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30 Years of Excellence 2014 annual review As we commemorate our 30th year of service, our commitment to quality healthcare with dignity has never wavered. 30 years of exCELLENCE TABLE OF CONTENTS Centene Corporation is a diversified, multi-national 1 2014 at a Glance 3 Letter from the Chairman healthcare enterprise that provides a portfolio of 6 Company and Financial Summary services to government-sponsored healthcare programs, 7 Nationwide Presence 8 2014 Highlights focusing on under-insured and uninsured individuals. 10 30 Years of Transformation Centene offers unique, cost-effective coverage solutions 12 Continuum of Care 14 The Growing Sophistication for low-income populations through locally based of Healthcare health plans and a wide range of specialty services. 15 Technology for More Personalized Care 16 Clinical Programs Reflecting Founding Beliefs 17 Focus on the Member 18 Quarterly Financial Information 19 Selected Financial Information 20 Corporate Information 2014 aT A GLANCE 56 percent increase in diluted earnings per common share $15.7 billion (from continuing operations) premium and service revenues $1.2 billion total operating cash flow 4.1 million managed care membership 13,400 employees 76 percent stock price growth in 2014 LEttER FROM THE CHAIRMAN For over 30 years, Centene Corporation’s Centene’s growth is a testament to our strategies of steadfast devotion to our founding values and beliefs diversification, financial discipline and successful execution. Moreover, our deep commitment to the members, clients has driven our company’s success. From our humble and communities we serve continue to shape our success. beginnings as a nonprofit Medicaid pilot in Milwaukee, In 2014, Centene’s membership grew 41 percent to 4.1 million managed care members, while premium and service revenue Centene has grown to a multibillion dollar enterprise, grew 49 percent to $15.7 billion. ranking 251 on the FORTUNE 500 list in 2014. MICHAEL F. NEIDORFF As a diversified, multi-national In addition, Magnolia Health was Chairman, President enterprise, our portfolio — which one of two contractors awarded a & Chief Executive Officer currently contains 22 U.S. markets, statewide managed care contract to three international markets and over continue serving members enrolled 18 products — allows us to better in the Mississippi Coordinated absorb the ups and downs in rate Access Network program. And, our cycles and markets. This is the behavioral health company, Cenpatico strategy we have been successfully of Arizona, is partnering with the deploying for over 10 years. University of Arizona Health Plan to be the Regional Behavioral Health 2014 further demonstrated how our Authority for the southern service discipline and agility continue to area, commencing in the fourth drive our growth. We added and quarter of 2015. expanded contracts in existing markets, expanded geographically, In 2014, in addition to a successful acquired new business, and added reprocurement in Louisiana, we new capabilities and offerings. acquired the rights to serve additional TANF and SSI members in Louisiana’s GROWTH AND EXPANSION Bayou Health Medicaid managed care As an example of how we grew in program through the assignment of existing markets, we announced a contract from Community Health that Managed Health Services was Solutions of America, Inc. This selected to serve Indiana’s aged, acquisition reflects Centene’s strategy blind or disabled Medicaid enrollees to build economies of scale in our starting in the first half of 2015. key markets and diversify revenue across our health plans. CENTENE CORPORATION, Letter from the Chairman, 3 Our diversification strategy Centene further diversified when we began providing healthcare coverage Diluted Earnings Per Share MOVING FORWARD Over the course of three decades, also gives us the agility and to consumers in the Health Insurance Marketplace in 2014 through our The application of Centene’s expertise our principles have remained Ambetter® health plans, covering members in nine states: Arkansas, Florida, has expanded beyond our shores, grounded in a mission and purpose expertise to integrate and Georgia, Indiana, Massachusetts, Mississippi, Ohio, Texas and Washington. as evidenced by our investment that have stood the test of time. deploy our assets to bring Additionally, we expanded our reach in correctional healthcare services in Ribera Salud in Spain in 2014. In 2014, across our various markets, innovative solutions to a when Centurion, our joint venture with MHM Services Inc., was awarded $2.23 Healthcare markets outside the we continued our commitment a contract in Vermont, effective 2015. U.S. are predominately funded by to building a better future for shifting healthcare market. individuals and families in need. 2014 governments that share similar AGILITY AND EXPERTISE objectives: to improve health In September, we announced As our state partners continue to transition additional populations into outcomes at lower costs, modernize our plans to build a new claims managed care, they have turned to Centene to bring our local, member- healthcare infrastructure and bring processing center in Ferguson, centric approach to people who have complex needs or require long-term + 56 percent an integrated approach to patient care. Missouri, a city struggling with support and services. This shift in our business mix has resulted in strong Centene is well positioned as a global issues due to economic disparity. revenue growth over the past year, and we continue to invest in care government health solutions company. In addition, my appointment last management programs and systems to support the complex healthcare year as chairman of the National needs of such populations. From 2013 to 2014, complex care revenue We further expanded our reach into Urban League reinforces our grew from $4 billion to $6 billion. $1.43 international markets through a diligence and resourcefulness in 2013 noncontrolling investment in a tackling the difficult challenges Ongoing information system development and integration give us faster British health management company that confront our communities access to more robust data and analytics. This enables us to make real-time called The Practice, which provides and our nation. decisions and helps us better manage healthcare costs – an essential component primary care, community-based and in supporting complex healthcare needs. Recent investments in USMM for utilization management services Moving into 2015, we look forward in-home health services, the care management platform of Casenet, the for the National Health Service. to further growth and continued specialty pharmacy expertise of AcariaHealth, and the intellectual and Much like our noncontrolling interest leadership in fulfilling our commitment developmental disabilities management of LifeShare add to our ability in Ribera Salud, this is a targeted to transform the health of the to serve members with complex healthcare needs. investment with a local partner. community, one person at a time. It also positions us to better identify Our diversification strategy also gives us the agility and expertise to integrate and understand future opportunities Sincerely, and deploy our assets to bring innovative solutions to a shifting healthcare outside the U.S. To help us consider market. For example, IlliniCare Health is now leveraging our experience overseas growth, we have added by providing administrative services for the CountyCare managed care an executive vice president of plan in Chicago. International Operations and Michael F. Neidorff Business Integration, Cynthia Chairman, President & Chief Executive Officer Brinkley, who has nearly 20 years of executive leadership experience in large global organizations. CENTENE CORPORATION, Letter from the Chairman, 4 CENTENE CORPORATION, Letter from the Chairman, 5 COMPANY AND FINANCIAL SUMMARY NATIONWIDE PRESENCE FINANCIAL HIGHLIGHTS in millions 22 2014 2013 2012 2011 2010 State markets Premium and Service Revenues(1) $15,667 $10,526 $7,682 $5,052 $4,284 18 Net Earnings(2) 268 161 89 120 91 Products Total Assets 5,838 3,529 2,774 2,190 1,944 4,600 Jobs added in 2014 PREMIUMS AND SERVICE REVENUES(1) NET EARNINGS(2) MANAGED CARE MEMBERSHIP(1) 201,300 in millions in millions in thousands Members in Medicaid $20,000 $300 4000 4,060 expansion programs $250 268 $15,000 3000 15,667 In our provider networks: $200 2,880 2,632 $10,000 $150 2000 59,000 10,526 161 1,752 1,855 Primary care physicians 7,682 $100 120 $5,000 91 89 1000 5,052 4,284 $50 178,000 GROUP AND PRODUCT SOLUTIONS BY STATE Specialty care physicians 0 0 0 Medicaid/CHIP: Foster Care: ‘10 ‘11 ‘12 ‘13 ‘14 ‘10 ‘11 ‘12 ‘13 ‘14 ‘10 ‘11 ‘12 ‘13 ‘14 Arkansas (Private Option), California, Florida, Florida, Kansas, Louisiana, Mississippi, 2,000 Georgia, Illinois, Indiana, Kansas, Louisiana, Missouri, New Hampshire, Texas, Washington Massachusetts, Mississippi, Missouri, Medicare SNP: Hospitals New Hampshire, Ohio, South Carolina, Texas, Washington, Wisconsin Arizona, Florida, Georgia, Ohio, Texas, Wisconsin, Michigan* ABD Non-Dual: Medicaid-Medicare: California, Florida, Kansas, Louisiana, Mississippi, New Hampshire, Ohio, South Carolina, Texas, Illinois, Ohio, Texas*, South Carolina*, Michigan* (1) From continuing operations Washington, Wisconsin, Indiana* Correctional Healthcare: (2) Attributable to Centene Corporation from continuing operations ABD Dual-Eligible: Massachusetts, Minnesota, Tennessee, Vermont* California, Florida, Illinois, Kansas,