Citing Deep Losses, Molina Pulls Out Of ACA Marketplaces In Utah, Wisconsin
The insurer also plans to increase 2018 premiums for its remaining plans under the Affordable Care Act by 55 percent and to cut 1,500 jobs.
The Associated Press:
Molina Healthcare To Exit ACA Exchanges In Utah, Wisconsin
Molina Healthcare Inc. said Wednesday it will exit the Affordable Care Act's insurance marketplaces in Utah and Wisconsin by the end of this year, citing costs that contributed to hefty losses for the health insurer in the second quarter. (Veiga, 8/2)
The Wall Street Journal:
Molina Healthcare Will Leave Health Exchanges In Utah, Wisconsin
Molina said it will leave the insurance exchanges in Utah and Wisconsin and scale back its presence in Washington state, and may pull out of more state marketplaces. It also said it is increasing exchange premiums 55% on average, partly due to lack of clarity around key federal payments. Molina is one of the largest marketplace insurers currently, with 949,000 enrollees across nine states. “We’re prepared to make hard decisions” about exchange participation, said Joseph White, chief financial officer and interim CEO, during a call with analysts. (Wilde Mathews, 8/2)
Bloomberg:
Molina To Cut Costs, Eliminate 1,500 Jobs Following Big Loss
The company said it’s eliminating about 1,500 jobs as part of a restructuring plan that it hopes will save $300 million to $400 million by late next year. In the meantime, Molina withdrew its 2017 earnings outlook. The company also said that it will exit money-losing Affordable Care Act markets in Utah and Wisconsin for next year and increase rates sharply elsewhere. (Tracer, 8/2)
CQ Roll Call:
Molina Exits Two Insurance Markets Amid Subsidy Uncertainty
Molina’s second-quarter financial results appear to show a company facing significant challenges, even with its premium revenue rising to $4.74 billion in the second quarter of this year, compared with $4.03 billion in the year-earlier one. But the company reported a net loss of $4.10 per diluted share in the second quarter, compared with income of 58 cents per share in the same period last year. Molina retracted its full-year financial guidance for 2017, citing uncertainty about federal health policy, a company-wide restructuring plan and uncertain plan performance in a number of states. And, the insurer is laying off 10 percent of its employees as part of the restructuring. The company earlier this year underwent a leadership shake-up when CEO J. Mario Molina and his brother, Chief Financial Officer John C. Molina, were unexpectedly ousted. (Clason, 8/2)
Milwaukee Journal Sentinel:
Molina Healthcare To Drop Out Of Wisconsin's Obamacare Marketplace
Molina doesn’t disclose how many people are enrolled in its various health plans, but it covered about 55,000 people through individual health plans in Wisconsin last year, according to the state Office of the Commissioner of Insurance. (Boulton, 8/2)
In other news —
Cleveland Plain Dealer:
Cleveland Clinic Signs Deal With Molina Healthcare Amid CareSource Fallout
The Cleveland Clinic and Molina Healthcare inked a deal that will give Medicaid patients access to the Clinic's health system. Starting Aug. 1, Medicaid patients on Molina's plan will be able to use Clinic services. (Christ, 8/2)
