CENTENE SUBSIDIARY ARIZONA COMPLETE HEALTH JOINS SETTLEMENT AGREEMENT TO MOVE FORWARD WITH STATEWIDE LONG-TERM CARE MEDICAID CONTRACT

Rhea-AI Summary

Centene Corporation's (NYSE: CNC) subsidiary Arizona Complete Health has reached a settlement agreement with AHCCCS and three other health plans to provide managed care for the Arizona Long Term Care System (ALTCS). Starting October 1, 2025, Arizona Complete Health will offer statewide coverage for the ALTCS-EPD program, which serves nearly 26,000 Arizonans who are elderly and/or have physical disabilities. The agreement awards a three-year contract with potential extensions for up to six years total. The program provides integrated physical health, behavioral health, pharmacy benefits, and home- and community-based services. Arizona Complete Health currently serves over 400,000 AHCCCS members statewide since 2006.

Positive

• Secured statewide coverage expansion for ALTCS-EPD program
• Three-year contract with potential extension to six years provides stable revenue stream
• Access to serve additional 26,000 potential members
• Strengthens Centene's position in Arizona's Medicaid market

Negative

• None.

Insights

Healthcare Policy Expert

Centene expands Arizona Medicaid presence with statewide long-term care contract serving elderly and disabled populations—solidifying revenue stream for 3-6 years.

The settlement agreement marks a significant development for Centene's Arizona Complete Health, expanding their footprint to provide statewide coverage for the Arizona Long Term Care System (ALTCS) program. This program serves a vulnerable population of nearly 26,000 Arizonans who are elderly and/or have physical disabilities, requiring specialized care coordination.

What's particularly notable is the integrated care model of the ALTCS program, which combines physical health, behavioral health, pharmacy benefits, and home/community-based services under a single managed care umbrella. This approach aligns with the healthcare industry's movement toward comprehensive care coordination for complex populations.

The ALTCS program is among the oldest Medicaid managed long-term services and supports programs nationally, with a strong emphasis on home and community-based services that allow members to maintain independence—an approach that typically delivers better quality of life for members while potentially reducing costs compared to institutional care settings.

The three-year contract with three one-year extension options provides a stable framework for service delivery while incorporating accountability measures. The October 2025 implementation timeline gives Centene approximately five months to prepare for the transition, focusing on member continuity of care—a critical factor when serving vulnerable populations with complex needs.

This contract reinforces Centene's significant position in Arizona's Medicaid ecosystem, where they already serve over 400,000 members, adding specialized long-term care services to their portfolio statewide.

Financial Analyst

Centene secures multi-year statewide Medicaid contract in Arizona—enhancing revenue stability and strengthening core government program business.

This settlement agreement represents a strategic win for Centene, securing a statewide contract for Arizona's Long-Term Care System (ALTCS) program. While the press release doesn't disclose specific financial terms, this development has several positive implications for Centene's business model.

The three-year contract with potential extensions to six years provides medium-term revenue visibility—highly valued in the managed care sector where contract stability is crucial. Long-term care programs typically command higher per-member-per-month rates than standard Medicaid due to the comprehensive service requirements for these high-need populations.

The timing is particularly favorable as Centene continues to build its government program portfolio. With Arizona Complete Health already serving 400,000+ members statewide, this expansion leverages existing infrastructure and operational capabilities while adding a specialized population segment.

The settlement context suggests there may have been competitive challenges to the original procurement process. The resolution allowing multiple health plans to participate indicates a pragmatic approach by Arizona's Medicaid agency to ensure program stability.

From a strategic perspective, this contract aligns perfectly with Centene's core competency in managing complex Medicaid populations. The ALTCS program's integration of physical health, behavioral health, and long-term services represents the type of comprehensive care management where sophisticated managed care organizations can demonstrate value.

While limited details prevent precise revenue projections, this represents a positive development for Centene's Arizona operations and overall government programs business segment.

ST. LOUIS, May 2, 2025 /PRNewswire/ -- Centene Corporation (NYSE: CNC), a leading healthcare enterprise committed to helping people live healthier lives, announced today that its subsidiary, Arizona Complete Health, the largest Medicaid health plan in Arizona, has joined the Arizona Health Care Cost Containment System (AHCCCS) – Arizona's single state Medicaid agency – and three other health plans in reaching a settlement agreement to provide managed care for the Arizona Long Term Care System (ALTCS). The ALTCS program supports nearly 26,000 Arizonans who are elderly and/or have a physical disability (EPD) with physical and behavioral healthcare, as well as pharmacy benefits and home- and community-based services.

Beginning October 1, 2025, Arizona Complete Health will be available statewide, covering services for Arizonans enrolled with the Arizona Long Term Care System-Elderly and/or Physically Disabled (ALTCS-EPD) program. The settlement agreement awards Arizona Complete Health a three-year contract, with the option to extend each year thereafter for three years, for a total contract period of six years.

"We have proudly served AHCCCS members since 2006 and, today, provide health care coverage to more than 400,000 members statewide," said Centene Chief Executive Officer, Sarah M. London. "Reaching this agreement was an incredibly positive step forward and places the focus on the important work of improving the health of ALTCS-EPD members."

AHCCCS will send notices to members about relevant changes, as well as health plan assignment and member choice options, over the coming months.

"It is an honor to have been selected to lead ALTCS-EPD programs statewide," said Arizona Complete Health Plan President and CEO Martha Smith. "This settlement agreement reflects our shared interest in putting ALTCS members first. Now, we can focus our efforts on ensuring a smooth member transition and coordination of care for an October 1, 2025 launch."

For more information, AHCCCS has developed an FAQ document and will make additional information available on its website: www.azahcccs.gov.

ALTCS is one of the oldest Medicaid managed long-term services and supports programs in the country, providing integrated physical health, behavioral health and long-term services and supports to individuals in Arizona. The program places a special emphasis on home- and community-based services that support members' ability to live independently to the greatest extent. 

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About Centene Corporation 
Centene Corporation, a Fortune 500 company, is a leading healthcare enterprise that is committed to helping people live healthier lives. The Company takes a local approach – with local brands and local teams – to provide fully integrated, high-quality and cost-effective services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. Centene offers affordable and high-quality products to more than 1 in 15 individuals across the nation, including Medicaid and Medicare members (including Medicare Prescription Drug Plans) as well as individuals and families served by the Health Insurance Marketplace. 

Centene uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Centene is routinely posted and is accessible on Centene's investor relations website, http://investors.centene.com/. 

About Arizona Complete Health
Arizona Complete Health, a wholly owned subsidiary of Centene Corporation, provides and administers health benefits through individual, Medicaid, Medicare and dual eligible programs. Arizona Complete Health-Complete Care Plan is the state's largest Medicaid plan serving members statewide. Arizona Complete Health also offers Medicare Advantage coverage through its Wellcare program and Marketplace coverage through Ambetter from Arizona Complete Health. For more information on Arizona Complete Health, please visit the company's website at www.azcompletehealth.com.

All statements, other than statements of current or historical fact, contained in this press release are forward-looking statements. Without limiting the foregoing, forward-looking statements often use words such as "believe," "anticipate," "plan," "expect," "estimate," "intend," "seek," "target," "goal," "may," "will," "would," "could," "should," "can," "continue" and other similar words or expressions (and the negative thereof). Centene Corporation and its subsidiaries (Centene, the Company, our or we) intends such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this statement for purposes of complying with these safe-harbor provisions. 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By their nature, forward-looking statements involve known and unknown risks and uncertainties and are subject to change because they relate to events and depend on circumstances that will occur in the future, including economic, regulatory, competitive and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions. All forward-looking statements included in this press release are based on information available to us on the date hereof. Except as may be otherwise required by law, we undertake no obligation to update or revise the forward-looking statements included in this press release, whether as a result of new information, future events, or otherwise, after the date hereof. You should not place undue reliance on any forward-looking statements, as actual results may differ materially from projections, estimates, or other forward-looking statements due to a variety of important factors, variables and events including, but not limited to: our ability to design and price products that are competitive and/or actuarially sound including but not limited to any impacts resulting from Medicaid redeterminations; our ability to maintain or achieve improvement in the Centers for Medicare and Medicaid Services (CMS) Star ratings and maintain or achieve improvement in other quality scores in each case that could impact revenue and future growth; our ability to accurately predict and effectively manage health benefits and other operating expenses and reserves, including fluctuations in medical utilization rates; competition, including for providers, broker distribution networks, contract reprocurements and organic growth; our ability to adequately anticipate demand and timely provide for operational resources to maintain service level requirements in compliance with the terms of our contracts and state and federal regulations; our ability to manage our information systems effectively; 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SOURCE CENTENE CORPORATION

FAQ

What is the value of Centene's (CNC) new ALTCS contract in Arizona?

The press release does not disclose the financial value of the contract.

When will Centene's Arizona Complete Health begin providing ALTCS-EPD services statewide?

Arizona Complete Health will begin providing statewide ALTCS-EPD services on October 1, 2025.

How many members does Arizona Complete Health currently serve in Arizona?

Arizona Complete Health currently serves more than 400,000 AHCCCS members statewide.

What is the duration of Centene's new ALTCS contract in Arizona?

The contract is for three years with the option to extend each year thereafter for three years, for a total potential contract period of six years.

How many Arizonans are served by the ALTCS-EPD program?

The ALTCS program supports nearly 26,000 Arizonans who are elderly and/or have a physical disability (EPD).