Business Operations Multi-product Portfolio Business Model Partnering with State Governments Leveraging our business model: CA Market Update Value Based Provider Partnerships 15 subsidiaries exceeding Integrated Solutions $1B in revenue Analytics Infrastructure Product Leadership Product Updates and Growth Pipeline International CENTENE - JUNE 2017 INVESTOR DAY 13
Business Operations Partnering with State Governments CA Market Update Value Based Provider Partnerships Integrated Solutions Analytics Infrastructure Product Leadership Product Updates and Growth Pipeline International CENTENE - JUNE 2017 INVESTOR DAY 14
Business Operations CA Market Update Value Based Provider Partnerships Integrated Solutions Analytics Infrastructure Product Leadership Product Updates and Growth Pipeline Integration of HNT is on track International or ahead of schedule CENTENE - JUNE 2017 INVESTOR DAY 15
Business Operations Value Based Provider Partnerships Integrated Solutions Analytics Infrastructure Furthering our value based partnerships with providers Product Leadership Product Updates and Growth Pipeline International JV owned health plan with North Carolina Medical Society and the North Carolina Community Health Center Association CENTENE - JUNE 2017 INVESTOR DAY 16
Business Operations Integrated Solutions Analytics Infrastructure Product Leadership Product Updates and Growth Pipeline International CENTENE - JUNE 2017 INVESTOR DAY 17
Business Operations Analytics Infrastructure Product Leadership Product Updates and Growth Pipeline Data Data Data Faster: Capture Analysis Integration International Health Reduced Improved Results in: Interventions Costs Quality Performance CENTENE - JUNE 2017 INVESTOR DAY 18
Business Operations Product Leadership Product Updates and Growth Pipeline International National Leading Products Medicaid Federal MLTSS Marketplace Managed Services Care CENTENE - JUNE 2017 INVESTOR DAY 19
Business Operations Product Updates and Growth Pipeline International Growth Medicare Marketplace Pipeline Advantage • Focused on • Served ~1.2 • 14 RFP wins in under 400% FPL million exchange the past 18 population members* months • Four new • Expand in 3 new • Pipeline remains markets in 2017 markets and 6 robust existing markets in 2018 * As of March 31, 2017 CENTENE - JUNE 2017 INVESTOR DAY 20
Business Operations International World Economic Forum CENTENE - JUNE 2017 INVESTOR DAY 21
Poised for Continued Growth 2012 Today Revenue: $8 billion $46.4 billion 2017 mid-point revenue guidance Members: 2 million 12 million as of March 31, 2017 States: 14 28 Including 3 implementation markets Market Cap.: $1.4 billion $13.6 billion as of June 30, 2012 as of June 15, 2017 Employees: 6,800 30,900 as of March 31, 2017 CENTENE - JUNE 2017 INVESTOR DAY 22
Finance Update Jeffrey Schwaneke – EVP, CFO & Treasurer CENTENE - JUNE 2017 INVESTOR DAY 23
2016 Performance (CONTINUING OPERATIONS) Total Revenues of $40.6 billion Revenues + 78% Fortune 500 #66 240 bps HBR Health Benefits Ratio of 86.5% improvement Diluted EPS Diluted EPS of $3.41 + 18% Adjusted Diluted Adjusted Diluted EPS of $4.43 + 41% EPS 1 Membership + 124% Added 6.3 million members between years 1 Represents a non-GAAP measure. See Appendix A for reconciliation of non-GAAP measures. CENTENE - JUNE 2017 INVESTOR DAY 24
Q1 2017 Performance Revenues + 69% Total Revenues of $11.7 billion 110 bps HBR Health Benefits Ratio of 87.6% improvement Diluted EPS Diluted EPS of $0.79 + $0.91 Adjusted Diluted Adjusted Diluted EPS of $1.12 + 51% EPS 1 Membership + 5% Added 605K members between years 1 Represents a non-GAAP measure. See Appendix A for reconciliation of non-GAAP measures. CENTENE - JUNE 2017 INVESTOR DAY 25
5 Year Compound Annual Growth Rates 2012-2017(F), excluding stock price 42 % $ Total Revenues 1 Delivering Shareholder Value 42 % 40 % EPS CNC Stock Price 3 Adj. Diluted EPS 2 1 Based upon 2017 guidance midpoint. 2 Represents a non-GAAP measure using the guidance midpoint. See Appendix A for reconciliation of non-GAAP measures. The 5 year GAAP diluted EPS CAGR is 37% using the guidance midpoint. 3 5 year stock price CAGR as of June 13, 2017. CENTENE - JUNE 2017 INVESTOR DAY 26
Total Revenues CAGR vs. Peers 5 YEAR CAGR, 2012-2017(F) 42% 27% CNC 18% 13% 11% 8% 8% 7% Source: SEC filings and Yahoo!Finance 2017 analyst estimates. Peer group includes Aetna, Anthem, Cigna, Humana, Molina, United and WellCare. CENTENE - JUNE 2017 INVESTOR DAY 27
Adjusted Diluted Earnings Per Share 1 (FROM CONTINUING OPERATIONS) Guidance Range $4.50 – $4.90 CNC 5 Year CAGR +40% 2 $4.43 $3.14 $2.31 $1.47 2013 2014 2015 2016 2017 (F) 1 Represents a non-GAAP measure. See Appendix A for reconciliation of non-GAAP measures. 2 Based on 2017 guidance range mid-point. CENTENE - JUNE 2017 INVESTOR DAY 28
Stock Price CAGR vs. Peers 5 YEAR CAGR, JUNE 2012-2017 42% 27% 13% S&P Peer CNC Composite Group 1 Note: CAGR from June 13, 2012 – June 13, 2017. Source: Yahoo!Finance 1 Peer group includes Aetna, Anthem, Cigna, Humana, Molina, United and WellCare. CENTENE - JUNE 2017 INVESTOR DAY 29
Total Revenues/Membership Growth ($ IN BILLIONS, MEMBERSHIP IN MILLIONS) Guidance Mid-point $46.4 $40.6 Membership Total Revenues $22.8 $16.6 11.4 $10.9 $8.1 5.1 4.1 2.9 2.6 2012 2013 2014 2015 2016 2017(F) CENTENE - JUNE 2017 INVESTOR DAY 30
Commercial Expansion Driving Growth (MEMBERSHIP IN THOUSANDS) Commercial Membership ● 2,000 Large/Small Group & Individual Off-Exchange ● Health Insurance ● 1,500 Marketplace 1,000 ● States with large/small group & individual off-exchange membership Key Drivers: 500 Health Net acquisition • • Growth in Health Insurance Marketplace • Reached over 1 million - exchange members in Q1 2017 2014 2015 2016 Q1 2017 CENTENE - JUNE 2017 INVESTOR DAY 31
Medicaid Driving Growth (MEMBERSHIP IN THOUSANDS) Medicaid Membership 8,000 6,000 States with business implementation in process 4,000 Key Drivers: • Health Net acquisition Product and market growth • • Medicaid expansion 2,000 2014 2015 2016 Q1 2017 CENTENE - JUNE 2017 INVESTOR DAY 32
Diversifying Revenues 2016: $40.6 Billion 2017(F): $46.4 Billion 1 2015: $22.8 Billion 2% 4% 13% 17% 10% 9% 9% 6% 6% 68% 72% 84% Medicaid Specialty/Government Medicare/Duals Commercial 88.9% 9.2% Commercial and HBR 2 Medicare growth Adj. SG&A 8.3% driving changes in 86.5% HBR & SG&A 1 2015 2016 2017(F) 1 Midpoint of guidance range. 2 Adjusted SG&A expense excludes certain items. See Appendix A for reconciliation of non-GAAP measures. 2017(F) excludes CENTENE - JUNE 2017 INVESTOR DAY 33 Health Net acquisition related expenses of $5 - $8 million and the Penn Treaty assessment expense of $47 million.
At-Risk Membership Characteristics Lower HBR Higher HBR TANF, CHIP, Foster Care Duals Avg. PMPM $200–$600 Commercial Avg. PMPM $2,250 17% Other 7% Commercial TANF, CHIP & Medicare/Duals ABD Avg. PMPM $375 Foster Care 3% Avg. PMPM $900 64% ABD 8% Medicare Avg. PMPM $1,000 Long-Term Care LTC Avg. PMPM $3,600 1% Other/Service CENTENE - JUNE 2017 INVESTOR DAY 34
At-Risk Membership and Premium Revenue As of Q1 2017 Membership Revenue Medicaid: TANF, CHIP & Foster Care 61% 39% ABD & LTC 9% 29% Behavioral Health 5% 2% Commercial 20% 19% Medicare & Duals 3% 10% Correctional 2% 1% 100% 100% CENTENE - JUNE 2017 INVESTOR DAY 35
Balance Sheet ($ IN MILLIONS) December 31, December 31, March 31, 2015 2016 2017 Cash and investments $3,978 $9,118 $10,340 Total assets 7,339 20,197 21,362 Debt: 925 Senior notes, at par 4,600 4,600 225 Revolving credit agreement 100 100 67 Mortgage notes 64 63 4 Other debt & cap. leases (109) (116) Total debt 1,221 4,655 4,647 Total stockholders’ equity 2,168 5,909 6,084 Debt to capital ratio, excl. non recourse 34.7% 43.7% 43.0% debt Reduced leverage by 130 basis points subsequent to the acquisition of Health Net CENTENE - JUNE 2017 INVESTOR DAY 36
Leverage Strategically manage our 45.0% balance sheet 44.5% 44.0% Continue to reduce our debt-to-capital ratio 43.5% 43.0% Aligning financial statement exposure through interest 42.5% rate swaps 42.0% Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2016 2017 Debt to capital ratio expected to be in low 40%’s by Q4 2017 Note: excludes non-recourse mortgage note CENTENE - JUNE 2017 INVESTOR DAY 37
Senior Notes and Revolver ($ IN MILLIONS) March 31, 2017 Balance Effective March 31, 2017 Interest Rate 1 $1,400 million 5.625% Senior Notes, due February 2021 $1,400 5.47% $1,000 million 4.75% Senior Notes, due May 2022 $1,008 3.98% $1,000 million 6.125% Senior Notes, due February 2024 $1,000 5.48% $1,200 million 4.75% Senior Notes, due January 2025 $1,200 4.10% Revolving credit agreement $100 4.50% Total Debt/ Weighted average rate $4,708 4.78% Centene’s S&P rating upgraded to ‘BB+’ from ‘BB’ in May 2017 1 Including impact of any interest rate swaps. CENTENE - JUNE 2017 INVESTOR DAY 38
Impact of Short-Term Interest Rates Total Debt Investment Portfolio Q1 2017 Q1 2017 Floating rate debt expense offset by short-term investment income $2.0B $4.3B $2.7B $6.0B Swapped Floating Cash & Investments Rate Debt at 1 or 3 highly correlated to month LIBOR LIBOR rate CENTENE - JUNE 2017 INVESTOR DAY 39
Impact of Short-Term Interest Rates ($ IN MILLIONS) Interest Expense Interest Income +$16 Annual Net Favorable Pre-tax Impact +$12 +$8 $43 $32 +$4 ($27) $22 ($20) ($14) $11 ($7 ) +75 bps +100 bps +25 bps +50 bps Estimated Impact of Change in 3-Month LIBOR As of March 31, 2017. CENTENE - JUNE 2017 INVESTOR DAY 40
Effective Tax Rate All Other Nondeductible ACA Health Income Tax Compensation Insurer Fee 51.8% 48.6% 42.9% 14.8% 11.5% 39-41% 3.3% 9.9% 0.4% 2.1% 0.3% 36.7% 36.7% 34.9% 32.7% 2014 2015 2016 2017(F) 2017 nondeductible compensation represents approx. $38M or $0.21 1 per diluted share of income tax expense. 1 Based on 2017 guidance range mid-point. CENTENE - JUNE 2017 INVESTOR DAY 41
Proposed Income Tax Reform Timeline – uncertain based on current environment Potential implications of proposed tax reform Corporate tax Eliminate net Immediate tax rate from 35% to interest expense deduction for capital 15%-20% deduction expenditures CENTENE - JUNE 2017 INVESTOR DAY 42
Potential Implications of Tax & Healthcare Reform Healthcare Tax Reform Reform (15-20%) (3%) +2% 39-41% 18-25% Effective Tax Corporate Net Interest Compensation Annualized Rate Rate Tax Rate Addback Deductions Outlook with Proposed Reforms In addition, we would benefit from a one-time deferred rate change of ~15% in the year tax reform is enacted (>$100 million after tax). CENTENE - JUNE 2017 INVESTOR DAY 43
Adjusted EBITDA 1 ($ IN MILLIONS) $1,804 HIF Impact $270 Guidance $921 Range $129 $1,800 to $1,534 $2,000 $792 2015 2016 2017 (F) YOY Increase 96% 45% 5% 2 Adj. EBITDA as % 4.1% 2 4.0% 4.4% of Revenue 1 Represents a non-GAAP measure. See Appendix A for reconciliation of non-GAAP measures. 2 Based on 2017 guidance range mid-point. CENTENE - JUNE 2017 INVESTOR DAY 44
2017 Guidance ($ IN MILLIONS, EXCEPT PER SHARE DATA) Low High Total Revenues $46,000 $46,800 GAAP diluted EPS $3.75 $4.15 Adjusted Diluted EPS 1 $4.50 $4.90 HBR% 87.0% 87.5% Selling, general & administrative (SG&A)% 9.1% 9.6% Adjusted SG&A% 1 9.0% 9.5% Effective Tax Rate 39.0% 41.0% Diluted Shares (in millions) 176.9 177.9 1 Represents a non-GAAP measure. See Appendix A for reconciliation of non-GAAP measures. Adjusted SG&A% excludes Health Net acquisition related expenses of $5 - $8 million and the Penn Treaty assessment expense of $47 million. CENTENE - JUNE 2017 INVESTOR DAY 45
Update: Markets Christopher Bowers, EVP - Markets CENTENE - JUNE 2017 INVESTOR DAY 46
State Health Plan Membership Growth *excludes Correctional, Behavioral Health, Federal Services, ASO and Envolve membership 6.0 (in millions) Total Membership 5.0 (as of 1/1/16) 3.7M 4.4M 4.0 3.0 2.0 1.0 0.5M 0.1M <15k 0.0 Medicaid Complex Care Commercial Medicare CENTENE - JUNE 2017 INVESTOR DAY 47
State Health Plan Membership Growth *excludes Correctional, Behavioral Health, Federal Services, ASO and Envolve membership 7.0 (in millions) 5.7M, ~50% 6.0 Total Membership (as of 3/31/17) 5.0 8.7M, ~100% 4.0 3.0 1.9M, ~1,800% 0.8M, 2.0 ~60% 0.3M, 1.0 ~2,600% 0.0 Medicaid Complex Care Commercial Medicare CENTENE - JUNE 2017 INVESTOR DAY 48
Increasing Scale and Diversification HEALTH PLANS BY PREMIUM SIZE 2012 12 12 10 2017 (P) 1 Under $1 billion Over $1 billion CENTENE - JUNE 2017 INVESTOR DAY 49
Key Membership Drivers in 2017 *excludes Correctional, Behavioral Health, Federal Services, ASO and Envolve membership 2017 Growth Areas Organic Existing Growth Market New States Expansions (NE, NV) Marketplace ~9% 12/31/16 2017(P) CENTENE - JUNE 2017 INVESTOR DAY 50
2017 Market Updates Product Estimated Number State Start Date Membership Mix Market Size of Plans All populations NE 1/1/17 228,000 3 plans 79k* (acute only –LTSS & I/DD) MO 5/1/17 Medicaid 737,500 3 plans 280k** TANF, CHIP, Medicaid NV 7/1/17 425,000 4 plans ~35k** Expansion *as of March 31, 2017 **Estimates CENTENE - JUNE 2017 INVESTOR DAY 51
Managing Market Level Trends CENTENE - JUNE 2017 INVESTOR DAY 52 52
Centene Playbook to Offset Trends HBR Initiatives Actuarial Payment Coordination Integrity Trends Public Policy Risk Engagement Adjustment Quality Management CENTENE - JUNE 2017 INVESTOR DAY 53
Centene Medicaid Rate Experience 2014 2015 2016 Est. Cost Trend 1.5%-2.5% Net Rate Increase 0-1% Health Benefits Ratio Consistent HBR performance Playbook strategies maintain HBR levels despite increasing trends CENTENE - JUNE 2017 INVESTOR DAY 54
Plan Example - Large Traditional Medicaid Product Strategies to Offset to Medical Trend • ED utilization reduction of ~5% (onsite ED Diversion) • Improved Rx utilization by 12% to mitigate inflationary pressures • Incremental payment integrity strategies CENTENE - JUNE 2017 INVESTOR DAY 55
Continue to Generate Strong Growth Through: • Expansion and retention of existing business • Acquisition of new business • Broader product penetration Managing and offsetting rate pressures and cost trends through our comprehensive playbook of Health Plan tools and strategies CENTENE - JUNE 2017 INVESTOR DAY 56
Business Unit Update Steven Sell, CEO & Plan President - CA Market CENTENE - JUNE 2017 INVESTOR DAY 57
California: Progress Update 15 Months after the Merger Close Improved financial performance Improved operational performance Well positioned for the future CENTENE - JUNE 2017 INVESTOR DAY 58
California: Market Overview A Large Market…. • 39M Californians • Over 27M in risk-based care models* In All Segments…. • Medicaid, Medicare, Duals • Employer Group, Individual • Military, Correctional • Specialty With Strong Stakeholder Alignment. • Physicians, Medical Groups, Hospitals • CDI, DMHC, DHCS, CMS, CovCA • Brokers, GA’s and Consultants * Does not include self-insured population (approx. 6M) or Medicare FFS population (approx. 3.5M) CENTENE - JUNE 2017 INVESTOR DAY 59
Improved Financial Performance Financial Performance • No Premium Deficiency Reserves taken for 2017 • On track to meet all merger-related synergy targets • Successfully managing Medicaid Expansion rates Leveraging Best of Both Model • Expertise in managing heavily capitated population • Applying rigor to management of Fee For Service costs CENTENE - JUNE 2017 INVESTOR DAY 60
Operational Performance Claims Management • Processing improvements • Medical cost reduction initiatives • Expanded fraud, waste & abuse capability Medical Management • Enhanced case management • Insourcing care management to Centene systems & processes • Concurrent review CENTENE - JUNE 2017 INVESTOR DAY 61
Operational Performance cont’d Quality & Customer Experience • Improved Covered CA Net Promoter Score • Positive member satisfaction trend Provider Engagement • Network is stable • Maintaining low medical cost trend • Improved management of FFS providers • Risk Adjustment improvements CENTENE - JUNE 2017 INVESTOR DAY 62
California Market Culture Local Accountability and Control Performance Orientation Employee Engagement and Development CENTENE - JUNE 2017 INVESTOR DAY 63
Well Positioned for the Future A Market Leader Medicaid • #1 11% Duals/MMP • Correctional Health Medicaid Plan with Market share • ~2M lives and 19% statewide with market share ~3M lives Power of MCO Portfolio 12% Market Share in Sacramento 29% Market Share in the Central Valley 18% Market Share in Los Angeles County *as of March 31, 2017 CENTENE - JUNE 2017 INVESTOR DAY 64
Update: Products Jesse Hunter, EVP - Products CENTENE - JUNE 2017 INVESTOR DAY 65
Product Focus National Product Leadership Multi-Product Strategy Marketplace Update Medicare Update CENTENE - JUNE 2017 INVESTOR DAY 66
Product Focus National Product Leadership Multi-Product Strategy Marketplace Update Medicare Update CENTENE - JUNE 2017 INVESTOR DAY 67
Product Objective Medicaid Complex Care Market leading products focused on Medicare government Commercial sponsored healthcare (Marketplace) programs Federal Services Envolve Health CENTENE - JUNE 2017 INVESTOR DAY 68
Demonstrating Product Leadership National 1 st or 2 nd in Market leading Membership position across Products 2007 2008 2013 2014 2017 1984 1987 CENTENE - JUNE 2017 INVESTOR DAY 69
AHIP America’s Health Insurance Plans Product Thought Leadership MHPA Medicaid Health Plans of America Medicaid and CHIP Payment MACPAC and Access Commission MLTSS National MLTSS Health Plan Association Association of Military Surgeons AMSUS of the United States Envolve Center for ECHBC Health Behavior Change CENTENE - JUNE 2017 INVESTOR DAY 70 70
Product Focus National Product Leadership Multi-Product Strategy Marketplace Update Medicare Update CENTENE - JUNE 2017 INVESTOR DAY 71
Multi-Product Strategy Correctional Marketplace Medicaid Medicare MSO & Duals CENTENE - JUNE 2017 INVESTOR DAY 72
Product Focus National Product Leadership Multi-Product Strategy Marketplace Update Medicare Update CENTENE - JUNE 2017 INVESTOR DAY 73
Membership Demographics 93% 93% 91% Premium Subsidies 2017 2015* 2016 Subsidized Unsubsidized 7% 9% 7% Metal Tier 78% 85% 90% Silver 2015* 2016 2017 Bronze 22% 12% 8% Gold & Platinum 3% 2% * 2015 does not include Health Net CENTENE - JUNE 2017 INVESTOR DAY 74
2017 Marketplace Footprint Peak Membership 2014 76,000 Centene State 2015 167,000 Centene HIM Membership 2016 683,000 #1 National Carrier 2017 1,200,000 on Marketplace CENTENE - JUNE 2017 INVESTOR DAY 75 75
Carrier Exit Case Study – Broward County, FL Carrier’s market exit resulted in a large number of auto- assignments, including 18,000 members assigned to Ambetter Cost Total To Premi mium m Sharing ng Subs bsidy dy Enrollees ees Redu eduction Members Auto Assigned to Ambetter 83.6% 70.0% 18,114 Auto to Assi ssignments s that E Effectua uated w d with h Ambetter 95.1% 95. 84.9% 84. 6, 6,56 564 All Ne New Ambette tter M Members 92.9% 92. 79.8% 79. 55,202 202 CENTENE - JUNE 2017 INVESTOR DAY 76
Path to 2018 8/1 - 8/16 10/12 Rate Finalization by DOIs Feds FFM QHP and Handoff to CMS certification signing 5/1 - 8/16 8/20 DOI Reviews, Court Date for CSRs Negotiations and Revisions 11/1 – 12/15 5/1 - 6/21 Open Enrollment Initial State Filings 9/16 - 9/27 FFM QHP certification signing 7 2 0 1 May Jun. Jul. Aug. Sept. Oct. Nov. Dec. CENTENE - JUNE 2017 INVESTOR DAY 77
2018 Marketplace Positioning Centene State Centene HIM Membership New HIM Markets in 2018 HIM Expansion Markets • 2018 “business as usual” approach based on ACA • Plan design and pricing reflect market variability and need for flexibility • Pursue strategic expansion and membership growth • Strive to maintain our price advantage • Deliver targeted profit margin CENTENE - JUNE 2017 INVESTOR DAY 78
Product Focus National Product Leadership Multi-Product Strategy Marketplace Update Medicare Update CENTENE - JUNE 2017 INVESTOR DAY 79
2017 Medicare Profile Products • Membership: 328,000 (March 31, 2017) MA / • $3B Medicare Platform (2016) MAPD • Multi-product MMP • Multi-state • 4 Star Parent Organization Rating D-SNP C-SNP I-SNP Med. Supp. EGWP Centene State Centene Medicare Market CENTENE - JUNE 2017 INVESTOR DAY 80 80
Medicare Strategy Focus on individuals under 400% FPL Geography Beneficiary Plan Design Creating low Focus on or no cost CNC Markets premium plans CENTENE - JUNE 2017 INVESTOR DAY 81
Operationalizing Strategies and Insights Test and Learn Model • Brand: New national brand • Network: Expand non-Medicaid provider network & increase focus on value based purchasing • Sales and Marketing: Targeted broker relationships and community depth CENTENE - JUNE 2017 INVESTOR DAY 82
2018 Outlook Focused Growth Strategy • Submitted 11 new market LOIs originally and plan to enter six new markets • Launch two D-SNP focused markets • Additional growth investment in new 2017 markets • Launch targeted 2018 markets that align with network, plan design, and sales opportunity Longer-term Medicare to represent 20%+ Expectations: of total Centene growth CENTENE - JUNE 2017 INVESTOR DAY 83
Industry Leading Multi-Product Portfolio Demonstrated commitment to national product leadership Ability to leverage multi-product portfolio Focused on diversified growth across government healthcare landscape CENTENE - JUNE 2017 INVESTOR DAY 84
Value in Experience C. David Minifie, Chief Experience Officer & EVP CENTENE - JUNE 2017 INVESTOR DAY 85
OUR PURPOSE | why we do what we do Transforming the Health of the Community, One Person at a Time OUR BRAND PILLARS | How we go about doing it Active Local Focus on the Whole Individual Health Involvement CENTENE - JUNE 2017 INVESTOR DAY 86
Focus on the Individual What are the challenges our consumers face on the road to better health? KNOWN & UNKNOWN PRESENT & FUTURE DIRECT & INDIRECT CENTENE - JUNE 2017 INVESTOR DAY 87
an expansive consumer ecosystem, includes MEMBERS AND THEIR FAMILIES, PROVIDERS & CAREGIVERS CENTENE - JUNE 2017 INVESTOR DAY 88
HISTORICAL BUSINESS CONSUMER REALITY Changing Auto-assignment • Consumer Choice • Landscape State Government • Individual Consumer • Product • People • Transaction • Engagement • More Likely to Renew 92% More Likely to Forgive 67% Satisfaction drives results 88% More Likely to Recommend More Likely to Try a New Offering 57% CENTENE - JUNE 2017 INVESTOR DAY 89
CENTENE - JUNE 2017 INVESTOR DAY 90
Learning More About Our Consumers FROM WHO THEY ARE TO WHERE THEY ARE Detailed Mapping & Targeting Sophisticated Segmentation Research CENTENE - JUNE 2017 INVESTOR DAY 91
Local Still Matters CENTENE - JUNE 2017 INVESTOR DAY 92
*Figures represent Ambetter membership only (does not include Covered CA members) CENTENE - JUNE 2017 INVESTOR DAY 93
Adults 65+ Includes those who are about to “age-in,” as well as switchers. CENTENE - JUNE 2017 INVESTOR DAY 94
The Consumer: Highlights • Brand matters; hard to break in with well-entrenched competitors • Overall Medicare-eligible carrier switching is small in any one year (about 6%) • Major switch triggers are: bad customer experience, PCP falling out of plan, Rx price changes Age-ins shop for: brand, price/cost, doctor, formulary • • Providers can be very influential, as can brokers/agents CENTENE - JUNE 2017 INVESTOR DAY 95
Emotional Journey to Get to a Medicare Plan Decision “Do I qualify for Medicare?” “What are my options?” “What does MA cover?” “What plan is best for me?” “Do I need other coverage?” “How do I enroll?” Our goal: guided, confident & relieved Most feel confusion, uncertainty & anxiety CENTENE - JUNE 2017 INVESTOR DAY 96
CENTENE - JUNE 2017 INVESTOR DAY 97
CONSISTENTLY PERFORMED WELL IN RESEARCH AMONG MEDICARE ELIGIBLES • The name Allwell is simple, clear and easy to understand. • Individuals feel that the name conveys the concepts of “good health and being taken care of.” • Tested well against competitor brands already in market. Medicare consumers prefer a brand with a local extension, with 61% of consumers preferring a local brand name. CENTENE - JUNE 2017 INVESTOR DAY 98
Local, flexible and scalable brand architecture STATE-BASED MARKET BRAND EXTENSIONS FOR CONSUMER CATAGORIES PRODUCT BRAND FOR MARKETPLACE Trusted, local partner for all PRODUCT BRAND FOR MEDICARE Texans and their community Covers full range of government- sponsored Medicaid & Children’s Health Insurance Plans (CHIP) CENTENE - JUNE 2017 INVESTOR DAY 99
OUR PURPOSE | why we do what we do Transforming the Health of the Community, One Person at a Time OUR BRAND PILLARS | How we go about doing it Active Local Focus on the Whole Individual Health Involvement CENTENE - JUNE 2017 INVESTOR DAY 100
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