About Molina Healthcare, Inc.
Molina Healthcare is dedicated to helping low-income Americans receive health and behavioral health coverage as well as primary care services. The company's Health Plan segment arranges for the delivery of health services to approximately 3.3 million people who receive their care through Medicaid, Medicare, and other government-funded programs in about 15 states and Puerto Rico. The family of founder C. David Molina controls the company through holdings and trusts.
Molina operated through two primary segments: Health Plan and the others segment. Altogether, the company's operations provide plans or services to approximately 3.3 million individuals in about 15 states. Molina's Health Plans segment accounts for majority of revenues. The company's health plans provide medical services through state networks of contracted hospitals and physicians that accept Molina health plan coverage. The health plans are each licensed as health maintenance organizations (HMOs).
The Other segment includes the historical results of the MMIS and behavioral health subsidiaries that were sold in late 2018, as well as certain corporate amounts not allocated to the Health Plans segment.
Molina's health plans primarily operate in Washington, California, South Carolina, Texas, Ohio, and Michigan, as well as in New Mexico and Florida. Its corporate headquarters is located in Long Beach, California.
Sales and Marketing
Molina's primary customers include state Medicaid agencies and the federal government. Marketplace members enroll in health plans with the assistance of insurance agents employed like outside brokers, vendors, direct to consumer marketing and via the Internet.
The company's revenue decreased by $2.1 billion to $16.8 billion, compared to $18.9 billion in the prior year. The fall was due to the decrease on their premium revenue, Health insurer fees reimbursed and Service revenue.
Net income amounted to $737 million, compared with net income of $707 million in 2018. The year over year comparison for net income is impacted by significantly higher costs in 2018 relating to restructuring activities, interest expense, debt repayment and the loss on sales of subsidiaries, as well as the non-deductible HIF incurred in 2018 and the moratorium of the HIF in 2019.
The cash held by the company at the end of 2019 decreased by $418 million to $2.5 billion, compared to $2.9 billion in the prior year. Cash provided by operations was $427 million, while investing and financing activities were $293 million and $552 million, respectively.
In 2019, Molina's entered a new phase in its turnaround strategy by pivoting focus to a disciplined and steady approach to growth. Organic growth, which includes leveraging the company's existing health plan portfolio and winning new territories, is its highest priority. The strategic initiatives that will drive long-term organic growth include: Increasing market share in the company's Medicaid, Medicare, and Marketplace programs; Adding adjacent Medicaid geographies; Pursuing Medicaid benefit additions; Increasing market share of other programs within existing Medicaid footprint; and Winning Medicaid bids in new states, and in re-procurements in existing states.
In addition to organic growth, Molina will consider targeted inorganic growth opportunities that provide a strategic fit, leverage operational synergies, and lead to incremental earnings accretion. This will include "bolt-on" membership opportunities in its current states and health plans in new states. As noted above, the company entered into two acquisition agreements in the fourth quarter of 2019, pursuant to which Molina expects to add Medicaid membership in Illinois and New York in 2020.
Mergers and Acquisitions
In 2020, Molina HealthCare Inc, announced that it has completed its acquisition of certain assets of YourCare Health Plan, Inc., a not-for-profit subsidiary of Monroe Plan for Medical Care. As a part of the transaction, Molina assumed the right to serve approximately 47,000 Medicaid members in seven counties in the Western New York and Finger Lakes regions. Monroe and its affiliate MP Care Solutions will provide certain post-closing management and administrative services related to member care and provider relations.
200 Oceangate Ste 100
Long Beach, CA 90802-4317
Phone: 1 (562) 435-3666
Employer Type: Publicly Owned
Stock Symbol: MOH
Stock Exchange: , NYSE
COO: Terry P. Bayer
Chairman: Dale B. Wolf
President, CEO, and Director: Joseph M. Zubretsky
Employees (This Location): 2,800
Employees (All Locations): 10,000
Long Beach, CA
Citrus Heights, CA
Grand Rapids, CA
Long Beach, CA
San Bernardino, CA
San Diego, CA
Fort Pierce, FL
Baton Rouge, LA
Saint Louis, MO
Las Cruces, NM
Jim Thorpe, PA
Summit Hill, PA
North Charleston, SC
Belle Haven, VA
North Chesterfield, VA
Virginia Beach, VA