Centene Corporation (NYSE: CNC) announced today that its Kentucky subsidiary, Kentucky Spirit Health Plan (Kentucky Spirit), has received a decision from the Kentucky Court of Appeals denying the Commonwealth's emergency motion for a mandatory injunction,

Centene Corporation (NYSE: CNC)announced today that its Kentucky subsidiary, Kentucky Spirit Health Plan(Kentucky Spirit), has received a decision from the Kentucky Court ofAppeals denying the Commonwealth's emergency motion for a mandatoryinjunction, thereby allowing Kentucky Spirit to move forward with exitingthe Medicaid managed care program. "Unfortunately, despite numerous opportunities to address the underlyingissues of the program, efforts to resolve these matters with the regulatoryagencies have been unsuccessful," said Deanne Lane, Vice President CorporateCommunications. "We have attempted to engage the Commonwealth in transitionplanning for months without success. In the interest of our members, we haveoffered to remain in the Medicaid managed care program up to August 31, 2013and await the Commonwealth's response." Kentucky Spirit remains focused on providing a smooth and effectivetransition for the Medicaid membership and its provider network. A copy ofCentene's letter to the Commonwealth is as follows: July 1, 2013 Richard M. Sullivan, Esq. Conliffe, Sandmann & Sullivan, PLLC 2000 Waterfront Plaza 325 West Main Street Louisville, Kentucky 40202 By Hand Delivery and Electronic MailRe: Kentucky Spirit Health Plan, Inc. v. Commonwealth of Kentucky, Finance and Administration Cabinet, Case No. 12-CI-1373 Dear Dick: We write to address transition issues in light of the Court of Appeals'decision today denying the Commonwealth's emergency motion for a mandatoryinjunction. In prior correspondence, Kentucky Spirit has pointed out that if theCommonwealth deems Kentucky Spirit to be in default of the Managed CareContract ("Contract") based on its July 5, 2013 exit from the KentuckyManaged Care program, it has certain remedies available to it under theContract, including terminating Kentucky Spirit for default and requiring itto remain in the program for an additional two months under Section 39.10.Kentucky Spirit twice has offered to waive any notice periods or requirementfor default and breach (without waiving other rights, including its rightswith respect to the pending appeal of Judge Wingate's May 31, 2013 orderdenying Kentucky Spirit's motion for summary judgment, including itsposition that Kentucky Spirit has a right under Section 39.13 of the ManagedCare Contract to terminate the Contract early), so that before July 5, 2013,the Commonwealth may effectuate the Contract's mechanism for requiringKentucky Spirit to remain in place through August 31, 2013. TheCommonwealth rejected the first offer. The renewed offer remains openthrough 12:01 a.m. July 6, 2013, and Kentucky Spirit continues to beprepared to provide services under Section 39.10 for any period of timebeyond July 5, 2013 (up to August 31, 2013) to ensure the effectivetransition of members. In the event that the Commonwealth proceeds to reassign Kentucky Spirit'smembers to other vendors effective 12:01 a.m. July 6, 2013 as described inyour e-mail this afternoon -replacing Kentucky Spirit as vendor - thereassignment will constitute a constructive termination under the Contract. Please advise how the Commonwealth intends to proceed. Sincerely, Philip W. Collier About Centene Corporation Centene Corporation, a Fortune 500 company, is a leading multi-linehealthcare enterprise that provides programs and related services to therising number of under-insured and uninsured individuals. Many receivebenefits provided under Medicaid, including the State Children's HealthInsurance Program (CHIP), as well as Aged, Blind or Disabled (ABD), FosterCare and Long-term Care (LTC), in addition to other state-sponsored/hybridprograms, and Medicare (Special Needs Plans). The Company operates localhealth plans and offers a range of health insurance solutions. It alsocontracts with other healthcare and commercial organizations to providespecialty services including behavioral health, care management software,correctional systems healthcare, life and health management, managed vision,pharmacy benefits management and telehealth services. SOURCE Centene Corporation