SSID: Centene Corporation. Password: welcome Investor Day December 18, Welcome

Transcription

1 SSID: Centene Corporation 2015 Investor Day December 18, 2015 Password: welcome2015 Welcome

2 Welcome & Introduction Ed Kroll, SVP - Finance and Investor Relations

3 Forward-Looking Statements During the course of this presentation, we may make projections or other forward-looking statements that relate to future events and future financial performance of Centene. Subsequent events and developments may cause the Company's estimates to change. The Company disclaims any obligation to update this forward-looking financial information in the future. Readers are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, regulatory, competitive and other factors that may cause Centene's, Health Net's, or its 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. Actual results may differ from projections or estimates due to a variety of important factors, including the ultimate closing date of proposed merger with Health Net (Proposed Merger); the possibility that the expected synergies and value creation from the Proposed Merger will not be realized, or will not be realized with the expected time period; the risk that acquired businesses will not be integrated successfully; disruption from the Proposed Merger making it more difficult to maintain business and operational relationships; the risk that unexpected costs related to the Proposed Merger will be incurred; the possibility that the Proposed Merger does not close, including, but not limited to, due to the failure to satisfy the closing conditions thereto; the risk that financing for the Proposed Merger may not be available on favorable terms; and the risk that the required regulatory approvals are not obtained, on a timely basis or otherwise, or are obtained subject to conditions that are not anticipated. Additional factors include, but are not limited to, Centene's or Health Net's ability to accurately predict and effectively manage health benefits and other operating expenses and reserves; competition; membership and revenue projections; timing of regulatory contract approval; changes in healthcare practices; changes in federal or state laws or regulations, including the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act and any regulations enacted thereunder; changes in expected contract start dates; changes in expected closing dates, estimated purchase price and accretion for acquisitions, including our Proposed Merger; inflation; foreign currency fluctuations; provider and state contract changes; new technologies; advances in medicine; reduction in provider payments by governmental payors; major epidemics; disasters and numerous other factors affecting the delivery and cost of healthcare; the expiration, cancellation or suspension of our or Health Net's managed care contracts by federal or state governments (including but not limited to Medicare and Medicaid); the outcome of our or Health Net's pending legal proceedings; availability of debt and equity financing, on terms that are favorable to us; and changes in economic, political and market conditions; as well as those factors disclosed in the Company's and Health Net s publicly filed documents. This list of important factors is not intended to be exhaustive. We discuss certain of these matters more fully, as well as certain risk factors that may affect our business operations, financial condition and results of operations, in our filings with the Securities and Exchange Commission, including our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K and the joint proxy statement/prospectus we filed on Form S-4 on September 21,

4 Earnings Guidance Policy Our Company s policy is, that the Company undertakes no obligation to update its earnings guidance, other than as part of its quarterly or yearly earnings disclosure, and that silence on guidance by the Company or Company officials should not be interpreted that guidance has or has not changed. In any event, no updated guidance would ever be given that is not previously or simultaneously disclosed in an SEC filing or other broad non-exclusionary means. Further, it is Company policy to generally not hold discussions with investors commencing two weeks prior to earnings release. 4

5 Strategic Overview Michael F. Neidorff, Chairman, President & CEO

6 Centene Today 2015 Premium & Service Revenues Guidance FORTUNE People Capabilities Technology FORTUNE S Fastest Growing Companies (2015) 6

7 2015 Growth 35% Growth in Premium & Service Revenues* 31% Growth in EPS* 19% Increase in Stock Price * Represents growth from the guidance mid-point; EPS excludes Health Net merger related expenses. 7

8 2016 Guidance Total Revenues GAAP Earnings Per Diluted Share Growth Rate Adjusted Earnings Per Diluted Share * For the purpose of providing guidance, it is assumed that the Health Net acquisition closes February 1,

9 Continued Operational Success Strong and Balanced Results Insurance Group Diversification Strategy Specialty Business Unit International Executing on Growth Pipeline and Capital Investments 9

10 Local Integrated Approach Health Plan Operations Health Care Enterprise and Specialty Companies Better Serve our Members Assist in Controlling Costs 10

11 Leading Information Systems Design and invest in information systems and innovative care management programs Better management of health care costs versus simply influencing them 11

12 International Investments Generated new opportunities Diversifies product portfolio Provides services to 850,000 individuals Exploring targeted opportunities 12

13 Growth Strategy M&A Disciplined approach to M&A investments 13

14 Growth Strategy Pipeline Robust near and long-term diversified pipeline 14

15 Health Net Acquisition Announced July 2, 2015 Received early termination of the waiting period under HSR Shareholder approval obtained OR Form A approval was issued on November 30th (starting the 60-day waiting period) Currently working through the regulatory process in California and Arizona 15

16 Health Net Builds critical mass and expertise Further diversifies markets and products Medicare TRICARE Veterans Affairs 16

17 Health Net Leading platform of governmentsponsored programs Largest Medicaid MCO Total Membership: 10+ million (6+ million Medicaid members) Growth & Enhanced Service Offerings Leader in Managed Long-Term Support Services (MLTSS) 17

18 Health Net Expands opportunities beyond the Dual eligibles Medicare Advantage expertise Creates significant growth opportunities across our markets Low-income Medicare opportunity of $150+ billion in current markets 18

19 Health Net Value Based Contracting Further Deploy Specialty Solutions Health Insurance Marketplace (HIM) presence 15 States 500,000 Members Committed to the California Commercial Market Stronger Financial Profile 19

20 Well Positioned for the Future Successful 2015 Growth Company 2016 Disciplined Growth 20

21 Guidance Jeff Schwaneke, SVP, Corporate Controller & CAO

22 2015 Guidance ($ IN MILLIONS, EXCEPT SHARE DATA) Low High Premium and Service Revenues $21,000 $21,300 Diluted EPS* $2.90 $2.94 HBR% 89.2% 89.4% G&A%* 8.2% 8.4% Effective Tax Rate 48.0% 50.0% Diluted Shares (in thousands) 123, ,500 * Excludes between $0.13 and $0.15 per diluted share of merger related costs expected to be incurred in 2015 related to the Health Net transaction. 22

23 Key 2016 Guidance Assumptions Health Net Transaction closes on February 1 st, New transaction intangible assets of $1.5 billion amortized over 10 year average life. GAAP EPS guidance includes transaction costs. Synergy realization consistent with expectations. We do not have any business subject to re-procurement risk in

24 2016 Guidance ($ IN MILLIONS, EXCEPT SHARE DATA) Low High Total Revenue $41,200 $42,000 GAAP diluted EPS $2.85 $3.15 Adjusted diluted EPS $4.10 $4.40 Adjusted earnings per diluted share excludes: total intangible amortization of $0.55 to $0.60 per diluted share. approximately $0.65 to $0.70 per diluted share of Health Net merger related expenses, and 24

25 Insurance Group Rone Baldwin, EVP - Insurance Group Business Unit

26 Overview Scale and Diversification Health Insurance Marketplace Dual Demonstration Program 26

27 Increasing Scale and Diversification 2010 HEALTH PLANS BY PREMIUM SIZE <$300 million $300 million - $1 billion >$1 billion 27

28 Increasing Scale and Diversification 2015 HEALTH PLANS BY PREMIUM SIZE <$300 million $300 million - $1 billion >$1 billion 28

29 Increasing Scale and Diversification 2016 HEALTH PLANS BY PREMIUM SIZE WITH HEALTH NET <$300 million $300 million - $1 billion >$1 billion 29

30 Increasing Scale and Diversification 2010 HEALTH PLANS AND PROGRAM PARTICIPATION Medicare Advantage LTSS/IDD Medicaid Exchanges DSNP/ Expansion Duals ABD TANF/CHIP 30

31 Increasing Scale and Diversification 2016 HEALTH PLANS AND PROGRAM PARTICIPATION WITH HEALTH NET Medicare Advantage LTSS/IDD Medicaid Expansion Exchanges DSNP/ Duals ABD TANF/CHIP 31

32 Benefits of Scale and Diversification Closer relationships State customers Providers Leadership position in numerous states Economies of scale Shared best practices 1st in 5 states 2nd in 6 states 3rd in 4 states Program sustainability 32

33 Health Insurance Marketplace Strategy and Execution Focus on lower income, subsidized members Selective service areas build a sustainable position Disciplined approach to pricing Target margin of 3-5% No risk corridor assumed Internal team, outside actuarial support from two firms Same approach to pricing in

34 Health Insurance Marketplace Strategy and Execution Financials in line or exceeding expectations Risk adjustment payable, risk corridor payable and MLR rebates in 2014 and 2015 No recent change in claims or utilization in 2015 Member demographics unchanged Member attrition in line HBR for new members comparable to open enrollment members 34

35 Health Insurance Marketplace Strategy and Execution Utilization not showing any recent changes Inpatient Utilization Jan Feb Mar April May June July Aug Sept Oct Nov 3R accrual methodology Reinsurance and risk corridor: actual experience Risk adjustment: leverage industry surveys 35

36 Health Insurance Marketplace Health Insurance Marketplace Membership ~500K w/ Health Net Key Growth Drivers Existing states market growth / additional penetration FL GA IL IN MA AR MS OH TX WA WI OR New state in 2016 private option Medicaid expansion 155K NH With Health Net - ~500,000 members expected in 2016 Q CA AZ 36

37 Dual Demonstration Program Dual Demo Program Membership 28K ~50k w/ Health Net Highlights Strategic program for long term duals opportunity - - $250B + opportunity Stabilizing membership and opt out Focus beyond start up - - Care management Provider experience Lower cost, better quality Financials in line with expectations Q With Health Net - - ~50,000 members in

38 Reaping Benefits from Scale and Diversification Positioned to Grow Exchanges; Dual Demo Focus on Cost & Quality Acceleration with Health Net 38

39 Specialty Business Unit Jesse Hunter, EVP & Chief Business Development Officer

40 Specialty Business Update $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $ (F) Premium and Service Revenue External 68% Internal 32% 880 External Customers Recent Awards Nurtur: Asthma Management Case In Point Platinum Award NurseWise: Nurse call center program Case in Point Platinum Cenpatico/Centene: No bullying Zone IMPACT Award Cenpatico/Centene: No bullying Zone Anti-Bullying Corp Hero Award 40

41 Health Net Impact on Specialty Significant Leverage Opportunity For Specialty Services (focus area for synergy capture) Common Insourced Capabilities Behavioral health Correctional services Pharmacy management Health Net Outsourced Services Dental Nurse triage Vision Wellness and disease management Growth Platform for Specialty Services Federal services Commercial segment 41

42 Centene s Specialty Health Solutions Pharmacy Benefits Care Management Software Specialty Pharmacy Benefits Health Management Technology Life, Health & Wellness In-Home Services Telehealth Services Vision Benefits Behavioral Health & Specialty Therapies Dental Benefits HCBS for I/DD Populations Correctional Healthcare Services 42

43 Market Dynamics Change in stakeholder landscape Customers want more services from fewer vendors Centene partner demand Centene Specialty Solutions Well Positioned to Address Market Needs 43

44 It Starts with a Name The name Envolve reflects our determination to help people, organizations and the healthcare system EVOLVE and change for the better. Because we know we re not in it alone, Envolve also embodies the spirit of INVOLVEMENT, from engaged service providers to self-empowered members. As Envolve, we stand as a single integrated care solution company. Stronger, focused, and more unified, we continue to lead the way in an ever-changing healthcare industry. We re leveraging our collective expertise to deliver on our purpose of transforming the health of the community, one person at a time. 44

45 One Brand Three Focus Areas 45

46 Vision for Integrated Solutions Apply All Products, All Markets approach to external customers Continuum of integrated capabilities Deploy services vs. tools Payor Pharma Provider Employer Management Services, Bundled Products TARGETED SALES CHANNELS Medication Adherence ACO Support, Risk Management Integrated Wellness and Complex Care Management 46

47 Culture of Innovation within Envolve R&D Lab Objective Delivers innovations that create new markets or value systems Success Measures Unbounded solution to defined problem set Market-viable product Freedom to explore, discover, test and fail Bridging Gap Between Academia and Real Life Behavioral economics insights Inter-generational lifestyle change program Project Examples Incentive Integration: EMR workflow and patient apps Augmented and Virtual Reality in Coaching Residential Smart Home 47

48 Envolve Integrated Capability Platform Strong Performance Strong operating performance from specialty segment Integrated Capabilities Broad spectrum of integrated capabilities Building Momentum Building momentum on integrated sales under Envolve 48

49 International Cynthia Brinkley, EVP - International Operations & Business Integration

50 Establishing Our Robust International Platforms 2014: Entered into Spain and UK through acquisitions of non-controlling interests in Ribera Salud and the Practice Group Integrated healthcare coverage under public-private partnership arrangements with regional governments Additional specialty segment health IT, laboratory and diagnostic services Primary and specialty care services through one of the largest provider networks for NHS England Additional services back office support and referral management 50

51 Establishing Our Robust International Platforms 2015: Advancing and expanding our international platforms for future growth Ribera Salud increased its ownership and control in three Valencian concessions Constructive knowledge transfer and deployment of advanced care management systems Increased exposure and credibility through Ribera Salud and The Practice Group brands in the UK and other international markets 51

52 Becoming a Trusted Partner of International Governments Integrated Health Solutions Leverage our extensive health and social care capabilities to emerging managed care opportunities Innovative Systems & Capabilities Deliver improved health outcomes at lower costs through a suite of locally based healthcare solutions Extensible Health Management Model Deploy a full spectrum of analytic expertise to better predict health risks and improve health outcomes 52

53 Aligning Our Local Platforms for Continued Success Modest investments Conservative approach to assessing and developing new opportunities Strong Local Partners Collaboration with local expertise to navigate foreign political & market dynamics Experienced Local Management Team Strong leadership and management experience to enact strategic vision and work through local process 53

54 Session Q & A

55 SSID: Centene Corporation 2015 Investor Day December 18, 2015 Password: welcome2015 Break

56 Medical Affairs Ken Yamaguchi, MD EVP, Chief Medical Officer Medical Strategies

57 Why Managed Care, Why Centene? 57

58 We are firm believers that when it comes to a medical decision, the highest quality choice is also the most cost effective... Michael Neidorff, Chairman, President & CEO 58

59 Every physician at Centene must be practicing clinical medicine..they must be connected to patient care and empathetic to the needs of providers and members.. 59

60 Proven Methodology Proven methods for addressing a wide range of healthcare concerns: Adaptable to diverse populations and disease states Successful clinical program framework Innovative applications of Centene tools Predictive modeling Goal: Disease Prevention / Episode Limitation Cost of disease avoidance trumps cost of disease treatment Especially with respect to avoiding adverse outcomes 60

61 Medical Management Principles Leveraged Technology Quality Care Strong Partners w/ Community Resources Member Engagement Balanced approach w/ Providers High-Touch with Members Better Health Outcomes, Lower Costs Evidence- Based Medicine Holistic, Integrated Approach 61

62 Guidelines Assure We Are True to Principles High Touch with Members Emphasize Mission! Holistic Approach Evolving training program Quality Care Dedication to improved HEDIS scores and STARS measures Provider Assistance Evidence-based Medicine Protocol Reviews Robust Analytic Structure Bioinformatics Community Partnership Member Connections program Support Community Outreach Leveraged Technology Maintain patient privacy and security through HIPAA Compliance Integrated technology platforms for membercentric care planning Collaborative Care Actively hire practicing physicians Partnerships with providers to improve health outcomes 62

63 Integrated Care Management Member-centric One primary care manager Increase impact Decrease variation Member input Whole-person Clinical, behavioral, social Unified member management platform Provider transparency Impact-driven Data driven Better outcomes Measureable & Improved ROI 63

64 Setting Up a Program for Success Comprehensive approach to combating disease Identification: Centelligence TM Develop Strategy For Results Execution Measuring Outcomes Predictive modeling Innovation Quality gaps Health literacy Evidenced-based guidelines Strong clinical policy Provider partnerships Academic partnerships Case management Disease management 64

65 Medical Program Awards: 2015 Nurtur: Asthma Management Case In Point Platinum Award CelticCare: ICM Case In Point Platinum Award Buckeye Health: Pregnancy Specialty Care Management Case In Point Platinum NurseWise: Nurse call center program Case in Point Platinum Home State Health: ED Diversion Case in Point Platinum Centene: My Care Planner Hermes Platinum Centene: Gunky Bacteria Brothers Hermes Gold Centene: Chrys and Mumms Hermes Gold Centene: No bullying Zone IMPACT Award Centene: No bullying Zone Anti-Bullying Corp Hero Award USMM: Home-based Primary Care MHPA, Best Practice Award, LTSS Buckeye Health: Addiction in Pregnancy Program MHPA, Best Practice Award, Maternal Health 65

66 Future Directions Robust Best-Practice Medical Policies Rigorous, Measurable Study Protocols Big Data - Bioinformatics Strong evidence basis Expert opinion Analytics infrastructure Disciplined protocol oversight Academic partnerships Quality data Organized into useable form 66

67 Long-Term Vision To help develop and broaden Medical Affairs at Centene such that it becomes the industry standard for improving the lives and health of people. 67

68 Organizational Update Michael F. Neidorff, Chairman, President & CEO

69 A Look At: Centene 2.0 PRODUCTS AND SPECIALIZATIONS Focused on growth, strategy and performance across all markets GEOGRAPHIC MARKETS Focused on growth and continuous innovation, with P&L ownership GLOBAL SERVICE SUPPORT Regional Service Centers: transactional services performed regionally, leveraging field expertise Corporate Services: foundational support for the entire enterprise Centers of Excellence: strategic differentiator for compliance across markets, economies of skill, and best practice development 69

70 2.0 Organization Structure 70

71 Health Net Integration Planning Update Cynthia Brinkley, EVP - International Operations & Business Integration

72 Diversified Revenue Stream Before Health Net Acquisition After Health Net Acquisition 1% 2% 11% 3% 8% 8% 4% 83% 16% 64% Medicaid Commercial / Exchanges Specialty / Government Duals Medicare 72

73 Comprehensive Integration Structure Integration Management Office A central body to manage, guide, monitor synergies and support integration teams Coordinated planning and rigorous approach, for prompt execution of integration plans upon close Integration Teams Identify and Accelerate Growth and Cost Savings Opportunities Culture Corp. G&A IT and Back Office Core Operations Product Growth Specialty 73

74 Integration Roadmap Announced July 2, 2015 Shareholder approval received Regulatory Approval CA Department of Insurance hearing set for January 22nd Early termination of Hart-Scott-Rodino waiting period Integration Program State regulatory approvals received from Cayman Islands, TX, NJ, MO and OR Awaiting decision from CA DMHC and AZ regulators Anticipated close of acquisition (early February) Completed Day 1 integration initiatives developed (playbooks) Detailed synergy cost saving initiatives identified Combined operating model & organization structure designed Culture diagnostic assessment with action plans prepared Next Steps CA Department of Insurance hearing set for January 22nd 74

75 Growth and Diversification Jesse Hunter, EVP & Chief Business Development Officer

76 Areas of Focus Market Size Pipeline and Pipeline 2016/2017 Growth 76

77 Market Size by Product JUNE 2015 INVESTOR DAY Medicaid & CHIP Medicare (Duals) Health Insurance Marketplace Correctional Healthcare $612B $234B $104B $9B $959 billion 77

78 Pipeline JUNE 2015 INVESTOR DAY Medicaid & CHIP Medicare (Duals) Health Insurance Marketplace Correctional Healthcare $140 billion 78

79 Market Size by Product Medicaid & CHIP $616B Medicare $728B Health Insurance Marketplace $104B Correctional Healthcare $9B $1.46 trillion Specialty Services Federal Services International 79

80 Pipeline Medicaid & CHIP Medicare Health Insurance Marketplace Correctional Healthcare $205 billion Specialty Services Federal Services International 80

81 Areas of Focus Market Size and Pipeline Growth 2016/2017 Opportunity Growth Categories 81

82 2016 Revenue Growth Drivers INCLUDED IN GUIDANCE Health Net Full Year of LA and OR Acquisitions Full Year of Benefit/ Population Expansions (AZ, IL, IN, LA, MS, TX, WA) Full Year of Centurion (MS) Health Insurance Marketplace Expansions Full Year of MMP (MI, SC, TX) 82

83 Potential 2016 Revenue NOT INCLUDED IN GUIDANCE New Medicaid states New RFPs New Medicaid Expansion states New M&A Opportunities 83

84 Representative Growth Categories Specialty M&A Existing Markets Growth Verticals Medicare Advantage New Markets Managed Care Expansion 84

85 Representative Growth Categories Specialty M&A Existing Markets Growth Verticals Medicare Advantage New Markets Managed Care Expansion 85

86 All Products, All Markets Government Solutions AZ AR CA FL GA IL IN KS LA MA MI MN MS MO NH 1 OH OR SC TN TX VT WA WI TANF Medicaid Expansion CHIP ABD (non-duals) ABD (Medicaid only dual-eligibles ) Dual Demonstrations (including LTSS) Intellectually/Developmentally 23 Disabled Long-Term Services and Supports Foster Care Medicare Special Needs Plan Health Insurance Marketplaces Correctional Healthcare Specialty Health Solutions States Int l Markets Solutions Pharmacy Benefits Behavioral & Specialty Therapies Life & Health Management Primary Care Solutions for Complex Pop. Managed Vision Dental Benefits 1 Telehealth (Nurse Triage and Education Line) 1 Waiver HCBS services and nursing facility services are anticipated to go-live January 1, 2016 and July 1, 2016, respectively. 86

87 Existing Markets ARKANSAS The Arkansas Health Reform Legislative Task Force provided a recommendation to implement Managed Care for Special Needs populations Expect possible RFP for a managed care program in Q

88 Existing Markets ARIZONA ALTCS Reprocurement Go-Live November 1, 2017 MISSOURI MO HealthNet Reprocurement Expansion statewide for existing program 88

89 Existing Markets MASSACHUSETTS MassHealth reprocurement 770,000 eligibles LOUISIANA MLTSS RFI issued in 2013 Stakeholder engagement ( ) 70,000 eligibles Medicaid Expansion 89

90 Existing Markets MEDICAID EXPANSION Combined Medicaid Expansion membership: ~1 million members 31 markets including D.C. expanded Medicaid 20 States have not expanded Centene/Health Net Market Expanded Medicaid ~3.9 million individuals could be eligible for Medicaid in Centene markets that have not expanded 90

91 Representative Growth Categories Specialty M&A Existing Markets Growth Verticals Medicare Advantage New Markets Managed Care Expansion 91

92 New Markets PENNSYLVANIA HealthChoices: (Go-Live January 1, 2017) 1.9M members (5 Zones: 3-5 plans per zone) Community HealthChoices: Draft MLTSS/Duals RFP out (Phase 1 Go-live January 1, 2017) 450k members (5 Zones: 2-5 plans per zone) Phased-in over three years 92

93 New Markets NEBRASKA Heritage Health: (Go-Live January 1, 2017) Statewide All populations included; Dental and LTSS carvedout 230k members VIRGINIA MLTSS: (Phased-in Go-Live starting January 1, 2017) Prepared an 1115 Waiver for MLTSS 130k members 93

94 Representative Growth Categories Specialty M&A Existing Markets Growth Verticals Medicare Advantage New Markets Managed Care Expansion 94

95 Managed Care Expansion States ALABAMA Alabama is establishing a capitated managed care system through regional care organizations (RCOs) An RCO is a corporate entity established under state law that is governed by a Board of Directors representing providers, the public, and investors 670,000 eligibles Anticipated go-live: October

96 Managed Care Expansion States NORTH CAROLINA Legislation recently passed mandating full-risk managed care 3 statewide MCOs/Provider Led Entities (PLEs) Up to 10 Regional PLEs All populations except duals Earliest go-live:

97 Managed Care Expansion States OKLAHOMA New ABD Program: Anticipate RFP in June 2016 (Go-Live TBD) Statewide program covering 175k members (MLTSS carved-in two years later) 97

98 Representative Growth Categories Specialty M&A Existing Markets Growth Verticals Medicare Advantage New Markets Managed Care Expansion 98

99 Medicare Advantage Intend to introduce Medicare Advantage plans in three existing markets Targeting low-income MA enrollees (less than 400% FPL) Leverage Centene local approach Leverage Health Net value based contracting model 99

100 Representative Growth Categories Specialty M&A Existing Markets Growth Verticals Medicare Advantage New Markets Managed Care Expansion 100

101 M&A Strategic Objectives CONSISTENT CRITERIA & FINANCIAL DISCIPLINE Capability M&A targets that add capabilities for existing service offerings Scale Add scale to existing operations and increase our Medicare Advantage footprint Value Creation Generating appropriate returns on our investments for our shareholders 101

102 Representative Growth Categories Specialty M&A Existing Markets Growth Verticals Medicare Advantage New Markets Managed Care Expansion 102

103 Envolve Sample Clients Health Plan management services for Medicaid beneficiaries in NY A medication adherence program for a weekly injectable therapy for on-label high risk pregnancies Management services for Alabama Healthcare Advantage s government sponsored business 103

104 Growth Outlook Centene will continue to be a growth company Additional Health Net capabilities Medicare Advantage Federal Services Health Net increases addressable markets by ~$500B and pipeline by $65B Significant additional growth opportunities in 2016 and

105 Session Q & A

106 SSID: Centene Corporation 2015 Investor Day December 18, 2015 Password: welcome2015 Thank You!