WellCare Health Plans, Inc. (NYSE:WCG) Q1 2018 Earnings Conference Call Transcript

May 01, 2018 • 08:30 am ET

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WellCare Health Plans, Inc. (NYSE:WCG) Q1 2018 Earnings Conference Call Transcript

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Presentation
Executive
Kenneth A. Burdick

where we not only retained our existing business, but we also now have a significant opportunity to grow beyond our current revenue.

Last week, Staywell, our Medicaid health plan in Florida, received notice from the State Agency for Health Care Administration that it intends to award Staywell a new five-year contract to provide Managed Medical Assistance or MMA services to Medicaid eligible beneficiaries under Florida's Statewide Medicaid Managed Care Program. We were selected to serve comprehensive plan members in 10 of the 11 regions, representing an increase of 2 regions from the 8 that we currently serve. Under the comprehensive plan we will continue to provide MMA services and we will add long-term care services for Medicaid beneficiaries in 66 out of Florida's 67 counties.

In addition, we are pleased that we were selected as the new sole contractor for the statewide Serious Mental Illness Specialty Plan. Services under the new contract are expected to begin no earlier than October 1, 2018, and likely January 1, 2019. We are already focused on successfully implementing this new contract. We've served Medicaid beneficiaries in Florida for more than two decades and we're excited about the opportunity to provide innovative solutions to serve our members including those with a serious mental illness or long-term care needs. We know that more than 65% of those with serious mental illness also have physical health conditions that need to be managed.

In 2013, we insourced and integrated behavioral health capabilities into our care model so that we could effectively manage members with both physical and behavioral health conditions to a single point of contact. We also recognize that our strong partnerships with providers and our communities has contributed to our success and we look forward to continue working with them as we expand our presence and the populations we serve in Florida. As we announced in March, our Arizona health plan, Care1st Arizona, was selected to enter into a contract with Arizona Health Care Cost Containment System through its Complete Care Program, which will replace the state's current acute care program. Under Complete Care, AHCCCS is integrating behavioral health services, which are currently carved out, with physical healthcare services. The new program will be available to Medicaid beneficiaries statewide across three geographic service areas.

As of March 31, 2018, we serve 147,000 Medicaid members in Arizona. Under the new program that is expected to launch on October 1, 2018, we are thrilled to provide coordinated care services in both the North region for the first time and continuing to serve the Central region. As a result of this contract award, we expect meaningful growth in our Arizona market.

In Hawaii, our 'Ohana Health Plan service more than 44,000 Medicaid members as of March 31. Last month, we were selected to continue administering behavioral health services to nearly 5,000 Medicaid eligible adults with severe mental illness through the state's Community Care Services program. 'Ohana Health Plan has been the sole provider of CCS Behavioral Health Services since