The Long Beach, California–based again reaffirmed its guidance for full year earnings per share in a range between $11.20 to $11.70.
Molina Healthcare recorded quarterly premium revenues of $4.4 billion, up 8% year-over-year, amid challenges related to the coronavirus disease 2019 (COVID-19) pandemic.
According to the Long Beach, California–based insurer's latest earnings report released Thursday afternoon, the company achieved a net income of $276 million, an increase of $80 million compared to Q2 2019.
Additionally, Molina's net income per share was $4.65, an improvement of $1.59 over this time last year.
Molina again reaffirmed its guidance for full year earnings per share in a range between $11.20 to $11.70. For 2021, Molina projects premium revenues of $21.5 billion, up 20% over 2020.
"Despite the unprecedented environment of the ongoing COVID-19 pandemic, our company performed well in the second quarter," Joe Zubretsky, CEO of Molina, said in a statement. "Most importantly, we worked tirelessly to make sure our members, provider partners, state and federal government customers, as well as our 10,000 associates, were well served and cared for in this clinically and economically challenging time. We also delivered on our performance commitments in the quarter, producing solid earnings and cash flow, executing on our revenue growth strategy, and putting the finishing touches on our two year-long process to optimize our capital structure. We are very pleased with these achievements, particularly with the COVID-19 challenges we faced."
Molina's quarterly earnings were released one day after Magellan Health released their most recent financials.
The Scottsdale–based for-profit managed care company recorded an income tax benefit of nearly $39 million that was associated with, "deferred tax assets in connection with the pending divestiture" Magellan Complete Care to Molina. The MCC deal is expected to close during Q1 2021.
With respect to combatting the ongoing pandemic, Molina announced in early June that it will waive out-of-pocket costs related to the testing and treatment for COVID-19 through the end of 2020.
The Long Beach, California–based insurer committed to extending its partnership with Teladoc Health, free home delivery of prescription drugs through CVS Pharmacy, and offering a 'Coronavirus Chatbot' for its members.
Molina has been involved in two notable transactions in recent weeks.
Less than two weeks ago, the payer announced that it would buy Passport Health Plan, a Louisville-based health insurance company.
Earlier in July, Molina completed its purchase of YourCare Health Plan, Inc., a Buffalo-based insurer, adding 47,000 new members to its health plan.
For complete financial information, review Molina's filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.
Photo credit: KIEV, UKRAINE - Dec 18, 2018: Molina Healthcare company logo seen displayed on smartphone - Image / Editorial credit: IgorGolovniov / Shutterstock.com