The Long Beach, California–based insurer missed on revenues but boosted its year-end net income year-over-year.
Molina Healthcare saw its year-end premium revenues decline by more than $1 billion, according to the insurer's latest earnings report released Monday afternoon.
The company reported premium revenues of $16.2 billion at the end of 2019, down from $17.6 billion at the end of 2018. Additionally, the company's total revenue fell from $18.8 billion to $16.8 billion over the course of 2019.
The Long Beach, California–based insurer did see its net income for 2019 rise by $30 million, but its pre-tax income fell by $27 million as well.
In another bright spot, Molina's diluted earnings per share (EPS) rose from $10.61 at the end of 2018 to $11.47 at the end of 2019.
"We are pleased with our fourth quarter and full year results. We improved our Medicaid and Medicare margins and achieved exceptional Marketplace margins. Overall, we delivered 4.4 percent after-tax margins and earnings per share growth of 8 percent," Joe Zubretsky, CEO of Molina Healthcare, said in a statement. "Going forward, 2020 represents an important year in our pivot to growth strategy with a return to top-line growth. Each of our three business lines are well positioned to grow in 2020 and beyond."
During Q4 2019, Molina's cash and investments rose just over $200 million, totaling $997 million.
For 2020, Molina projects its premium revenue will be near $17.4 billion, its EPS will be between $11.20 to $11.70, and its total membership will be around 3.4 million.
At the start of 2020, WFPL reported that Molina is aiming to win a Medicaid contract from the state of Kentucky that had been put on hold by Passport Health Plan, a nonprofit insurer, almost one year earlier.
In early January, Molina announced that it had entered a definitive agreement to purchase NextLevel Health Partners Inc., a Chicago-based Medicaid managed care organization.
Upon completion of the deal, the insurer will serve NextLevel Health Partners' 50,000 members in northern Illinois.
Operating cash flows for Molina at the end of 2019 totaled $427 million, higher than cash flows as the end of 2018 due to "normal fluctuations in timing of premium receipts."
ADDITIONAL MOLINA Q3 EARNINGS REPORT HIGHLIGHTS:
- The insurer's net income margin was 3.9% for Q4 2019, down from 4.3% in Q4 2018.
- The company's medical care ratio rose from 85.1% in Q4 2018 to 86% in Q4 2019.
- For Q4, the company received $305 million in dividends from health plan subsidiaries.
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