcare reform. In addition, as a result of the Company's previously announced agreement to sell certain assets of its New Jersey health plan, University Health Plans, Inc., the New Jersey operations are classified as discontinued operations and have been excluded from the guidance provided. All discussions below are in the context of continuing operations, unless otherwise stated.
For its 2010 fiscal year, the Company expects:
- Premium and Service revenue in the range of $4.35 billion to $4.45 billion.
- Earnings per diluted share of approximately $1.90 to $2.00.
- Consolidated Health Benefits Ratio, net of premium taxes, of approximately 84% to 86% which reflects membership mix changes, the previously-mentioned drug carve-outs, and the rate environment.
- Higher than normal costs associated with H1N1 and traditional flu strains.
- Consolidated G&A expense ratio in the range of 12.4% to 12.9%, net of premium taxes.
- Effective tax rate of approximately 37% and diluted shares outstanding of approximately 45 million.
- Days in claims payable between 45 and 50 days reflecting the inclusion of pharmacy claims payable (which was not included in prior periods), offset by faster claims processing as a result of operational improvements.
SOURCE Centene Corporation