Centene Corporation Subsidiary Notified of Error Affecting Preliminary Ohio Medicaid ABD Contracts

Centene Corporation today announced that its Ohio subsidiary, Buckeye Community Health Plan (Buckeye), has received notification from the Ohio Department of Job & Family Services (ODJFS) affecting the previously announced preliminary award of Medicaid Aged, Blind & Disabled (ABD) contracts. On October 9, Buckeye was notified of a preliminary award of ABD contracts for the four regions in which it had submitted a bid.

In a notification sent to Buckeye, ODJFS had indicated that it had identified “an extremely improbable information systems error,” which will result in three regions now being subject to new Request for Applications (RFA). Two of the four regions previously awarded to Buckeye (East Central/Akron and Southwest/Cincinnati) will now be subject to this new RFA to be issued November 15. ODJFS will continue on schedule with the implementation of the ABD Managed Care Program in the five unaffected regions.

Buckeye has been further notified by ODJFS that in the absence of any additional unforeseen circumstances, the impact of this new RFA process will be a one-month delay in the completion of enrollment activities for the overall ABD program. It is expected that, barring any further complications, all Medicaid consumers eligible for ABD managed care will be enrolled by the end of Fiscal Year 2007.

Buckeye is one of seven health plans that received notification to manage healthcare for Medicaid ABD recipients in one or more of the state’s eight regions. As of September 30, Buckeye served 88,300 recipients under Ohio’s Medicaid Covered Families and Children Program. The ODJFS notification does not change Centene’s previously announced 2007 guidance.

The Company also noted that it maintains a strict policy with respect to insider stock transactions for its senior executives. Any and all such transactions are executed under pre-authorized 10b5-1 trading plans. Required documentation detailing any activity of this nature will be filed per SEC requirements.