The Long Beach, California–based said it expects total revenue of approximately $19.6 billion, including premium revenue of $18.6 billion.
Molina Healthcare released its latest quarterly earnings report Wednesday afternoon and raised its full year revenue guidance, citing its recent acquisition of Passport Health Plan, a Louisville-based health insurance company, and higher Medicaid enrollment.
The insurer's premium revenue topped $4.7 billion for the quarter, up nearly $700 million year-over-year, while total revenue eclipsed $5 billion.
Both pre-tax income and net income rose slightly, $29 million and $10 million increases, respectively. Similarly, the company's GAAP diluted earnings per share (EPS) and adjusted EPS were above $3.
For the full year, Molina said it expects total revenue of approximately $19.6 billion, including premium revenue of $18.6 billion.
For 2021, the insurer said its outlook has improved and that a full year guidance will be provided in its Q4 earnings release.
"Our third quarter performance was marked by the continued delivery of solid earnings and the focused execution of our growth strategy, all achieved in the midst of a global pandemic," Joe Zubretsky, CEO of Molina, said in a statement. "We continue to take major steps forward in our transformation, expanding our business portfolio while staying focused on our members and customers to help them during this most difficult time."
Molina did see its medical care ratio improve to 85.9%, cash and investments at the parent company rose to $1.2 billion, while its general and administrative expenses decreased to 7.3% of total quarterly revenues.
Unlike Q2, Molina only had one new major transaction.
At the end of Q3, Molina announced that it would buy Affinity Health Plan, a New York-based Medicaid insurer, for $380 million in cash.
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