2018 has marked a positive turnaround for Molina Healthcare after leadership and financial instability in 2017.
Net income and premium revenues declined for Molina Healthcare in Q3, though the Long Beach-based insurer raised its financial guidance for the end of the year, according to its Q3 earnings report released Wednesday afternoon.
Molina's net income totalled $197 million, down $5 million from Q2, while premium revenues dipped 4% to $177 million. Molina attributes this drop to risk adjustment premiums from last year that were not recognized in Q2 as well as $57 million in retroactive Medicaid expansion risk corridor payments in California.
The quarterly earnings mark a shift for Molina, which saw significant financial upheaval following a major reorganization effort in 2017.
"We are very pleased with the continued improvement in the performance of our business," Joe Zubretsky, CEO of Molina Healthcare, said in a statement. "Our financial results reflect the significant progress we are making in executing our margin recovery and sustainability plan."
In response to its Q3 earnings report, Molina has improved its end-of-year financial guidance by $1.65 per diluted share to a range of $8.80 to $9.
ADDITIONAL Molina Q3 EARNINGS REPORT HIGHLIGHTS:
- In Q3 2017, Molina reported a $97 million loss in net income, further emphasizing the company's turnaround.
- The insurer's net income margin totalled 4.2% for Q3, including 3.6% for the year.
- Molina also repaid $140 million in outstanding debt in Q3, bringing their half-year total to $697 million.
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.
After a topsy-turvy 2017, the insurer has performed more consistently in 2018, raising its year-end outlook.
This comes despite decreases to net income and earnings per share in Q3.
Nonetheless, CEO Joe Zubretsky is impressed with Molina's "continued performance."