Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 17, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | CENTENE CORP | |
Entity Central Index Key | 1071739 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 118,914,646 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,666 | $1,610 |
Premium and related receivables | 1,245 | 912 |
Short term investments | 151 | 177 |
Other current assets | 528 | 335 |
Total current assets | 3,590 | 3,034 |
Long term investments | 1,527 | 1,280 |
Restricted deposits | 98 | 100 |
Property, software and equipment, net | 450 | 445 |
Goodwill | 786 | 754 |
Intangible assets, net | 131 | 120 |
Other long term assets | 114 | 91 |
Total assets | 6,696 | 5,824 |
Current liabilities: | ||
Medical claims liability | 1,950 | 1,723 |
Accounts payable and accrued expenses | 1,002 | 768 |
Return of premium payable | 269 | 236 |
Unearned revenue | 117 | 168 |
Current portion of long term debt | 5 | 5 |
Total current liabilities | 3,343 | 2,900 |
Long term debt | 1,123 | 874 |
Other long term liabilities | 238 | 159 |
Total liabilities | 4,704 | 3,933 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 155 | 148 |
Stockholders' equity: | ||
Preferred stock, $0.001 par value; authorized 10,000,000 shares; no shares issued or outstanding at March 31, 2015 and December 31, 2014 | 0 | 0 |
Common stock, $.001 par value; authorized 200,000,000 shares; 124,562,959 issued and 118,886,912 outstanding at March 31, 2015, and 124,274,864 issued and 118,433,416 outstanding at December 31, 2014 | 0 | 0 |
Additional paid-in capital | 870 | 840 |
Accumulated other comprehensive loss | -1 | -1 |
Retained earnings | 1,066 | 1,003 |
Treasury stock, at cost (5,676,047 and 5,841,448 shares, respectively) | -98 | -98 |
Total Centene stockholders' equity | 1,837 | 1,744 |
Noncontrolling interest | 0 | -1 |
Total stockholders' equity | 1,837 | 1,743 |
Total liabilities and stockholders' equity | $6,696 | $5,824 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Stockholders' equity | ||
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 124,562,959 | 124,274,864 |
Common stock, shares outstanding (in shares) | 118,886,912 | 118,433,416 |
Treasury stock, at cost (in shares) | 5,676,047 | 5,841,448 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Premium | $4,299 | $3,071 |
Service | 462 | 281 |
Premium and service revenues | 4,761 | 3,352 |
Premium tax and health insurer fee | 370 | 108 |
Total revenues | 5,131 | 3,460 |
Expenses: | ||
Medical costs | 3,861 | 2,743 |
Cost of services | 402 | 242 |
General and administrative expenses | 403 | 296 |
Premium tax expense | 281 | 78 |
Health insurer fee expense | 55 | 31 |
Total operating expenses | 5,002 | 3,390 |
Earnings from operations | 129 | 70 |
Other income (expense): | ||
Investment and other income | 9 | 5 |
Interest expense | -10 | -7 |
Earnings from continuing operations, before income tax expense | 128 | 68 |
Income tax expense | 63 | 35 |
Earnings from continuing operations, net of income tax expense | 65 | 33 |
Discontinued operations, net of income tax expense of $0 and $0, respectively | -1 | -1 |
Net earnings | 64 | 32 |
(Earnings) loss attributable to noncontrolling interests | -1 | 1 |
Net earnings attributable to Centene Corporation | 63 | 33 |
Earnings from continuing operations, net of income tax expense, attributable to Centene Corporation | $64 | $34 |
Basic [Abstract] | ||
Continuing operations | $0.54 | $0.30 |
Discontinued operations | ($0.01) | ($0.01) |
Basic earnings per common share | $0.53 | $0.29 |
Diluted [Abstract] | ||
Continuing operations | $0.52 | $0.29 |
Discontinued operations | ($0.01) | ($0.01) |
Diluted earnings per common share | $0.51 | $0.28 |
Weighted Average Number of Common Shares Outstanding | ||
Basic | 118,783,755 | 114,967,752 |
Diluted | 122,572,366 | 118,722,532 |
Consolidated_Statements_Of_Ope1
Consolidated Statements Of Operations Consolidated Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidated Statements of Operations [Abstract] | ||
Discontinued Operation, Tax Effect of Discontinued Operation | $0 | ($8) |
Consolidated_Statement_Of_Comp
Consolidated Statement Of Comprehensive Earnings (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $64 | $32 |
Change in unrealized gain on investments, net of tax | 5 | 2 |
Foreign currency translation adjustments | -5 | 0 |
Other comprehensive earnings | 0 | 2 |
Comprehensive earnings | 64 | 34 |
Comprehensive (earnings) loss attributable to noncontrolling interests | -1 | 1 |
Comprehensive earnings attributable to Centene Corporation | $63 | $35 |
Consolidated_Statement_Of_Stoc
Consolidated Statement Of Stockholders' Equity (USD $) | Total | Centene Stockholders' Equity - Common Stock [Member] | Centene Stockholders' Equity - Additional Paid-In Capital [Member] | Centene Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) [Member] | Centene Stockholders' Equity - Retained Earnings [Member] | Centene Stockholders' Equity - Treasury Stock [Member] | Non Controlling Interest [Member] |
In Millions, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2014 | $1,743 | $0 | $840 | ($1) | $1,003 | ($98) | ($1) |
Balance (in shares) at Dec. 31, 2014 | 118,433,416 | 124,274,864 | 5,841,448 | ||||
Net earnings | 64 | 63 | |||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 63 | 0 | |||||
Comprehensive Earnings: | |||||||
Change in unrealized investment loss, net of $3 tax | 5 | 5 | |||||
Foreign currency translation | -5 | -5 | |||||
Total comprehensive earnings | 63 | ||||||
Common stock issued for acquisition | 13 | 0 | 9 | 4 | |||
Common stock issued for acquisition (in shares) | 0 | -247,580 | |||||
Common stock issued for employee benefit plans | 2 | 0 | 2 | ||||
Common stock issued for employee benefit plans (in shares) | 288,095 | ||||||
Common stock repurchases | -4 | -4 | |||||
Common stock repurchases (in shares) | 82,179 | ||||||
Stock compensation expense | 16 | 16 | |||||
Excess tax benefits from stock compensation | 3 | 3 | |||||
Reclassification to redeemable noncontrolling interest | 1 | 1 | |||||
Balance at Mar. 31, 2015 | $1,837 | $0 | $870 | ($1) | $1,066 | ($98) | $0 |
Balance (in shares) at Mar. 31, 2015 | 118,886,912 | 124,562,959 | 5,676,047 |
Consolidated_Statement_Of_Stoc1
Consolidated Statement Of Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Consolidated Statement of Stockholders' Equity (Parenthetical) [Abstract] | |
Tax on unrealized investment (loss) gain | $3 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net earnings | $64 | $32 |
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 27 | 20 |
Stock compensation expense | 16 | 11 |
Deferred income taxes | -6 | -8 |
Gain on settlement of contingent consideration | -10 | 0 |
Changes in assets and liabilities | ||
Premium and related receivables | -334 | -119 |
Other current assets | -3 | 3 |
Other assets | -13 | -14 |
Medical claims liabilites | 227 | 196 |
Unearned revenue | -51 | 35 |
Accounts payable and accrued expenses | 58 | 91 |
Other long term liabilities | 68 | 4 |
Other operating activities | 2 | 1 |
Net cash provided by operating activities | 45 | 252 |
Cash flows from investing activities: | ||
Capital expenditures | -27 | -18 |
Purchases of investments | -307 | -167 |
Sales and maturities of investments | 111 | 112 |
Proceeds from Sale of Other Assets, Investing Activities | 7 | 0 |
Investments in acquisitions, net of cash acquired | -9 | -77 |
Net cash used in investing activities | -225 | -150 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 2 | 2 |
Proceeds from borrowings | 500 | 645 |
Payment of long term debt | -253 | -519 |
Excess tax benefits from stock compensation | 3 | 0 |
Common stock repurchases | -4 | -2 |
Contribution from noncontrolling interest | 0 | 5 |
Debt issue costs | -4 | 0 |
Payment of contingent consideration obligation | -8 | 0 |
Net cash provided by financing activities | 236 | 131 |
Net increase in cash and cash equivalents | 56 | 233 |
Cash and cash equivalents, beginning of period | 1,610 | 1,038 |
Cash and cash equivalents, end of period | 1,666 | 1,271 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 2 | 2 |
Income taxes paid | 24 | 21 |
Equity issued in connection with acquisition | $13 | $132 |
Basis_Of_Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation |
Basis of Presentation | |
The accompanying interim financial statements have been prepared under the presumption that users of the interim financial information have either read or have access to the audited financial statements included in the Form 10-K for the fiscal year ended December 31, 2014. The unaudited interim financial statements herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, footnote disclosures which would substantially duplicate the disclosures contained in the December 31, 2014 audited financial statements have been omitted from these interim financial statements where appropriate. In the opinion of management, these financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of the interim periods presented. | |
Certain 2014 amounts in the notes to the consolidated financial statements have been reclassified to conform to the 2015 presentation. These reclassifications have no effect on net earnings or stockholders’ equity as previously reported. | |
On February 2, 2015, the Board of Directors declared a two-for-one split of Centene's common stock in the form of a 100% stock dividend distributed February 19, 2015 to stockholders of record on February 12, 2015. All share and per share information presented in this Form 10-Q has been adjusted for the two-for-one stock split. | |
Recently Adopted Accounting Pronouncement | |
In April 2015, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update which changes the presentation of debt issuance costs in financial statements. Under the new standard, debt issuance costs are presented in the balance sheet as a direct deduction of the related debt liability rather than as an asset. Amortization of the cost is reported as interest expense. The new standard is effective for annual and interim periods beginning after December 15, 2015 and early adoption is permitted. The Company has elected to adopt this guidance in the current fiscal quarter and applied the new standard retrospectively to all prior periods. The reclassification of debt issuance costs impacted the Consolidated Balance Sheets by decreasing both Other Long Term Assets and Long Term Debt by $14 million at December 31, 2014 and $17 million at March 31, 2015. These reclassifications have no effect on net earnings or stockholders' equity as previously reported. |
Acquisition_Acquisition_Notes
Acquisition Acquisition (Notes) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Business Combinations [Abstract] | ||||
Acquisition | Acquisitions and Redeemable Noncontrolling Interest | |||
Acquisitions | ||||
Community Health Solutions of America, Inc. | ||||
In July 2014, the Company completed a transaction whereby Community Health Solutions of America, Inc. assigned its contract with the Louisiana Department of Health and Hospitals under the Bayou Health Shared Savings Program to the Company's subsidiary, Louisiana Healthcare Connections (LHC). The fair value of consideration transferred included the present value of the estimated contingent consideration, subject to membership retained by LHC in the first quarter of 2015. The fair value of contingent consideration was $18 million at December 31, 2014. During the three months ended March 31, 2015, the Company determined the amount of the actual contingent consideration to be $8 million. A gain of $10 million related to the settlement of the obligation was recorded in General and Administrative expense. | ||||
LiveHealthier, Inc. | ||||
In January 2015, the Company acquired the remaining 79% of LiveHealthier, Inc. (LiveHealthier) for $28 million, bringing its total ownership to 100%. LiveHealthier is a provider of technology and service-based health management solutions. The fair value of consideration of $28 million consists of cash paid of $11 million, Centene common stock issued at closing of $13 million, and the present value of contingent consideration of $4 million to be paid in cash over a three year period. The contingent consideration will not exceed $9 million. | ||||
The Company's preliminary allocation of fair value resulted in goodwill of $29 million and other identifiable intangible assets of $16 million. The Company has not finalized the allocation of the fair value of assets and liabilities. The goodwill is not deductible for income tax purposes. The acquisition is recorded in the Managed Care segment. | ||||
Redeemable Noncontrolling Interest | ||||
In January 2015, the Company sold 25% of its ownership in Celtic Insurance Company for $7 million. No gain or loss was recognized on the sale of the ownership interest. Celtic Insurance Company is included in the Managed Care segment. In connection with the sale of the ownership interest, the Company entered into a put agreement with the noncontrolling interest holder, allowing the noncontrolling interest holder to put its interest back to the Company beginning in 2022. As a result of put option agreements, noncontrolling interest is considered redeemable and is classified in the Redeemable Noncontrolling Interest section of the consolidated balance sheets. | ||||
A reconciliation of the changes in the Redeemable Noncontrolling Interests is as follows ($ in millions): | ||||
Balance, December 31, 2014 | $ | 148 | ||
Fair value of redeemable noncontrolling interest sold | 7 | |||
Reclassification to redeemable noncontrolling interest | (1 | ) | ||
Net earnings attributable to redeemable noncontrolling interests | 1 | |||
Balance, March 31, 2015 | $ | 155 | ||
ShortTerm_And_LongTerm_Investm
Short-Term And Long-Term Investments And Restricted Deposits | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||
Short-Term And Long-Term Investments And Restricted Deposits | Short term and Long term Investments, Restricted Deposits | |||||||||||||||||||||||||||||||
Short term and long term investments and restricted deposits by investment type consist of the following ($ in millions): | ||||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized Losses | Value | Cost | Unrealized | Unrealized Losses | Value | |||||||||||||||||||||||||
Gains | Gains | |||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 451 | $ | 2 | $ | (1 | ) | $ | 452 | $ | 393 | $ | 1 | $ | (2 | ) | $ | 392 | ||||||||||||||
Corporate securities | 618 | 4 | (1 | ) | 621 | 556 | 2 | (2 | ) | 556 | ||||||||||||||||||||||
Restricted certificates of deposit | 6 | — | — | 6 | 6 | — | — | 6 | ||||||||||||||||||||||||
Restricted cash equivalents | 77 | — | — | 77 | 79 | — | — | 79 | ||||||||||||||||||||||||
Municipal securities: | ||||||||||||||||||||||||||||||||
General obligation | 97 | 1 | — | 98 | 54 | — | — | 54 | ||||||||||||||||||||||||
Pre-refunded | 4 | — | — | 4 | 5 | — | — | 5 | ||||||||||||||||||||||||
Revenue | 158 | — | — | 158 | 101 | 1 | — | 102 | ||||||||||||||||||||||||
Variable rate demand notes | 27 | — | — | 27 | 14 | — | — | 14 | ||||||||||||||||||||||||
Asset backed securities | 170 | — | — | 170 | 180 | — | — | 180 | ||||||||||||||||||||||||
Mortgage backed securities | 81 | 2 | — | 83 | 84 | 1 | — | 85 | ||||||||||||||||||||||||
Cost and equity method investments | 64 | — | — | 64 | 68 | — | — | 68 | ||||||||||||||||||||||||
Life insurance contracts | 16 | — | — | 16 | 16 | — | — | 16 | ||||||||||||||||||||||||
Total | $ | 1,769 | $ | 9 | $ | (2 | ) | $ | 1,776 | $ | 1,556 | $ | 5 | $ | (4 | ) | $ | 1,557 | ||||||||||||||
The Company’s investments are classified as available-for-sale with the exception of life insurance contracts and certain cost and equity method investments. The Company’s investment policies are designed to provide liquidity, preserve capital and maximize total return on invested assets with the focus on high credit quality securities. The Company limits the size of investment in any single issuer other than U.S. treasury securities and obligations of U.S. government corporations and agencies. The Company's mortgage backed securities are issued by the Federal National Mortgage Association and carry guarantees by the U.S. government. As of March 31, 2015, 47% of the Company’s investments in securities recorded at fair value that carry a rating by S&P or Moody’s were rated AAA/Aaa, 66% were rated AA-/Aa3 or higher, and 91% were rated A-/A3 or higher. At March 31, 2015, the Company held certificates of deposit, life insurance contracts and cost and equity method investments which did not carry a credit rating. | ||||||||||||||||||||||||||||||||
The fair value of available-for-sale investments with gross unrealized losses by investment type and length of time that individual securities have been in a continuous unrealized loss position were as follows ($ in millions): | ||||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Less Than 12 Months | 12 Months or More | |||||||||||||||||||||||||||||
Unrealized Losses | Fair | Unrealized Losses | Fair | Unrealized Losses | Fair | Unrealized Losses | Fair | |||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | (1 | ) | $ | 80 | $ | — | $ | 16 | $ | — | $ | 72 | $ | (2 | ) | $ | 180 | ||||||||||||||
Corporate securities | (1 | ) | 185 | — | 1 | (2 | ) | 311 | — | 1 | ||||||||||||||||||||||
Municipal securities: | ||||||||||||||||||||||||||||||||
General obligation | — | 22 | — | 4 | — | 4 | — | 3 | ||||||||||||||||||||||||
Revenue | — | 72 | — | 3 | — | 16 | — | 3 | ||||||||||||||||||||||||
Pre-refunded | — | — | — | — | — | — | — | 1 | ||||||||||||||||||||||||
Asset backed securities | — | 40 | — | 10 | — | 70 | — | 10 | ||||||||||||||||||||||||
Mortgage backed securities | — | — | — | — | — | 18 | — | — | ||||||||||||||||||||||||
Total | $ | (2 | ) | $ | 399 | $ | — | $ | 34 | $ | (2 | ) | $ | 491 | $ | (2 | ) | $ | 198 | |||||||||||||
As of March 31, 2015, the gross unrealized losses were generated from 90 positions out of a total of 363 positions. The change in fair value of fixed income securities is a result of movement in interest rates subsequent to the purchase of the security. | ||||||||||||||||||||||||||||||||
For each security in an unrealized loss position, the Company assesses whether it intends to sell the security or if it is more likely than not the Company will be required to sell the security before recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If the security meets this criterion, the decline in fair value is other-than-temporary and is recorded in earnings. The Company does not intend to sell these securities prior to maturity and it is not likely that the Company will be required to sell these securities prior to maturity; therefore, there is no indication of other-than-temporary impairment for these securities. | ||||||||||||||||||||||||||||||||
During the quarter ended March 31, 2015, the company recognized $1 million of income from equity method investments. | ||||||||||||||||||||||||||||||||
The contractual maturities of short term and long term investments and restricted deposits are as follows ($ in millions): | ||||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||
Investments | Restricted Deposits | Investments | Restricted Deposits | |||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||||||||
One year or less | $ | 151 | $ | 151 | $ | 90 | $ | 90 | $ | 176 | $ | 177 | $ | 92 | $ | 92 | ||||||||||||||||
One year through five years | 1,316 | 1,322 | 8 | 8 | 1,121 | 1,121 | 8 | 8 | ||||||||||||||||||||||||
Five years through ten years | 120 | 120 | — | — | 121 | 120 | — | — | ||||||||||||||||||||||||
Greater than ten years | 84 | 85 | — | — | 38 | 39 | — | — | ||||||||||||||||||||||||
Total | $ | 1,671 | $ | 1,678 | $ | 98 | $ | 98 | $ | 1,456 | $ | 1,457 | $ | 100 | $ | 100 | ||||||||||||||||
Actual maturities may differ from contractual maturities due to call or prepayment options. Asset backed and mortgage backed securities are included in the one year through five years category, while cost and equity method investments and life insurance contracts are included in the five years through ten years category. The Company has an option to redeem at amortized cost substantially all of the securities included in the greater than ten years category listed above. | ||||||||||||||||||||||||||||||||
The Company continuously monitors investments for other-than-temporary impairment. Certain investments have experienced a decline in fair value due to changes in credit quality, market interest rates and/or general economic conditions. The Company recognizes an impairment loss for cost and equity method investments when evidence demonstrates that it is other-than-temporarily impaired. Evidence of a loss in value that is other-than-temporary may include the absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain a level of earnings that would justify the carrying amount of the investment. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||
Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon observable or unobservable inputs used to estimate fair value. Level inputs are as follows: | ||||||||||||||||
Level Input: | Input Definition: | |||||||||||||||
Level I | Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. | |||||||||||||||
Level II | Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date. | |||||||||||||||
Level III | Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. | |||||||||||||||
The following table summarizes fair value measurements by level at March 31, 2015, for assets and liabilities measured at fair value on a recurring basis ($ in millions): | ||||||||||||||||
Level I | Level II | Level III | Total | |||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 1,666 | $ | — | $ | — | $ | 1,666 | ||||||||
Investments available for sale: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 434 | $ | 3 | $ | — | $ | 437 | ||||||||
Corporate securities | — | 621 | — | 621 | ||||||||||||
Municipal securities: | ||||||||||||||||
General obligation | — | 98 | — | 98 | ||||||||||||
Pre-refunded | — | 4 | — | 4 | ||||||||||||
Revenue | — | 158 | — | 158 | ||||||||||||
Variable rate demand notes | — | 27 | — | 27 | ||||||||||||
Asset backed securities | — | 170 | — | 170 | ||||||||||||
Mortgage backed securities | — | 83 | — | 83 | ||||||||||||
Total investments | $ | 434 | $ | 1,164 | $ | — | $ | 1,598 | ||||||||
Restricted deposits available for sale: | ||||||||||||||||
Cash and cash equivalents | $ | 77 | $ | — | $ | — | $ | 77 | ||||||||
Certificates of deposit | 6 | — | — | 6 | ||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | 15 | — | — | 15 | ||||||||||||
Total restricted deposits | $ | 98 | $ | — | $ | — | $ | 98 | ||||||||
Other long term assets: Interest rate swap agreements | $ | — | $ | 16 | $ | — | $ | 16 | ||||||||
Total assets at fair value | $ | 2,198 | $ | 1,180 | $ | — | $ | 3,378 | ||||||||
Liabilities | ||||||||||||||||
Other long term liabilities: | $ | — | $ | 2 | $ | — | $ | 2 | ||||||||
Interest rate swap agreements | ||||||||||||||||
Total liabilities at fair value | $ | — | $ | 2 | $ | — | $ | 2 | ||||||||
The following table summarizes fair value measurements by level at December 31, 2014, for assets and liabilities measured at fair value on a recurring basis ($ in millions): | ||||||||||||||||
Level I | Level II | Level III | Total | |||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 1,610 | $ | — | $ | — | $ | 1,610 | ||||||||
Investments available for sale: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 360 | $ | 17 | $ | — | $ | 377 | ||||||||
Corporate securities | — | 556 | — | 556 | ||||||||||||
Municipal securities: | ||||||||||||||||
General obligation | — | 54 | — | 54 | ||||||||||||
Pre-refunded | — | 5 | — | 5 | ||||||||||||
Revenue | — | 102 | — | 102 | ||||||||||||
Variable rate demand notes | — | 14 | — | 14 | ||||||||||||
Asset backed securities | — | 180 | — | 180 | ||||||||||||
Mortgage backed securities | — | 85 | — | 85 | ||||||||||||
Total investments | $ | 360 | $ | 1,013 | $ | — | $ | 1,373 | ||||||||
Restricted deposits available for sale: | ||||||||||||||||
Cash and cash equivalents | $ | 79 | $ | — | $ | — | $ | 79 | ||||||||
Certificates of deposit | 6 | — | — | 6 | ||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | 15 | — | — | 15 | ||||||||||||
Total restricted deposits | $ | 100 | $ | — | $ | — | $ | 100 | ||||||||
Other long term assets: Interest rate swap agreements | $ | — | $ | 11 | $ | — | $ | 11 | ||||||||
Total assets at fair value | $ | 2,070 | $ | 1,024 | $ | — | $ | 3,094 | ||||||||
The Company periodically transfers U.S. Treasury securities and obligations of U.S. government corporations and agencies between Level I and Level II fair value measurements dependent upon the level of trading activity for the specific securities at the measurement date. The Company’s policy regarding the timing of transfers between Level I and Level II is to measure and record the transfers at the end of the reporting period. At March 31, 2015, there were less than $1 million of transfers from Level I to Level II and $14 million of transfers from Level II to Level I. The Company utilizes matrix pricing services to estimate fair value for securities which are not actively traded on the measurement date. The Company designates these securities as Level II fair value measurements. The aggregate carrying amount of the Company’s life insurance contracts and other non-majority owned investments, which approximates fair value, was $80 million and $84 million as of March 31, 2015 and December 31, 2014, respectively. |
Health_Insurance_Marketplace_H
Health Insurance Marketplace Health Insurance Marketplace | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Health Insurance Marketplace [Abstract] | ||||||||
Health Insurance Marketplace Disclosure | Health Insurance Marketplace | |||||||
The Affordable Care Act (ACA) established risk spreading premium stabilization programs effective January 1, 2014 for the Health Insurance Marketplace product. These programs, commonly referred to as the “three Rs,” include a permanent risk adjustment program, a transitional reinsurance program, and a temporary risk corridor program. Additionally, the ACA established a minimum annual medical loss ratio for the Health Insurance Marketplace. Each of the three R programs are taken into consideration to determine if the Company’s estimated annual medical costs are less than the minimum loss ratio and require an adjustment to Premium revenue to meet the minimum medical loss ratio. | ||||||||
The Company's receivables (payables) for each of these programs are as follows ($ in millions): | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Risk adjustment | $ | (72 | ) | $ | (44 | ) | ||
Reinsurance | 15 | 11 | ||||||
Risk corridor | (23 | ) | (9 | ) | ||||
Minimum medical loss ratio | (16 | ) | (6 | ) |
Debt
Debt | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | Debt | |||||||
Debt consists of the following ($ in millions): | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
$425 million 5.75% Senior notes, due June 1, 2017 | $ | 429 | $ | 429 | ||||
$500 million 4.75% Senior notes, due May 15, 2022 | 500 | 300 | ||||||
Fair value of interest rate swap agreements | 14 | 11 | ||||||
Senior notes | 943 | 740 | ||||||
Revolving credit agreement | 125 | 75 | ||||||
Mortgage notes payable | 69 | 70 | ||||||
Capital leases | 8 | 8 | ||||||
Debt issuance costs | (17 | ) | (14 | ) | ||||
Total debt | 1,128 | 879 | ||||||
Less current portion | (5 | ) | (5 | ) | ||||
Long term debt | $ | 1,123 | $ | 874 | ||||
Senior Notes | ||||||||
In January 2015, the Company issued an additional $200 million of 4.75% Senior Notes ($200 Million Add-on Notes) at par. The $200 million Add-on Notes were offered as additional debt securities under the indenture governing the $300 Million of 4.75% Senior Notes issued in April 2014. In connection with the January 2015 issuance, the Company entered into interest rate swap agreements for a notional amount of $200 million at a floating rate of interest based on the three month LIBOR plus 2.88%. Gains and losses due to changes in the fair value of the interest rate swap completely offset changes in the fair value of the hedged portion of the underlying debt and are recorded as an adjustment to the $200 Million Add-on Notes. | ||||||||
The indentures governing both the $425 million notes due 2017 and the $500 million notes due 2022 contain non-financial and financial covenants, including requirements of a minimum fixed charge coverage ratio. | ||||||||
Interest Rate Swaps | ||||||||
The Company uses interest rate swap agreements to convert a portion of its interest rate exposure from fixed rates to floating rates to more closely align interest expense with interest income received on its cash equivalent and variable rate investment balances. The Company has $750 million of notional amount of interest rate swap agreements consisting of $250 million which are scheduled to expire on June 1, 2017 and $500 million that are scheduled to expire May 15, 2022. Under the Swap Agreements, the Company receives a fixed rate of interest and pays an average variable rate of the three month LIBOR plus 2.85% adjusted quarterly. At March 31, 2015, the weighted average rate was 3.10%. | ||||||||
The Swap Agreements are formally designated and qualify as fair value hedges and are recorded at fair value in the Consolidated Balance Sheet in other assets or other liabilities. Gains and losses due to changes in fair value of the interest rate swap agreements completely offset changes in the fair value of the hedged portion of the underlying debt. Therefore, no gain or loss has been recognized due to hedge ineffectiveness. Offsetting changes in fair value of both the interest rate swaps and the hedged portion of the underlying debt both were recognized in interest expense in the Consolidated Statement of Operations. The Company does not hold or issue any derivative instrument for trading or speculative purposes. | ||||||||
Revolving Credit Agreement | ||||||||
The Company has an unsecured $500 million revolving credit facility. Borrowings under the agreement bear interest based upon LIBOR rates, the Federal Funds Rate or the Prime Rate. The agreement has a maturity date of June 1, 2018, provided it will mature 90 days prior to the maturity date of the Company's 5.75% Senior Notes due 2017 if such notes are not refinanced (or extended), certain financial conditions are not met, or the Company does not carry $100 million of unrestricted cash. As of March 31, 2015, the Company had $125 million of borrowings outstanding under the agreement with a weighted average interest rate of 2.51%. | ||||||||
The agreement contains non-financial and financial covenants, including requirements of minimum fixed charge coverage ratios, maximum debt-to-EBITDA ratios and minimum tangible net worth. The Company is required to not exceed a maximum debt-to-EBITDA ratio of 3.0 to 1.0. As of March 31, 2015, there were no limitations on the availability under the revolving credit agreement as a result of the debt-to-EBITDA ratio. | ||||||||
Letters of Credit & Surety Bonds | ||||||||
The Company had outstanding letters of credit of $30 million as of March 31, 2015, which were not part of the revolving credit facility. The Company also had letters of credit for $52 million (valued at March 31, 2015 conversion rate), or €48 million, representing its proportional share of the letters of credit issued to support Ribera Salud’s outstanding debt which are a part of the revolving credit facility. Collectively, the letters of credit bore interest at 1.73% as of March 31, 2015. The Company had outstanding surety bonds of $196 million as of March 31, 2015. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings (Loss) Per Share | Earnings Per Share | |||||||
The following table sets forth the calculation of basic and diluted net earnings per common share ($ in millions, except per share data): | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Earnings attributable to Centene Corporation: | ||||||||
Earnings from continuing operations, net of tax | $ | 64 | $ | 34 | ||||
Discontinued operations, net of tax | (1 | ) | (1 | ) | ||||
Net earnings | $ | 63 | $ | 33 | ||||
Shares used in computing per share amounts: | ||||||||
Weighted average number of common shares outstanding | 118,783,755 | 114,967,752 | ||||||
Common stock equivalents (as determined by applying the treasury stock method) | 3,788,611 | 3,754,780 | ||||||
Weighted average number of common shares and potential dilutive common shares outstanding | 122,572,366 | 118,722,532 | ||||||
Net earnings (loss) per common share attributable to Centene Corporation: | ||||||||
Basic: | ||||||||
Continuing operations | $ | 0.54 | $ | 0.3 | ||||
Discontinued operations | (0.01 | ) | (0.01 | ) | ||||
Basic earnings per common share | $ | 0.53 | $ | 0.29 | ||||
Diluted: | ||||||||
Continuing operations | $ | 0.52 | $ | 0.29 | ||||
Discontinued operations | (0.01 | ) | (0.01 | ) | ||||
Diluted earnings per common share | $ | 0.51 | $ | 0.28 | ||||
The calculation of diluted earnings per common share for the three months ended March 31, 2015 and 2014 excludes the impact of 26,376 shares and 45,912 shares, respectively, related to anti-dilutive stock options, restricted stock and restricted stock units. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | Segment Information | |||||||||||||||
Centene operates in two segments: Managed Care and Specialty Services. The Managed Care segment consists of Centene’s health plans including all of the functions needed to operate them. The Specialty Services segment consists of Centene’s specialty companies offering auxiliary healthcare services and products. | ||||||||||||||||
Segment information for the three months ended March 31, 2015, follows ($ in millions): | ||||||||||||||||
Managed Care | Specialty | Eliminations | Consolidated | |||||||||||||
Services | Total | |||||||||||||||
Premium and service revenues from external customers | $ | 4,243 | $ | 518 | $ | — | $ | 4,761 | ||||||||
Premium and service revenues from internal customers | 24 | 1,075 | (1,099 | ) | — | |||||||||||
Total premium and service revenues | $ | 4,267 | $ | 1,593 | $ | (1,099 | ) | $ | 4,761 | |||||||
Earnings from operations | $ | 95 | $ | 34 | $ | — | $ | 129 | ||||||||
Segment information for the three months ended March 31, 2014, follows ($ in millions): | ||||||||||||||||
Managed Care | Specialty | Eliminations | Consolidated | |||||||||||||
Services | Total | |||||||||||||||
Premium and service revenues from external customers | $ | 2,970 | $ | 382 | $ | — | $ | 3,352 | ||||||||
Premium and service revenues from internal customers | 13 | 639 | (652 | ) | — | |||||||||||
Total premium and service revenues | $ | 2,983 | $ | 1,021 | $ | (652 | ) | $ | 3,352 | |||||||
Earnings from operations | $ | 44 | $ | 26 | $ | — | $ | 70 | ||||||||
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies |
On July 5, 2013, the Company's subsidiary, Kentucky Spirit Health Plan, Inc. (Kentucky Spirit), terminated its contract with the Commonwealth of Kentucky (the Commonwealth). Kentucky Spirit believes it had a contractual right to terminate the contract and filed a lawsuit in Franklin Circuit Court seeking a declaration of this right. The Commonwealth has alleged that Kentucky Spirit's exit constitutes a material breach of contract. The Commonwealth seeks to recover substantial damages and to enforce its rights under Kentucky Spirit's $25 million performance bond. The Commonwealth's attorneys have asserted that the Commonwealth's expenditures due to Kentucky Spirit's departure range from $28 million to $40 million plus interest, and that the associated CMS expenditures range from $92 million to $134 million. Kentucky Spirit disputes the Commonwealth's alleged damages, and is pursuing its own litigation claims for damages against the Commonwealth. | |
On February 6, 2015, the Kentucky Court of Appeals affirmed a Franklin Circuit Court ruling that Kentucky Spirit does not have a contractual right to terminate the contract early. The Court of Appeals also found that the contract’s liquidated damages provision “is applicable in the event of a premature termination of the Contract term.” Kentucky Spirit intends to seek Kentucky Supreme Court review of the finding that its departure constituted a breach of contract. The Commonwealth may seek review of the ruling that the liquidated damages provision is applicable in the event of a premature termination. | |
Kentucky Spirit also filed a lawsuit in April 2013, amended in October 2014, in Franklin Circuit Court seeking damages against the Commonwealth for losses sustained due to the Commonwealth's alleged breaches. On December 9, 2014, the Franklin Circuit Court denied the Commonwealth's motion for partial summary judgment on Kentucky Spirit's damages claims. On March 15, 2015, the Franklin Circuit Court denied the Commonwealth's motion to stay discovery and ordered that discovery proceed on those claims. | |
On March 9, 2015, the Secretary of the Kentucky Cabinet for Health and Family Services (CHFS) issued a determination letter finding that Kentucky Spirit owed the Commonwealth $40 million in actual damages plus prejudgment interest at 8 percent. On March 18, 2015, in a letter to the Kentucky Finance and Administration Cabinet, Kentucky Spirit contested CHFS' jurisdiction to make such a determination. Depending on the response from the Finance and Administration Cabinet, Kentucky Spirit may bring the matter to the Franklin Circuit Court. | |
The resolution of the Kentucky litigation matters may result in a range of possible outcomes. If Kentucky Spirit prevails on its claims, it would be entitled to damages. If the Commonwealth prevails, a liability to the Commonwealth could be recorded. The Company is unable to estimate the ultimate outcome resulting from the Kentucky litigation. As a result, the Company has not recorded any receivable or any liability for potential damages under the contract as of March 31, 2015. While uncertain, the ultimate resolution of the pending litigation could have a material effect on the financial position, cash flow or results of operations of the Company in the period it is resolved or becomes known. | |
Excluding the Kentucky matters discussed above, the Company is also routinely subjected to legal proceedings in the normal course of business. While the ultimate resolution of such matters in the normal course of business is uncertain, the Company does not expect the results of any of these matters individually, or in the aggregate, to have a material effect on its financial position, results of operations or cash flows. |
Basis_Of_Presentation_Recently
Basis Of Presentation Recently Adopted Accounting Pronouncement (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Recently Adopted Accounting Pronouncement [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncement |
In April 2015, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update which changes the presentation of debt issuance costs in financial statements. Under the new standard, debt issuance costs are presented in the balance sheet as a direct deduction of the related debt liability rather than as an asset. Amortization of the cost is reported as interest expense. The new standard is effective for annual and interim periods beginning after December 15, 2015 and early adoption is permitted. The Company has elected to adopt this guidance in the current fiscal quarter and applied the new standard retrospectively to all prior periods. The reclassification of debt issuance costs impacted the Consolidated Balance Sheets by decreasing both Other Long Term Assets and Long Term Debt by $14 million at December 31, 2014 and $17 million at March 31, 2015. These reclassifications have no effect on net earnings or stockholders' equity as previously reported. |
Basis_Of_Presentation_Basis_of
Basis Of Presentation Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation |
The accompanying interim financial statements have been prepared under the presumption that users of the interim financial information have either read or have access to the audited financial statements included in the Form 10-K for the fiscal year ended December 31, 2014. The unaudited interim financial statements herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, footnote disclosures which would substantially duplicate the disclosures contained in the December 31, 2014 audited financial statements have been omitted from these interim financial statements where appropriate. In the opinion of management, these financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of the interim periods presented. | |
Certain 2014 amounts in the notes to the consolidated financial statements have been reclassified to conform to the 2015 presentation. These reclassifications have no effect on net earnings or stockholders’ equity as previously reported. | |
On February 2, 2015, the Board of Directors declared a two-for-one split of Centene's common stock in the form of a 100% stock dividend distributed February 19, 2015 to stockholders of record on February 12, 2015. All share and per share information presented in this Form 10-Q has been adjusted for the two-for-one stock split. |
Acquisition_Redeemable_Noncont
Acquisition Redeemable Noncontrolling Interest (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Redeemable Noncontrolling Interest [Table Text Block] | A reconciliation of the changes in the Redeemable Noncontrolling Interests is as follows ($ in millions): | |||
Balance, December 31, 2014 | $ | 148 | ||
Fair value of redeemable noncontrolling interest sold | 7 | |||
Reclassification to redeemable noncontrolling interest | (1 | ) | ||
Net earnings attributable to redeemable noncontrolling interests | 1 | |||
Balance, March 31, 2015 | $ | 155 | ||
ShortTerm_And_LongTerm_Investm1
Short-Term And Long-Term Investments And Restricted Deposits (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||
Short-Term And Long-Term Investments And Restricted Deposits By Investment Type | Short term and long term investments and restricted deposits by investment type consist of the following ($ in millions): | |||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | |||||||||||||||||||||||||
Cost | Unrealized | Unrealized Losses | Value | Cost | Unrealized | Unrealized Losses | Value | |||||||||||||||||||||||||
Gains | Gains | |||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 451 | $ | 2 | $ | (1 | ) | $ | 452 | $ | 393 | $ | 1 | $ | (2 | ) | $ | 392 | ||||||||||||||
Corporate securities | 618 | 4 | (1 | ) | 621 | 556 | 2 | (2 | ) | 556 | ||||||||||||||||||||||
Restricted certificates of deposit | 6 | — | — | 6 | 6 | — | — | 6 | ||||||||||||||||||||||||
Restricted cash equivalents | 77 | — | — | 77 | 79 | — | — | 79 | ||||||||||||||||||||||||
Municipal securities: | ||||||||||||||||||||||||||||||||
General obligation | 97 | 1 | — | 98 | 54 | — | — | 54 | ||||||||||||||||||||||||
Pre-refunded | 4 | — | — | 4 | 5 | — | — | 5 | ||||||||||||||||||||||||
Revenue | 158 | — | — | 158 | 101 | 1 | — | 102 | ||||||||||||||||||||||||
Variable rate demand notes | 27 | — | — | 27 | 14 | — | — | 14 | ||||||||||||||||||||||||
Asset backed securities | 170 | — | — | 170 | 180 | — | — | 180 | ||||||||||||||||||||||||
Mortgage backed securities | 81 | 2 | — | 83 | 84 | 1 | — | 85 | ||||||||||||||||||||||||
Cost and equity method investments | 64 | — | — | 64 | 68 | — | — | 68 | ||||||||||||||||||||||||
Life insurance contracts | 16 | — | — | 16 | 16 | — | — | 16 | ||||||||||||||||||||||||
Total | $ | 1,769 | $ | 9 | $ | (2 | ) | $ | 1,776 | $ | 1,556 | $ | 5 | $ | (4 | ) | $ | 1,557 | ||||||||||||||
Fair Value Of Available-For-Sale Investments With Gross Unrealized Losses By Investment Type And Length Of Time | The fair value of available-for-sale investments with gross unrealized losses by investment type and length of time that individual securities have been in a continuous unrealized loss position were as follows ($ in millions): | |||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Less Than 12 Months | 12 Months or More | |||||||||||||||||||||||||||||
Unrealized Losses | Fair | Unrealized Losses | Fair | Unrealized Losses | Fair | Unrealized Losses | Fair | |||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | (1 | ) | $ | 80 | $ | — | $ | 16 | $ | — | $ | 72 | $ | (2 | ) | $ | 180 | ||||||||||||||
Corporate securities | (1 | ) | 185 | — | 1 | (2 | ) | 311 | — | 1 | ||||||||||||||||||||||
Municipal securities: | ||||||||||||||||||||||||||||||||
General obligation | — | 22 | — | 4 | — | 4 | — | 3 | ||||||||||||||||||||||||
Revenue | — | 72 | — | 3 | — | 16 | — | 3 | ||||||||||||||||||||||||
Pre-refunded | — | — | — | — | — | — | — | 1 | ||||||||||||||||||||||||
Asset backed securities | — | 40 | — | 10 | — | 70 | — | 10 | ||||||||||||||||||||||||
Mortgage backed securities | — | — | — | — | — | 18 | — | — | ||||||||||||||||||||||||
Total | $ | (2 | ) | $ | 399 | $ | — | $ | 34 | $ | (2 | ) | $ | 491 | $ | (2 | ) | $ | 198 | |||||||||||||
Contractual Maturities Of Short-Term And Long-Term Investments And Restricted Deposits | The contractual maturities of short term and long term investments and restricted deposits are as follows ($ in millions): | |||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||
Investments | Restricted Deposits | Investments | Restricted Deposits | |||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||||||||
One year or less | $ | 151 | $ | 151 | $ | 90 | $ | 90 | $ | 176 | $ | 177 | $ | 92 | $ | 92 | ||||||||||||||||
One year through five years | 1,316 | 1,322 | 8 | 8 | 1,121 | 1,121 | 8 | 8 | ||||||||||||||||||||||||
Five years through ten years | 120 | 120 | — | — | 121 | 120 | — | — | ||||||||||||||||||||||||
Greater than ten years | 84 | 85 | — | — | 38 | 39 | — | — | ||||||||||||||||||||||||
Total | $ | 1,671 | $ | 1,678 | $ | 98 | $ | 98 | $ | 1,456 | $ | 1,457 | $ | 100 | $ | 100 | ||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements By Level For Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following table summarizes fair value measurements by level at March 31, 2015, for assets and liabilities measured at fair value on a recurring basis ($ in millions): | |||||||||||||||
Level I | Level II | Level III | Total | |||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 1,666 | $ | — | $ | — | $ | 1,666 | ||||||||
Investments available for sale: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 434 | $ | 3 | $ | — | $ | 437 | ||||||||
Corporate securities | — | 621 | — | 621 | ||||||||||||
Municipal securities: | ||||||||||||||||
General obligation | — | 98 | — | 98 | ||||||||||||
Pre-refunded | — | 4 | — | 4 | ||||||||||||
Revenue | — | 158 | — | 158 | ||||||||||||
Variable rate demand notes | — | 27 | — | 27 | ||||||||||||
Asset backed securities | — | 170 | — | 170 | ||||||||||||
Mortgage backed securities | — | 83 | — | 83 | ||||||||||||
Total investments | $ | 434 | $ | 1,164 | $ | — | $ | 1,598 | ||||||||
Restricted deposits available for sale: | ||||||||||||||||
Cash and cash equivalents | $ | 77 | $ | — | $ | — | $ | 77 | ||||||||
Certificates of deposit | 6 | — | — | 6 | ||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | 15 | — | — | 15 | ||||||||||||
Total restricted deposits | $ | 98 | $ | — | $ | — | $ | 98 | ||||||||
Other long term assets: Interest rate swap agreements | $ | — | $ | 16 | $ | — | $ | 16 | ||||||||
Total assets at fair value | $ | 2,198 | $ | 1,180 | $ | — | $ | 3,378 | ||||||||
Liabilities | ||||||||||||||||
Other long term liabilities: | $ | — | $ | 2 | $ | — | $ | 2 | ||||||||
Interest rate swap agreements | ||||||||||||||||
Total liabilities at fair value | $ | — | $ | 2 | $ | — | $ | 2 | ||||||||
The following table summarizes fair value measurements by level at December 31, 2014, for assets and liabilities measured at fair value on a recurring basis ($ in millions): | ||||||||||||||||
Level I | Level II | Level III | Total | |||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 1,610 | $ | — | $ | — | $ | 1,610 | ||||||||
Investments available for sale: | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 360 | $ | 17 | $ | — | $ | 377 | ||||||||
Corporate securities | — | 556 | — | 556 | ||||||||||||
Municipal securities: | ||||||||||||||||
General obligation | — | 54 | — | 54 | ||||||||||||
Pre-refunded | — | 5 | — | 5 | ||||||||||||
Revenue | — | 102 | — | 102 | ||||||||||||
Variable rate demand notes | — | 14 | — | 14 | ||||||||||||
Asset backed securities | — | 180 | — | 180 | ||||||||||||
Mortgage backed securities | — | 85 | — | 85 | ||||||||||||
Total investments | $ | 360 | $ | 1,013 | $ | — | $ | 1,373 | ||||||||
Restricted deposits available for sale: | ||||||||||||||||
Cash and cash equivalents | $ | 79 | $ | — | $ | — | $ | 79 | ||||||||
Certificates of deposit | 6 | — | — | 6 | ||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | 15 | — | — | 15 | ||||||||||||
Total restricted deposits | $ | 100 | $ | — | $ | — | $ | 100 | ||||||||
Other long term assets: Interest rate swap agreements | $ | — | $ | 11 | $ | — | $ | 11 | ||||||||
Total assets at fair value | $ | 2,070 | $ | 1,024 | $ | — | $ | 3,094 | ||||||||
Health_Insurance_Marketplace_H1
Health Insurance Marketplace Health Insurance Marketplace (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Health Insurance Marketplace [Abstract] | ||||||||
Schedule of receivables (payables) related to the Health Insurance Marketplace programs | The Company's receivables (payables) for each of these programs are as follows ($ in millions): | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Risk adjustment | $ | (72 | ) | $ | (44 | ) | ||
Reinsurance | 15 | 11 | ||||||
Risk corridor | (23 | ) | (9 | ) | ||||
Minimum medical loss ratio | (16 | ) | (6 | ) |
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule Of Debt | Debt consists of the following ($ in millions): | |||||||
March 31, 2015 | December 31, 2014 | |||||||
$425 million 5.75% Senior notes, due June 1, 2017 | $ | 429 | $ | 429 | ||||
$500 million 4.75% Senior notes, due May 15, 2022 | 500 | 300 | ||||||
Fair value of interest rate swap agreements | 14 | 11 | ||||||
Senior notes | 943 | 740 | ||||||
Revolving credit agreement | 125 | 75 | ||||||
Mortgage notes payable | 69 | 70 | ||||||
Capital leases | 8 | 8 | ||||||
Debt issuance costs | (17 | ) | (14 | ) | ||||
Total debt | 1,128 | 879 | ||||||
Less current portion | (5 | ) | (5 | ) | ||||
Long term debt | $ | 1,123 | $ | 874 | ||||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Calculation Of Basic And Diluted Net Earnings Per Common Share | The following table sets forth the calculation of basic and diluted net earnings per common share ($ in millions, except per share data): | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Earnings attributable to Centene Corporation: | ||||||||
Earnings from continuing operations, net of tax | $ | 64 | $ | 34 | ||||
Discontinued operations, net of tax | (1 | ) | (1 | ) | ||||
Net earnings | $ | 63 | $ | 33 | ||||
Shares used in computing per share amounts: | ||||||||
Weighted average number of common shares outstanding | 118,783,755 | 114,967,752 | ||||||
Common stock equivalents (as determined by applying the treasury stock method) | 3,788,611 | 3,754,780 | ||||||
Weighted average number of common shares and potential dilutive common shares outstanding | 122,572,366 | 118,722,532 | ||||||
Net earnings (loss) per common share attributable to Centene Corporation: | ||||||||
Basic: | ||||||||
Continuing operations | $ | 0.54 | $ | 0.3 | ||||
Discontinued operations | (0.01 | ) | (0.01 | ) | ||||
Basic earnings per common share | $ | 0.53 | $ | 0.29 | ||||
Diluted: | ||||||||
Continuing operations | $ | 0.52 | $ | 0.29 | ||||
Discontinued operations | (0.01 | ) | (0.01 | ) | ||||
Diluted earnings per common share | $ | 0.51 | $ | 0.28 | ||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Information | Segment information for the three months ended March 31, 2015, follows ($ in millions): | |||||||||||||||
Managed Care | Specialty | Eliminations | Consolidated | |||||||||||||
Services | Total | |||||||||||||||
Premium and service revenues from external customers | $ | 4,243 | $ | 518 | $ | — | $ | 4,761 | ||||||||
Premium and service revenues from internal customers | 24 | 1,075 | (1,099 | ) | — | |||||||||||
Total premium and service revenues | $ | 4,267 | $ | 1,593 | $ | (1,099 | ) | $ | 4,761 | |||||||
Earnings from operations | $ | 95 | $ | 34 | $ | — | $ | 129 | ||||||||
Segment information for the three months ended March 31, 2014, follows ($ in millions): | ||||||||||||||||
Managed Care | Specialty | Eliminations | Consolidated | |||||||||||||
Services | Total | |||||||||||||||
Premium and service revenues from external customers | $ | 2,970 | $ | 382 | $ | — | $ | 3,352 | ||||||||
Premium and service revenues from internal customers | 13 | 639 | (652 | ) | — | |||||||||||
Total premium and service revenues | $ | 2,983 | $ | 1,021 | $ | (652 | ) | $ | 3,352 | |||||||
Earnings from operations | $ | 44 | $ | 26 | $ | — | $ | 70 | ||||||||
Basis_Of_Presentation_Details
Basis Of Presentation (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
New Accounting Pronouncement, Effect of adoption on balance sheet | $17 | $14 |
Acquisition_Acquisition_Detail
Acquisition Acquisition (Details) | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 |
USD ($) | USD ($) | USD ($) | LiveHealthier, Inc. [Member] | Celtic Insurance Company [Member] | Community Health Solutions [Member] | Community Health Solutions [Member] | Ribera Salud [Member] | Ribera Salud [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | ||||
Business Acquisition [Line Items] | |||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $10 | $0 | $10 | ||||||
Proceeds from Divestiture of Businesses | 7 | ||||||||
Percentage of acquisition | 79.00% | ||||||||
Business Combination, Consideration Transferred | 28 | ||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 100.00% | ||||||||
Common stock issued for acquisition | 13 | ||||||||
Payments to Acquire Businesses, Gross | 11 | ||||||||
Goodwill | 786 | 754 | 29 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 16 | ||||||||
Ownership percentage sold by parent | 25.00% | ||||||||
Business Combination, Contingent Consideration, Liability | 4 | 18 | |||||||
Business Acquisition, Contingent Consideration, Cash Payment | -8 | 0 | 8 | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 9 | ||||||||
Letters of Credit Outstanding, Amount | $52 | € 48 |
Acquisition_Redeemable_Noncont1
Acquisition Redeemable Noncontrolling Interest (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Redeemable Noncontrolling Interest [Line Items] | ||
Reclassification to redeemable noncontrolling interest | ($1) | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 155 | 148 |
Celtic Insurance Company [Member] | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Fair value of redeemable noncontrolling interest sold | 7 | |
U.S. Medical Management [Member] | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Net earnings attributable to redeemable noncontrolling interests | $1 |
ShortTerm_And_LongTerm_Investm2
Short-Term And Long-Term Investments And Restricted Deposits (Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
positions | |
Investments, Debt and Equity Securities [Abstract] | |
Percentage of investments in securities recorded at fair value that carry a rating by Moody's or S&P of AAA/Aaa | 47.00% |
Percentage of investments in securities recorded at fair value that carry a rating by Moody's or S&P of AA-/Aa3 or higher | 66.00% |
Percentage of investments in securities recorded at fair value that carry a rating by Moody's or S&P of A-/A3 or higher | 91.00% |
Positions from which gross unrealized losses were generated | 90 |
TotalUnrealizedInvestmentPositions | 363 |
Income (Loss) from Equity Method Investments | $1 |
ShortTerm_And_LongTerm_Investm3
Short-Term And Long-Term Investments And Restricted Deposits (Short-Term And Long-Term Investments And Restricted Deposits By Investment Type) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Schedule Of Investments And Restricted Deposits By Type [Line Items] | ||
Amortized Cost | $1,769 | $1,556 |
Available For Sale Securities Gross Unrealized Gain Accumulated In Investments | 9 | 5 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | -2 | -4 |
Fair Value | 1,776 | 1,557 |
U.S. Treasury Securities And Obligations Of U.S. Government Corporations And Agencies [Member] | ||
Schedule Of Investments And Restricted Deposits By Type [Line Items] | ||
Amortized Cost | 451 | 393 |
Available For Sale Securities Gross Unrealized Gain Accumulated In Investments | 2 | 1 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | -1 | -2 |
Fair Value | 452 | 392 |
Corporate Securities [Member] | ||
Schedule Of Investments And Restricted Deposits By Type [Line Items] | ||
Amortized Cost | 618 | 556 |
Available For Sale Securities Gross Unrealized Gain Accumulated In Investments | 4 | 2 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | -1 | -2 |
Fair Value | 621 | 556 |
Restricted Certificates Of Deposit [Member] | ||
Schedule Of Investments And Restricted Deposits By Type [Line Items] | ||
Amortized Cost | 6 | 6 |
Available For Sale Securities Gross Unrealized Gain Accumulated In Investments | 0 | 0 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Fair Value | 6 | 6 |
Restricted Cash Equivalents [Member] | ||
Schedule Of Investments And Restricted Deposits By Type [Line Items] | ||
Amortized Cost | 77 | 79 |
Available For Sale Securities Gross Unrealized Gain Accumulated In Investments | 0 | 0 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Fair Value | 77 | 79 |
Municipal Securities, General Obligation [Member] | ||
Schedule Of Investments And Restricted Deposits By Type [Line Items] | ||
Amortized Cost | 97 | 54 |
Available For Sale Securities Gross Unrealized Gain Accumulated In Investments | 1 | 0 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Fair Value | 98 | 54 |
Municipal Securities, Pre-Refunded [Member] | ||
Schedule Of Investments And Restricted Deposits By Type [Line Items] | ||
Amortized Cost | 4 | 5 |
Available For Sale Securities Gross Unrealized Gain Accumulated In Investments | 0 | 0 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Fair Value | 4 | 5 |
Municipal Securities, Revenue [Member] | ||
Schedule Of Investments And Restricted Deposits By Type [Line Items] | ||
Amortized Cost | 158 | 101 |
Available For Sale Securities Gross Unrealized Gain Accumulated In Investments | 0 | 1 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Fair Value | 158 | 102 |
Municipal Securities, Variable Rate Demand Notes [Member] | ||
Schedule Of Investments And Restricted Deposits By Type [Line Items] | ||
Amortized Cost | 27 | 14 |
Available For Sale Securities Gross Unrealized Gain Accumulated In Investments | 0 | 0 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Fair Value | 27 | 14 |
Asset Backed Securities [Member] | ||
Schedule Of Investments And Restricted Deposits By Type [Line Items] | ||
Amortized Cost | 170 | 180 |
Available For Sale Securities Gross Unrealized Gain Accumulated In Investments | 0 | 0 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Fair Value | 170 | 180 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Schedule Of Investments And Restricted Deposits By Type [Line Items] | ||
Amortized Cost | 81 | 84 |
Available For Sale Securities Gross Unrealized Gain Accumulated In Investments | 2 | 1 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Fair Value | 83 | 85 |
Cost And Equity Method Investments [Member] | ||
Schedule Of Investments And Restricted Deposits By Type [Line Items] | ||
Amortized Cost | 64 | 68 |
Available For Sale Securities Gross Unrealized Gain Accumulated In Investments | 0 | 0 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Fair Value | 64 | 68 |
Life Insurance Contracts [Member] | ||
Schedule Of Investments And Restricted Deposits By Type [Line Items] | ||
Amortized Cost | 16 | 16 |
Available For Sale Securities Gross Unrealized Gain Accumulated In Investments | 0 | 0 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Fair Value | $16 | $16 |
ShortTerm_And_LongTerm_Investm4
Short-Term And Long-Term Investments And Restricted Deposits (Fair Value Of Available-For-Sale Investments With Gross Unrealized Losses By Investment Type And Length Of Time) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available For Sale Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses Accumulated In Investments | ($2) | ($2) |
Less Than 12 Months, Fair Value | 399 | 491 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 0 | -2 |
12 Months or More, Fair Value | 34 | 198 |
U.S. Treasury Securities And Obligations Of U.S. Government Corporations And Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available For Sale Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses Accumulated In Investments | -1 | 0 |
Less Than 12 Months, Fair Value | 80 | 72 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 0 | -2 |
12 Months or More, Fair Value | 16 | 180 |
Corporate Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available For Sale Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses Accumulated In Investments | -1 | -2 |
Less Than 12 Months, Fair Value | 185 | 311 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 0 | 0 |
12 Months or More, Fair Value | 1 | 1 |
Municipal Securities, General Obligation [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available For Sale Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses Accumulated In Investments | 0 | 0 |
Less Than 12 Months, Fair Value | 22 | 4 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 0 | 0 |
12 Months or More, Fair Value | 4 | 3 |
Municipal Securities, Revenue [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available For Sale Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses Accumulated In Investments | 0 | 0 |
Less Than 12 Months, Fair Value | 72 | 16 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 0 | 0 |
12 Months or More, Fair Value | 3 | 3 |
Municipal Securities Pre Refunded [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available For Sale Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses Accumulated In Investments | 0 | 0 |
Less Than 12 Months, Fair Value | 0 | 0 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 0 | 0 |
12 Months or More, Fair Value | 0 | 1 |
Asset Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available For Sale Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses Accumulated In Investments | 0 | 0 |
Less Than 12 Months, Fair Value | 40 | 70 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 0 | 0 |
12 Months or More, Fair Value | 10 | 10 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available For Sale Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses Accumulated In Investments | 0 | 0 |
Less Than 12 Months, Fair Value | 0 | 18 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 0 | 0 |
12 Months or More, Fair Value | $0 | $0 |
ShortTerm_And_LongTerm_Investm5
Short-Term And Long-Term Investments And Restricted Deposits (Contractual Maturities Of Short-Term And Long-Term Investments And Restricted Deposits) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, Amortized Cost | $151 | $176 |
One year through five years, Amortized Cost | 1,316 | 1,121 |
Five years through ten years, Amortized Cost | 120 | 121 |
Greater than ten years, Amortized Cost | 84 | 38 |
Total, Amortized Cost | 1,671 | 1,456 |
One year or less, Fair Value | 151 | 177 |
One year through five years, Fair Value | 1,322 | 1,121 |
Five years through ten years, Fair Value | 120 | 120 |
Greater than ten years, Fair Value | 85 | 39 |
Total, Fair Value | 1,678 | 1,457 |
Restricted Deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
One year or less, Amortized Cost | 90 | 92 |
One year through five years, Amortized Cost | 8 | 8 |
Five years through ten years, Amortized Cost | 0 | 0 |
Greater than ten years, Amortized Cost | 0 | 0 |
Total, Amortized Cost | 98 | 100 |
One year or less, Fair Value | 90 | 92 |
One year through five years, Fair Value | 8 | 8 |
Five years through ten years, Fair Value | 0 | 0 |
Greater than ten years, Fair Value | 0 | 0 |
Total, Fair Value | $98 | $100 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Measurements By Level For Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | $1,666 | $1,610 |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | 437 | 377 |
Corporate securities | 621 | 556 |
Municipal securities, General obligation | 98 | 54 |
Municipal securities, Pre-refunded | 4 | 5 |
Municipal securities, Revenue | 158 | 102 |
Municipal securities, Variable rate demand notes | 27 | 14 |
Asset backed securities | 170 | 180 |
Mortgage backed securities | 83 | 85 |
Total investments | 1,598 | 1,373 |
Cash and cash equivalents | 77 | 79 |
Certificates of deposit | 6 | 6 |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | 15 | 15 |
Total restricted deposits | 98 | 100 |
Other long term assets: Interest rate swap agreements | 16 | 11 |
Total assets at fair value | 3,378 | 3,094 |
Other long term liabilities: Interest rate swap agreements | 2 | |
Total liabilities at fair value | 2 | |
Level I [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 1,666 | 1,610 |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | 434 | 360 |
Corporate securities | 0 | 0 |
Municipal securities, General obligation | 0 | 0 |
Municipal securities, Pre-refunded | 0 | 0 |
Municipal securities, Revenue | 0 | 0 |
Municipal securities, Variable rate demand notes | 0 | 0 |
Asset backed securities | 0 | 0 |
Mortgage backed securities | 0 | 0 |
Total investments | 434 | 360 |
Cash and cash equivalents | 77 | 79 |
Certificates of deposit | 6 | 6 |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | 15 | 15 |
Total restricted deposits | 98 | 100 |
Other long term assets: Interest rate swap agreements | 0 | 0 |
Total assets at fair value | 2,198 | 2,070 |
Other long term liabilities: Interest rate swap agreements | 0 | |
Total liabilities at fair value | 0 | |
Level II [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | 3 | 17 |
Corporate securities | 621 | 556 |
Municipal securities, General obligation | 98 | 54 |
Municipal securities, Pre-refunded | 4 | 5 |
Municipal securities, Revenue | 158 | 102 |
Municipal securities, Variable rate demand notes | 27 | 14 |
Asset backed securities | 170 | 180 |
Mortgage backed securities | 83 | 85 |
Total investments | 1,164 | 1,013 |
Cash and cash equivalents | 0 | 0 |
Certificates of deposit | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | 0 | 0 |
Total restricted deposits | 0 | 0 |
Other long term assets: Interest rate swap agreements | 16 | 11 |
Total assets at fair value | 1,180 | 1,024 |
Level III [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | 0 | 0 |
Corporate securities | 0 | 0 |
Municipal securities, General obligation | 0 | 0 |
Municipal securities, Pre-refunded | 0 | 0 |
Municipal securities, Revenue | 0 | 0 |
Municipal securities, Variable rate demand notes | 0 | 0 |
Asset backed securities | 0 | 0 |
Mortgage backed securities | 0 | 0 |
Total investments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Certificates of deposit | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | 0 | 0 |
Total restricted deposits | 0 | 0 |
Other long term assets: Interest rate swap agreements | 0 | 0 |
Total assets at fair value | 0 | 0 |
Other long term liabilities: Interest rate swap agreements | 0 | |
Total liabilities at fair value | $0 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ||
Transfers from Level I to Level II | $1 | |
Transfers from Level II to Level I | 14 | |
Life insurance contracts and other non-majority owned investments, fair value | $80 | $84 |
Health_Insurance_Marketplace_D
Health Insurance Marketplace (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Health Insurance Marketplace [Line Items] | ||
Health Insurance Marketplace Risk Adjustment | ($72) | ($44) |
Health Insurance Marketplace Reinsurance | 15 | 11 |
Health Insurance Marketplace Risk Corridor | -23 | -9 |
Health Insurance Marketplace Minimum Medical Loss Ratio | ($16) | ($6) |
Debt_Narrative_Details
Debt (Narrative) (Details) | 3 Months Ended | 3 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2015 | 31-May-11 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 |
USD ($) | USD ($) | USD ($) | Four point seven five percent Add-on Notes [Member] | Five Point Seven Five Percent Senior Notes [Member] | Four Point Seven Five Percent Senior Notes [Member] | Four Point Seven Five Percent Senior Notes [Member] | Ribera Salud [Member] | Ribera Salud [Member] | Non Revolver Letter of Credit [Member] | $200 Million Interest Rate Swap [Member] | Interest Rate Swap [Member] | June 1, 2017 Expiration [Member] | May 15, 2022 Expiration [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | |||||
Debt Instrument [Line Items] | ||||||||||||||
Senior notes, at par | $200 | $425 | $500 | $300 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |||||||||||||
Senior notes, effective yield | 1.73% | |||||||||||||
Derivative, Notional Amount | 200 | 750 | 250 | 500 | ||||||||||
Interest Rate Swap Agreements Expire Date | 1-Jun-17 | 15-May-22 | ||||||||||||
Variable rate of swap, percentage | 2.88% | 2.85% | ||||||||||||
weighted average interest rate, interest rate swap agreements | 3.10% | |||||||||||||
Revolving credit facility, maximum borrowing capacity | 500 | |||||||||||||
Revolving credit agreement | 125 | 75 | ||||||||||||
Line of Credit Facility, Covenant Terms | The agreement contains non-financial and financial covenants, including requirements of minimum fixed charge coverage ratios, maximum debt-to-EBITDA ratios and minimum tangible net worth. The Company is required to not exceed a maximum debt-to-EBITDA ratio of 3.0 to 1.0. | |||||||||||||
Revolving credit facility, due date | 1-Jun-18 | |||||||||||||
Line of Credit, Minimum carrying amount of unrestricted cash | 100 | |||||||||||||
Debt, Weighted Average Interest Rate | 2.51% | |||||||||||||
Letters of Credit Outstanding, Amount | 52 | 48 | 30 | |||||||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $196 |
Debt_Schedule_Of_Debt_Details
Debt (Schedule Of Debt) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | 31-May-11 |
In Millions, unless otherwise specified | |||
Debt Instrument [Line Items] | |||
Fair value of interest rate swap agreements | $14 | $11 | |
Senior notes | 943 | 740 | |
Revolving credit agreement | 125 | 75 | |
Mortgage notes payable | 69 | 70 | |
Capital leases | 8 | 8 | |
Debt issuance costs | -17 | -14 | |
Total debt | 1,128 | 879 | |
Less current portion | -5 | -5 | |
Long term debt | 1,123 | 874 | |
Five Point Seven Five Percent Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
$425 million 5.75% Senior notes, due June 1, 2017 | 429 | 429 | |
$500 million 4.75% Senior notes, due May 15, 2022 | 425 | ||
Four Point Seven Five Percent Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
$500 million 4.75% Senior notes, due May 15, 2022 | $500 | $300 |
Interest_Rate_Swap_Details
Interest Rate Swap (Details) (USD $) | Mar. 31, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | 31-May-11 |
In Millions, unless otherwise specified | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $200 | |||
Interest Rate Derivative Assets, at Fair Value | 16 | 11 | ||
Interest Rate Derivative Liabilities, at Fair Value | 2 | |||
Five Point Seven Five Percent Senior Notes [Member] | ||||
Derivative [Line Items] | ||||
Senior notes, at par | 425 | |||
Four Point Seven Five Percent Senior Notes [Member] | ||||
Derivative [Line Items] | ||||
Senior notes, at par | $500 | $300 |
Earnings_Loss_Per_Share_Detail
Earnings (Loss) Per Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Earnings from continuing operations, net of tax | $64 | $34 |
Discontinued operations, net of tax | -1 | -1 |
Net earnings attributable to Centene Corporation | $63 | $33 |
Weighted average number of common shares outstanding | 118,783,755 | 114,967,752 |
Common stock equivalents (as determined by applying the treasury stock method) | 3,788,611 | 3,754,780 |
Weighted average number of common shares and potential dilutive common shares outstanding (in shares) | 122,572,366 | 118,722,532 |
Income (Loss) from Continuing Operations, Per Basic Share | $0.54 | $0.30 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | ($0.01) | ($0.01) |
Basic earnings per common share | $0.53 | $0.29 |
Continuing operations, Diluted | $0.52 | $0.29 |
Discontinued operations, Diluted | ($0.01) | ($0.01) |
Diluted earnings per common share | $0.51 | $0.28 |
Anti-dilutive stock options, restricted stock and restricted stock units excluded from the calculation of diluted earnings per common share | 26,376 | 45,912 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
segments | ||
Number of Reportable Segments | 2 | |
Revenues | $5,131 | $3,460 |
Premium and service revenues | 4,761 | 3,352 |
Earnings (loss) from operations | 129 | 70 |
Intersegment Eliminations [Member] | ||
Premium and service revenues | -1,099 | -652 |
Earnings (loss) from operations | 0 | 0 |
Operating Segments [Member] | Medicaid Managed Care [Member] | ||
Premium and service revenues | 4,267 | 2,983 |
Earnings (loss) from operations | 95 | 44 |
Operating Segments [Member] | Specialty Services [Member] | ||
Premium and service revenues | 1,593 | 1,021 |
Earnings (loss) from operations | 34 | 26 |
Internal Customer [Member] | ||
Revenues | 0 | 0 |
Internal Customer [Member] | Intersegment Eliminations [Member] | ||
Revenues | -1,099 | -652 |
Internal Customer [Member] | Operating Segments [Member] | Medicaid Managed Care [Member] | ||
Revenues | 24 | 13 |
Internal Customer [Member] | Operating Segments [Member] | Specialty Services [Member] | ||
Revenues | 1,075 | 639 |
External Customer [Member] | ||
Revenues | 4,761 | 3,352 |
External Customer [Member] | Intersegment Eliminations [Member] | ||
Revenues | 0 | 0 |
External Customer [Member] | Operating Segments [Member] | Medicaid Managed Care [Member] | ||
Revenues | 4,243 | 2,970 |
External Customer [Member] | Operating Segments [Member] | Specialty Services [Member] | ||
Revenues | $518 | $382 |
Contingencies_Details
Contingencies (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | |
Kentucky Spirit Performance Bond | $25 |
Commonwealth of Kentucky Alleged Increased Program Costs - Low End of Range | 28 |
Commonwealth of Kentucky Alleged Increased Program Costs - High End of Range | 40 |
Commonwealth of Kentucky Alleged Associated CMS Expenditures - Low End of Range | 92 |
Commonwealth of Kentucky Alleged Associated CMS Expenditures - High End of Range | $134 |
Loss Contingency, Allegations | On July 5, 2013, the Company's subsidiary, Kentucky Spirit Health Plan, Inc. (Kentucky Spirit), terminated its contract with the Commonwealth of Kentucky (the Commonwealth). Kentucky Spirit believes it had a contractual right to terminate the contract and filed a lawsuit in Franklin Circuit Court seeking a declaration of this right. The Commonwealth has alleged that Kentucky Spirit's exit constitutes a material breach of contract.B The Commonwealth seeks to recover substantial damages and to enforce its rights under Kentucky Spirit's $25 million performance bond. The Commonwealth's attorneys have asserted that the Commonwealth's expenditures due to Kentucky Spirit's departure range from $28 million to $40 million plus interest, and that the associated CMS expenditures range from $92 million to $134 million. Kentucky Spirit disputes the Commonwealth's alleged damages, and is pursuing its own litigation claims for damages against the Commonwealth. On February 6, 2015, the Kentucky Court of Appeals affirmed a Franklin Circuit Court ruling that Kentucky Spirit does not have a contractual right to terminate the contract early. The Court of Appeals also found that the contractbs liquidated damages provision bis applicable in the event of a premature termination of the Contract term.b Kentucky Spirit intends to seek Kentucky Supreme Court review of the finding that its departure constituted a breach of contract. The Commonwealth may seek review of the ruling that the liquidated damages provision is applicable in the event of a premature termination. Kentucky Spirit also filed a lawsuit in April 2013, amended in October 2014, in Franklin Circuit Court seeking damages against the Commonwealth for losses sustained due to the Commonwealth's alleged breaches. On December 9, 2014, the Franklin Circuit Court denied the Commonwealth's motion for partial summary judgment on Kentucky Spirit's damages claims. On March 15, 2015, the Franklin Circuit Court denied the Commonwealth's motion to stay discovery and ordered that discovery proceed on those claims. |
Loss Contingency, Inestimable Loss | The resolution of the Kentucky litigation matters may result in a range of possible outcomes.B If Kentucky Spirit prevails on its claims, it would be entitled to damages.B If the Commonwealth prevails, a liability to the Commonwealth could be recorded.B The Company is unable to estimate the ultimate outcome resulting from the Kentucky litigation.B As a result, the Company has not recorded any receivable or any liability for potential damages under the contract as of March 31, 2015.B While uncertain, the ultimate resolution of the pending litigation could have a material effect on the financial position, cash flow or results of operations of the Company in the period it is resolved or becomes known. |