The Long Beach, California–based insurer stated that the net effect of the COVID-19 pandemic decreased its full year net income by $2.30 per diluted share.
Molina Healthcare's total revenue for 2020 was $19.4 billion, up 15% year-over-year, though the insurer's net income fell by $64 million over the same period, according to its latest earnings report released Wednesday afternoon.
Molina's net income fell from $737 million at the end of 2019 to $673 million at the end of 2020 as the company endured the effects of the ongoing COVID-19 outbreak. The company attributed its revenue growth to increased membership, especially among its Medicaid population, and the impact of both its YourCare and Passport Health Plan deals.
The Long Beach, California–based insurer stated that the net effect of the pandemic decreased its full year net income by $2.30 per diluted share.
While Molina's premium revenue increased during Q4 2020 and for the full year, both its GAAP earnings per share and adjusted EPS slid during the same period.
"2020 presented an unprecedented environment, and I am proud of our performance as we focused on delivering for all of our stakeholders. We ensured our members had access to high quality care, we implemented innumerable special protocols for providers and our state customers, and we delivered growth and excellent financial results," Joe Zubretsky, CEO of Molina, said in a statement. "As the pandemic continues into 2021, we are determined to do the same. We are pleased with the significant revenue growth we expect to achieve in 2021, and look forward to another successful year."
The insurer's cash and investments at the parent company totaled $644 million at the end of 2020, down from nearly $1 billion at the end of 2019. Molina's operating cash flow at the end of 2020 was $1.89 billion, representing an increase spurred by "strong operating results, cash flow timing benefits from the growth in membership in 2020, and the net impact of timing differences in governmental receivables and payables."
For 2021, Molina's outlook included a premium revenue growth projection above 25%, adjusted EPS in the range of $12.50 to $13, and net income in the range of $649 million to $678 million.
For complete financial information, review Molina's filing with the Securities and Exchange Commission.
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
Photo credit: KIEV, UKRAINE - Dec 18, 2018: Molina Healthcare company logo seen displayed on smartphone - Image / Editorial credit: IgorGolovniov / Shutterstock.com