[August 02, 2017] |
|
Molina Healthcare Announces Second Quarter Results and Restructuring Plan
Molina Healthcare, Inc. (NYSE: MOH):
-
Net loss of $230 million for the quarter, or $4.10 per diluted share.
-
Restructuring plan now underway is expected to reduce annualized
run-rate expenses by $300 million to $400 million upon completion in
2018.
-
$200 million total reduction to annualized run-rate expenses resulting
from staff reductions expected to be achieved by the end of 2017 in
time for full realization in 2018.
-
Annualized salary eliminations of $55 million achieved so far in the
third quarter of 2017.
-
Direct delivery operations will be restructured during the second half
of 2017.
-
2018 Marketplace participation to be terminated in Utah and Wisconsin;
additional states in review.
-
2017 earnings per share guidance withdrawn.
Molina Healthcare, Inc. (NYSE: MOH) today reported its financial results
for the second quarter of 2017.
"We are disappointed with our bottom-line results for this quarter and
have taken aggressive and urgent steps to substantially improve our
financial performance going forward," said Joseph White, chief financial
officer and interim president and chief executive officer of Molina
Healthcare, Inc. "Following a thorough review of our business
operations, we have begun to implement a Company-wide restructuring plan
that we expect will reduce annualized run-rate expenses by between $300
million and $400 million by late 2018 when fully implemented, with
approximately $200 million of these run-rate reductions expected to be
achieved by the end of 2017 and in time for full realization in 2018. In
the past, we have been focused on top line growth, often at the expense
of bottom line results. While we expect to enjoy continued RFP and
organic growth in our Medicaid managed care business, we are now
intensively focused on improved operating performance and efficiency as
the path to greater profitability and shareholder returns."
Second Quarter 2017 Compared with Second Quarter 2016
Net loss per diluted share was $4.10 in the second quarter of 2017
compared with net income per diluted share of $0.58 reported for the
second quarter of 2016. Loss before income tax benefit for the second
quarter of 2017 was $314 million.
Certain significant items increased loss before income tax benefit in
the second quarter of 2017 by approximately $330 million. Specifically:
-
We recorded $72 million in non-cash impairment losses for goodwill and
intangibles, primarily relating to our Pathways subsidiary. In the
course of developing our restructuring and profitability improvement
plan, we determined that future benefits to be derived from Pathways
(including integration with our health plans) will be less than
previously anticipated. While such impairment losses have a short-term
impact on profitability, there is no impact to our cash flows.
Pathways experienced operating losses of $8 million for the quarter
ended June 30, 2017 and $12 million for the six months ended June 30,
2017.
-
Medical care costs related to 2016 service dates were significantly in
excess of what the Company usually experiences for out-of-period
claims development, particularly at the Florida, Illinois, New Mexico,
and Puerto Rico health plans. In total, we experienced out-of-period
claims development that was approximately $85 million higher than
expected at December 31, 2016.
-
We recorded $44 million for Marketplace changes in estimates,
including risk transfer and cost sharing subsidies, related to 2016
service dates. Liabilities for risk transfer payments and cost sharing
subsidies that were estimated at December 31, 2016 were finalized
during the second quarter of 2017.
-
Loss before income tax benefit increased by $78 million as a result of
an increase to the premium deficiency reserve established for the
Marketplace program. The reserve, which was $22 million at March 31,
2017, increased to $100 million as of June 30, 2017. Based upon
revenue and cost trends observed in the second quarter of 2017, we now
believe that Marketplace performance in the second half of 2017 will
fall substantially short of previous expectations. Marketplace
performance has been most disappointing in Florida, Utah, Washington,
and Wisconsin.
-
We recorded $43 million in restructuring and separation costs in the
second quarter of 2017 related primarily to contractually required
termination benefits paid to our former chief executive officer and
chief financial officer. Also included in these costs are consulting
fees incurred for the development and implementation of our corporate
restructuring initiatives.
In addition to the items noted above, ongoing poor performance at our
Florida, Illinois, New Mexico and Puerto Rico health plans in 2017 all
contributed to our disappointing financial performance in the second
quarter of 2017.
The table below summarizes the impact of these significant items on the
Company's financial performance.
|
Summary of Significant Items Affecting
2017 Financial Results
|
|
|
|
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Three Months Ended
|
|
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Six Months Ended
|
|
|
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June 30, 2017
|
|
|
June 30, 2017
|
|
|
|
(In millions, except per diluted share amounts)
|
|
|
|
Amount
|
|
|
Per Diluted Share (1)
|
|
|
Amount
|
|
|
Per Diluted Share (1)
|
Impairment losses
|
|
|
$
|
72
|
|
|
|
$
|
1.01
|
|
|
|
$
|
72
|
|
|
|
$
|
1.02
|
|
Losses at behavioral health subsidiary exclusive of impairment
|
|
|
8
|
|
|
|
0.09
|
|
|
|
12
|
|
|
|
0.14
|
|
Medical care costs related to prior year service dates that were in
excess of historical expectations
|
|
|
85
|
|
|
|
0.95
|
|
|
|
74
|
|
|
|
0.84
|
|
Marketplace adjustments related to risk transfer, cost sharing
subsidies, and other items for 2016 service dates
|
|
|
44
|
|
|
|
0.49
|
|
|
|
47
|
|
|
|
0.53
|
|
Marketplace premium deficiency reserve for 2017 service dates
|
|
|
78
|
|
|
|
0.87
|
|
|
|
70
|
|
|
|
0.79
|
|
Restructuring and separation costs
|
|
|
43
|
|
|
|
0.68
|
|
|
|
43
|
|
|
|
0.68
|
|
Termination fee received for Terminated Medicare acquisition
|
|
|
-
|
|
|
|
-
|
|
|
|
(75
|
)
|
|
|
(0.84
|
)
|
|
|
|
$
|
330
|
|
|
|
$
|
4.09
|
|
|
|
$
|
243
|
|
|
|
$
|
3.16
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____________________
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(1)
|
Except for certain items that are not deductible for tax purposes,
per diluted share amounts are generally calculated at our
statutory income tax rate of 37%, which is in excess of the
effective tax rate recorded in our consolidated statements of
operations.
|
|
|
Income Tax (Benefit) Expense
The effective tax rate benefit for 2017 was less than the statutory tax
rate benefit due to the relatively large amount of our reported expenses
that are not deductible for tax purposes.
Restructuring and Profit Improvement Plan
As a result of our poor operating performance and catalyzed by our
change in management, we accelerated the implementation of a
comprehensive restructuring and profitability improvement plan (the
Restructuring Plan). Under the Restructuring Plan, we are taking the
following actions:
-
We are streamlining our organizational structure, including the
elimination of redundant layers of management, the consolidation of
regional support services, and other reductions to our workforce, to
improve efficiency as well as the speed and quality of our
decision-making.
-
We are re-designing core operating processes such as provider payment,
utilization management, quality monitoring and improvement, and
information technology to achieve more effective and cost efficient
outcomes.
-
We are remediating high cost provider contracts and building around
high quality, cost-effective networks.
-
We are restructuring our existing direct delivery operations.
-
We are reviewing our vendor base to ensure that we are partnering with
the lowest-cost, most-effective vendors.
-
Throughout this process, we are taking precautions to ensure that our
actions do not impede our ability to continue to deliver quality
health care, retain existing managed care contracts, and to secure new
managed care contracts.
In total, we estimate that the Restructuring Plan will reduce annualized
run-rate expenses by approximately $300 million to $400 million upon its
completion in late 2018. $200 million of these run-rate reductions,
which are a result of staff reductions, will be in place by December
2017, and therefore will fully contribute to our 2018 results. Since the
close of the second quarter, we have already achieved $55 million of our
annualized run-rate reduction target as a result of staff reductions
taken on July 27th. All savings targets discussed in regards
to the Restructuring Plan represent annualized run-rate savings that we
expect to achieve during the year following the indicated implementation
date. One-time costs associated with the Restructuring Plan are expected
to exceed the benefits realized in 2017 due to the upfront payment of
implementation costs and the delayed benefit of full savings until the
beginning of 2018.
We estimate that total pre-tax costs associated with the Restructuring
Plan will be approximately $130 million to $150 million for the second
half of 2017, with an additional $40 million to be incurred in 2018.
As part of the Restructuring Plan, we are reducing our corporate and
health plans workforce by approximately 10%, or 1,500
full-time-equivalent employees. This workforce rightsizing, which
represents 7% of the total number of our employees, is expected to be
completed by the end of 2017. Affected employees will be offered
severance and outplacement assistance.
"This reduction in our workforce is a difficult, but necessary, step as
we concentrate our efforts on achieving operational excellence and
improved efficiency. By transforming the entire enterprise into a
leaner, more streamlined organization, we can enhance our
decision-making, improve our operating performance, and grow our
margins," said Mr. White.
Actions Taken to Remediate 2018 Marketplace Performance
In addition to the Restructuring Plan, we are taking these further steps
to improve profitability in 2018:
-
We are exiting the Utah and Wisconsin ACA Marketplaces effective
December 31, 2017. For the three months ended June 30, 2017, these two
health plans reported a total of $127 million in Marketplace premium
revenue (16% of consolidated Marketplace premium revenue), and a
combined Marketplace medical care ratio of 128%.
-
In our remaining Marketplace plans, we are increasing 2018 premiums by
55%. The increase takes into account the absence of cost sharing
reduction subsidies. Had we assumed that cost sharing reduction
subsidies would be funded for 2018, the premium increase would have
been 30%.
-
We are also reducing the scope of our 2018 participation in the
Washington Marketplace.
-
We continue to closely monitor the current political and programmatic
developments pertaining to our 2018 participation in other Marketplace
states, and subject to those developments, will withdraw from 2018
participation as may be necessary.
Withdrawing 2017 Outlook
We are withdrawing our previously issued 2017 full-year earnings per
diluted share and adjusted earnings per diluted share guidance. Among
the reasons for withdrawing guidance are:
-
Our results for the quarter ended June 30, 2017.
-
Uncertain medical cost trends in the Florida, Illinois, New Mexico,
and Puerto Rico health plans.
-
Uncertainty around the funding of Marketplace cost sharing subsidies.
-
Potential variability in the timing of benefits achieved and costs
incurred as a result of the Restructuring Plan.
Update on Search for Permanent Chief Executive Officer
Our search for a permanent chief executive officer is well underway and
we are encouraged by the response.
Conference Call
Management will host a conference call and webcast to discuss Molina
Healthcare's second quarter results at 5:00 p.m. Eastern time on
Wednesday, August 2, 2017. The number to call for the interactive
teleconference is (212) 231-2909. A telephonic replay of the conference
call will be available from 7:00 p.m. Eastern time on Wednesday, August
2, 2017, through 6:00 p.m. Eastern Time on Thursday, August 3, 2017, by
dialing (800) 633-8284 and entering confirmation number 21855049. A live
audio broadcast of Molina Healthcare's conference call will be available
on our website, molinahealthcare.com.
A 30-day online replay will be available approximately an hour following
the conclusion of the live broadcast.
About Molina Healthcare
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed health
care services under the Medicaid and Medicare programs and through the
state insurance marketplaces. Through our health plans operating in 12
states across the nation and in the Commonwealth of Puerto Rico, Molina
currently serves approximately 4.7 million members. Dr. C. David Molina
founded our company in 1980 to serve low-income families in Southern
California. Today, we continue his mission of providing high quality and
cost-effective health care to those who need it most. For more
information about Molina Healthcare, please visit our website at molinahealthcare.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This earnings release contains "forward-looking
statements" regarding our plans, expectations, and anticipated future
events. Actual results could differ materially due to numerous known and
unknown risks and uncertainties. Those known risks and uncertainties
include, but are not limited to, the following:
-
the success of the Restructuring Plan, including the timing of the
benefits realized;
-
the numerous political and market-based uncertainties associated
with the Affordable Care Act (the "ACA") or "Obamacare," including any
potential repeal and replacement of the law, amendment of the law, or
move to state block grants for Medicaid;
-
the market dynamics surrounding the ACA Marketplaces, including but
not limited to uncertainties associated with risk transfer
requirements, the potential for disproportionate enrollment of higher
acuity members, the withdrawal of cost sharing subsidies and/or
premium tax credits, the adequacy of agreed rates, and potential
disruption associated with market withdrawal;
-
subsequent adjustments to reported premium revenue based upon
subsequent developments or new information, including changes to
estimated amounts payable or receivable related to Marketplace risk
adjustment/risk transfer, risk corridors, and reinsurance;
-
effective management of our medical costs;
-
our ability to predict with a reasonable degree of accuracy
utilization rates, including utilization rates associated with
seasonal flu patterns or other newly emergent diseases;
-
significant budget pressures on state governments and their
potential inability to maintain current rates, to implement expected
rate increases, or to maintain existing benefit packages or membership
eligibility thresholds or criteria, including the payment of all
amounts due to our Illinois health plan following the resolution of
the Illinois budget impasse;
-
the success of our efforts to retain existing government contracts,
including those in Florida, Illinois, New Mexico, Puerto Rico, and
Texas, and to obtain new government contracts in connection with state
requests for proposals (RFPs) in both existing and new states;
-
any adverse impact resulting from the significant changes to our
executive leadership team and the rightsizing of our workforce;
-
the impact of our decision to exit the Utah and Wisconsin ACA
Marketplace markets effective December 31, 2017;
-
our ability to manage our operations, including maintaining and
creating adequate internal systems and controls relating to
authorizations, approvals, provider payments, and the overall success
of our care management initiatives;
-
our ability to consummate and realize benefits from acquisitions or
divestitures;
-
our receipt of adequate premium rates to support increasing
pharmacy costs, including costs associated with specialty drugs and
costs resulting from formulary changes that allow the option of
higher-priced non-generic drugs;
-
our ability to operate profitably in an environment where the trend
in premium rate increases lags behind the trend in increasing medical
costs;
-
the interpretation and implementation of federal or state medical
cost expenditure floors, administrative cost and profit ceilings,
premium stabilization programs, profit sharing arrangements, and risk
adjustment provisions;
-
our estimates of amounts owed for such cost expenditure floors,
administrative cost and profit ceilings, premium stabilization
programs, profit-sharing arrangements, and risk adjustment provisions;
-
the Medicaid expansion cost corridors in California, New Mexico,
and Washington, and any other retroactive adjustment to revenue where
methodologies and procedures are subject to interpretation or
dependent upon information about the health status of participants
other than Molina members;
-
the interpretation and implementation of at-risk premium rules and
state contract performance requirements regarding the achievement of
certain quality measures, and our ability to recognize revenue amounts
associated therewith;
-
cyber-attacks or other privacy or data security incidents resulting
in an inadvertent unauthorized disclosure of protected health
information;
-
the success of our health plan in Puerto Rico, including the
resolution of the Puerto Rico debt crisis, payment of all amounts due
under our Medicaid contract, the effect of the PROMESA law, and our
efforts to better manage the health care costs of our Puerto Rico
health plan;
-
the success and renewal of our duals demonstration programs in
California, Illinois, Michigan, Ohio, South Carolina, and Texas;
-
the accurate estimation of incurred but not reported or paid
medical costs across our health plans;
-
efforts by states to recoup previously paid and recognized premium
amounts;
-
the continuation and renewal of the government contracts of our
health plans, Molina Medicaid Solutions, and Pathways, and the terms
under which such contracts are renewed;
-
complications, member confusion, or enrollment backlogs related to
the annual renewal of Medicaid coverage;
-
government audits and reviews, or potential investigations, and any
fine, sanction, enrollment freeze, monitoring program, or premium
recovery that may result therefrom, including any potential demand by
the state of New Mexico to recover purportedly underpaid premium taxes;
-
changes with respect to our provider contracts and the loss of
providers;
-
approval by state regulators of dividends and distributions by our
health plan subsidiaries;
-
changes in funding under our contracts as a result of regulatory
changes, programmatic adjustments, or other reforms;
-
high dollar claims related to catastrophic illness;
-
the favorable resolution of litigation, arbitration, or
administrative proceedings;
-
the relatively small number of states in which we operate health
plans;
-
the availability of adequate financing on acceptable terms to fund
and capitalize our expansion and growth, repay our outstanding
indebtedness at maturity and meet our liquidity needs, including the
interest expense and other costs associated with such financing;
-
our failure to comply with the financial or other covenants in our
credit agreement or the indentures governing our outstanding notes;
-
the sufficiency of our funds on hand to pay the amounts due upon
conversion or maturity of our outstanding notes;
-
the failure of a state in which we operate to renew its federal
Medicaid waiver;
-
changes generally affecting the managed care or Medicaid management
information systems industries;
-
increases in government surcharges, taxes, and assessments,
including but not limited to the deductibility of certain compensation
costs;
-
newly emergent viruses or widespread epidemics, public catastrophes
or terrorist attacks, and associated public alarm;
-
increasing competition and consolidation in the Medicaid industry;
and numerous other risk factors, including those discussed in our
periodic reports and filings with the Securities and Exchange
Commission. These reports can be accessed under the investor relations
tab of our website or on the SEC's website at sec.gov.
Given these risks and uncertainties, we can give no assurances that our
forward-looking statements will prove to be accurate, or that any other
results or events projected or contemplated by our forward-looking
statements will in fact occur, and we caution investors not to place
undue reliance on these statements. All forward-looking statements in
this release represent our judgment as of August 2, 2017, and we
disclaim any obligation to update any forward-looking statements to
conform the statement to actual results or changes in our expectations.
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|
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|
|
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|
MOLINA HEALTHCARE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
(Dollar amounts in millions, except per-share amounts)
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium revenue
|
|
|
$
|
4,740
|
|
|
|
$
|
4,029
|
|
|
|
$
|
9,388
|
|
|
|
$
|
8,024
|
|
Service revenue
|
|
|
129
|
|
|
|
135
|
|
|
|
260
|
|
|
|
275
|
|
Premium tax revenue
|
|
|
114
|
|
|
|
109
|
|
|
|
225
|
|
|
|
218
|
|
Health insurer fee revenue
|
|
|
-
|
|
|
|
76
|
|
|
|
-
|
|
|
|
166
|
|
Investment income and other revenue
|
|
|
16
|
|
|
|
10
|
|
|
|
30
|
|
|
|
19
|
|
Total revenue
|
|
|
4,999
|
|
|
|
4,359
|
|
|
|
9,903
|
|
|
|
8,702
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical care costs
|
|
|
4,491
|
|
|
|
3,594
|
|
|
|
8,602
|
|
|
|
7,182
|
|
Cost of service revenue
|
|
|
124
|
|
|
|
116
|
|
|
|
246
|
|
|
|
243
|
|
General and administrative expenses
|
|
|
405
|
|
|
|
351
|
|
|
|
844
|
|
|
|
691
|
|
Premium tax expenses
|
|
|
114
|
|
|
|
109
|
|
|
|
225
|
|
|
|
218
|
|
Health insurer fee expenses
|
|
|
-
|
|
|
|
50
|
|
|
|
-
|
|
|
|
108
|
|
Depreciation and amortization
|
|
|
37
|
|
|
|
34
|
|
|
|
76
|
|
|
|
66
|
|
Impairment losses
|
|
|
72
|
|
|
|
-
|
|
|
|
72
|
|
|
|
-
|
|
Restructuring and separation costs
|
|
|
43
|
|
|
|
-
|
|
|
|
43
|
|
|
|
-
|
|
Total operating expenses
|
|
|
5,286
|
|
|
|
4,254
|
|
|
|
10,108
|
|
|
|
8,508
|
|
Operating (loss) income
|
|
|
(287
|
)
|
|
|
105
|
|
|
|
(205
|
)
|
|
|
194
|
|
Other expenses (income), net:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
27
|
|
|
|
25
|
|
|
|
53
|
|
|
|
50
|
|
Other income, net
|
|
|
-
|
|
|
|
-
|
|
|
|
(75
|
)
|
|
|
-
|
|
Total other expenses (income), net
|
|
|
27
|
|
|
|
25
|
|
|
|
(22
|
)
|
|
|
50
|
|
(Loss) income before income tax (benefit) expense
|
|
|
(314
|
)
|
|
|
80
|
|
|
|
(183
|
)
|
|
|
144
|
|
Income tax (benefit) expense
|
|
|
(84
|
)
|
|
|
47
|
|
|
|
(30
|
)
|
|
|
87
|
|
Net (loss) income
|
|
|
$
|
(230
|
)
|
|
|
$
|
33
|
|
|
|
$
|
(153
|
)
|
|
|
$
|
57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per diluted share
|
|
|
$
|
(4.10
|
)
|
|
|
$
|
0.58
|
|
|
|
$
|
(2.74
|
)
|
|
|
$
|
1.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
|
56.2
|
|
|
|
55.5
|
|
|
|
56.1
|
|
|
|
56.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical care ratio (1)
|
|
|
94.8
|
%
|
|
|
89.2
|
%
|
|
|
91.6
|
%
|
|
|
89.5
|
%
|
G&A ratio (2)
|
|
|
8.1
|
%
|
|
|
8.1
|
%
|
|
|
8.5
|
%
|
|
|
7.9
|
%
|
Premium tax ratio (1)
|
|
|
2.4
|
%
|
|
|
2.6
|
%
|
|
|
2.3
|
%
|
|
|
2.6
|
%
|
Effective tax rate
|
|
|
26.8
|
%
|
|
|
59.8
|
%
|
|
|
16.0
|
%
|
|
|
60.7
|
%
|
Net profit margin (2)
|
|
|
(4.6
|
)%
|
|
|
0.7
|
%
|
|
|
(1.5
|
)%
|
|
|
0.7
|
%
|
__________________
|
(1)
|
Medical care ratio represents medical care costs as a percentage of
premium revenue; premium tax ratio represents premium tax expenses
as a percentage of premium revenue plus premium tax revenue.
|
(2)
|
G&A ratio represents general and administrative expenses as a
percentage of total revenue. Net profit margin represents net (loss)
income as a percentage of total revenue.
|
|
|
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(In millions, except per-share data)
|
ASSETS
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
2,979
|
|
|
|
$
|
2,819
|
|
Investments
|
|
|
2,192
|
|
|
|
1,758
|
|
Restricted investments
|
|
|
325
|
|
|
|
-
|
|
Receivables
|
|
|
1,006
|
|
|
|
974
|
|
Income taxes refundable
|
|
|
68
|
|
|
|
39
|
|
Prepaid expenses and other current assets
|
|
|
159
|
|
|
|
131
|
|
Derivative asset
|
|
|
440
|
|
|
|
267
|
|
Total current assets
|
|
|
7,169
|
|
|
|
5,988
|
|
Property, equipment, and capitalized software, net
|
|
|
449
|
|
|
|
454
|
|
Deferred contract costs
|
|
|
93
|
|
|
|
86
|
|
Intangible assets, net
|
|
|
112
|
|
|
|
140
|
|
Goodwill
|
|
|
559
|
|
|
|
620
|
|
Restricted investments
|
|
|
118
|
|
|
|
110
|
|
Deferred income taxes
|
|
|
36
|
|
|
|
10
|
|
Other assets
|
|
|
47
|
|
|
|
41
|
|
|
|
|
$
|
8,583
|
|
|
|
$
|
7,449
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
Current liabilities:
|
|
|
|
|
|
|
Medical claims and benefits payable
|
|
|
$
|
2,077
|
|
|
|
$
|
1,929
|
|
Amounts due government agencies
|
|
|
1,844
|
|
|
|
1,202
|
|
Accounts payable and accrued liabilities
|
|
|
375
|
|
|
|
385
|
|
Deferred revenue
|
|
|
284
|
|
|
|
315
|
|
Current portion of long-term debt
|
|
|
773
|
|
|
|
472
|
|
Derivative liability
|
|
|
440
|
|
|
|
267
|
|
Total current liabilities
|
|
|
5,793
|
|
|
|
4,570
|
|
Senior notes
|
|
|
1,017
|
|
|
|
975
|
|
Lease financing obligations
|
|
|
198
|
|
|
|
198
|
|
Deferred income taxes
|
|
|
-
|
|
|
|
15
|
|
Other long-term liabilities
|
|
|
54
|
|
|
|
42
|
|
Total liabilities
|
|
|
7,062
|
|
|
|
5,800
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Common stock, $0.001 par value; 150 shares authorized; outstanding:
57 shares at June 30, 2017 and December 31, 2016
|
|
|
-
|
|
|
|
-
|
|
Preferred stock, $0.001 par value; 20 shares authorized, no shares
issued and outstanding
|
|
|
-
|
|
|
|
-
|
|
Additional paid-in capital
|
|
|
865
|
|
|
|
841
|
|
Accumulated other comprehensive loss
|
|
|
(1
|
)
|
|
|
(2
|
)
|
Retained earnings
|
|
|
657
|
|
|
|
810
|
|
Total stockholders' equity
|
|
|
1,521
|
|
|
|
1,649
|
|
|
|
|
$
|
8,583
|
|
|
|
$
|
7,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
(In millions)
|
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
$
|
(230
|
)
|
|
|
$
|
33
|
|
|
|
$
|
(153
|
)
|
|
|
$
|
57
|
|
Adjustments to reconcile net (loss) income to net cash (used in)
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
47
|
|
|
|
45
|
|
|
|
96
|
|
|
|
89
|
|
Impairment losses
|
|
|
72
|
|
|
|
-
|
|
|
|
72
|
|
|
|
-
|
|
Deferred income taxes
|
|
|
(36
|
)
|
|
|
9
|
|
|
|
(41
|
)
|
|
|
39
|
|
Share-based compensation, including accelerated share-based
compensation
|
|
|
29
|
|
|
|
9
|
|
|
|
35
|
|
|
|
16
|
|
Amortization of convertible senior notes and lease financing
obligations
|
|
|
8
|
|
|
|
7
|
|
|
|
16
|
|
|
|
15
|
|
Other, net
|
|
|
4
|
|
|
|
5
|
|
|
|
7
|
|
|
|
11
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
-
|
|
|
|
(149
|
)
|
|
|
(32
|
)
|
|
|
(415
|
)
|
Prepaid expenses and other assets
|
|
|
(26
|
)
|
|
|
59
|
|
|
|
(38
|
)
|
|
|
(143
|
)
|
Medical claims and benefits payable
|
|
|
151
|
|
|
|
(173
|
)
|
|
|
148
|
|
|
|
82
|
|
Amounts due government agencies
|
|
|
269
|
|
|
|
328
|
|
|
|
642
|
|
|
|
509
|
|
Accounts payable and accrued liabilities
|
|
|
(68
|
)
|
|
|
(58
|
)
|
|
|
(18
|
)
|
|
|
147
|
|
Deferred revenue
|
|
|
(178
|
)
|
|
|
10
|
|
|
|
(32
|
)
|
|
|
(119
|
)
|
Income taxes
|
|
|
(89
|
)
|
|
|
14
|
|
|
|
(30
|
)
|
|
|
(10
|
)
|
Net cash (used in) provided by operating activities
|
|
|
(47
|
)
|
|
|
139
|
|
|
|
672
|
|
|
|
278
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of investments
|
|
|
(903
|
)
|
|
|
(363
|
)
|
|
|
(1,636
|
)
|
|
|
(974
|
)
|
Proceeds from sales and maturities of investments
|
|
|
441
|
|
|
|
464
|
|
|
|
874
|
|
|
|
812
|
|
Purchases of property, equipment, and capitalized software
|
|
|
(34
|
)
|
|
|
(56
|
)
|
|
|
(60
|
)
|
|
|
(102
|
)
|
(Increase) decrease in restricted investments held-to-maturity
|
|
|
(3
|
)
|
|
|
9
|
|
|
|
(10
|
)
|
|
|
5
|
|
Net cash paid in business combinations
|
|
|
-
|
|
|
|
(6
|
)
|
|
|
-
|
|
|
|
(8
|
)
|
Other, net
|
|
|
(7
|
)
|
|
|
(7
|
)
|
|
|
(13
|
)
|
|
|
(6
|
)
|
Net cash (used in) provided by investing activities
|
|
|
(506
|
)
|
|
|
41
|
|
|
|
(845
|
)
|
|
|
(273
|
)
|
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from senior notes offerings, net of issuance costs
|
|
|
325
|
|
|
|
-
|
|
|
|
325
|
|
|
|
-
|
|
Proceeds from employee stock plans
|
|
|
10
|
|
|
|
10
|
|
|
|
11
|
|
|
|
10
|
|
Other, net
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
(3
|
)
|
|
|
1
|
|
Net cash provided by financing activities
|
|
|
334
|
|
|
|
9
|
|
|
|
333
|
|
|
|
11
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
(219
|
)
|
|
|
189
|
|
|
|
160
|
|
|
|
16
|
|
Cash and cash equivalents at beginning of period
|
|
|
3,198
|
|
|
|
2,156
|
|
|
|
2,819
|
|
|
|
2,329
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
2,979
|
|
|
|
$
|
2,345
|
|
|
|
$
|
2,979
|
|
|
|
$
|
2,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED HEALTH PLANS SEGMENT MEMBERSHIP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017
|
|
|
December 31, 2016
|
|
|
June 30, 2016
|
Ending Membership by Program:
|
|
|
|
|
|
|
|
|
|
Temporary Assistance for Needy Families (TANF) and Children's Health
Insurance Program (CHIP)
|
|
|
2,517,000
|
|
|
|
2,536,000
|
|
|
|
2,500,000
|
Marketplace
|
|
|
949,000
|
|
|
|
526,000
|
|
|
|
597,000
|
Medicaid Expansion
|
|
|
678,000
|
|
|
|
673,000
|
|
|
|
654,000
|
Aged, Blind or Disabled (ABD)
|
|
|
408,000
|
|
|
|
396,000
|
|
|
|
387,000
|
Medicare-Medicaid Plan (MMP) - Integrated
|
|
|
54,000
|
|
|
|
51,000
|
|
|
|
51,000
|
Medicare Special Needs Plans
|
|
|
44,000
|
|
|
|
45,000
|
|
|
|
44,000
|
|
|
|
4,650,000
|
|
|
|
4,227,000
|
|
|
|
4,233,000
|
Ending Membership by Health Plan:
|
|
|
|
|
|
|
|
|
|
California
|
|
|
766,000
|
|
|
|
683,000
|
|
|
|
680,000
|
Florida
|
|
|
672,000
|
|
|
|
553,000
|
|
|
|
565,000
|
Illinois
|
|
|
163,000
|
|
|
|
195,000
|
|
|
|
201,000
|
Michigan
|
|
|
414,000
|
|
|
|
391,000
|
|
|
|
393,000
|
New Mexico
|
|
|
266,000
|
|
|
|
254,000
|
|
|
|
251,000
|
New York (1)
|
|
|
34,000
|
|
|
|
35,000
|
|
|
|
-
|
Ohio
|
|
|
351,000
|
|
|
|
332,000
|
|
|
|
341,000
|
Puerto Rico
|
|
|
322,000
|
|
|
|
330,000
|
|
|
|
336,000
|
South Carolina
|
|
|
112,000
|
|
|
|
109,000
|
|
|
|
105,000
|
Texas
|
|
|
465,000
|
|
|
|
337,000
|
|
|
|
367,000
|
Utah
|
|
|
167,000
|
|
|
|
146,000
|
|
|
|
151,000
|
Washington
|
|
|
788,000
|
|
|
|
736,000
|
|
|
|
709,000
|
Wisconsin
|
|
|
130,000
|
|
|
|
126,000
|
|
|
|
134,000
|
|
|
|
4,650,000
|
|
|
|
4,227,000
|
|
|
|
4,233,000
|
____________________
|
(1)
|
The New York health plan was acquired on August 1, 2016.
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA
(In millions, except percentages and per-member per-month
amounts)
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2017
|
|
|
|
Member
Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
TANF and CHIP
|
|
|
7.6
|
|
|
|
$
|
1,391
|
|
|
|
$
|
182.47
|
|
|
|
$
|
1,315
|
|
|
|
$
|
172.48
|
|
|
|
94.5
|
%
|
|
|
$
|
76
|
|
Medicaid Expansion
|
|
|
2.1
|
|
|
|
786
|
|
|
|
383.07
|
|
|
|
689
|
|
|
|
335.26
|
|
|
|
87.5
|
|
|
|
97
|
|
ABD
|
|
|
1.2
|
|
|
|
1,285
|
|
|
|
1,053.89
|
|
|
|
1,245
|
|
|
|
1,020.85
|
|
|
|
96.9
|
|
|
|
40
|
|
Total Medicaid
|
|
|
10.9
|
|
|
|
3,462
|
|
|
|
317.79
|
|
|
|
3,249
|
|
|
|
298.10
|
|
|
|
93.8
|
|
|
|
213
|
|
MMP
|
|
|
0.1
|
|
|
|
361
|
|
|
|
2,217.44
|
|
|
|
333
|
|
|
|
2,050.20
|
|
|
|
92.5
|
|
|
|
28
|
|
Medicare
|
|
|
0.2
|
|
|
|
148
|
|
|
|
1,126.14
|
|
|
|
126
|
|
|
|
963.34
|
|
|
|
85.5
|
|
|
|
22
|
|
Total Medicare
|
|
|
0.3
|
|
|
|
509
|
|
|
|
1,730.91
|
|
|
|
459
|
|
|
|
1,565.65
|
|
|
|
90.5
|
|
|
|
50
|
|
Excluding Marketplace
|
|
|
11.2
|
|
|
|
3,971
|
|
|
|
354.87
|
|
|
|
3,708
|
|
|
|
331.36
|
|
|
|
93.4
|
|
|
|
263
|
|
Marketplace
|
|
|
2.8
|
|
|
|
769
|
|
|
|
267.37
|
|
|
|
783
|
|
|
|
272.37
|
|
|
|
101.9
|
|
|
|
(14
|
)
|
|
|
|
14.0
|
|
|
|
$
|
4,740
|
|
|
|
$
|
336.98
|
|
|
|
$
|
4,491
|
|
|
|
$
|
319.29
|
|
|
|
94.8
|
%
|
|
|
$
|
249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2016
|
|
|
|
Member
Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
TANF and CHIP
|
|
|
7.5
|
|
|
|
$
|
1,302
|
|
|
|
$
|
173.57
|
|
|
|
$
|
1,202
|
|
|
|
$
|
160.26
|
|
|
|
92.3
|
%
|
|
|
$
|
100
|
|
Medicaid Expansion
|
|
|
1.9
|
|
|
|
742
|
|
|
|
378.19
|
|
|
|
634
|
|
|
|
323.56
|
|
|
|
85.6
|
|
|
|
108
|
|
ABD
|
|
|
1.2
|
|
|
|
1,168
|
|
|
|
991.38
|
|
|
|
1,038
|
|
|
|
881.80
|
|
|
|
88.9
|
|
|
|
130
|
|
Total Medicaid
|
|
|
10.6
|
|
|
|
3,212
|
|
|
|
301.86
|
|
|
|
2,874
|
|
|
|
270.27
|
|
|
|
89.5
|
|
|
|
338
|
|
MMP
|
|
|
0.2
|
|
|
|
315
|
|
|
|
2,093.29
|
|
|
|
270
|
|
|
|
1,792.78
|
|
|
|
85.6
|
|
|
|
45
|
|
Medicare
|
|
|
0.2
|
|
|
|
129
|
|
|
|
997.44
|
|
|
|
127
|
|
|
|
974.30
|
|
|
|
97.7
|
|
|
|
2
|
|
Total Medicare
|
|
|
0.4
|
|
|
|
444
|
|
|
|
1,584.77
|
|
|
|
397
|
|
|
|
1,412.96
|
|
|
|
89.2
|
|
|
|
47
|
|
Excluding Marketplace
|
|
|
11.0
|
|
|
|
3,656
|
|
|
|
334.86
|
|
|
|
3,271
|
|
|
|
299.67
|
|
|
|
89.5
|
|
|
|
385
|
|
Marketplace
|
|
|
1.8
|
|
|
|
373
|
|
|
|
206.88
|
|
|
|
323
|
|
|
|
178.79
|
|
|
|
86.4
|
|
|
|
50
|
|
|
|
|
12.8
|
|
|
|
$
|
4,029
|
|
|
|
$
|
316.72
|
|
|
|
$
|
3,594
|
|
|
|
$
|
282.54
|
|
|
|
89.2
|
%
|
|
|
$
|
435
|
|
____________________
|
(1)
|
A member month is defined as the aggregate of each month's ending
membership for the period presented.
|
(2)
|
The MCR represents medical costs as a percentage of premium revenue.
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA
(In millions, except percentages and per-member per-month
amounts)
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2017
|
|
|
|
Member
Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
TANF and CHIP
|
|
|
15.3
|
|
|
|
$
|
2,793
|
|
|
|
$
|
182.58
|
|
|
|
$
|
2,619
|
|
|
|
$
|
171.25
|
|
|
|
93.8
|
%
|
|
|
$
|
174
|
Medicaid Expansion
|
|
|
4.1
|
|
|
|
1,603
|
|
|
|
390.88
|
|
|
|
1,378
|
|
|
|
335.88
|
|
|
|
85.9
|
|
|
|
225
|
ABD
|
|
|
2.4
|
|
|
|
2,481
|
|
|
|
1,030.68
|
|
|
|
2,375
|
|
|
|
986.54
|
|
|
|
95.7
|
|
|
|
106
|
Total Medicaid
|
|
|
21.8
|
|
|
|
6,877
|
|
|
|
315.39
|
|
|
|
6,372
|
|
|
|
292.22
|
|
|
|
92.7
|
|
|
|
505
|
MMP
|
|
|
0.3
|
|
|
|
705
|
|
|
|
2,152.75
|
|
|
|
640
|
|
|
|
1,954.15
|
|
|
|
90.8
|
|
|
|
65
|
Medicare
|
|
|
0.3
|
|
|
|
286
|
|
|
|
1,097.36
|
|
|
|
243
|
|
|
|
933.20
|
|
|
|
85.0
|
|
|
|
43
|
Total Medicare
|
|
|
0.6
|
|
|
|
991
|
|
|
|
1,685.72
|
|
|
|
883
|
|
|
|
1,502.36
|
|
|
|
89.1
|
|
|
|
108
|
Excluding Marketplace
|
|
|
22.4
|
|
|
|
7,868
|
|
|
|
351.35
|
|
|
|
7,255
|
|
|
|
323.98
|
|
|
|
92.2
|
|
|
|
613
|
Marketplace
|
|
|
5.7
|
|
|
|
1,520
|
|
|
|
264.77
|
|
|
|
1,347
|
|
|
|
234.62
|
|
|
|
88.6
|
|
|
|
173
|
|
|
|
28.1
|
|
|
|
$
|
9,388
|
|
|
|
$
|
333.68
|
|
|
|
$
|
8,602
|
|
|
|
$
|
305.74
|
|
|
|
91.6
|
%
|
|
|
$
|
786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
Member
Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
TANF and CHIP
|
|
|
14.9
|
|
|
|
$
|
2,626
|
|
|
|
$
|
176.00
|
|
|
|
$
|
2,400
|
|
|
|
$
|
160.85
|
|
|
|
91.4
|
%
|
|
|
$
|
226
|
Medicaid Expansion
|
|
|
3.8
|
|
|
|
1,421
|
|
|
|
371.82
|
|
|
|
1,208
|
|
|
|
316.13
|
|
|
|
85.0
|
|
|
|
213
|
ABD
|
|
|
2.4
|
|
|
|
2,280
|
|
|
|
976.58
|
|
|
|
2,079
|
|
|
|
890.71
|
|
|
|
91.2
|
|
|
|
201
|
Total Medicaid
|
|
|
21.1
|
|
|
|
6,327
|
|
|
|
300.19
|
|
|
|
5,687
|
|
|
|
269.86
|
|
|
|
89.9
|
|
|
|
640
|
MMP
|
|
|
0.3
|
|
|
|
655
|
|
|
|
2,157.55
|
|
|
|
587
|
|
|
|
1,932.73
|
|
|
|
89.6
|
|
|
|
68
|
Medicare
|
|
|
0.3
|
|
|
|
260
|
|
|
|
1,013.04
|
|
|
|
251
|
|
|
|
977.35
|
|
|
|
96.5
|
|
|
|
9
|
Total Medicare
|
|
|
0.6
|
|
|
|
915
|
|
|
|
1,633.08
|
|
|
|
838
|
|
|
|
1,494.92
|
|
|
|
91.5
|
|
|
|
77
|
Excluding Marketplace
|
|
|
21.7
|
|
|
|
7,242
|
|
|
|
334.74
|
|
|
|
6,525
|
|
|
|
301.61
|
|
|
|
90.1
|
|
|
|
717
|
Marketplace
|
|
|
3.4
|
|
|
|
782
|
|
|
|
228.19
|
|
|
|
657
|
|
|
|
191.62
|
|
|
|
84.0
|
|
|
|
125
|
|
|
|
25.1
|
|
|
|
$
|
8,024
|
|
|
|
$
|
320.17
|
|
|
|
$
|
7,182
|
|
|
|
$
|
286.57
|
|
|
|
89.5
|
%
|
|
|
$
|
842
|
____________________
|
(1)
|
A member month is defined as the aggregate of each month's ending
membership for the period presented.
|
(2)
|
The MCR represents medical costs as a percentage of premium revenue.
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL
DATA-NON-MARKETPLACE
(In millions, except percentages and per-member per-month
amounts)
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2017
|
|
|
|
Member
Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
1.9
|
|
|
|
$
|
598
|
|
|
|
$
|
318.89
|
|
|
|
$
|
539
|
|
|
|
$
|
287.36
|
|
|
|
90.1
|
%
|
|
|
$
|
59
|
|
Florida
|
|
|
1.1
|
|
|
|
380
|
|
|
|
347.20
|
|
|
|
370
|
|
|
|
337.92
|
|
|
|
97.3
|
|
|
|
10
|
|
Illinois
|
|
|
0.5
|
|
|
|
149
|
|
|
|
289.51
|
|
|
|
174
|
|
|
|
336.76
|
|
|
|
116.3
|
|
|
|
(25
|
)
|
Michigan
|
|
|
1.1
|
|
|
|
390
|
|
|
|
333.26
|
|
|
|
358
|
|
|
|
305.40
|
|
|
|
91.6
|
|
|
|
32
|
|
New Mexico
|
|
|
0.8
|
|
|
|
321
|
|
|
|
443.13
|
|
|
|
311
|
|
|
|
428.58
|
|
|
|
96.7
|
|
|
|
10
|
|
New York (3)
|
|
|
0.1
|
|
|
|
46
|
|
|
|
457.96
|
|
|
|
45
|
|
|
|
442.16
|
|
|
|
96.5
|
|
|
|
1
|
|
Ohio
|
|
|
1.0
|
|
|
|
529
|
|
|
|
536.90
|
|
|
|
489
|
|
|
|
496.41
|
|
|
|
92.5
|
|
|
|
40
|
|
Puerto Rico
|
|
|
0.9
|
|
|
|
179
|
|
|
|
184.28
|
|
|
|
189
|
|
|
|
194.42
|
|
|
|
105.5
|
|
|
|
(10
|
)
|
South Carolina
|
|
|
0.4
|
|
|
|
111
|
|
|
|
326.57
|
|
|
|
102
|
|
|
|
304.14
|
|
|
|
93.1
|
|
|
|
9
|
|
Texas
|
|
|
0.7
|
|
|
|
524
|
|
|
|
752.01
|
|
|
|
473
|
|
|
|
679.43
|
|
|
|
90.3
|
|
|
|
51
|
|
Utah
|
|
|
0.3
|
|
|
|
89
|
|
|
|
313.93
|
|
|
|
76
|
|
|
|
267.15
|
|
|
|
85.1
|
|
|
|
13
|
|
Washington
|
|
|
2.2
|
|
|
|
618
|
|
|
|
276.90
|
|
|
|
546
|
|
|
|
244.58
|
|
|
|
88.3
|
|
|
|
72
|
|
Wisconsin
|
|
|
0.2
|
|
|
|
34
|
|
|
|
170.98
|
|
|
|
26
|
|
|
|
130.54
|
|
|
|
76.3
|
|
|
|
8
|
|
Other (4)
|
|
|
-
|
|
|
|
3
|
|
|
|
-
|
|
|
|
10
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7
|
)
|
|
|
|
11.2
|
|
|
|
$
|
3,971
|
|
|
|
$
|
354.87
|
|
|
|
$
|
3,708
|
|
|
|
$
|
331.36
|
|
|
|
93.4
|
%
|
|
|
$
|
263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2016
|
|
|
|
Member
Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
1.9
|
|
|
|
$
|
519
|
|
|
|
$
|
281.99
|
|
|
|
$
|
472
|
|
|
|
$
|
256.37
|
|
|
|
90.9
|
%
|
|
|
$
|
47
|
|
Florida
|
|
|
1.0
|
|
|
|
314
|
|
|
|
312.23
|
|
|
|
289
|
|
|
|
287.84
|
|
|
|
92.2
|
|
|
|
25
|
|
Illinois
|
|
|
0.6
|
|
|
|
154
|
|
|
|
256.17
|
|
|
|
137
|
|
|
|
227.71
|
|
|
|
88.9
|
|
|
|
17
|
|
Michigan
|
|
|
1.2
|
|
|
|
366
|
|
|
|
312.88
|
|
|
|
332
|
|
|
|
283.89
|
|
|
|
90.7
|
|
|
|
34
|
|
New Mexico
|
|
|
0.7
|
|
|
|
328
|
|
|
|
468.35
|
|
|
|
296
|
|
|
|
422.37
|
|
|
|
90.2
|
|
|
|
32
|
|
New York (3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Ohio
|
|
|
0.9
|
|
|
|
474
|
|
|
|
479.41
|
|
|
|
427
|
|
|
|
431.46
|
|
|
|
90.0
|
|
|
|
47
|
|
Puerto Rico
|
|
|
1.0
|
|
|
|
170
|
|
|
|
169.04
|
|
|
|
175
|
|
|
|
173.49
|
|
|
|
102.6
|
|
|
|
(5
|
)
|
South Carolina
|
|
|
0.3
|
|
|
|
87
|
|
|
|
277.22
|
|
|
|
71
|
|
|
|
226.27
|
|
|
|
81.6
|
|
|
|
16
|
|
Texas
|
|
|
0.8
|
|
|
|
580
|
|
|
|
784.32
|
|
|
|
470
|
|
|
|
633.94
|
|
|
|
80.8
|
|
|
|
110
|
|
Utah
|
|
|
0.3
|
|
|
|
86
|
|
|
|
293.39
|
|
|
|
74
|
|
|
|
254.59
|
|
|
|
86.8
|
|
|
|
12
|
|
Washington
|
|
|
2.1
|
|
|
|
538
|
|
|
|
263.41
|
|
|
|
484
|
|
|
|
237.43
|
|
|
|
90.1
|
|
|
|
54
|
|
Wisconsin
|
|
|
0.2
|
|
|
|
36
|
|
|
|
166.95
|
|
|
|
27
|
|
|
|
120.69
|
|
|
|
72.3
|
|
|
|
9
|
|
Other (4)
|
|
|
-
|
|
|
|
4
|
|
|
|
-
|
|
|
|
17
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(13
|
)
|
|
|
|
11.0
|
|
|
|
$
|
3,656
|
|
|
|
$
|
334.86
|
|
|
|
$
|
3,271
|
|
|
|
$
|
299.67
|
|
|
|
89.5
|
%
|
|
|
$
|
385
|
|
____________________
|
(1)
|
A member month is defined as the aggregate of each month's ending
membership for the period presented.
|
(2)
|
The MCR represents medical costs as a percentage of premium revenue.
|
(3)
|
The New York health plan was acquired on August 1, 2016.
|
(4)
|
"Other" medical care costs include primarily medically related
administrative costs at the parent company, and direct delivery
costs.
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL
DATA-NON-MARKETPLACE
(In millions, except percentages and per-member per-month
amounts)
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2017
|
|
|
|
Member
Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
3.7
|
|
|
|
$
|
1,170
|
|
|
|
$
|
313.76
|
|
|
|
$
|
1,023
|
|
|
|
$
|
274.42
|
|
|
|
87.5
|
%
|
|
|
$
|
147
|
|
Florida
|
|
|
2.2
|
|
|
|
744
|
|
|
|
343.29
|
|
|
|
722
|
|
|
|
333.23
|
|
|
|
97.1
|
|
|
|
22
|
|
Illinois
|
|
|
1.1
|
|
|
|
310
|
|
|
|
282.66
|
|
|
|
354
|
|
|
|
322.63
|
|
|
|
114.1
|
|
|
|
(44
|
)
|
Michigan
|
|
|
2.3
|
|
|
|
772
|
|
|
|
330.34
|
|
|
|
690
|
|
|
|
295.02
|
|
|
|
89.3
|
|
|
|
82
|
|
New Mexico
|
|
|
1.5
|
|
|
|
629
|
|
|
|
432.98
|
|
|
|
610
|
|
|
|
419.65
|
|
|
|
96.9
|
|
|
|
19
|
|
New York (3)
|
|
|
0.2
|
|
|
|
92
|
|
|
|
449.48
|
|
|
|
87
|
|
|
|
425.72
|
|
|
|
94.7
|
|
|
|
5
|
|
Ohio
|
|
|
2.0
|
|
|
|
1,049
|
|
|
|
532.35
|
|
|
|
951
|
|
|
|
482.73
|
|
|
|
90.7
|
|
|
|
98
|
|
Puerto Rico
|
|
|
1.9
|
|
|
|
362
|
|
|
|
185.40
|
|
|
|
354
|
|
|
|
181.24
|
|
|
|
97.8
|
|
|
|
8
|
|
South Carolina
|
|
|
0.7
|
|
|
|
216
|
|
|
|
321.85
|
|
|
|
200
|
|
|
|
298.79
|
|
|
|
92.8
|
|
|
|
16
|
|
Texas
|
|
|
1.4
|
|
|
|
1,051
|
|
|
|
751.94
|
|
|
|
962
|
|
|
|
687.96
|
|
|
|
91.5
|
|
|
|
89
|
|
Utah
|
|
|
0.6
|
|
|
|
178
|
|
|
|
313.56
|
|
|
|
148
|
|
|
|
260.43
|
|
|
|
83.1
|
|
|
|
30
|
|
Washington
|
|
|
4.4
|
|
|
|
1,223
|
|
|
|
275.05
|
|
|
|
1,081
|
|
|
|
243.18
|
|
|
|
88.4
|
|
|
|
142
|
|
Wisconsin
|
|
|
0.4
|
|
|
|
67
|
|
|
|
168.16
|
|
|
|
53
|
|
|
|
133.25
|
|
|
|
79.2
|
|
|
|
14
|
|
Other (4)
|
|
|
-
|
|
|
|
5
|
|
|
|
-
|
|
|
|
20
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(15
|
)
|
|
|
|
22.4
|
|
|
|
$
|
7,868
|
|
|
|
$
|
351.35
|
|
|
|
$
|
7,255
|
|
|
|
$
|
323.98
|
|
|
|
92.2
|
%
|
|
|
$
|
613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
Member
Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
3.7
|
|
|
|
$
|
1,028
|
|
|
|
$
|
281.37
|
|
|
|
$
|
918
|
|
|
|
$
|
251.15
|
|
|
|
89.3
|
%
|
|
|
$
|
110
|
|
Florida
|
|
|
2.0
|
|
|
|
639
|
|
|
|
322.01
|
|
|
|
575
|
|
|
|
290.08
|
|
|
|
90.1
|
|
|
|
64
|
|
Illinois
|
|
|
1.2
|
|
|
|
303
|
|
|
|
261.43
|
|
|
|
269
|
|
|
|
232.06
|
|
|
|
88.8
|
|
|
|
34
|
|
Michigan
|
|
|
2.4
|
|
|
|
751
|
|
|
|
317.13
|
|
|
|
678
|
|
|
|
286.40
|
|
|
|
90.3
|
|
|
|
73
|
|
New Mexico
|
|
|
1.4
|
|
|
|
651
|
|
|
|
465.65
|
|
|
|
580
|
|
|
|
414.80
|
|
|
|
89.1
|
|
|
|
71
|
|
New York (3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Ohio
|
|
|
1.9
|
|
|
|
952
|
|
|
|
485.86
|
|
|
|
869
|
|
|
|
443.08
|
|
|
|
91.2
|
|
|
|
83
|
|
Puerto Rico
|
|
|
2.0
|
|
|
|
351
|
|
|
|
172.98
|
|
|
|
349
|
|
|
|
171.95
|
|
|
|
99.4
|
|
|
|
2
|
|
South Carolina
|
|
|
0.6
|
|
|
|
171
|
|
|
|
276.61
|
|
|
|
138
|
|
|
|
223.58
|
|
|
|
80.8
|
|
|
|
33
|
|
Texas
|
|
|
1.5
|
|
|
|
1,116
|
|
|
|
752.54
|
|
|
|
982
|
|
|
|
661.63
|
|
|
|
87.9
|
|
|
|
134
|
|
Utah
|
|
|
0.6
|
|
|
|
172
|
|
|
|
295.69
|
|
|
|
150
|
|
|
|
259.29
|
|
|
|
87.7
|
|
|
|
22
|
|
Washington
|
|
|
4.0
|
|
|
|
1,030
|
|
|
|
259.79
|
|
|
|
931
|
|
|
|
234.95
|
|
|
|
90.4
|
|
|
|
99
|
|
Wisconsin
|
|
|
0.4
|
|
|
|
72
|
|
|
|
164.90
|
|
|
|
52
|
|
|
|
118.37
|
|
|
|
71.8
|
|
|
|
20
|
|
Other (4)
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
|
|
34
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(28
|
)
|
|
|
|
21.7
|
|
|
|
$
|
7,242
|
|
|
|
$
|
334.74
|
|
|
|
$
|
6,525
|
|
|
|
$
|
301.61
|
|
|
|
90.1
|
%
|
|
|
$
|
717
|
|
____________________
|
(1)
|
A member month is defined as the aggregate of each month's ending
membership for the period presented.
|
(2)
|
The MCR represents medical costs as a percentage of premium revenue.
|
(3)
|
The New York health plan was acquired on August 1, 2016.
|
(4)
|
"Other" medical care costs include primarily medically related
administrative costs at the parent company, and direct delivery
costs.
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL
DATA-MARKETPLACE
(In millions, except percentages and per-member per-month
amounts)
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2017
|
|
|
|
Member
Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
0.5
|
|
|
|
$
|
81
|
|
|
|
$
|
186.90
|
|
|
|
$
|
67
|
|
|
|
$
|
154.23
|
|
|
|
82.5
|
%
|
|
|
$
|
14
|
|
Florida
|
|
|
0.9
|
|
|
|
269
|
|
|
|
284.60
|
|
|
|
317
|
|
|
|
336.78
|
|
|
|
118.3
|
|
|
|
(48
|
)
|
Michigan
|
|
|
0.1
|
|
|
|
16
|
|
|
|
204.15
|
|
|
|
10
|
|
|
|
135.89
|
|
|
|
66.6
|
|
|
|
6
|
|
New Mexico
|
|
|
-
|
|
|
|
31
|
|
|
|
367.98
|
|
|
|
23
|
|
|
|
266.91
|
|
|
|
72.5
|
|
|
|
8
|
|
Ohio
|
|
|
-
|
|
|
|
24
|
|
|
|
377.94
|
|
|
|
27
|
|
|
|
404.20
|
|
|
|
106.9
|
|
|
|
(3
|
)
|
Texas
|
|
|
0.7
|
|
|
|
177
|
|
|
|
247.49
|
|
|
|
129
|
|
|
|
180.92
|
|
|
|
73.1
|
|
|
|
48
|
|
Utah
|
|
|
0.2
|
|
|
|
41
|
|
|
|
186.87
|
|
|
|
53
|
|
|
|
239.50
|
|
|
|
128.2
|
|
|
|
(12
|
)
|
Washington
|
|
|
0.2
|
|
|
|
44
|
|
|
|
317.42
|
|
|
|
49
|
|
|
|
359.87
|
|
|
|
113.4
|
|
|
|
(5
|
)
|
Wisconsin
|
|
|
0.2
|
|
|
|
86
|
|
|
|
434.01
|
|
|
|
109
|
|
|
|
550.81
|
|
|
|
126.9
|
|
|
|
(23
|
)
|
Other (3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
|
2.8
|
|
|
|
$
|
769
|
|
|
|
$
|
267.37
|
|
|
|
$
|
783
|
|
|
|
$
|
272.37
|
|
|
|
101.9
|
%
|
|
|
$
|
(14
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2016
|
|
|
|
Member
Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
0.1
|
|
|
|
$
|
35
|
|
|
|
$
|
159.56
|
|
|
|
$
|
21
|
|
|
|
$
|
99.15
|
|
|
|
62.1
|
%
|
|
|
$
|
14
|
|
Florida
|
|
|
0.8
|
|
|
|
150
|
|
|
|
217.96
|
|
|
|
137
|
|
|
|
198.93
|
|
|
|
91.3
|
|
|
|
13
|
|
Michigan
|
|
|
-
|
|
|
|
3
|
|
|
|
235.15
|
|
|
|
2
|
|
|
|
176.34
|
|
|
|
75.0
|
|
|
|
1
|
|
New Mexico
|
|
|
0.1
|
|
|
|
14
|
|
|
|
240.40
|
|
|
|
9
|
|
|
|
164.00
|
|
|
|
68.2
|
|
|
|
5
|
|
Ohio
|
|
|
0.1
|
|
|
|
9
|
|
|
|
294.90
|
|
|
|
6
|
|
|
|
210.36
|
|
|
|
71.3
|
|
|
|
3
|
|
Texas
|
|
|
0.3
|
|
|
|
55
|
|
|
|
146.76
|
|
|
|
29
|
|
|
|
78.56
|
|
|
|
53.5
|
|
|
|
26
|
|
Utah
|
|
|
0.2
|
|
|
|
24
|
|
|
|
146.37
|
|
|
|
32
|
|
|
|
195.18
|
|
|
|
133.3
|
|
|
|
(8
|
)
|
Washington
|
|
|
-
|
|
|
|
21
|
|
|
|
291.91
|
|
|
|
16
|
|
|
|
205.59
|
|
|
|
70.4
|
|
|
|
5
|
|
Wisconsin
|
|
|
0.2
|
|
|
|
63
|
|
|
|
335.32
|
|
|
|
69
|
|
|
|
369.55
|
|
|
|
110.2
|
|
|
|
(6
|
)
|
Other (3)
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
2
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
|
1.8
|
|
|
|
$
|
373
|
|
|
|
$
|
206.88
|
|
|
|
$
|
323
|
|
|
|
$
|
178.79
|
|
|
|
86.4
|
%
|
|
|
$
|
50
|
|
____________________
|
(1)
|
A member month is defined as the aggregate of each month's ending
membership for the period presented.
|
(2)
|
The MCR represents medical costs as a percentage of premium revenue.
|
(3)
|
"Other" medical care costs include primarily medically related
administrative costs at the parent company, and direct delivery
costs.
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL
DATA-MARKETPLACE
(In millions, except percentages and per-member per-month
amounts)
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2017
|
|
|
|
Member
Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
0.9
|
|
|
|
$
|
153
|
|
|
|
$
|
185.68
|
|
|
|
$
|
93
|
|
|
|
$
|
112.20
|
|
|
|
60.4
|
%
|
|
|
$
|
60
|
|
Florida
|
|
|
1.9
|
|
|
|
561
|
|
|
|
288.81
|
|
|
|
523
|
|
|
|
269.48
|
|
|
|
93.3
|
|
|
|
38
|
|
Michigan
|
|
|
0.2
|
|
|
|
27
|
|
|
|
177.12
|
|
|
|
17
|
|
|
|
116.21
|
|
|
|
65.6
|
|
|
|
10
|
|
New Mexico
|
|
|
0.1
|
|
|
|
53
|
|
|
|
317.10
|
|
|
|
42
|
|
|
|
249.90
|
|
|
|
78.8
|
|
|
|
11
|
|
Ohio
|
|
|
0.1
|
|
|
|
45
|
|
|
|
356.20
|
|
|
|
44
|
|
|
|
339.26
|
|
|
|
95.2
|
|
|
|
1
|
|
Texas
|
|
|
1.4
|
|
|
|
334
|
|
|
|
235.07
|
|
|
|
242
|
|
|
|
171.07
|
|
|
|
72.8
|
|
|
|
92
|
|
Utah
|
|
|
0.4
|
|
|
|
86
|
|
|
|
194.68
|
|
|
|
104
|
|
|
|
233.85
|
|
|
|
120.1
|
|
|
|
(18
|
)
|
Washington
|
|
|
0.3
|
|
|
|
81
|
|
|
|
310.26
|
|
|
|
95
|
|
|
|
362.78
|
|
|
|
116.9
|
|
|
|
(14
|
)
|
Wisconsin
|
|
|
0.4
|
|
|
|
180
|
|
|
|
443.86
|
|
|
|
190
|
|
|
|
469.01
|
|
|
|
105.7
|
|
|
|
(10
|
)
|
Other (3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
3
|
|
|
|
|
5.7
|
|
|
|
$
|
1,520
|
|
|
|
$
|
264.77
|
|
|
|
$
|
1,347
|
|
|
|
$
|
234.62
|
|
|
|
88.6
|
%
|
|
|
$
|
173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
Member
Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
0.3
|
|
|
|
$
|
67
|
|
|
|
$
|
173.55
|
|
|
|
$
|
44
|
|
|
|
$
|
115.80
|
|
|
|
66.7
|
%
|
|
|
$
|
23
|
|
Florida
|
|
|
1.4
|
|
|
|
314
|
|
|
|
230.11
|
|
|
|
264
|
|
|
|
193.24
|
|
|
|
84.0
|
|
|
|
50
|
|
Michigan
|
|
|
-
|
|
|
|
5
|
|
|
|
208.83
|
|
|
|
3
|
|
|
|
141.43
|
|
|
|
67.7
|
|
|
|
2
|
|
New Mexico
|
|
|
0.1
|
|
|
|
27
|
|
|
|
251.96
|
|
|
|
21
|
|
|
|
192.53
|
|
|
|
76.4
|
|
|
|
6
|
|
Ohio
|
|
|
0.1
|
|
|
|
19
|
|
|
|
330.26
|
|
|
|
13
|
|
|
|
241.55
|
|
|
|
73.1
|
|
|
|
6
|
|
Texas
|
|
|
0.7
|
|
|
|
139
|
|
|
|
199.62
|
|
|
|
92
|
|
|
|
132.77
|
|
|
|
66.5
|
|
|
|
47
|
|
Utah
|
|
|
0.3
|
|
|
|
52
|
|
|
|
169.84
|
|
|
|
58
|
|
|
|
187.64
|
|
|
|
110.5
|
|
|
|
(6
|
)
|
Washington
|
|
|
0.1
|
|
|
|
35
|
|
|
|
267.82
|
|
|
|
27
|
|
|
|
200.50
|
|
|
|
74.9
|
|
|
|
8
|
|
Wisconsin
|
|
|
0.4
|
|
|
|
124
|
|
|
|
348.84
|
|
|
|
136
|
|
|
|
382.15
|
|
|
|
109.5
|
|
|
|
(12
|
)
|
Other (3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
|
3.4
|
|
|
|
$
|
782
|
|
|
|
$
|
228.19
|
|
|
|
$
|
657
|
|
|
|
$
|
191.62
|
|
|
|
84.0
|
%
|
|
|
$
|
125
|
|
____________________
|
(1)
|
A member month is defined as the aggregate of each month's ending
membership for the period presented.
|
(2)
|
The MCR represents medical costs as a percentage of premium revenue.
|
(3)
|
"Other" medical care costs include primarily medically related
administrative costs at the parent company, and direct delivery
costs.
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA-TOTAL
(In millions, except percentages and per-member per-month
amounts)
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2017
|
|
|
|
Member
Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
2.4
|
|
|
|
$
|
679
|
|
|
|
$
|
294.09
|
|
|
|
$
|
606
|
|
|
|
$
|
262.34
|
|
|
|
89.2
|
%
|
|
|
$
|
73
|
|
Florida
|
|
|
2.0
|
|
|
|
649
|
|
|
|
318.21
|
|
|
|
687
|
|
|
|
337.39
|
|
|
|
106.0
|
|
|
|
(38
|
)
|
Illinois
|
|
|
0.5
|
|
|
|
149
|
|
|
|
289.51
|
|
|
|
174
|
|
|
|
336.76
|
|
|
|
116.3
|
|
|
|
(25
|
)
|
Michigan
|
|
|
1.2
|
|
|
|
406
|
|
|
|
325.38
|
|
|
|
368
|
|
|
|
295.06
|
|
|
|
90.7
|
|
|
|
38
|
|
New Mexico
|
|
|
0.8
|
|
|
|
352
|
|
|
|
435.34
|
|
|
|
334
|
|
|
|
411.83
|
|
|
|
94.6
|
|
|
|
18
|
|
New York (3)
|
|
|
0.1
|
|
|
|
46
|
|
|
|
457.96
|
|
|
|
45
|
|
|
|
442.16
|
|
|
|
96.5
|
|
|
|
1
|
|
Ohio
|
|
|
1.0
|
|
|
|
553
|
|
|
|
527.14
|
|
|
|
516
|
|
|
|
490.75
|
|
|
|
93.1
|
|
|
|
37
|
|
Puerto Rico
|
|
|
0.9
|
|
|
|
179
|
|
|
|
184.28
|
|
|
|
189
|
|
|
|
194.42
|
|
|
|
105.5
|
|
|
|
(10
|
)
|
South Carolina
|
|
|
0.4
|
|
|
|
111
|
|
|
|
326.57
|
|
|
|
102
|
|
|
|
304.14
|
|
|
|
93.1
|
|
|
|
9
|
|
Texas
|
|
|
1.4
|
|
|
|
701
|
|
|
|
495.93
|
|
|
|
602
|
|
|
|
426.41
|
|
|
|
86.0
|
|
|
|
99
|
|
Utah
|
|
|
0.5
|
|
|
|
130
|
|
|
|
258.10
|
|
|
|
129
|
|
|
|
255.00
|
|
|
|
98.8
|
|
|
|
1
|
|
Washington
|
|
|
2.4
|
|
|
|
662
|
|
|
|
279.21
|
|
|
|
595
|
|
|
|
251.16
|
|
|
|
90.0
|
|
|
|
67
|
|
Wisconsin
|
|
|
0.4
|
|
|
|
120
|
|
|
|
303.59
|
|
|
|
135
|
|
|
|
342.43
|
|
|
|
112.8
|
|
|
|
(15
|
)
|
Other (4)
|
|
|
-
|
|
|
|
3
|
|
|
|
-
|
|
|
|
9
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6
|
)
|
|
|
|
14.0
|
|
|
|
$
|
4,740
|
|
|
|
$
|
336.98
|
|
|
|
$
|
4,491
|
|
|
|
$
|
319.29
|
|
|
|
94.8
|
%
|
|
|
$
|
249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2016
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
2.0
|
|
|
|
$
|
554
|
|
|
|
$
|
268.95
|
|
|
|
$
|
493
|
|
|
|
$
|
239.63
|
|
|
|
89.1
|
%
|
|
|
$
|
61
|
|
Florida
|
|
|
1.8
|
|
|
|
464
|
|
|
|
273.90
|
|
|
|
426
|
|
|
|
251.69
|
|
|
|
91.9
|
|
|
|
38
|
|
Illinois
|
|
|
0.6
|
|
|
|
154
|
|
|
|
256.17
|
|
|
|
137
|
|
|
|
227.71
|
|
|
|
88.9
|
|
|
|
17
|
|
Michigan
|
|
|
1.2
|
|
|
|
369
|
|
|
|
312.18
|
|
|
|
334
|
|
|
|
282.86
|
|
|
|
90.6
|
|
|
|
35
|
|
New Mexico
|
|
|
0.8
|
|
|
|
342
|
|
|
|
451.72
|
|
|
|
305
|
|
|
|
403.52
|
|
|
|
89.3
|
|
|
|
37
|
|
New York (3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Ohio
|
|
|
1.0
|
|
|
|
483
|
|
|
|
473.91
|
|
|
|
433
|
|
|
|
424.87
|
|
|
|
89.7
|
|
|
|
50
|
|
Puerto Rico
|
|
|
1.0
|
|
|
|
170
|
|
|
|
169.04
|
|
|
|
175
|
|
|
|
173.49
|
|
|
|
102.6
|
|
|
|
(5
|
)
|
South Carolina
|
|
|
0.3
|
|
|
|
87
|
|
|
|
277.22
|
|
|
|
71
|
|
|
|
226.27
|
|
|
|
81.6
|
|
|
|
16
|
|
Texas
|
|
|
1.1
|
|
|
|
635
|
|
|
|
571.14
|
|
|
|
499
|
|
|
|
448.23
|
|
|
|
78.5
|
|
|
|
136
|
|
Utah
|
|
|
0.5
|
|
|
|
110
|
|
|
|
240.26
|
|
|
|
106
|
|
|
|
233.12
|
|
|
|
97.0
|
|
|
|
4
|
|
Washington
|
|
|
2.1
|
|
|
|
559
|
|
|
|
264.40
|
|
|
|
500
|
|
|
|
236.32
|
|
|
|
89.4
|
|
|
|
59
|
|
Wisconsin
|
|
|
0.4
|
|
|
|
99
|
|
|
|
244.88
|
|
|
|
96
|
|
|
|
235.88
|
|
|
|
96.3
|
|
|
|
3
|
|
Other (4)
|
|
|
-
|
|
|
|
3
|
|
|
|
-
|
|
|
|
19
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(16
|
)
|
|
|
|
12.8
|
|
|
|
$
|
4,029
|
|
|
|
$
|
316.72
|
|
|
|
$
|
3,594
|
|
|
|
$
|
282.54
|
|
|
|
89.2
|
%
|
|
|
$
|
435
|
|
____________________
|
(1)
|
A member month is defined as the aggregate of each month's ending
membership for the period presented.
|
(2)
|
The MCR represents medical costs as a percentage of premium revenue.
|
(3)
|
The New York health plan was acquired on August 1, 2016.
|
(4)
|
"Other" medical care costs include primarily medically related
administrative costs at the parent company, and direct delivery
costs.
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA-TOTAL
(In millions, except percentages and per-member per-month
amounts)
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2017
|
|
|
|
Member
Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
4.6
|
|
|
|
$
|
1,323
|
|
|
|
$
|
290.56
|
|
|
|
$
|
1,116
|
|
|
|
$
|
245.02
|
|
|
|
84.3
|
%
|
|
|
$
|
207
|
|
Florida
|
|
|
4.1
|
|
|
|
1,305
|
|
|
|
317.53
|
|
|
|
1,245
|
|
|
|
303.09
|
|
|
|
95.5
|
|
|
|
60
|
|
Illinois
|
|
|
1.1
|
|
|
|
310
|
|
|
|
282.66
|
|
|
|
354
|
|
|
|
322.63
|
|
|
|
114.1
|
|
|
|
(44
|
)
|
Michigan
|
|
|
2.5
|
|
|
|
799
|
|
|
|
321.10
|
|
|
|
707
|
|
|
|
284.24
|
|
|
|
88.5
|
|
|
|
92
|
|
New Mexico
|
|
|
1.6
|
|
|
|
682
|
|
|
|
421.11
|
|
|
|
652
|
|
|
|
402.27
|
|
|
|
95.5
|
|
|
|
30
|
|
New York (3)
|
|
|
0.2
|
|
|
|
92
|
|
|
|
449.48
|
|
|
|
87
|
|
|
|
425.72
|
|
|
|
94.7
|
|
|
|
5
|
|
Ohio
|
|
|
2.1
|
|
|
|
1,094
|
|
|
|
521.57
|
|
|
|
995
|
|
|
|
473.95
|
|
|
|
90.9
|
|
|
|
99
|
|
Puerto Rico
|
|
|
1.9
|
|
|
|
362
|
|
|
|
185.40
|
|
|
|
354
|
|
|
|
181.24
|
|
|
|
97.8
|
|
|
|
8
|
|
South Carolina
|
|
|
0.7
|
|
|
|
216
|
|
|
|
321.85
|
|
|
|
200
|
|
|
|
298.79
|
|
|
|
92.8
|
|
|
|
16
|
|
Texas
|
|
|
2.8
|
|
|
|
1,385
|
|
|
|
491.46
|
|
|
|
1,204
|
|
|
|
427.48
|
|
|
|
87.0
|
|
|
|
181
|
|
Utah
|
|
|
1.0
|
|
|
|
264
|
|
|
|
261.42
|
|
|
|
252
|
|
|
|
248.77
|
|
|
|
95.2
|
|
|
|
12
|
|
Washington
|
|
|
4.7
|
|
|
|
1,304
|
|
|
|
276.99
|
|
|
|
1,176
|
|
|
|
249.79
|
|
|
|
90.2
|
|
|
|
128
|
|
Wisconsin
|
|
|
0.8
|
|
|
|
247
|
|
|
|
307.50
|
|
|
|
243
|
|
|
|
302.95
|
|
|
|
98.5
|
|
|
|
4
|
|
Other (4)
|
|
|
-
|
|
|
|
5
|
|
|
|
-
|
|
|
|
17
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(12
|
)
|
|
|
|
28.1
|
|
|
|
$
|
9,388
|
|
|
|
$
|
333.68
|
|
|
|
$
|
8,602
|
|
|
|
$
|
305.74
|
|
|
|
91.6
|
%
|
|
|
$
|
786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
Member
Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
4.0
|
|
|
|
$
|
1,095
|
|
|
|
$
|
271.14
|
|
|
|
$
|
962
|
|
|
|
$
|
238.30
|
|
|
|
87.9
|
%
|
|
|
$
|
133
|
|
Florida
|
|
|
3.4
|
|
|
|
953
|
|
|
|
284.53
|
|
|
|
839
|
|
|
|
250.58
|
|
|
|
88.1
|
|
|
|
114
|
|
Illinois
|
|
|
1.2
|
|
|
|
303
|
|
|
|
261.43
|
|
|
|
269
|
|
|
|
232.06
|
|
|
|
88.8
|
|
|
|
34
|
|
Michigan
|
|
|
2.4
|
|
|
|
756
|
|
|
|
316.18
|
|
|
|
681
|
|
|
|
285.13
|
|
|
|
90.2
|
|
|
|
75
|
|
New Mexico
|
|
|
1.5
|
|
|
|
678
|
|
|
|
450.62
|
|
|
|
601
|
|
|
|
399.17
|
|
|
|
88.6
|
|
|
|
77
|
|
New York (3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Ohio
|
|
|
2.0
|
|
|
|
971
|
|
|
|
481.44
|
|
|
|
882
|
|
|
|
437.35
|
|
|
|
90.8
|
|
|
|
89
|
|
Puerto Rico
|
|
|
2.0
|
|
|
|
351
|
|
|
|
172.98
|
|
|
|
349
|
|
|
|
171.95
|
|
|
|
99.4
|
|
|
|
2
|
|
South Carolina
|
|
|
0.6
|
|
|
|
171
|
|
|
|
276.61
|
|
|
|
138
|
|
|
|
223.58
|
|
|
|
80.8
|
|
|
|
33
|
|
Texas
|
|
|
2.2
|
|
|
|
1,255
|
|
|
|
575.87
|
|
|
|
1,074
|
|
|
|
492.65
|
|
|
|
85.5
|
|
|
|
181
|
|
Utah
|
|
|
0.9
|
|
|
|
224
|
|
|
|
252.08
|
|
|
|
208
|
|
|
|
234.46
|
|
|
|
93.0
|
|
|
|
16
|
|
Washington
|
|
|
4.1
|
|
|
|
1,065
|
|
|
|
260.05
|
|
|
|
958
|
|
|
|
233.84
|
|
|
|
89.9
|
|
|
|
107
|
|
Wisconsin
|
|
|
0.8
|
|
|
|
196
|
|
|
|
247.57
|
|
|
|
188
|
|
|
|
236.92
|
|
|
|
95.7
|
|
|
|
8
|
|
Other (4)
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
|
|
33
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(27
|
)
|
|
|
|
25.1
|
|
|
|
$
|
8,024
|
|
|
|
$
|
320.17
|
|
|
|
$
|
7,182
|
|
|
|
$
|
286.57
|
|
|
|
89.5
|
%
|
|
|
$
|
842
|
|
____________________
|
(1)
|
A member month is defined as the aggregate of each month's ending
membership for the period presented.
|
(2)
|
The MCR represents medical costs as a percentage of premium revenue.
|
(3)
|
The New York health plan was acquired on August 1, 2016.
|
(4)
|
"Other" medical care costs include primarily medically related
administrative costs at the parent company, and direct delivery
costs.
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA
(In millions, except percentages and per-member per-month
amounts)
|
|
The following tables provide the details of our medical care costs
for the periods indicated:
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
Amount
|
|
|
PMPM
|
|
|
% of
Total
|
|
|
Amount
|
|
|
PMPM
|
|
|
% of
Total
|
Fee for service
|
|
|
$
|
3,348
|
|
|
$
|
238.04
|
|
|
74.5
|
%
|
|
|
$
|
2,620
|
|
|
$
|
206.01
|
|
|
|
72.9
|
%
|
Pharmacy
|
|
|
|
650
|
|
|
|
46.23
|
|
|
14.5
|
|
|
|
|
529
|
|
|
|
41.59
|
|
|
|
14.7
|
|
Capitation
|
|
|
|
356
|
|
|
|
25.29
|
|
|
7.9
|
|
|
|
|
304
|
|
|
|
23.87
|
|
|
|
8.5
|
|
Direct delivery
|
|
|
|
22
|
|
|
|
1.54
|
|
|
0.5
|
|
|
|
|
18
|
|
|
|
1.39
|
|
|
|
0.5
|
|
Other
|
|
|
|
115
|
|
|
|
8.19
|
|
|
2.6
|
|
|
|
|
123
|
|
|
|
9.68
|
|
|
|
3.4
|
|
|
|
|
$
|
4,491
|
|
|
$
|
319.29
|
|
|
100.0
|
%
|
|
|
$
|
3,594
|
|
|
$
|
282.54
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
Amount
|
|
|
PMPM
|
|
|
% of
Total
|
|
|
Amount
|
|
|
PMPM
|
|
|
% of
Total
|
Fee for service
|
|
|
$
|
6,434
|
|
|
$
|
228.68
|
|
|
74.8
|
%
|
|
|
$
|
5,357
|
|
|
$
|
213.77
|
|
|
|
74.6
|
%
|
Pharmacy
|
|
|
|
1,266
|
|
|
|
45.00
|
|
|
14.7
|
|
|
|
|
1,054
|
|
|
|
42.05
|
|
|
|
14.7
|
|
Capitation
|
|
|
|
680
|
|
|
|
24.17
|
|
|
7.9
|
|
|
|
|
599
|
|
|
|
23.87
|
|
|
|
8.3
|
|
Direct delivery
|
|
|
|
44
|
|
|
|
1.56
|
|
|
0.5
|
|
|
|
|
34
|
|
|
|
1.36
|
|
|
|
0.5
|
|
Other
|
|
|
|
178
|
|
|
|
6.33
|
|
|
2.1
|
|
|
|
|
138
|
|
|
|
5.52
|
|
|
|
1.9
|
|
|
|
|
$
|
8,602
|
|
|
$
|
305.74
|
|
|
100.0
|
%
|
|
|
$
|
7,182
|
|
|
$
|
286.57
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table provides the details of our medical claims and
benefits payable as of the dates indicated:
|
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
Fee-for-service claims incurred but not paid (IBNP)
|
|
|
$
|
1,478
|
|
|
$
|
1,352
|
|
Pharmacy payable
|
|
|
|
121
|
|
|
|
112
|
|
Capitation payable
|
|
|
|
45
|
|
|
|
37
|
|
Other (1)
|
|
|
|
433
|
|
|
|
428
|
|
|
|
|
$
|
2,077
|
|
|
$
|
1,929
|
|
|
|
|
|
|
|
|
|
|
|
____________________
|
(1)
|
"Other" medical claims and benefits payable include amounts payable
to certain providers for which we act as an intermediary on behalf
of various state agencies without assuming financial risk. Such
receipts and payments do not impact our consolidated statements of
operations. As of June 30, 2017 and December 31, 2016, we had
recorded non-risk provider payables of approximately $111 million
and $225 million, respectively.
|
|
|
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED CHANGE IN MEDICAL CLAIMS AND BENEFITS PAYABLE
(Dollars in millions, except per-member amounts)
|
|
Our claims liability includes a provision for adverse claims
deviation based on historical experience and other factors
including, but not limited to, variations in claims payment
patterns, changes in utilization and cost trends, known outbreaks
of disease, and large claims. Our reserving methodology is
consistently applied across all periods presented. The amounts
displayed for "Components of medical care costs related to: Prior
period" represent the amount by which our original estimate of
claims and benefits payable at the beginning of the period were
more than the actual amount of the liability based on information
(principally the payment of claims) developed since that liability
was first reported. The following table presents the components of
the change in medical claims and benefits payable for the periods
indicated:
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
Year Ended December 31, 2016
|
|
|
|
2017
|
|
|
2016
|
|
|
Medical claims and benefits payable, beginning balance
|
|
|
$
|
1,929
|
|
|
|
$
|
1,685
|
|
|
|
$
|
1,685
|
|
Components of medical care costs related to:
|
|
|
|
|
|
|
|
|
|
Current period
|
|
|
8,633
|
|
|
|
7,371
|
|
|
|
14,966
|
|
Prior period
|
|
|
(31
|
)
|
|
|
(189
|
)
|
|
|
(192
|
)
|
Total medical care costs
|
|
|
8,602
|
|
|
|
7,182
|
|
|
|
14,774
|
|
|
|
|
|
|
|
|
|
|
|
Change in non-risk provider payables
|
|
|
(114
|
)
|
|
|
24
|
|
|
|
58
|
|
Payments for medical care costs related to:
|
|
|
|
|
|
|
|
|
|
Current period
|
|
|
6,883
|
|
|
|
5,885
|
|
|
|
13,304
|
|
Prior period
|
|
|
1,457
|
|
|
|
1,240
|
|
|
|
1,284
|
|
Total paid
|
|
|
8,340
|
|
|
|
7,125
|
|
|
|
14,588
|
|
Medical claims and benefits payable, ending balance
|
|
|
$
|
2,077
|
|
|
|
$
|
1,766
|
|
|
|
$
|
1,929
|
|
|
|
|
|
|
|
|
|
|
|
Benefit from prior period as a percentage of:
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
|
1.6
|
%
|
|
|
11.3
|
%
|
|
|
11.4
|
%
|
Premium revenue, trailing twelve months
|
|
|
0.2
|
%
|
|
|
1.3
|
%
|
|
|
1.2
|
%
|
Medical care costs, trailing twelve months
|
|
|
0.2
|
%
|
|
|
1.4
|
%
|
|
|
1.3
|
%
|
|
|
|
|
|
|
|
|
|
|
Days in claims payable, fee for service (1)
|
|
|
46
|
|
|
|
48
|
|
|
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________
|
(1)
|
Claims payable includes primarily IBNP. Additionally, it includes
certain fee-for-service payables reported in "Other" medical claims
and benefits payable amounting to $157 million, $74 million and $94
million, as of June 30, 2017, June 30, 2016, and December 31, 2016,
respectively.
|
|
|
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED NON-GAAP FINANCIAL MEASURES
|
|
We use non-GAAP financial measures as supplemental metrics in
evaluating our financial performance, making financing and
business decisions, and forecasting and planning for future
periods. For these reasons, management believes such measures are
useful supplemental measures to investors in comparing our
performance to the performance of other public companies in the
health care industry. These non-GAAP financial measures should be
considered as supplements to, and not as substitutes for or
superior to, GAAP measures. See further information regarding
non-GAAP measures below the tables (in millions, except per
diluted share amounts).
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
$
|
(230
|
)
|
|
|
$
|
33
|
|
|
|
$
|
(153
|
)
|
|
|
$
|
57
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, and amortization of intangible assets and capitalized
software
|
|
|
44
|
|
|
|
39
|
|
|
|
90
|
|
|
|
76
|
Interest expense
|
|
|
27
|
|
|
|
25
|
|
|
|
53
|
|
|
|
50
|
Income tax (benefit) expense
|
|
|
(84
|
)
|
|
|
47
|
|
|
|
(30
|
)
|
|
|
87
|
EBITDA
|
|
|
$
|
(243
|
)
|
|
|
$
|
144
|
|
|
|
$
|
(40
|
)
|
|
|
$
|
270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
Amount
|
|
|
Per Diluted share
|
|
|
Amount
|
|
|
Per Diluted
share
|
|
|
Amount
|
|
|
Per Diluted
share
|
|
|
Amount
|
|
|
Per Diluted share
|
Net (loss) income
|
|
|
$
|
(230
|
)
|
|
|
$
|
(4.10
|
)
|
|
|
$
|
33
|
|
|
|
$
|
0.58
|
|
|
|
$
|
(153
|
)
|
|
|
$
|
(2.74
|
)
|
|
|
$
|
57
|
|
|
|
$
|
1.01
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
8
|
|
|
|
0.14
|
|
|
|
8
|
|
|
|
0.14
|
|
|
|
17
|
|
|
|
0.30
|
|
|
|
15
|
|
|
|
0.27
|
|
Income tax effect (1)
|
|
|
(3
|
)
|
|
|
(0.05
|
)
|
|
|
(3
|
)
|
|
|
(0.05
|
)
|
|
|
(6
|
)
|
|
|
(0.11
|
)
|
|
|
(5
|
)
|
|
|
(0.10
|
)
|
Amortization of intangible assets, net of tax effect
|
|
|
5
|
|
|
|
0.09
|
|
|
|
5
|
|
|
|
0.09
|
|
|
|
11
|
|
|
|
0.19
|
|
|
|
10
|
|
|
|
0.17
|
|
Adjusted net (loss) income
|
|
|
$
|
(225
|
)
|
|
|
$
|
(4.01
|
)
|
|
|
$
|
38
|
|
|
|
$
|
0.67
|
|
|
|
$
|
(142
|
)
|
|
|
$
|
(2.55
|
)
|
|
|
$
|
67
|
|
|
|
$
|
1.18
|
|
____________________
|
(1) Income tax effect of adjustment calculated at the blended
federal and state statutory tax rate of 37%.
|
|
The following are descriptions of the adjustments made to GAAP
measures used to calculate the non-GAAP measures used in this news
release:
Earnings before interest, taxes, depreciation and amortization (EBITDA):
Net (loss) income (GAAP) less depreciation, and amortization of
intangible assets and capitalized software, interest expense and
income tax (benefit) expense. We believe that EBITDA is helpful in
assessing our ability to meet the cash demands of our operating
units.
Adjusted net (loss) income: Net (loss) income (GAAP) less
amortization of intangible assets, net of income tax effect
calculated at the statutory tax rate of 37%. We believe that
adjusted net (loss) income is helpful in assessing our financial
performance exclusive of the non-cash impact of the amortization
of purchased intangibles.
Adjusted net (loss) income per diluted share: Adjusted net
(loss) income divided by weighted average common shares
outstanding on a fully diluted basis.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170802006305/en/
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