Call Invite: March 29 @10am ET | MOH: Navigating Medicaid Disenrollment Part II

Until a few years ago, MOH was a family business. After Mario and John Molina were dispatched by the board in 2017 due to financial underperformance -or maybe it was political activism - rumors of a takeover by a stronger MCOs swirled. That came to nothing.

Controversy, however, has persisted. Medicaid membership declined, in part due to a dispute between the Molina family and the company over reimbursement to the Golden Shore Medical Group.  It did not recover until 2020 when the CARES Act imposed a continuous enrollment requirement of Medicaid beneficiaries. 

The recent enrollment results beg questions about future performance as so much of it, perhaps all of it, can be attributed to temporary federal law changes. Additionally, MOH's Medicaid premium revenue, which is to say most of its revenue, is exposed to two states that are expected to experience budget duress in 2023 and beyond, New York (12%) and California (8%).

Like HUM and CNC, MOH has stashed cash on their medical benefits payable line, allowing some flexibility for a few quarters but it seems likely takeover rumors will be revived as the industry faces near certain consolidation in the coming years. Otherwise, a future of underperformance seems certain. (Link to HUM presentation here. Link to CNC presentation here.)

Please join us:

Emily Evans
Managing Director – Health Policy



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