Molina Healthcare delivered a strong performance in 2022 despite a sharp drop in fourth-quarter profits.
The health insurer on Thursday said fourth-quarter net income fell 46% to $56 million, or 96 cents a share, compared with $103 million, or $1.74 per share, during the same period last year. Revenue for the quarter rose to $8.22 billion, from $7.41 billion.
Net income for the year increased 20% to $792 million, or $13.55 a share, compared with $659 million, or $11.25 a share, in 2021. year increased to $31.97 billion, from $27.77 billion.
The Long Beach, California-based company is preparing for the loss of Medicaid members due to redefining.
Molina ended the year with 4.7 million members in Medicaid’s flagship business. However, the process of redefining Medicaid starting April 1, when states may begin to unenroll people who are ineligible for the program, could cost the company 300,000 members, the director said. Chief Financial Officer Mark Keim told investors during an earnings call.
However, the company expects its Medicaid population to remain steady at 4.7 million members following recent and upcoming expansions into other markets across the country.
President and CEO Joseph Zubretsky said he can’t predict how many members who are no longer eligible for Medicaid will switch to the company’s exchange plans, which are the company’s smallest line of business. , after redefining. He said during the call, the company aims to move former Medicaid enrollees to the state market’s coverage and is working on a member outreach.
“Because this is uncharted sea – it has never been done before – we chose not to create a model and forecast it but treat it as [an] Zubretsky said.
Earlier this week, Centene estimated their marketplace products would reach 200,000 and 300,000 members in redefining.
Molina expects its Medicare membership to grow to 175,000 while their market membership drops to 230,000 members by the end of the year. The company provides managed care services under Medicaid and Medicare and through market plans to nearly 5.3 million members across 19 states.
