Reaching for the Summit
2012 Annual Review
1
16
states with health plan
operations in 2012
2.6
million members
Centene Corporation is a leading multi-line healthcare enterprise that
provides access to quality care for the rising number of under-insured
and uninsured individuals. Centene offers unique, cost-effective coverage
solutions for low-income populations through locally based health plans
and a wide range of specialty services.
Centene
Corporation
41%
inCrease in at-risk
managed Care
membership
Table of Contents
01 ——
2012 Year in Review
02 ——
Letter from
the Chairman
04 ——
Company and
Financial Summary
06 ——
2012 At a Glance
08 ——
Awards and Recognition
Strategic Partnerships
10 ——
Centene Today: Delivering
Quality Care
12 ——
Looking Ahead: A Future
of Opportunity
14 ——
Quarterly and Selected
Financial Information
16 ——
Corporate Information
6,800
employees
2012 year in review
59%
revenue growth over
previous year
9
health plan ContraCt
wins in 2012
2
letter from
the Chairman
Michael F. Neidorff
Chairman, President and
Chief Executive Officer
Amidst ongoing changes in the healthcare landscape, Centene has
maintained focus on our promise of delivering the highest quality of
care, while reducing costs. We also continue to deliver on our growth
strategy—increasing membership by 41% and revenues by 59%
from 2011. Now operating health plans in 16 states, we serve 2.6
million members across the country. We were successful in winning
nine contracts in 2012 and have continued in 2013 with the long-
term care program recommendations in Florida. With the pending
acquisition of AcariaHealth, we will expand our ability to manage the
costs of specialized pharmacy benefit services for complex diseases.
We believe the growth and initiatives accomplished in 2012 will drive
earnings in 2013 and beyond.
All of these efforts demonstrate the hard work and
dedication of more than 6,800 employees nationwide. We
remain committed to strengthening our executive leadership
team to ensure Centene has the necessary bandwidth,
resources and talent to support and effectively manage
the significant growth opportunities that lie ahead.
Key management additions in 2012 included David Minifie
as Executive Vice President of Business Integration and
Chief Marketing Officer; Robert Hitchcock as Executive
Vice President, Health Plan Business Unit; and Rone
Baldwin as Executive Vice President, Insurance Group
Business Unit and head of the Company's newly formed
insurance group to oversee products associated with
Exchanges. These appointments round out our seasoned
executive team and add key expertise that will lead us into
the new healthcare arena.
Centene’s success over the years did not come by chance,
nor did it come without challenges. As part of our valued
partnership with our states, we have helped to uncover and
resolve problematic issues which impact us both. For
example, in the fourth quarter of 2012, we experienced
higher-than-expected medical costs in Texas. This was
related to the transfer of high acuity members in the
Hidalgo Service Area from another health plan, in addition
to higher-than-anticipated utilization in the inpatient
category in the rural service area. We continue to work
with the state to obtain premium adequacy and have
implemented a margin improvement plan for the Hidalgo
expansion area. In June, we also reported a higher level of
medical costs in our Celtic individual business. Our
corrective actions to improve performance included a new
national network contract as well as targeted rate increases
in the second half of 2012, and our Health Benefits Ratio
(HBR) has improved.
In the midst of growth, reform and debate around our
nation’s healthcare, one issue remains constant — states
continue to face budget pressures, and many are looking
for ways to curtail costs. Centene’s strategy is clear,
consistent, and effective — enter a state with a cost-
effective solution, then look to build broader services
within each market. We believe there is significant
opportunity to further leverage this approach in the future.
Going forward, our priorities include innovating in our
approach to improve care for our members, expanding our
geographic reach, and growing organically in our existing
markets through Medicaid expansion and contracts
for Medicaid/Medicare Dual-eligibles and Exchange-
based solutions.
During this unprecedented time of rising costs and
increasing healthcare needs, we see several new states
transitioning into managed care from fee-for-service.
States already using managed care are expanding coverage
to high-acuity populations, other currently unmanaged
populations and new programs. As we have shown over
the past several years, we have been highly successful at
winning and expanding our presence within existing
markets. However, while we remain proactive, Centene
will maintain a disciplined and prudent approach when
evaluating all opportunities.
Critical to Centene’s growth strategy is our ability to
add services and programs that complement our core
strengths. Our specialty companies continue to play an
important role in expanding and diversifying our business,
contributing to external sales growth as well as improving
the efficiency and cost-effectiveness of our health plan
operations. From 2011 to 2012, total premium and service
revenue from our specialty business grew 71.9%. Early in
2013, we announced that we signed a definitive agreement
to acquire AcariaHealth, a comprehensive specialty
pharmacy company. Specialty pharmacy is a vital
component in the overall health delivery model at Centene
and will continue to grow as a percentage of our overall
medical expense, particularly as it relates to the
management of complex diseases in our higher acuity
members. This strategic acquisition will enhance our suite
of specialty services and improve how we manage
conditions including Hepatitis C, Hemophilia, Multiple
Sclerosis, Rheumatoid Arthritis and Oncology. Adding the
capabilities of AcariaHealth to our portfolio furthers our
goal of developing more integrated solutions which drive
better health outcomes for our members.
As 2012 drew to a close, I began elaborating upon our
existing business and new business operations. Existing
businesses are defined primarily as state markets or
significant geographic expansion in an existing state or
product, that we have managed for four complete quarters.
New businesses are primarily new state markets or
significant geographic expansion in an existing state or
product, that we have managed for fewer than four
complete quarters.
3
premium and serviCe revenue from new business
40%
30%
20%
10%
0
,11 q1
,11 q2
,11 q3
,11 q4
,12 q1
,12 q2
,12 q3
,12 q4
Centene’s success over the years did
not come by chance, nor did it come
without challenges.
As illustrated, we have an increasing percentage of our total
premium and revenues associated with new businesses in
2012 compared to 2011. New businesses represented
approximately 35% of our total premium and service
revenues in the fourth quarter of 2012. This is a result of
the success we have had executing our growth strategy.
However, new businesses also have an HBR that is
significantly higher. This means, as we have historically
stated, that when managing new businesses, it takes time
to achieve normalized operating margins.
In closing, Centene has had a year full of growth, industry
changes and our own preparation for the evolving
healthcare industry. We feel we are in a strong position to
benefit from the significant market opportunities that lie
ahead. We believe our experience, innovative approach,
dynamic leadership and solid infrastructure position
Centene for success as we enter this new era of healthcare.
Sincerely,
MICHAEL F. NEIDORFF
Chairman, President and Chief Executive Officer
Centene Corporation
centene corporation 2012 annual report 4
Company and
finanCial summary
Centene continues
to expand into new
regions and product
categories
States with health plan operations in 2012
States with health plan implementation in 2013
States with specialty company operations or service centers
finanCial highlights
in thousands
2012
2011
2010
2009
2008
5
Premium and Service Revenues
$8,238,947
$ 5,181,007
$ 4,283,833
$ 3,878,283
$ 3,274,313
Earnings (loss) from Operations
(27,121)
190,324
157,069
138,135
131,561
Centene Corporation
Headquarters
Net Earnings from Continuing Operations(1)
1,859
111,218
90,947
86,093
84,181
Total Assets
2,741,682
2,190,336
1,943,882
1,702,364
1,451,152
(1) Attributable to Centene Corporation.
healthCare Coverage solutions
Government Solutions
aZ
ar
fl
ga
il
in
ks
ky
la
ma ms mo
oh
sC
tX wa wi
TANF
CHIP
ABD (non duals)
ABD (dual-eligible)
Long-Term Care
Foster Care
Medicare Special Needs Plan
Hybrid
Specialty Health Solutions
Pharmacy Benefits
Behavioral & Specialty Therapies
Life & Health Management
Managed Vision
Telehealth
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premium and
serviCe revenues
in millions
Cash flow from
operating aCtivities
in thousands
at-risk
membership
in thousands
$ 10,000
$ 300,000
8,000
6,000
4,000
2,000
0
225,000
150,000
75,000
0
3,000
2,250
1,500
750
0
2008 2009 2010 2011 2012
2008 2009 2010 2011 2012
2008 2009 2010 2011 2012
centene corporation 2012 annual report
6
centene corporation
2012 annual report
c h
M a r
April
7
2012 at a glanCe
Q1
February
Q2
M
a
y
y
r
a
u
n
a
J
r
e
b
m
e
c
e
D
Q4
Selected for
Medicaid contract in
the state of Washington
Began phased
implementation of
operations in Louisiana
Texas subsidiary, Superior
HealthPlan, awarded an
Excellent Accreditation
rating by the National
Committee for Quality
Assurance
Awarded Managed Care
contract in Missouri
Awarded contract to serve
Medicaid beneficiaries in
New Hampshire
Appointed C. David Minifie
as Chief Marketing Officer
Centene won in three
categories at the Case In
Point Platinum Awards
Buckeye Community Health
Plan recommended for
expanded Ohio
Medicaid contract
Centene awarded statewide
Kansas Medicaid contract
Initiated termination
of Medicaid contract
with Commonwealth of
Kentucky
Issued $175 million
5.75% Senior Notes due
2017 at a premium
to yield 4.29%
Appointed
Robert T. Hitchcock
as EVP of Health Plan
Business Unit
Selected to serve Dual-
eligible members in the
Greater Chicago Region as
part of Illinois’ Medicare-
Medicaid Alignment
Initiative
Appointed K. Rone Baldwin
as EVP, Insurance Group
Business Unit
Commenced operations
of Medicaid contract
in Washington
Began operations of
Medicaid contract in
Missouri
Buckeye Community Health
Plan selected to serve
Medicaid members in a
three-year, Dual-eligible
demonstration program
in Ohio
J
u
n
e
J
uly
r
e
b
m
e
v
o
N
August
Q3
October
S
e
p
t
ember
8
awards and
reCognition
2012 accreditations
It is our objective to provide access to the highest
quality of care for our members. The NCQA
Health Plan Accreditation and URAC Health Plan
Accreditation programs provide unbiased, third
party reviews to verify and publicly report results on
specific quality care metrics. While we have achieved
or are pursuing accreditation for all of our plans,
accreditation is only one measure of our ability to
provide access to quality care for our members.
2012 awards
Dorland Health Case In Point Award
Asthma Management Program; CentAccount; ER
Case Management, Peach State Health Plan; NICU/
Special Care Nursery Breast Pump Program; Foster
Care Discharge Planning, Centene and Superior
HealthPlan (HM); Emergency Department Case
Management Program, Peach State Health Plan (HM);
HRA for Serious Mental Illness, Nurse Wise/Nurse
Response (HM)
Hermes Awards
My Route to Health; Off the Chain; Sickle Cell
National Health Information Awards
My Route to Health; Super Centeam 5 Cookbook;
Smart Start for Your Baby – A Guide to Your Baby’s
Care the First Year; Off the Chain; Living Well with
Sickle Cell; Smokey Yuckpack; Adventures from
Puffletown
National Environmental Leadership Award
Adventures from Puffletown
2012 National Urban League
Health Innovator Award
OptiCare – NCQA, Utilization Management
and Credentialing
Celticare Health Plan – NCQA,
New Health Plan
Superior Health Plan – NCQA,
“Excellent” Accreditation Rating
URAC Best Practices in Health Care Consumer
Empowerment and Protection Awards
Centene Corporation/Nurtur, Asthma Solutions for
a Managed Medicaid Population
Medicaid Health Plans of America - Best
Practices Awards
2012 Outreach Award: Nurtur Diabetes Program
Case-in-Point Platinum Awards
Centene has won in the Women and Children category
3 years in a row (in 2012 for our breastfeeding
program) and the Medicaid Case Management
category for the past 2 years (in 2012 for our
CentAccount program and our ER program in Georgia)
Information Week 500 – top 100 ranking and
top 10 Healthcare IT Innovators for 2012
Convergence Customer Excellence Award
People’s Choice Award – Centene was awarded
the first ever “People’s Choice Award” at the
National Association of Community Health Centers
(NACHC) Community Health Institute and EXPO
in Orlando, Florida.
strategiC
partnerships
As a national leader in government-sponsored
healthcare programs, Centene appreciates the
opportunity to partner with national and local
organizations to share its insight and unique
experience with key stakeholders. With health
reform top of mind in 2012, Centene partnered
with the Alliance for Health Reform, a non-partisan
organization, to develop a series of briefings,
focused specifically on the Medicaid program, for
congressional staffers in Washington, DC. To date,
the briefings have focused on important areas such
as health information technology; children’s health;
Medicaid innovation; behavioral health; community
health centers and program integrity.
Our subsidiaries also participate in strategic
partnerships that directly impact our members. For
example, Cenpatico partnered with the National
Urban League to participate in the organization’s
Annual Youth Leadership Summit. During the Summit,
Cenpatico CEO Sam Donaldson was joined by a
distinguished panel of experts and youth leaders
to discuss topics of concern to teens such as
bullying, self-esteem, social media and health and
nutrition. Smaller break-out sessions allowed the
teens to discuss these and other topics with their
peers and health experts, and explore solutions and
interventions that they could take back to their local
communities.
9
Delivering on our
promise of better
healthcare—today
and tomorrow
Centene’s continued success is
based on a proven track record of
providing solutions that meet the
complex healthcare and financial
challenges the nation faces today.
When states seek to ensure
quality coverage for their
constituents, our expertise
in delivering truly integrated and
proactive care makes Centene a
valuable partner in reducing
overall healthcare costs.
centene corporation 2012 annual report 10
11
Centene today
Delivering
Quality Care
Our health plans and specialty companies continue to raise the bar for
innovative, quality care across the country. Last year we continued our
trajectory of growth with new operations in Louisiana, Washington and
Missouri.
Although the expansion of our geographic
footprint has been significant – from seven
states with health plans in 2008 to 16 states
in 2012 – a large part of Centene’s growth has
been the capacity to extend the depth of our
solution set within our markets. For example,
in 2012, we successfully secured Dual-eligible
contracts in markets where we already had
a Medicaid presence, including Ohio and
Illinois. Both programs are expected to
commence in the fourth quarter of 2013.
In 2012, we also significantly expanded our
operations in Texas with the expansion of
the Hildago Medicaid Rural Service Areas
(MRSA), and implemented pharmacy carve-
in benefits in both Texas and Louisiana.
Above all, we remain committed to
putting the care of our membership first.
Strong investments in technology, medical
management, and a dedicated employee base
ensure we are equipped to address the unique
challenges our members face on the path to
better health.
Centene's health plan membership
+ 41%
Membership growth
led by new markets in
Louisiana, Missouri,
Washington and Texas
expansion.
3,000,000
2,400,000
1,800,000
1,200,000
600,000
0
2011
2012
investing in proaCtive Case management
36%
increase in case
management in 2012
Case management
for members allow
for greater proactive
care and decreased
medical costs.
delivering more healthy babies, nationwide
97,616
total deliveries in 2012
66,808
Notification of pregnancies filled
out during the year (allows earlier
identification and assistance to
expecting mothers).
number of low birthweights
Continue to deCrease (% <2500g)
Analysis of health plans since 2008
12%
11%
10%
9%
2008 2009 2010 2011 2012
flu vaCCination rates among
pregnant women
Flu Season, September – April
20%
15%
10%
5%
0%
2008- 2009- 2010- 2011-
2011 2012
2009 2010
Centene’s influenza program, Fluvention®,
works closely with our award-winning
Start Smart For Your Baby® program to
increase flu vaccination rates among
pregnant women.
Centene’s CliniCal programs focus on
education, engagement and prevention, using
a variety of ways to reach our members. For
example, our Fluvention program is designed
to promote healthy behaviors including
immunization and hygiene practices that can
protect our members from seasonal influenza.
Using educational materials, incentives, texting
programs and automated phone calls, we
are able to target our high-risk members
such as pregnant women or members
with chronic conditions.
“Educating and incenting
our members to better
manage their health makes
a real difference in the lives
of the people we serve,
while also reducing
medical costs.”
Mary Mason, M.D.
Senior Vice President & Chief Medical Officer
centene corporation 2012 annual report 12
13
looking ahead:
A Future of
Opportunity
One of the biggest factors influencing healthcare today is the
implementation of the Patient Protection and Affordable Care Act.
State decision-makers face the challenge of providing more residents
with quality healthcare under tight budget constraints.
More and more states are turning to managed
care to serve their expanding Medicaid
populations as well as other low-income
individuals with complex healthcare needs.
As this trend continues, our leadership in
delivering coordinated healthcare solutions
makes Centene a valuable ally for our
state partners.
Centene has nearly three decades of
experience providing comprehensive,
integrated healthcare to individuals
receiving benefits under Medicaid and
other government-sponsored programs.
Our integrated approach incorporates
the member’s physical health, behavioral
health and pharmacy services, connecting
traditionally fragmented practices
and offering a more seamless experience
for our members.
Beginning in 2014, Dual-eligibles (low-
income seniors and younger persons with
disabilities who are eligible for both Medicare
and Medicaid) will begin to shift into
state Medicaid programs. We believe our
experience with Special Needs Plans and
other high-acuity populations position us for
growth in this area. In 2012, we had success
in securing Dual-eligible contracts in markets
where we already have a Medicaid presence,
including Ohio and Illinois. Both programs
are expected to commence in the fourth
quarter of 2013.
In 2014, millions of Americans are expected
to begin purchasing health insurance through
newly-created marketplaces known as
Exchanges. The Exchange market is projected
to be one of the largest expansions of health
coverage in United States history. We feel
Centene has a strong competitive position
to capitalize on this opportunity given our
acquisition of Celtic in 2008, which provides
us with insurance licenses in 49 states. In
addition, our participation in Exchanges in
Massachusetts, Indiana and Texas give us
unique, practical experience with Exchange-
based solutions.
Furthermore, our work in Exchanges allows
us to expand our solution set beyond
Centene’s traditional Medicaid population.
We will be able to provide insurance
alternatives for individuals above 133% of
the FederalPoverty Level.
Participation in Exchanges allows
us to expand our solution set
beyond Centene’s traditional
Medicaid population.
eXpanded solution set for the low-inCome uninsured/under-insured
While all of our members have unique
backgrounds and circumstances, Centene
believes that each is entitled to receive quality
healthcare at an affordable price.
Both independent studies and Centene’s
experience confirm that as many as 40%
of adults experience a loss of Medicaid
eligibility within six months of entering a
Medicaid program. For example, if a Medicaid
member gets a part-time job, he or she may
be ineligible for Medicaid coverage. In 2014,
if an individual loses eligibility, there will
be alternatives with subsidized exchanges.
Centene’s Exchange solutions will help to
eliminate a gap in coverage and ensure little
or no disruption to the beneficiary’s provider
relationships as he or she moves up or down
in income level.
Our Exchange participation will also be
instrumental when assisting families with only
certain members eligible for Medicaid. These
families will now have healthcare options for
their entire household under the Centene
umbrella.
According to the Urban Institute,
nearly a third of the 96 million
people who will qualify for either
Medicaid or Exchange subsidies
will change eligibility from one year
to the next.
centene corporation 2012 annual report 14
15
Quarterly seleCted finanCial information (unaudited)
For the Quarter Ended, 2012
seleCted finanCial information
Year ended December 31
(in thousands, except share data and membership data)
March 31
June 30
September 30
December 31
(in thousands, except share data)
2012
2011
2010
2009
2008
Total revenues
$ 1,712,148
$ 2,110,746
$ 2,448,121
$ 2,396,597
Net earnings attributable to Centene Corporation common shareholders:
$
23,978
$
(34,999
)
$
3,819
$
9,061
Net earnings (loss) per share attributable to Centene Corporation:
Basic earnings (loss) per common share
Diluted earnings (loss) per common share
Health Benefits Ratio
General & Administrative Expense Ratio
Period end at-risk membership
$
$
0.47
0.45
$
$
)
(0.68
(0.68
)
$
$
0.07
0.07
$
$
88.2%
9.8%
92.9%
8.2%
93.3%
8.2%
0.17
0.17
91.3%
8.4%
2,149,500
2,397,500
2,503,000
2,560,300
(in thousands, except share data and membership data)
March 31
June 30
September 30
December 31
For the Quarter Ended, 2011
Revenues
Premium
Service
Premium and service revenues
Premium tax
Total revenues
Expenses
Medical costs
Cost of services
General and administrative expenses
Premium tax expense
Impairment loss
Total operating expenses
Earnings (loss) from operations
Total revenues
$ 1,216,357
$ 1,315,014
$ 1,302,035
$ 1,507,176
Other income (expense)
Net earnings attributable to Centene Corporation common shareholders:
$ 23,745
$ 28,374
$ 28,987
$ 30,112
Net earnings per share attributable to Centene Corporation:
Basic earnings per common share
Diluted earnings per common share
Health Benefits Ratio
General & Administrative Expense Ratio
Period end at-risk membership
$ 0.48
$ 0.57
$ 0.58
$ 0.60
$ 0.46
$ 0.54
$ 0.55
$ 0.57
84.9%
12.0%
84.8%
11.2%
85.0%
11.3%
85.9%
11.0%
1,542,500
1,580,500
1,615,700
1,816,000
Investment and other income
Debt extinguishment costs
Interest expense
Earnings (loss) from continuing operations, before income tax expense
Income tax expense (benefit)
Earnings (loss) from continuing operations, net of income tax expense
Discontinued operations, net of income tax expense (benefit) of $ 0, $ 0,
$4,388, $(1,204), and $(281), respectively
Net earnings
Noncontrolling interest
Net earnings attributable to Centene Corporation
Amounts attributable to Centene Corporation common shareholders
Earnings from continuing operations, net of income tax expense
Discontinued operations, net of income tax expense (benefit)
Net earnings
Net earnings (loss) per common share attributable to Centene Corporation
Basic:
Continuing operations
Discontinued operations
Basic earnings per common share
Diluted:
Continuing operations
Discontinued operations
Diluted earnings per common share
Weighted average number of common shares outstanding
Basic
Diluted
(in thousands)
Consolidated Balance Sheet Data
Cash and cash equivalents
Investments and restricted deposits
Total Assets
Medical Claims Liability
Long-term debt
Total stockholders’ equity
$ 8,126,205
$ 5,077,242
$ 4,192,172
$ 3,786,525
$ 3,199,360
112,742
103,765
91,661
91,758
74,953
8,238,947
5,181,007
4,283,833
3,878,283
3,274,313
428,665
159,575
164,490
224,581
90,202
8,667,612
5,340,582
4,448,323
4,102,864
3,364,515
7,446,037
4,324,746
3,584,452
3,230,131
2,704,647
87,705
704,604
428,354
28,033
78,114
587,004
160,394
—
63,919
477,765
165,118
—
60,789
447,921
225,888
—
56,920
380,421
90,966
—
8,694,733
5,150,258
4,291,254
3,964,729
3,232,954
(27,121
)
190,324
157,069
138,135
131,561
35,957
—
(20,460
)
(11,624
)
(329
)
(11,295
)
—
(11,295
)
(13,154
)
13,369
)
(8,488
)
(20,320
174,885
66,522
108,363
—
108,363
)
(2,855
15,205
—
)
(17,992
154,282
59,900
94,382
3,889
98,271
3,435
15,691
—
(16,318
)
137,508
48,841
88,667
(2,422
)
86,245
2,574
21,728
—
)
(16,673
136,616
52,435
84,181
(684
)
83,497
—
1,859
$
111,218
$
94,836
$
83,671
$
83,497
1,859
$
111,218
$
90,947
$
86,093
$
84,181
—
—
3,889
(2,422
)
(684
)
1,859
$
111,218
$
94,836
$
83,671
$
83,497
0.04
$
2.22
$
1.87
$
2.00
$
—
—
0.04
$
2.22
$
0.03
$
2.12
$
—
—
0.03
$
2.12
$
0.08
1.95
1.80
0.08
1.88
$
$
$
(0.06
)
1.94
$
1.94
$
(0.05
)
1.89
$
1.95
(0.02
)
1.93
1.90
)
(0.02
1.88
$
$
$
$
$
$
$
51,509,366
50,198,954
48,754,947
43,034,791
43,275,187
53,714,375
52,474,238
50,447,888
44,316,467
44,398,955
2012
2011
2010
2009
2008
December 31
$
843,952
$
573,698
$
434,166
$
403,752
$
379,099
788,634
663,457
639,983
585,183
451,058
2,741,682
2,190,336
1,943,882
1,702,364
1,451,152
926,302
535,481
953,767
607,985
348,344
936,419
456,765
327,824
797,055
470,932
307,085
619,427
384,360
264,637
501,272
centene corporation 2012 annual report 16
other information
transfer agent
1
Corporate
information
stoCk performanCe graph
dollars
Our common stock has been listed for trading on the
New York Stock Exchange under the symbol “CNC”
since October 16, 2003. The graph to the right compares
the cumulative total stockholder return on our common
stock for the period from December 31, 2007 to
December 31, 2012, with the cumulative total return
of the New York Stock Exchange Composite Index,
and the Morgan Stanley Health Care Payor Index
over the same period. The graph assumes an
investment of $100 on December 31, 2007 in our
common stock (at the last reported sale price on
such date), the New York Stock Exchange Composite
Index and the Morgan Stanley Health Care Payor Index,
and assumes the reinvestment of any dividends.
165
130
95
60
25
2007
2008
2009
2010
2011
2012
Centene Corporation
Morgan Stanley Health Care Payor Index
New York Stock Exchange Composite Index
board of direCtors
Michael F. Neidorff
Chairman, President and CEO;
Centene Corporation
Robert K. Ditmore
Former President and COO;
United Healthcare Corporation
Orlando Ayala
Corporate Vice President, Chairman
Emerging Markets, Chief Strategist,
National Competitiveness;
Microsoft Corporation
Frederick H. Eppinger
President and CEO; The Hanover
Insurance Group, Inc.
Richard A. Gephardt
Chief Executive Officer of Gephardt
and Associates;
Former Majority Leader of the U.S.
House of Representatives
Pamela A. Joseph
Vice Chairman; U.S. Bancorp
John R. Roberts
Retired Regional Managing Partner;
Arthur Andersen LLP
David L. Steward
Founder and Chairman of the Board;
World Wide Technology, Inc.
Tommy G. Thompson
Former Health and Human
Services Secretary;
Former Governor of Wisconsin
senior management
Michael F. Neidorff
Chairman, President and Chief
Executive Officer
Jason M. Harrold
Executive Vice President, Specialty
Company Business Unit
Donald G. Imholz
Executive Vice President and Chief
Information Officer
William N. Scheffel
Executive Vice President, Chief
Financial Officer and Treasurer
K. Rone Baldwin
Executive Vice President, Insurance
Group Business Unit
Robert T. Hitchcock
Executive Vice President, Health Plan
Business Unit
Edmund E. Kroll, Jr.
Senior Vice President, Finance and
Investor Relations
Jeffrey A. Schwaneke
Senior Vice President, Corporate
Controller and Chief Accounting Officer
Carol E. Goldman
Executive Vice President and Chief
Administrative Officer
Jesse N. Hunter
Executive Vice President, Chief
Business Development Officer
C. David Minifie
Executive Vice President, Business
Integration & Chief Marketing Officer
Keith H. Williamson
Executive Vice President, General
Counsel and Secretary
Included in this 2012 Annual Review are financial and
operating highlights and summary financial statements. For
complete financial statements, including notes, please refer to
the Company’s Annual Report on Form 10-K for the fiscal year
ended December 31, 2012 filed with the Securities and
Exchange Commission (the “2012 Form 10-K”), which also
includes Management’s Discussion and Analysis of Financial
Condition and Results of Operations. This 2012 Annual Review,
together with our 2012 Form 10-K, constitute our annual report
to security holders for purposes of Rule 14a-3(b) of the
Securities Exchange Act of 1934, as amended. Our 2012 Form
10-K may be obtained by accessing the investor section of our
Company’s Web site at www.centene.com, or by going to the
SEC’s Web site at www.sec.gov.
form 10-K
The Company has filed an Annual Report on Form 10-K for
the year ended December 31, 2012, with the Securities and
Exchange Commission. Stockholders may obtain a copy
of this report, without charge, by writing:
Investor Relations
Centene Corporation
7700 Forsyth Boulevard
St. Louis, MO 63105
www.centene.com
Broadridge Corporate Issuer Solutions, Inc.
1717 Arch Street, Suite 1300
Philadelphia, PA 19103
855.627.5087
www.broadridge.com/TransferAgent
annual meeting
The Annual Meeting of Stockholders will be held on
Tuesday, April 23, 2013, at 10:00 a.m. at Centene Corporation,
7700 Forsyth Boulevard, St. Louis, MO 63105 in the
Auditorium, 314.725.4477.
DiViDenD PoliCY
The Company has not paid any dividends on its common stock
and expects that its earnings will continue to be retained for
use in the operation and expansion of its business.
Common stoCK information
Centene common stock is traded and quoted on the
New York Stock Exchange under the symbol “CNC”.
2012 Stock Price
2011 Stock Price
High
Low
High
Low
First Quarter
$ 50.36
$ 38.97
$ 32.99
$ 25.08
Second Quarter
$ 50.98
$ 24.26
$ 39.25
$ 31.34
Third Quarter
$ 42.46
$ 28.86
$ 39.35
$ 25.64
Fourth Quarter
$ 46.44
$ 34.73
$ 40.81
$ 25.28
Cautionary statement on forward-looking statements
All statements, other than statements of current or historical fact, contained in
of important factors, including (i) our ability to accurately predict and effectively
this 2012 Annual Review and, in particular, in the Chairman’s Letter, are forward-
manage health benefits and other operating expenses; (ii) competition; (iii)
looking statements. We have attempted to identify these statements by terminology
membership and revenue projections; (iv) timing of regulatory contract approval; (v)
including “believe,” “anticipate,” “plan,” “expect,” “estimate,” “intend,” “seek,”
changes in healthcare practices; (vi) changes in federal or state laws or regulations,
“target,” “goal,” “may,” “will,” “should,” “can,” “continue” and other similar words or
including the Patient Protection and Affordable Care Act and the Health Care and
expressions in connection with, among other things, any discussion of future operating
Education Affordability Reconciliation Act and any regulations enacted thereunder;
or financial performance. In particular, these statements include statements about our
(vii) inflation; (viii) provider contract changes; (ix) new technologies; (x) reduction in
market opportunity, our growth strategy, competition, expected activities and future
provider payments by governmental payors; (xi) major epidemics; (xii) disasters and
acquisitions, investments and the adequacy of our available cash resources. Readers
numerous other factors affecting the delivery and cost of healthcare; (xiii) the
are cautioned that matters subject to forward-looking statements involve known and
expiration, cancellation or suspension of our Medicaid managed care contracts by
unknown risks and uncertainties, including economic, regulatory, competitive and
state governments; (xiv) availability of debt and equity financing, on terms that are
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
favorable to us; (xv) general economic and market conditions; as well as those factors
disclosed in our publicly filed documents. We disclaim any current intention or
of activity, performance or achievements expressed or implied by these forward-
obligation to update or revise any forward-looking statements, whether as a result of
looking statements. These statements are not guarantees of future performance and
new information, future events or otherwise. Due to these important factors and risks,
are subject to risks, uncertainties and assumptions. All forward-looking statements
we cannot give assurances with respect to our future premium levels or our ability to
included in this annual review are based on information available to us on the date of
control our future medical costs.
its publication. Actual results may differ from projections or estimates due to a variety
centene corporation 2012 annual report
7700 Forsyth Boulevard
St. Louis, MO 63105
p 314.725.4477
f 314.445.0218
www.centene.com