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Molina Healthcare to double California revenue with Medi-Cal contracts in 2024
The Fly

Molina Healthcare to double California revenue with Medi-Cal contracts in 2024

Molina Healthcare confirmed that the California Department of Health Care Services has announced the awards of Medi-Cal contracts to Molina Healthcare of California commencing on January 1, 2024. The December 30th announcement confirms Molina’s footprint including Medi-Cal awards in each of Riverside, Sacramento, San Bernardino, and San Diego Counties and as a subcontractor in Los Angeles County. Under the finalized award, Molina’s Medi-Cal membership is expected to grow from approximately 600,000 members as of September 30, 2022, to approximately 1.2 million members in 2024. Molina’s current annual premium revenue related to its Medi-Cal contract of approximately $1.9B is now expected to be approximately $3.9B for full year 2024 versus the prior expectation of $5.5B based on DHCS’s August 2022 announcement. The projected combined 2024 revenues of California, Nebraska, and Iowa now total $4.2B. Incremental earnings from these recently announced portfolio additions are updated to at least $3.50 per share at full run rate, now reflecting portfolio target margins and modest operating leverage.

Published first on TheFly

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