[February 12, 2018] |
|
Molina Healthcare Announces Fourth Quarter and Year-End 2017 Results and Provides Fiscal Year 2018 Preliminary Guidance
Molina Healthcare, Inc. (NYSE: MOH):
-
Net loss of $4.59 per diluted share for the quarter.
-
Medical care ratio excluding Marketplace declines to 88.8% from 90.9%
in the third quarter of 2017.
-
General and administrative expense ratio declines to 7.4% from 7.6% in
the third quarter of 2017.
-
Fourth quarter results include $356 million of impairment losses,
restructuring and separation costs, and loss on debt extinguishment.
-
Fourth quarter results include $53 million increased medical care
costs for termination of cost sharing reduction (CSR) subsidy payments
effective October 1, 2017, and other Marketplace reserve adjustments.
-
2018 preliminary guidance of $3.00 - $3.50 net income per diluted
share and $3.23 - $3.73 adjusted net income per diluted share.
Preliminary guidance has been developed with conservative views of
medical cost trends, Marketplace pricing adequacy, and the ultimate
outcome of numerous profit improvement initiatives. Preliminary
guidance will be updated once the Company has the benefit of first
quarter earnings and further insight into the execution of these
profit improvement initiatives.
Molina Healthcare, Inc. (NYSE: MOH) today reported its financial results
for the fourth quarter and year ended December 31, 2017, and provided
its preliminary guidance for fiscal year 2018.
"Our fourth quarter results are emblematic of the significant transition
Molina is undertaking," said Joe Zubretsky, president and CEO. "The
disappointment of contract losses and related goodwill charges,
continued restructuring costs, and catch up adjustments to unacceptable
Marketplace results are legacies of the past. Looking forward, the core
business results showed improvement quarter over quarter, and we took
steps to strengthen the quality of the balance sheet, all of which serve
as a solid platform to achieve our margin recovery and sustainability
plan we outlined for investors last month. Medical cost control,
administrative cost discipline, and capital strength remain at the fore
of our plan."
Fourth Quarter 2017 and Full Year Highlights
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
(Dollar amounts in millions, except per-share amounts)
|
Premium revenue
|
|
|
$
|
4,689
|
|
|
|
$
|
4,190
|
|
|
|
$
|
18,854
|
|
|
|
$
|
16,445
|
|
Operating (loss) income
|
|
|
$
|
(269
|
)
|
|
|
$
|
(6
|
)
|
|
|
$
|
(555
|
)
|
|
|
$
|
306
|
|
Net (loss) income
|
|
|
$
|
(262
|
)
|
|
|
$
|
(47
|
)
|
|
|
$
|
(512
|
)
|
|
|
$
|
52
|
|
Net (loss) income per diluted share
|
|
|
$
|
(4.59
|
)
|
|
|
$
|
(0.85
|
)
|
|
|
$
|
(9.07
|
)
|
|
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
|
|
57.1
|
|
|
|
|
55.6
|
|
|
|
|
56.5
|
|
|
|
|
56.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical care ratio (1)
|
|
|
|
90.7
|
%
|
|
|
|
91.7
|
%
|
|
|
|
90.6
|
%
|
|
|
|
89.8
|
%
|
G&A ratio (2)
|
|
|
|
7.4
|
%
|
|
|
|
7.9
|
%
|
|
|
|
8.0
|
%
|
|
|
|
7.8
|
%
|
Premium tax ratio (1)
|
|
|
|
2.2
|
%
|
|
|
|
2.9
|
%
|
|
|
|
2.3
|
%
|
|
|
|
2.8
|
%
|
Effective income tax (benefit) expense rate
|
|
|
|
(17.2
|
)%
|
|
|
|
54.5
|
%
|
|
|
|
(16.4
|
)%
|
|
|
|
74.8
|
%
|
Net (loss) profit margin (2)
|
|
|
|
(5.3
|
)%
|
|
|
|
(1.0
|
)%
|
|
|
|
(2.6
|
)%
|
|
|
|
0.3
|
%
|
__________________
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|
(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 (loss) profit margin represents net
(loss) income as a percentage of total revenue.
|
|
|
|
Summary of Significant Items Affecting 2017 Financial Results
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
(In millions, except per diluted share amounts)
|
|
|
|
Amount
|
|
|
Per Diluted Share (1)
|
|
|
Amount
|
|
|
Per Diluted Share (1)
|
Termination of CSR subsidy payments for the fourth quarter of 2017
|
|
|
$
|
73
|
|
|
|
$
|
0.81
|
|
|
|
$
|
73
|
|
|
|
$
|
0.82
|
|
Marketplace adjustments for CSR subsidies, risk adjustment and
medical loss ratio (MLR) floor liabilities for January through
September 2017 dates of service
|
|
|
|
50
|
|
|
|
|
0.55
|
|
|
|
|
N/A
|
|
|
|
|
N/A
|
|
Marketplace adjustments related to risk adjustment, CSR subsidies,
and other items for 2016 dates of service
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
47
|
|
|
|
|
0.52
|
|
Change in Marketplace premium deficiency reserve for 2017 dates of
service
|
|
|
|
(70
|
)
|
|
|
|
(0.77
|
)
|
|
|
|
(30
|
)
|
|
|
|
(0.33
|
)
|
Impairment losses
|
|
|
|
269
|
|
|
|
|
3.22
|
|
|
|
|
470
|
|
|
|
|
6.01
|
|
Restructuring and separation costs
|
|
|
|
73
|
|
|
|
|
0.81
|
|
|
|
|
234
|
|
|
|
|
2.86
|
|
Loss on debt extinguishment
|
|
|
|
14
|
|
|
|
|
0.24
|
|
|
|
|
14
|
|
|
|
|
0.24
|
|
Fee received for terminated Medicare acquisition
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(75
|
)
|
|
|
|
(0.84
|
)
|
|
|
|
$
|
409
|
|
|
|
$
|
4.86
|
|
|
|
$
|
733
|
|
|
|
$
|
9.28
|
|
__________________
|
|
(1)
|
|
Amounts shown are before considering revaluation of related deferred
tax assets as a result of the Tax Cuts and Jobs Act of 2017, as
applicable, and which is described further below. Except for certain
items that are not deductible for tax purposes, per diluted share
amounts are generally calculated at a statutory income tax rate of
37%, which is in excess of the effective tax rate recorded in our
consolidated statements of operations.
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Fourth Quarter 2017 Compared With Third Quarter 2017
Developments in our business during 2017 limit the value of comparisons
to 2016 performance. The Company believes that the comparison of 2017
fourth quarter performance with 2017 third quarter performance provides
the most meaningful context for fourth quarter results.
Loss before income tax benefit for the fourth quarter of 2017 was $316
million, compared with a loss before income tax benefit of $113 million
for the third quarter of 2017. Net loss per diluted share was $4.59 for
the fourth quarter of 2017 compared with net loss per diluted share of
$1.70 reported for the third quarter of 2017.
Despite the loss reported for the quarter, the performance of core
operations and overall administrative cost efficiency improved in the
fourth quarter when compared with the third quarter of 2017.
Marketplace performance deteriorated due to normal seasonality and other
matters discussed below. The Company has increased premium rates and
reduced its Marketplace presence effective January 1, 2018 as part of
its overall program to improve profitability.
Among the key developments affecting fourth quarter 2017 results were:
-
The medical care ratio for the Company's Medicaid and Medicare
programs combined ("core operations") declined to 88.8% in the fourth
quarter of 2017, from 90.9% in the third quarter of 2017.
-
The general and administrative expense ratio declined to 7.4% in the
fourth quarter of 2017 from 7.6% in the third quarter of 2017.
-
The decision by the federal government to cease payment of Marketplace
CSR subsidies in the fourth quarter of 2017 increased loss before
income tax benefit for the quarter by approximately $73 million ($0.81
per diluted share). Despite its decision to record a charge in the
fourth quarter for this item, the Company believes that it is legally
entitled to these federal payments and will pursue all available means
to collect them.
-
Increases to Marketplace risk transfer and CSR liabilities related to
the first three quarters of 2017 increased loss before income tax
benefit by approximately $50 million ($0.55 per diluted share) in the
fourth quarter.
-
The reduction of the Marketplace-related premium deficiency reserve to
zero as of December 31, 2017 reduced loss before income tax benefit by
$70 million ($0.77 per diluted share) in the fourth quarter.
-
Non-cash goodwill and intangible asset impairment charges of $269
million ($3.22 per diluted share) were incurred at the Florida,
Illinois, and New Mexico health plans in the fourth quarter.
-
Approximately $73 million ($0.81 per diluted share) of restructuring
costs were recognized in the fourth quarter.
-
Approximately $14 million ($0.24 per diluted share) of non-cash costs
were recognized in the fourth quarter in connection with the issuance
of our common shares in exchange for $141 million face value of our
1.625% convertible senior notes.
Income Tax (Benefit) Expense
The revaluation of deferred tax assets in connection with the Tax
Cuts and Jobs Act of 2017 resulted in $54 million additional income
tax expense in the fourth quarter and year ended December 31, 2017
($0.94 per diluted share and $0.95 per diluted share, respectively). In
addition, the effective tax benefit for 2017 is less than the statutory
tax benefit due to the relatively large amount of reported expenses that
are not deductible for tax purposes, primarily relating to goodwill
impairment losses and separation costs.
2018 Preliminary Guidance
The Company has offered guidance on a preliminary basis because of the
inherent uncertainty around achievement and the timing of its numerous
profit improvement initiatives. While those initiatives extend across
the various dimensions of managed care fundamentals, many are in the
early stages of development and implementation.
Therefore, the Company's guidance should be viewed as a preliminary
estimate of what it expects to achieve until the profit improvement
initiatives manifest themselves in the earnings stream. Once it has the
benefit of first quarter earnings and further insight into the execution
of the profit improvement initiatives, the Company will be able to
provide a firmer view of 2018 guidance.
To provide for an appropriate amount of execution risk, the Company's
preliminary guidance has been developed with appropriately conservative
views of:
-
Medical cost baseline in 2017;
-
Medical cost trend for 2018;
-
Potential rate increases and retained amounts of revenue at risk; and
-
The turnaround of the Marketplace business until the achievement of
the margins implicit in 2018 pricing is observed.
The following table summarizes 2018 Preliminary Guidance (1):
Premium revenue
|
|
|
|
|
~ $17.5B
|
Service revenue
|
|
|
|
|
~ $525M
|
Premium tax revenue
|
|
|
|
|
~ $410M
|
Health insurer fees reimbursed
|
|
|
|
|
~ $295M
|
Investment income and other revenue
|
|
|
|
|
~ $85M
|
Total revenue
|
|
|
|
|
~ $18.8B
|
Medical care costs
|
|
|
|
|
~ $15.6B
|
Medical care ratio (2)
|
|
|
|
|
~ 89%
|
Cost of service revenue
|
|
|
|
|
~ $480M
|
General and administrative expenses
|
|
|
|
|
~ $1.4B
|
G&A ratio (3)
|
|
|
|
|
~ 7.3%
|
Premium tax expenses
|
|
|
|
|
~ $410M
|
Health insurer fees
|
|
|
|
|
~ $310M
|
Depreciation and amortization
|
|
|
|
|
~ $115M
|
Interest expense and other income
|
|
|
|
|
~ $125M
|
Income before income taxes
|
|
|
|
|
$355M - $400M
|
Net income
|
|
|
|
|
$202M - $236M
|
EBITDA (4)
|
|
|
|
|
$632M - $676M
|
Effective tax rate
|
|
|
|
|
41% - 43%
|
Net profit margin (3)
|
|
|
|
|
1.1% - 1.3%
|
Diluted weighted average shares
|
|
|
|
|
~ 67.3M
|
Net income per share
|
|
|
|
|
$3.00 - $3.50
|
Adjusted net income per share (4)
|
|
|
|
|
$3.23 - $3.73
|
End-of-year Marketplace membership
|
|
|
|
|
303,000
|
End-of-year Non-Marketplace membership
|
|
|
|
|
3,738,000
|
__________________
|
|
(1)
|
|
All amounts are estimates; actual results may differ materially. See
our risk factors as discussed in our Form 10-K and other filings and
the statements below in this press release after the heading "Safe
Harbor Statement under the Private Securities Litigation Reform Act
of 1995."
|
(2)
|
|
Medical care ratio represents medical care costs as a percentage of
premium revenue.
|
(3)
|
|
G&A expense ratio represents general and administrative expenses as
a percentage of total revenue. Net profit margin represents net
income as a percentage of total revenue.
|
(4)
|
|
See reconciliation of non-GAAP financial measures at the end of this
release.
|
|
|
|
Conference Call
Management will host a conference call and webcast to discuss Molina
Healthcare's fourth quarter and year-end 2017 results at 8:30 a.m.
Eastern time on Tuesday, February 13, 2018. The number to call for the
interactive teleconference is (888) 317-6003 and entering confirmation
number 5278774. A telephonic replay of the conference call will be
available through Tuesday, February 20, 2018, by dialing (877) 344-7529
and entering confirmation number 10116226. 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 13
states across the nation and in the Commonwealth of Puerto Rico, Molina
serves approximately 4.5 million members. 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 2018 preliminary guidance, as well as 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 our profit improvement and maintenance initiatives,
including the timing and amounts of the benefits realized, and
administrative savings achieved;
-
the numerous political and market-based uncertainties associated
with the Affordable Care Act (the "ACA") or "Obamacare;"
-
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 discontinuation of premium tax credits, the
adequacy of agreed rates, and potential disruption associated with
market withdrawal from Utah, Wisconsin, or other states;
-
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;
-
the full reimbursement of the ACA health insurer fee, or HIF;
-
the success of our efforts to retain existing government contracts,
including those in Florida, New Mexico, Puerto Rico, Texas, and
Washington, including the success of any protest filings;
-
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 and requirements;
-
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, the impact
of Hurricane Maria 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;
-
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;
-
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, including the greater scale and revenues of our California,
Ohio, Texas, and Washington 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 February 12, 2018, and we
disclaim any obligation to update any forward-looking statements to
conform the statement to actual results or changes in our expectations.
|
MOLINA HEALTHCARE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
(Dollar amounts in millions, except per-share amounts)
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Premium revenue (1)
|
|
|
$
|
4,689
|
|
|
|
$
|
4,190
|
|
|
|
$
|
18,854
|
|
|
|
$
|
16,445
|
|
Service revenue
|
|
|
|
131
|
|
|
|
|
131
|
|
|
|
|
521
|
|
|
|
|
539
|
|
Premium tax revenue
|
|
|
|
107
|
|
|
|
|
123
|
|
|
|
|
438
|
|
|
|
|
468
|
|
Health insurer fees reimbursed (1)
|
|
|
|
-
|
|
|
|
|
81
|
|
|
|
|
-
|
|
|
|
|
292
|
|
Investment income and other revenue
|
|
|
|
22
|
|
|
|
|
9
|
|
|
|
|
70
|
|
|
|
|
38
|
|
Total revenue
|
|
|
|
4,949
|
|
|
|
|
4,534
|
|
|
|
|
19,883
|
|
|
|
|
17,782
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical care costs
|
|
|
|
4,251
|
|
|
|
|
3,844
|
|
|
|
|
17,073
|
|
|
|
|
14,774
|
|
Cost of service revenue
|
|
|
|
123
|
|
|
|
|
123
|
|
|
|
|
492
|
|
|
|
|
485
|
|
General and administrative expenses
|
|
|
|
367
|
|
|
|
|
359
|
|
|
|
|
1,594
|
|
|
|
|
1,393
|
|
Premium tax expenses
|
|
|
|
107
|
|
|
|
|
123
|
|
|
|
|
438
|
|
|
|
|
468
|
|
Health insurer fees
|
|
|
|
-
|
|
|
|
|
54
|
|
|
|
|
-
|
|
|
|
|
217
|
|
Depreciation and amortization
|
|
|
|
28
|
|
|
|
|
37
|
|
|
|
|
137
|
|
|
|
|
139
|
|
Impairment losses
|
|
|
|
269
|
|
|
|
|
-
|
|
|
|
|
470
|
|
|
|
|
-
|
|
Restructuring and separation costs
|
|
|
|
73
|
|
|
|
|
-
|
|
|
|
|
234
|
|
|
|
|
-
|
|
Total operating expenses
|
|
|
|
5,218
|
|
|
|
|
4,540
|
|
|
|
|
20,438
|
|
|
|
|
17,476
|
|
Operating (loss) income
|
|
|
|
(269
|
)
|
|
|
|
(6
|
)
|
|
|
|
(555
|
)
|
|
|
|
306
|
|
Other expenses, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
33
|
|
|
|
|
25
|
|
|
|
|
118
|
|
|
|
|
101
|
|
Other expense (income), net
|
|
|
|
14
|
|
|
|
|
-
|
|
|
|
|
(61
|
)
|
|
|
|
-
|
|
Total other expenses, net
|
|
|
|
47
|
|
|
|
|
25
|
|
|
|
|
57
|
|
|
|
|
101
|
|
(Loss) income before income tax (benefit) expense
|
|
|
|
(316
|
)
|
|
|
|
(31
|
)
|
|
|
|
(612
|
)
|
|
|
|
205
|
|
Income tax (benefit) expense
|
|
|
|
(54
|
)
|
|
|
|
16
|
|
|
|
|
(100
|
)
|
|
|
|
153
|
|
Net (loss) income
|
|
|
$
|
(262
|
)
|
|
|
$
|
(47
|
)
|
|
|
$
|
(512
|
)
|
|
|
$
|
52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per diluted share
|
|
|
$
|
(4.59
|
)
|
|
|
$
|
(0.85
|
)
|
|
|
$
|
(9.07
|
)
|
|
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding
|
|
|
|
57.1
|
|
|
|
|
55.6
|
|
|
|
|
56.5
|
|
|
|
|
56.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical care ratio
|
|
|
|
90.7
|
%
|
|
|
|
91.7
|
%
|
|
|
|
90.6
|
%
|
|
|
|
89.8
|
%
|
G&A ratio
|
|
|
|
7.4
|
%
|
|
|
|
7.9
|
%
|
|
|
|
8.0
|
%
|
|
|
|
7.8
|
%
|
Premium tax ratio
|
|
|
|
2.2
|
%
|
|
|
|
2.9
|
%
|
|
|
|
2.3
|
%
|
|
|
|
2.8
|
%
|
Effective income tax (benefit) expense rate
|
|
|
|
(17.2
|
)%
|
|
|
|
54.5
|
%
|
|
|
|
(16.4
|
)%
|
|
|
|
74.8
|
%
|
Net (loss) profit margin
|
|
|
|
(5.3
|
)%
|
|
|
|
(1.0
|
)%
|
|
|
|
(2.6
|
)%
|
|
|
|
0.3
|
%
|
__________________
|
|
(1)
|
|
The Centers for Medicare and Medicaid Services (CMS) incorporates
the Health Insurer Fee in our Medicare and Marketplace premium
rates. We have therefore reclassified such amounts to premium
revenue, from health insurer fees reimbursed, for all applicable
periods presented.
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(In millions, except per-share data)
|
ASSETS
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
3,186
|
|
|
|
$
|
2,819
|
|
Investments
|
|
|
|
2,524
|
|
|
|
|
1,758
|
|
Restricted investments
|
|
|
|
169
|
|
|
|
|
-
|
|
Receivables
|
|
|
|
871
|
|
|
|
|
974
|
|
Income taxes refundable
|
|
|
|
54
|
|
|
|
|
39
|
|
Prepaid expenses and other current assets
|
|
|
|
185
|
|
|
|
|
131
|
|
Derivative asset
|
|
|
|
522
|
|
|
|
|
267
|
|
Total current assets
|
|
|
|
7,511
|
|
|
|
|
5,988
|
|
Property, equipment, and capitalized software, net
|
|
|
|
342
|
|
|
|
|
454
|
|
Deferred contract costs
|
|
|
|
101
|
|
|
|
|
86
|
|
Intangible assets, net
|
|
|
|
69
|
|
|
|
|
140
|
|
Goodwill
|
|
|
|
186
|
|
|
|
|
620
|
|
Restricted investments
|
|
|
|
119
|
|
|
|
|
110
|
|
Deferred income taxes
|
|
|
|
103
|
|
|
|
|
10
|
|
Other assets
|
|
|
|
40
|
|
|
|
|
41
|
|
|
|
|
$
|
8,471
|
|
|
|
$
|
7,449
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
Current liabilities:
|
|
|
|
|
|
|
Medical claims and benefits payable
|
|
|
$
|
2,192
|
|
|
|
$
|
1,929
|
|
Amounts due government agencies
|
|
|
|
1,542
|
|
|
|
|
1,202
|
|
Accounts payable and accrued liabilities
|
|
|
|
366
|
|
|
|
|
385
|
|
Deferred revenue
|
|
|
|
282
|
|
|
|
|
315
|
|
Current portion of long-term debt
|
|
|
|
653
|
|
|
|
|
472
|
|
Derivative liability
|
|
|
|
522
|
|
|
|
|
267
|
|
Total current liabilities
|
|
|
|
5,557
|
|
|
|
|
4,570
|
|
Long-term debt
|
|
|
|
1,318
|
|
|
|
|
975
|
|
Lease financing obligations
|
|
|
|
198
|
|
|
|
|
198
|
|
Deferred income taxes
|
|
|
|
-
|
|
|
|
|
15
|
|
Other long-term liabilities
|
|
|
|
61
|
|
|
|
|
42
|
|
Total liabilities
|
|
|
|
7,134
|
|
|
|
|
5,800
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Common stock, $0.001 par value; 150 shares authorized; outstanding:
60 at December 31, 2017 and 57 shares at December 31, 2016
|
|
|
|
-
|
|
|
|
|
-
|
|
Preferred stock, $0.001 par value; 20 shares authorized, no shares
issued and outstanding
|
|
|
|
-
|
|
|
|
|
-
|
|
Additional paid-in capital
|
|
|
|
1,044
|
|
|
|
|
841
|
|
Accumulated other comprehensive loss
|
|
|
|
(5
|
)
|
|
|
|
(2
|
)
|
Retained earnings
|
|
|
|
298
|
|
|
|
|
810
|
|
Total stockholders' equity
|
|
|
|
1,337
|
|
|
|
|
1,649
|
|
|
|
|
$
|
8,471
|
|
|
|
$
|
7,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
(In millions)
|
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
$
|
(262
|
)
|
|
|
$
|
(47
|
)
|
|
|
$
|
(512
|
)
|
|
|
$
|
52
|
|
Adjustments to reconcile net (loss) income to net cash (used in)
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
39
|
|
|
|
|
47
|
|
|
|
|
178
|
|
|
|
|
182
|
|
Impairment losses
|
|
|
|
269
|
|
|
|
|
-
|
|
|
|
|
470
|
|
|
|
|
-
|
|
Deferred income taxes
|
|
|
|
(26
|
)
|
|
|
|
2
|
|
|
|
|
(94
|
)
|
|
|
|
22
|
|
Share-based compensation, including accelerated share-based
compensation
|
|
|
|
8
|
|
|
|
|
2
|
|
|
|
|
46
|
|
|
|
|
26
|
|
Non-cash restructuring charges
|
|
|
|
11
|
|
|
|
|
-
|
|
|
|
|
60
|
|
|
|
|
-
|
|
Amortization of convertible senior notes and lease financing
obligations
|
|
|
|
8
|
|
|
|
|
8
|
|
|
|
|
32
|
|
|
|
|
31
|
|
Loss on debt extinguishment
|
|
|
|
14
|
|
|
|
|
-
|
|
|
|
|
14
|
|
|
|
|
-
|
|
Other, net
|
|
|
|
8
|
|
|
|
|
2
|
|
|
|
|
21
|
|
|
|
|
16
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
|
131
|
|
|
|
|
79
|
|
|
|
|
103
|
|
|
|
|
(348
|
)
|
Prepaid expenses and other assets
|
|
|
|
(3
|
)
|
|
|
|
47
|
|
|
|
|
(56
|
)
|
|
|
|
(69
|
)
|
Medical claims and benefits payable
|
|
|
|
(286
|
)
|
|
|
|
58
|
|
|
|
|
263
|
|
|
|
|
226
|
|
Amounts due government agencies
|
|
|
|
219
|
|
|
|
|
(30
|
)
|
|
|
|
341
|
|
|
|
|
473
|
|
Accounts payable and accrued liabilities
|
|
|
|
(102
|
)
|
|
|
|
(5
|
)
|
|
|
|
(12
|
)
|
|
|
|
(4
|
)
|
Deferred revenue
|
|
|
|
(187
|
)
|
|
|
|
(65
|
)
|
|
|
|
(34
|
)
|
|
|
|
92
|
|
Income taxes
|
|
|
|
6
|
|
|
|
|
(58
|
)
|
|
|
|
(16
|
)
|
|
|
|
(26
|
)
|
Net cash (used in) provided by operating activities
|
|
|
|
(153
|
)
|
|
|
|
40
|
|
|
|
|
804
|
|
|
|
|
673
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of investments
|
|
|
|
(822
|
)
|
|
|
|
(485
|
)
|
|
|
|
(2,718
|
)
|
|
|
|
(1,929
|
)
|
Proceeds from sales and maturities of investments
|
|
|
|
233
|
|
|
|
|
454
|
|
|
|
|
1,771
|
|
|
|
|
1,966
|
|
Purchases of property, equipment, and capitalized software
|
|
|
|
(1
|
)
|
|
|
|
(33
|
)
|
|
|
|
(86
|
)
|
|
|
|
(176
|
)
|
(Increase) decrease in restricted investments held-to-maturity
|
|
|
|
(2
|
)
|
|
|
|
-
|
|
|
|
|
(12
|
)
|
|
|
|
4
|
|
Net cash paid in business combinations
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(48
|
)
|
Other, net
|
|
|
|
(7
|
)
|
|
|
|
(7
|
)
|
|
|
|
(28
|
)
|
|
|
|
(19
|
)
|
Net cash used in investing activities
|
|
|
|
(599
|
)
|
|
|
|
(71
|
)
|
|
|
|
(1,073
|
)
|
|
|
|
(202
|
)
|
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from senior notes offering, net of issuance costs
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
325
|
|
|
|
|
-
|
|
Proceeds from borrowings under credit facility
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
300
|
|
|
|
|
-
|
|
Proceeds from employee stock plans
|
|
|
|
8
|
|
|
|
|
8
|
|
|
|
|
19
|
|
|
|
|
18
|
|
Cash paid for financing transaction fees
|
|
|
|
(7
|
)
|
|
|
|
-
|
|
|
|
|
(7
|
)
|
|
|
|
-
|
|
Other, net
|
|
|
|
3
|
|
|
|
|
-
|
|
|
|
|
(1
|
)
|
|
|
|
1
|
|
Net cash provided by financing activities
|
|
|
|
4
|
|
|
|
|
8
|
|
|
|
|
636
|
|
|
|
|
19
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
|
(748
|
)
|
|
|
|
(23
|
)
|
|
|
|
367
|
|
|
|
|
490
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
3,934
|
|
|
|
|
2,842
|
|
|
|
|
2,819
|
|
|
|
|
2,329
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
3,186
|
|
|
|
$
|
2,819
|
|
|
|
$
|
3,186
|
|
|
|
$
|
2,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED HEALTH PLANS SEGMENT MEMBERSHIP
|
|
|
|
|
As of December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
Ending Membership by Program:
|
|
|
|
|
|
|
|
|
|
Temporary Assistance for Needy Families (TANF) and Children's Health
Insurance Program (CHIP)
|
|
|
2,457,000
|
|
|
2,536,000
|
|
|
2,312,000
|
Marketplace
|
|
|
815,000
|
|
|
526,000
|
|
|
205,000
|
Medicaid Expansion
|
|
|
668,000
|
|
|
673,000
|
|
|
557,000
|
Aged, Blind or Disabled (ABD)
|
|
|
412,000
|
|
|
396,000
|
|
|
366,000
|
Medicare-Medicaid Plan (MMP) - Integrated
|
|
|
57,000
|
|
|
51,000
|
|
|
51,000
|
Medicare Special Needs Plans
|
|
|
44,000
|
|
|
45,000
|
|
|
42,000
|
|
|
|
4,453,000
|
|
|
4,227,000
|
|
|
3,533,000
|
Ending Membership by Health Plan:
|
|
|
|
|
|
|
|
|
|
California
|
|
|
746,000
|
|
|
683,000
|
|
|
620,000
|
Florida
|
|
|
625,000
|
|
|
553,000
|
|
|
440,000
|
Illinois
|
|
|
165,000
|
|
|
195,000
|
|
|
98,000
|
Michigan
|
|
|
398,000
|
|
|
391,000
|
|
|
328,000
|
New Mexico
|
|
|
253,000
|
|
|
254,000
|
|
|
231,000
|
New York
|
|
|
32,000
|
|
|
35,000
|
|
|
-
|
Ohio
|
|
|
327,000
|
|
|
332,000
|
|
|
327,000
|
Puerto Rico
|
|
|
314,000
|
|
|
330,000
|
|
|
348,000
|
South Carolina
|
|
|
116,000
|
|
|
109,000
|
|
|
99,000
|
Texas
|
|
|
430,000
|
|
|
337,000
|
|
|
260,000
|
Utah
|
|
|
152,000
|
|
|
146,000
|
|
|
102,000
|
Washington
|
|
|
777,000
|
|
|
736,000
|
|
|
582,000
|
Wisconsin
|
|
|
118,000
|
|
|
126,000
|
|
|
98,000
|
|
|
|
4,453,000
|
|
|
4,227,000
|
|
|
3,533,000
|
|
|
|
|
|
|
|
|
|
|
|
MOLINA HEALTHCARE, INC.
UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA
(In millions, except percentages and per-member per-month
amounts)
|
|
|
|
|
Three Months Ended December 31, 2017
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
TANF and CHIP
|
|
|
7.4
|
|
|
$
|
1,369
|
|
|
$
|
183.95
|
|
|
$
|
1,250
|
|
|
$
|
168.00
|
|
|
91.3
|
%
|
|
|
$
|
119
|
|
Medicaid Expansion
|
|
|
2.0
|
|
|
|
774
|
|
|
|
386.22
|
|
|
|
629
|
|
|
|
313.89
|
|
|
81.3
|
|
|
|
|
145
|
|
ABD
|
|
|
1.3
|
|
|
|
1,366
|
|
|
|
1,100.22
|
|
|
|
1,229
|
|
|
|
989.56
|
|
|
89.9
|
|
|
|
|
137
|
|
Total Medicaid
|
|
|
10.7
|
|
|
|
3,509
|
|
|
|
328.28
|
|
|
|
3,108
|
|
|
|
290.76
|
|
|
88.6
|
|
|
|
|
401
|
|
MMP
|
|
|
0.2
|
|
|
|
363
|
|
|
|
2,142.07
|
|
|
|
341
|
|
|
|
2,006.07
|
|
|
93.7
|
|
|
|
|
22
|
|
Medicare
|
|
|
0.1
|
|
|
|
152
|
|
|
|
1,155.15
|
|
|
|
124
|
|
|
|
948.16
|
|
|
82.1
|
|
|
|
|
28
|
|
Total Medicare
|
|
|
0.3
|
|
|
|
515
|
|
|
|
1,710.94
|
|
|
|
465
|
|
|
|
1,543.93
|
|
|
90.2
|
|
|
|
|
50
|
|
Excluding Marketplace
|
|
|
11.0
|
|
|
|
4,024
|
|
|
|
366.18
|
|
|
|
3,573
|
|
|
|
325.12
|
|
|
88.8
|
|
|
|
|
451
|
|
Marketplace
|
|
|
2.4
|
|
|
|
665
|
|
|
|
268.39
|
|
|
|
678
|
|
|
|
273.92
|
|
|
102.1
|
|
|
|
|
(13
|
)
|
|
|
|
13.4
|
|
|
$
|
4,689
|
|
|
$
|
348.20
|
|
|
$
|
4,251
|
|
|
$
|
315.70
|
|
|
90.7
|
%
|
|
|
$
|
438
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2016
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
TANF and CHIP
|
|
|
7.7
|
|
|
$
|
1,404
|
|
|
$
|
183.96
|
|
|
$
|
1,304
|
|
|
$
|
170.83
|
|
|
92.9
|
%
|
|
|
$
|
100
|
|
Medicaid Expansion
|
|
|
2.0
|
|
|
|
768
|
|
|
|
383.19
|
|
|
|
625
|
|
|
|
311.57
|
|
|
81.3
|
|
|
|
|
143
|
|
ABD
|
|
|
1.2
|
|
|
|
1,200
|
|
|
|
1,003.09
|
|
|
|
1,104
|
|
|
|
921.69
|
|
|
91.9
|
|
|
|
|
96
|
|
Total Medicaid
|
|
|
10.9
|
|
|
|
3,372
|
|
|
|
311.31
|
|
|
|
3,033
|
|
|
|
279.82
|
|
|
89.9
|
|
|
|
|
339
|
|
MMP
|
|
|
0.1
|
|
|
|
319
|
|
|
|
2,076.73
|
|
|
|
274
|
|
|
|
1,785.00
|
|
|
86.0
|
|
|
|
|
45
|
|
Medicare
|
|
|
0.1
|
|
|
|
150
|
|
|
|
1,114.69
|
|
|
|
130
|
|
|
|
966.81
|
|
|
86.7
|
|
|
|
|
20
|
|
Total Medicare
|
|
|
0.2
|
|
|
|
469
|
|
|
|
1,626.50
|
|
|
|
404
|
|
|
|
1,402.09
|
|
|
86.2
|
|
|
|
|
65
|
|
Excluding Marketplace
|
|
|
11.1
|
|
|
|
3,841
|
|
|
|
345.40
|
|
|
|
3,437
|
|
|
|
308.91
|
|
|
89.4
|
|
|
|
|
404
|
|
Marketplace
|
|
|
1.6
|
|
|
|
349
|
|
|
|
221.05
|
|
|
|
407
|
|
|
|
258.71
|
|
|
117.0
|
|
|
|
|
(58
|
)
|
|
|
|
12.7
|
|
|
$
|
4,190
|
|
|
$
|
329.96
|
|
|
$
|
3,844
|
|
|
$
|
302.68
|
|
|
91.7
|
%
|
|
|
$
|
346
|
|
__________________
|
|
(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)
|
|
|
|
|
Year Ended December 31, 2017
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
TANF and CHIP
|
|
|
30.2
|
|
|
$
|
5,554
|
|
|
$
|
183.75
|
|
|
$
|
5,111
|
|
|
$
|
169.09
|
|
|
92.0
|
%
|
|
|
$
|
443
|
Medicaid Expansion
|
|
|
8.1
|
|
|
|
3,150
|
|
|
|
388.42
|
|
|
|
2,674
|
|
|
|
329.73
|
|
|
84.9
|
|
|
|
|
476
|
ABD
|
|
|
4.9
|
|
|
|
5,135
|
|
|
|
1,050.41
|
|
|
|
4,863
|
|
|
|
994.80
|
|
|
94.7
|
|
|
|
|
272
|
Total Medicaid
|
|
|
43.2
|
|
|
|
13,839
|
|
|
|
320.16
|
|
|
|
12,648
|
|
|
|
292.61
|
|
|
91.4
|
|
|
|
|
1,191
|
MMP
|
|
|
0.7
|
|
|
|
1,446
|
|
|
|
2,177.72
|
|
|
|
1,317
|
|
|
|
1,982.36
|
|
|
91.0
|
|
|
|
|
129
|
Medicare
|
|
|
0.5
|
|
|
|
601
|
|
|
|
1,143.63
|
|
|
|
493
|
|
|
|
939.67
|
|
|
82.2
|
|
|
|
|
108
|
Total Medicare
|
|
|
1.2
|
|
|
|
2,047
|
|
|
|
1,722.47
|
|
|
|
1,810
|
|
|
|
1,523.15
|
|
|
88.4
|
|
|
|
|
237
|
Excluding Marketplace
|
|
|
44.4
|
|
|
|
15,886
|
|
|
|
357.68
|
|
|
|
14,458
|
|
|
|
325.53
|
|
|
91.0
|
|
|
|
|
1,428
|
Marketplace
|
|
|
10.8
|
|
|
|
2,968
|
|
|
|
274.47
|
|
|
|
2,615
|
|
|
|
241.84
|
|
|
88.1
|
|
|
|
|
353
|
|
|
|
55.2
|
|
|
$
|
18,854
|
|
|
$
|
341.39
|
|
|
$
|
17,073
|
|
|
$
|
309.14
|
|
|
90.6
|
%
|
|
|
$
|
1,781
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2016
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
TANF and CHIP
|
|
|
30.2
|
|
|
$
|
5,403
|
|
|
$
|
179.21
|
|
|
$
|
4,950
|
|
|
$
|
164.18
|
|
|
91.6
|
%
|
|
|
$
|
453
|
Medicaid Expansion
|
|
|
7.8
|
|
|
|
2,952
|
|
|
|
378.58
|
|
|
|
2,475
|
|
|
|
317.37
|
|
|
83.8
|
|
|
|
|
477
|
ABD
|
|
|
4.7
|
|
|
|
4,666
|
|
|
|
991.24
|
|
|
|
4,277
|
|
|
|
908.39
|
|
|
91.6
|
|
|
|
|
389
|
Total Medicaid
|
|
|
42.7
|
|
|
|
13,021
|
|
|
|
305.28
|
|
|
|
11,702
|
|
|
|
274.33
|
|
|
89.9
|
|
|
|
|
1,319
|
MMP
|
|
|
0.6
|
|
|
|
1,321
|
|
|
|
2,160.94
|
|
|
|
1,141
|
|
|
|
1,866.93
|
|
|
86.4
|
|
|
|
|
180
|
Medicare
|
|
|
0.5
|
|
|
|
558
|
|
|
|
1,063.44
|
|
|
|
515
|
|
|
|
981.36
|
|
|
92.3
|
|
|
|
|
43
|
Total Medicare
|
|
|
1.1
|
|
|
|
1,879
|
|
|
|
1,653.73
|
|
|
|
1,656
|
|
|
|
1,457.67
|
|
|
88.1
|
|
|
|
|
223
|
Excluding Marketplace
|
|
|
43.8
|
|
|
|
14,900
|
|
|
|
340.28
|
|
|
|
13,358
|
|
|
|
305.03
|
|
|
89.6
|
|
|
|
|
1,542
|
Marketplace
|
|
|
6.7
|
|
|
|
1,545
|
|
|
|
231.38
|
|
|
|
1,416
|
|
|
|
212.17
|
|
|
91.7
|
|
|
|
|
129
|
|
|
|
50.5
|
|
|
$
|
16,445
|
|
|
$
|
325.87
|
|
|
$
|
14,774
|
|
|
$
|
292.75
|
|
|
89.8
|
%
|
|
|
$
|
1,671
|
__________________
|
|
(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 December 31, 2017
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
1.8
|
|
|
$
|
621
|
|
|
$
|
335.46
|
|
|
$
|
531
|
|
|
$
|
286.70
|
|
|
85.5
|
%
|
|
|
$
|
90
|
|
Florida
|
|
|
1.1
|
|
|
|
390
|
|
|
|
358.34
|
|
|
|
349
|
|
|
|
320.47
|
|
|
89.4
|
|
|
|
|
41
|
|
Illinois
|
|
|
0.5
|
|
|
|
146
|
|
|
|
294.68
|
|
|
|
146
|
|
|
|
295.25
|
|
|
100.2
|
|
|
|
|
-
|
|
Michigan
|
|
|
1.1
|
|
|
|
383
|
|
|
|
339.23
|
|
|
|
325
|
|
|
|
287.60
|
|
|
84.8
|
|
|
|
|
58
|
|
New Mexico
|
|
|
0.7
|
|
|
|
325
|
|
|
|
465.52
|
|
|
|
279
|
|
|
|
400.84
|
|
|
86.1
|
|
|
|
|
46
|
|
New York (3)
|
|
|
0.1
|
|
|
|
46
|
|
|
|
465.75
|
|
|
|
42
|
|
|
|
432.25
|
|
|
92.8
|
|
|
|
|
4
|
|
Ohio
|
|
|
1.0
|
|
|
|
532
|
|
|
|
555.50
|
|
|
|
460
|
|
|
|
480.48
|
|
|
86.5
|
|
|
|
|
72
|
|
Puerto Rico
|
|
|
0.9
|
|
|
|
179
|
|
|
|
187.49
|
|
|
|
178
|
|
|
|
187.68
|
|
|
100.1
|
|
|
|
|
1
|
|
South Carolina
|
|
|
0.4
|
|
|
|
116
|
|
|
|
337.14
|
|
|
|
111
|
|
|
|
320.47
|
|
|
95.1
|
|
|
|
|
5
|
|
Texas
|
|
|
0.7
|
|
|
|
558
|
|
|
|
796.86
|
|
|
|
510
|
|
|
|
728.72
|
|
|
91.4
|
|
|
|
|
48
|
|
Utah
|
|
|
0.3
|
|
|
|
88
|
|
|
|
319.80
|
|
|
|
71
|
|
|
|
259.95
|
|
|
81.3
|
|
|
|
|
17
|
|
Washington
|
|
|
2.2
|
|
|
|
610
|
|
|
|
275.76
|
|
|
|
540
|
|
|
|
243.70
|
|
|
88.4
|
|
|
|
|
70
|
|
Wisconsin
|
|
|
0.2
|
|
|
|
30
|
|
|
|
162.36
|
|
|
|
27
|
|
|
|
139.38
|
|
|
85.9
|
|
|
|
|
3
|
|
Other (4)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4
|
|
|
|
-
|
|
|
-
|
|
|
|
|
(4
|
)
|
|
|
|
11.0
|
|
|
$
|
4,024
|
|
|
$
|
366.18
|
|
|
$
|
3,573
|
|
|
$
|
325.12
|
|
|
88.8
|
%
|
|
|
$
|
451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2016
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
1.9
|
|
|
$
|
639
|
|
|
$
|
342.41
|
|
|
$
|
489
|
|
|
$
|
261.60
|
|
|
76.4
|
%
|
|
|
$
|
150
|
|
Florida
|
|
|
1.1
|
|
|
|
374
|
|
|
|
348.59
|
|
|
|
335
|
|
|
|
312.59
|
|
|
89.7
|
|
|
|
|
39
|
|
Illinois
|
|
|
0.5
|
|
|
|
136
|
|
|
|
234.17
|
|
|
|
154
|
|
|
|
265.84
|
|
|
113.5
|
|
|
|
|
(18
|
)
|
Michigan
|
|
|
1.1
|
|
|
|
376
|
|
|
|
323.24
|
|
|
|
326
|
|
|
|
279.55
|
|
|
86.5
|
|
|
|
|
50
|
|
New Mexico
|
|
|
0.7
|
|
|
|
270
|
|
|
|
380.36
|
|
|
|
289
|
|
|
|
406.50
|
|
|
106.9
|
|
|
|
|
(19
|
)
|
New York (3)
|
|
|
0.1
|
|
|
|
50
|
|
|
|
460.08
|
|
|
|
49
|
|
|
|
451.09
|
|
|
98.0
|
|
|
|
|
1
|
|
Ohio
|
|
|
1.0
|
|
|
|
479
|
|
|
|
489.73
|
|
|
|
432
|
|
|
|
442.31
|
|
|
90.3
|
|
|
|
|
47
|
|
Puerto Rico
|
|
|
1.0
|
|
|
|
191
|
|
|
|
193.54
|
|
|
|
178
|
|
|
|
179.02
|
|
|
92.5
|
|
|
|
|
13
|
|
South Carolina
|
|
|
0.4
|
|
|
|
105
|
|
|
|
318.31
|
|
|
|
88
|
|
|
|
267.65
|
|
|
84.1
|
|
|
|
|
17
|
|
Texas
|
|
|
0.7
|
|
|
|
528
|
|
|
|
738.53
|
|
|
|
460
|
|
|
|
643.05
|
|
|
87.1
|
|
|
|
|
68
|
|
Utah
|
|
|
0.2
|
|
|
|
87
|
|
|
|
302.48
|
|
|
|
75
|
|
|
|
263.94
|
|
|
87.3
|
|
|
|
|
12
|
|
Washington
|
|
|
2.1
|
|
|
|
568
|
|
|
|
268.88
|
|
|
|
505
|
|
|
|
238.99
|
|
|
88.9
|
|
|
|
|
63
|
|
Wisconsin
|
|
|
0.3
|
|
|
|
34
|
|
|
|
166.56
|
|
|
|
28
|
|
|
|
131.60
|
|
|
79.0
|
|
|
|
|
6
|
|
Other (4)
|
|
|
-
|
|
|
|
4
|
|
|
|
-
|
|
|
|
29
|
|
|
|
-
|
|
|
-
|
|
|
|
|
(25
|
)
|
|
|
|
11.1
|
|
|
$
|
3,841
|
|
|
$
|
345.40
|
|
|
$
|
3,437
|
|
|
$
|
308.91
|
|
|
89.4
|
%
|
|
|
$
|
404
|
|
__________________
|
|
(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)
|
|
|
|
|
Year Ended December 31, 2017
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
7.4
|
|
|
$
|
2,392
|
|
|
$
|
321.46
|
|
|
$
|
2,117
|
|
|
$
|
284.53
|
|
|
88.5
|
%
|
|
|
$
|
275
|
|
Florida
|
|
|
4.3
|
|
|
|
1,522
|
|
|
|
350.15
|
|
|
|
1,461
|
|
|
|
335.97
|
|
|
96.0
|
|
|
|
|
61
|
|
Illinois
|
|
|
2.1
|
|
|
|
593
|
|
|
|
286.69
|
|
|
|
638
|
|
|
|
308.41
|
|
|
107.6
|
|
|
|
|
(45
|
)
|
Michigan
|
|
|
4.6
|
|
|
|
1,545
|
|
|
|
334.22
|
|
|
|
1,360
|
|
|
|
294.15
|
|
|
88.0
|
|
|
|
|
185
|
|
New Mexico
|
|
|
2.9
|
|
|
|
1,258
|
|
|
|
439.95
|
|
|
|
1,166
|
|
|
|
407.94
|
|
|
92.7
|
|
|
|
|
92
|
|
New York (3)
|
|
|
0.4
|
|
|
|
181
|
|
|
|
449.85
|
|
|
|
170
|
|
|
|
424.17
|
|
|
94.3
|
|
|
|
|
11
|
|
Ohio
|
|
|
3.9
|
|
|
|
2,130
|
|
|
|
544.98
|
|
|
|
1,894
|
|
|
|
484.66
|
|
|
88.9
|
|
|
|
|
236
|
|
Puerto Rico
|
|
|
3.8
|
|
|
|
732
|
|
|
|
190.13
|
|
|
|
691
|
|
|
|
179.65
|
|
|
94.5
|
|
|
|
|
41
|
|
South Carolina
|
|
|
1.4
|
|
|
|
445
|
|
|
|
328.41
|
|
|
|
412
|
|
|
|
304.04
|
|
|
92.6
|
|
|
|
|
33
|
|
Texas
|
|
|
2.8
|
|
|
|
2,150
|
|
|
|
769.82
|
|
|
|
1,978
|
|
|
|
708.20
|
|
|
92.0
|
|
|
|
|
172
|
|
Utah
|
|
|
1.1
|
|
|
|
355
|
|
|
|
316.44
|
|
|
|
290
|
|
|
|
258.96
|
|
|
81.8
|
|
|
|
|
65
|
|
Washington
|
|
|
8.9
|
|
|
|
2,445
|
|
|
|
275.64
|
|
|
|
2,143
|
|
|
|
241.55
|
|
|
87.6
|
|
|
|
|
302
|
|
Wisconsin
|
|
|
0.8
|
|
|
|
131
|
|
|
|
168.64
|
|
|
|
107
|
|
|
|
136.84
|
|
|
81.1
|
|
|
|
|
24
|
|
Other (4)
|
|
|
-
|
|
|
|
7
|
|
|
|
-
|
|
|
|
31
|
|
|
|
-
|
|
|
-
|
|
|
|
|
(24
|
)
|
|
|
|
44.4
|
|
|
$
|
15,886
|
|
|
$
|
357.68
|
|
|
$
|
14,458
|
|
|
$
|
325.53
|
|
|
91.0
|
%
|
|
|
$
|
1,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2016
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
7.4
|
|
|
$
|
2,247
|
|
|
$
|
304.83
|
|
|
$
|
1,900
|
|
|
$
|
257.72
|
|
|
84.5
|
%
|
|
|
$
|
347
|
|
Florida
|
|
|
4.1
|
|
|
|
1,348
|
|
|
|
329.58
|
|
|
|
1,227
|
|
|
|
299.94
|
|
|
91.0
|
|
|
|
|
121
|
|
Illinois
|
|
|
2.3
|
|
|
|
603
|
|
|
|
258.72
|
|
|
|
568
|
|
|
|
243.71
|
|
|
94.2
|
|
|
|
|
35
|
|
Michigan
|
|
|
4.7
|
|
|
|
1,517
|
|
|
|
324.18
|
|
|
|
1,339
|
|
|
|
286.00
|
|
|
88.2
|
|
|
|
|
178
|
|
New Mexico
|
|
|
2.8
|
|
|
|
1,245
|
|
|
|
440.63
|
|
|
|
1,162
|
|
|
|
411.30
|
|
|
93.3
|
|
|
|
|
83
|
|
New York (3)
|
|
|
0.2
|
|
|
|
82
|
|
|
|
446.72
|
|
|
|
79
|
|
|
|
431.73
|
|
|
96.6
|
|
|
|
|
3
|
|
Ohio
|
|
|
3.9
|
|
|
|
1,927
|
|
|
|
490.71
|
|
|
|
1,718
|
|
|
|
437.56
|
|
|
89.2
|
|
|
|
|
209
|
|
Puerto Rico
|
|
|
4.0
|
|
|
|
726
|
|
|
|
180.65
|
|
|
|
694
|
|
|
|
172.57
|
|
|
95.5
|
|
|
|
|
32
|
|
South Carolina
|
|
|
1.3
|
|
|
|
378
|
|
|
|
296.58
|
|
|
|
320
|
|
|
|
250.97
|
|
|
84.6
|
|
|
|
|
58
|
|
Texas
|
|
|
2.9
|
|
|
|
2,182
|
|
|
|
744.65
|
|
|
|
1,926
|
|
|
|
657.38
|
|
|
88.3
|
|
|
|
|
256
|
|
Utah
|
|
|
1.1
|
|
|
|
344
|
|
|
|
297.68
|
|
|
|
296
|
|
|
|
256.31
|
|
|
86.1
|
|
|
|
|
48
|
|
Washington
|
|
|
8.1
|
|
|
|
2,146
|
|
|
|
263.50
|
|
|
|
1,936
|
|
|
|
237.66
|
|
|
90.2
|
|
|
|
|
210
|
|
Wisconsin
|
|
|
1.0
|
|
|
|
142
|
|
|
|
165.95
|
|
|
|
106
|
|
|
|
123.44
|
|
|
74.4
|
|
|
|
|
36
|
|
Other (4)
|
|
|
-
|
|
|
|
13
|
|
|
|
-
|
|
|
|
87
|
|
|
|
-
|
|
|
-
|
|
|
|
|
(74
|
)
|
|
|
|
43.8
|
|
|
$
|
14,900
|
|
|
$
|
340.28
|
|
|
$
|
13,358
|
|
|
$
|
305.03
|
|
|
89.6
|
%
|
|
|
$
|
1,542
|
|
__________________
|
|
(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 December 31, 2017
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
0.5
|
|
|
$
|
68
|
|
|
$
|
163.41
|
|
|
$
|
75
|
|
|
|
$
|
181.70
|
|
|
111.2
|
%
|
|
|
$
|
(7
|
)
|
Florida
|
|
|
0.8
|
|
|
|
225
|
|
|
|
283.63
|
|
|
|
251
|
|
|
|
|
316.67
|
|
|
111.6
|
|
|
|
|
(26
|
)
|
Michigan
|
|
|
0.1
|
|
|
|
10
|
|
|
|
153.52
|
|
|
|
11
|
|
|
|
|
166.49
|
|
|
108.5
|
|
|
|
|
(1
|
)
|
New Mexico
|
|
|
0.1
|
|
|
|
28
|
|
|
|
387.65
|
|
|
|
22
|
|
|
|
|
291.42
|
|
|
75.2
|
|
|
|
|
6
|
|
Ohio
|
|
|
-
|
|
|
|
18
|
|
|
|
355.81
|
|
|
|
17
|
|
|
|
|
317.65
|
|
|
89.3
|
|
|
|
|
1
|
|
Texas
|
|
|
0.5
|
|
|
|
146
|
|
|
|
242.38
|
|
|
|
166
|
|
|
|
|
276.16
|
|
|
113.9
|
|
|
|
|
(20
|
)
|
Utah
|
|
|
0.2
|
|
|
|
45
|
|
|
|
238.32
|
|
|
|
43
|
|
|
|
|
227.77
|
|
|
95.6
|
|
|
|
|
2
|
|
Washington
|
|
|
0.1
|
|
|
|
40
|
|
|
|
321.91
|
|
|
|
28
|
|
|
|
|
233.26
|
|
|
72.5
|
|
|
|
|
12
|
|
Wisconsin
|
|
|
0.1
|
|
|
|
85
|
|
|
|
505.67
|
|
|
|
67
|
|
|
|
|
401.16
|
|
|
79.3
|
|
|
|
|
18
|
|
Other (3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
|
-
|
|
|
-
|
|
|
|
|
2
|
|
|
|
|
2.4
|
|
|
$
|
665
|
|
|
$
|
268.39
|
|
|
$
|
678
|
|
|
|
$
|
273.92
|
|
|
102.1
|
%
|
|
|
$
|
(13
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2016
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
0.2
|
|
|
$
|
26
|
|
|
$
|
127.99
|
|
|
$
|
55
|
|
|
|
$
|
282.83
|
|
|
221.0
|
%
|
|
|
$
|
(29
|
)
|
Florida
|
|
|
0.6
|
|
|
|
108
|
|
|
|
183.99
|
|
|
|
129
|
|
|
|
|
219.31
|
|
|
119.2
|
|
|
|
|
(21
|
)
|
Michigan
|
|
|
-
|
|
|
|
3
|
|
|
|
285.50
|
|
|
|
1
|
|
|
|
|
204.16
|
|
|
71.6
|
|
|
|
|
2
|
|
New Mexico
|
|
|
-
|
|
|
|
18
|
|
|
|
353.63
|
|
|
|
15
|
|
|
|
|
294.95
|
|
|
83.3
|
|
|
|
|
3
|
|
Ohio
|
|
|
-
|
|
|
|
11
|
|
|
|
420.48
|
|
|
|
9
|
|
|
|
|
325.28
|
|
|
77.2
|
|
|
|
|
2
|
|
Texas
|
|
|
0.3
|
|
|
|
76
|
|
|
|
245.20
|
|
|
|
51
|
|
|
|
|
164.54
|
|
|
67.1
|
|
|
|
|
25
|
|
Utah
|
|
|
0.3
|
|
|
|
27
|
|
|
|
181.65
|
|
|
|
36
|
|
|
|
|
232.38
|
|
|
127.9
|
|
|
|
|
(9
|
)
|
Washington
|
|
|
0.1
|
|
|
|
18
|
|
|
|
239.89
|
|
|
|
31
|
|
|
|
|
424.83
|
|
|
177.0
|
|
|
|
|
(13
|
)
|
Wisconsin
|
|
|
0.1
|
|
|
|
62
|
|
|
|
366.22
|
|
|
|
82
|
|
|
|
|
479.24
|
|
|
130.9
|
|
|
|
|
(20
|
)
|
Other (3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
|
-
|
|
|
-
|
|
|
|
|
2
|
|
|
|
|
1.6
|
|
|
$
|
349
|
|
|
$
|
221.05
|
|
|
$
|
407
|
|
|
|
$
|
258.71
|
|
|
117.0
|
%
|
|
|
$
|
(58
|
)
|
__________________
|
|
(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)
|
|
|
|
|
Year Ended December 31, 2017
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
1.7
|
|
|
$
|
309
|
|
|
$
|
185.88
|
|
|
$
|
231
|
|
|
|
$
|
138.61
|
|
|
74.6
|
%
|
|
|
$
|
78
|
|
Florida
|
|
|
3.6
|
|
|
|
1,046
|
|
|
|
293.35
|
|
|
|
1,009
|
|
|
|
|
283.17
|
|
|
96.5
|
|
|
|
|
37
|
|
Michigan
|
|
|
0.3
|
|
|
|
51
|
|
|
|
180.26
|
|
|
|
38
|
|
|
|
|
135.64
|
|
|
75.2
|
|
|
|
|
13
|
|
New Mexico
|
|
|
0.3
|
|
|
|
110
|
|
|
|
349.50
|
|
|
|
84
|
|
|
|
|
264.14
|
|
|
75.6
|
|
|
|
|
26
|
|
Ohio
|
|
|
0.2
|
|
|
|
86
|
|
|
|
363.24
|
|
|
|
81
|
|
|
|
|
340.44
|
|
|
93.7
|
|
|
|
|
5
|
|
Texas
|
|
|
2.6
|
|
|
|
663
|
|
|
|
250.08
|
|
|
|
517
|
|
|
|
|
195.20
|
|
|
78.1
|
|
|
|
|
146
|
|
Utah
|
|
|
0.9
|
|
|
|
180
|
|
|
|
215.93
|
|
|
|
178
|
|
|
|
|
213.33
|
|
|
98.8
|
|
|
|
|
2
|
|
Washington
|
|
|
0.5
|
|
|
|
163
|
|
|
|
317.39
|
|
|
|
156
|
|
|
|
|
304.74
|
|
|
96.0
|
|
|
|
|
7
|
|
Wisconsin
|
|
|
0.7
|
|
|
|
360
|
|
|
|
477.53
|
|
|
|
327
|
|
|
|
|
433.98
|
|
|
90.9
|
|
|
|
|
33
|
|
Other (3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(6
|
)
|
|
|
|
-
|
|
|
-
|
|
|
|
|
6
|
|
|
|
|
10.8
|
|
|
$
|
2,968
|
|
|
$
|
274.47
|
|
|
$
|
2,615
|
|
|
|
$
|
241.84
|
|
|
88.1
|
%
|
|
|
$
|
353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2016
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
0.8
|
|
|
$
|
131
|
|
|
$
|
166.01
|
|
|
$
|
129
|
|
|
|
$
|
164.35
|
|
|
99.0
|
%
|
|
|
$
|
2
|
|
Florida
|
|
|
2.6
|
|
|
|
590
|
|
|
|
228.65
|
|
|
|
538
|
|
|
|
|
208.53
|
|
|
91.2
|
|
|
|
|
52
|
|
Michigan
|
|
|
-
|
|
|
|
10
|
|
|
|
232.88
|
|
|
|
6
|
|
|
|
|
154.32
|
|
|
66.3
|
|
|
|
|
4
|
|
New Mexico
|
|
|
0.2
|
|
|
|
60
|
|
|
|
287.37
|
|
|
|
47
|
|
|
|
|
223.85
|
|
|
77.9
|
|
|
|
|
13
|
|
Ohio
|
|
|
0.1
|
|
|
|
40
|
|
|
|
348.06
|
|
|
|
29
|
|
|
|
|
254.78
|
|
|
73.2
|
|
|
|
|
11
|
|
Texas
|
|
|
1.4
|
|
|
|
279
|
|
|
|
208.48
|
|
|
|
184
|
|
|
|
|
137.13
|
|
|
65.8
|
|
|
|
|
95
|
|
Utah
|
|
|
0.7
|
|
|
|
103
|
|
|
|
166.21
|
|
|
|
127
|
|
|
|
|
204.14
|
|
|
122.8
|
|
|
|
|
(24
|
)
|
Washington
|
|
|
0.3
|
|
|
|
76
|
|
|
|
272.48
|
|
|
|
79
|
|
|
|
|
284.87
|
|
|
104.5
|
|
|
|
|
(3
|
)
|
Wisconsin
|
|
|
0.6
|
|
|
|
256
|
|
|
|
363.54
|
|
|
|
282
|
|
|
|
|
399.51
|
|
|
109.9
|
|
|
|
|
(26
|
)
|
Other (3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5
|
)
|
|
|
|
-
|
|
|
-
|
|
|
|
|
5
|
|
|
|
|
6.7
|
|
|
$
|
1,545
|
|
|
$
|
231.38
|
|
|
$
|
1,416
|
|
|
|
$
|
212.17
|
|
|
91.7
|
%
|
|
|
$
|
129
|
|
__________________
|
|
(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 December 31, 2017
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
2.3
|
|
|
$
|
689
|
|
|
$
|
303.98
|
|
|
$
|
606
|
|
|
$
|
267.49
|
|
|
88.0
|
%
|
|
|
$
|
83
|
|
Florida
|
|
|
1.9
|
|
|
|
615
|
|
|
|
326.80
|
|
|
|
600
|
|
|
|
318.86
|
|
|
97.6
|
|
|
|
|
15
|
|
Illinois
|
|
|
0.5
|
|
|
|
146
|
|
|
|
294.68
|
|
|
|
146
|
|
|
|
295.25
|
|
|
100.2
|
|
|
|
|
-
|
|
Michigan
|
|
|
1.2
|
|
|
|
393
|
|
|
|
329.50
|
|
|
|
336
|
|
|
|
281.26
|
|
|
85.4
|
|
|
|
|
57
|
|
New Mexico
|
|
|
0.8
|
|
|
|
353
|
|
|
|
458.22
|
|
|
|
301
|
|
|
|
390.58
|
|
|
85.2
|
|
|
|
|
52
|
|
New York (3)
|
|
|
0.1
|
|
|
|
46
|
|
|
|
465.75
|
|
|
|
42
|
|
|
|
432.25
|
|
|
92.8
|
|
|
|
|
4
|
|
Ohio
|
|
|
1.0
|
|
|
|
550
|
|
|
|
545.09
|
|
|
|
477
|
|
|
|
471.99
|
|
|
86.6
|
|
|
|
|
73
|
|
Puerto Rico
|
|
|
0.9
|
|
|
|
179
|
|
|
|
187.49
|
|
|
|
178
|
|
|
|
187.68
|
|
|
100.1
|
|
|
|
|
1
|
|
South Carolina
|
|
|
0.4
|
|
|
|
116
|
|
|
|
337.14
|
|
|
|
111
|
|
|
|
320.47
|
|
|
95.1
|
|
|
|
|
5
|
|
Texas
|
|
|
1.2
|
|
|
|
704
|
|
|
|
541.55
|
|
|
|
676
|
|
|
|
520.34
|
|
|
96.1
|
|
|
|
|
28
|
|
Utah
|
|
|
0.5
|
|
|
|
133
|
|
|
|
286.70
|
|
|
|
114
|
|
|
|
246.88
|
|
|
86.1
|
|
|
|
|
19
|
|
Washington
|
|
|
2.3
|
|
|
|
650
|
|
|
|
278.21
|
|
|
|
568
|
|
|
|
243.15
|
|
|
87.4
|
|
|
|
|
82
|
|
Wisconsin
|
|
|
0.3
|
|
|
|
115
|
|
|
|
324.48
|
|
|
|
94
|
|
|
|
263.00
|
|
|
81.1
|
|
|
|
|
21
|
|
Other (4)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2
|
|
|
|
-
|
|
|
-
|
|
|
|
|
(2
|
)
|
|
|
|
13.4
|
|
|
$
|
4,689
|
|
|
$
|
348.20
|
|
|
$
|
4,251
|
|
|
$
|
315.70
|
|
|
90.7
|
%
|
|
|
$
|
438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2016
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
2.1
|
|
|
$
|
665
|
|
|
$
|
321.74
|
|
|
$
|
544
|
|
|
$
|
263.64
|
|
|
81.9
|
%
|
|
|
$
|
121
|
|
Florida
|
|
|
1.7
|
|
|
|
482
|
|
|
|
290.53
|
|
|
|
464
|
|
|
|
279.69
|
|
|
96.3
|
|
|
|
|
18
|
|
Illinois
|
|
|
0.5
|
|
|
|
136
|
|
|
|
234.17
|
|
|
|
154
|
|
|
|
265.84
|
|
|
113.5
|
|
|
|
|
(18
|
)
|
Michigan
|
|
|
1.1
|
|
|
|
379
|
|
|
|
322.91
|
|
|
|
327
|
|
|
|
278.89
|
|
|
86.4
|
|
|
|
|
52
|
|
New Mexico
|
|
|
0.7
|
|
|
|
288
|
|
|
|
378.63
|
|
|
|
304
|
|
|
|
399.29
|
|
|
105.5
|
|
|
|
|
(16
|
)
|
New York (3)
|
|
|
0.1
|
|
|
|
50
|
|
|
|
460.08
|
|
|
|
49
|
|
|
|
451.09
|
|
|
98.0
|
|
|
|
|
1
|
|
Ohio
|
|
|
1.0
|
|
|
|
490
|
|
|
|
487.83
|
|
|
|
441
|
|
|
|
439.09
|
|
|
90.0
|
|
|
|
|
49
|
|
Puerto Rico
|
|
|
1.0
|
|
|
|
191
|
|
|
|
193.54
|
|
|
|
178
|
|
|
|
179.02
|
|
|
92.5
|
|
|
|
|
13
|
|
South Carolina
|
|
|
0.4
|
|
|
|
105
|
|
|
|
318.31
|
|
|
|
88
|
|
|
|
267.65
|
|
|
84.1
|
|
|
|
|
17
|
|
Texas
|
|
|
1.0
|
|
|
|
604
|
|
|
|
590.59
|
|
|
|
511
|
|
|
|
499.56
|
|
|
84.6
|
|
|
|
|
93
|
|
Utah
|
|
|
0.5
|
|
|
|
114
|
|
|
|
260.05
|
|
|
|
111
|
|
|
|
252.85
|
|
|
97.2
|
|
|
|
|
3
|
|
Washington
|
|
|
2.2
|
|
|
|
586
|
|
|
|
267.92
|
|
|
|
536
|
|
|
|
245.11
|
|
|
91.5
|
|
|
|
|
50
|
|
Wisconsin
|
|
|
0.4
|
|
|
|
96
|
|
|
|
256.93
|
|
|
|
110
|
|
|
|
288.94
|
|
|
112.5
|
|
|
|
|
(14
|
)
|
Other (4)
|
|
|
-
|
|
|
|
4
|
|
|
|
-
|
|
|
|
27
|
|
|
|
-
|
|
|
-
|
|
|
|
|
(23
|
)
|
|
|
|
12.7
|
|
|
$
|
4,190
|
|
|
$
|
329.96
|
|
|
$
|
3,844
|
|
|
$
|
302.68
|
|
|
91.7
|
%
|
|
|
$
|
346
|
|
__________________
|
|
(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)
|
|
|
|
|
Year Ended December 31, 2017
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
9.1
|
|
|
$
|
2,701
|
|
|
$
|
296.68
|
|
|
$
|
2,348
|
|
|
$
|
257.86
|
|
|
86.9
|
%
|
|
|
$
|
353
|
|
Florida
|
|
|
7.9
|
|
|
|
2,568
|
|
|
|
324.56
|
|
|
|
2,470
|
|
|
|
312.18
|
|
|
96.2
|
|
|
|
|
98
|
|
Illinois
|
|
|
2.1
|
|
|
|
593
|
|
|
|
286.69
|
|
|
|
638
|
|
|
|
308.41
|
|
|
107.6
|
|
|
|
|
(45
|
)
|
Michigan
|
|
|
4.9
|
|
|
|
1,596
|
|
|
|
325.43
|
|
|
|
1,398
|
|
|
|
285.11
|
|
|
87.6
|
|
|
|
|
198
|
|
New Mexico
|
|
|
3.2
|
|
|
|
1,368
|
|
|
|
430.97
|
|
|
|
1,250
|
|
|
|
393.67
|
|
|
91.3
|
|
|
|
|
118
|
|
New York (3)
|
|
|
0.4
|
|
|
|
181
|
|
|
|
449.85
|
|
|
|
170
|
|
|
|
424.17
|
|
|
94.3
|
|
|
|
|
11
|
|
Ohio
|
|
|
4.1
|
|
|
|
2,216
|
|
|
|
534.56
|
|
|
|
1,975
|
|
|
|
476.39
|
|
|
89.1
|
|
|
|
|
241
|
|
Puerto Rico
|
|
|
3.8
|
|
|
|
732
|
|
|
|
190.13
|
|
|
|
691
|
|
|
|
179.65
|
|
|
94.5
|
|
|
|
|
41
|
|
South Carolina
|
|
|
1.4
|
|
|
|
445
|
|
|
|
328.41
|
|
|
|
412
|
|
|
|
304.04
|
|
|
92.6
|
|
|
|
|
33
|
|
Texas
|
|
|
5.4
|
|
|
|
2,813
|
|
|
|
516.84
|
|
|
|
2,495
|
|
|
|
458.50
|
|
|
88.7
|
|
|
|
|
318
|
|
Utah
|
|
|
2.0
|
|
|
|
535
|
|
|
|
273.55
|
|
|
|
468
|
|
|
|
239.49
|
|
|
87.5
|
|
|
|
|
67
|
|
Washington
|
|
|
9.4
|
|
|
|
2,608
|
|
|
|
277.93
|
|
|
|
2,299
|
|
|
|
245.01
|
|
|
88.2
|
|
|
|
|
309
|
|
Wisconsin
|
|
|
1.5
|
|
|
|
491
|
|
|
|
320.71
|
|
|
|
434
|
|
|
|
283.14
|
|
|
88.3
|
|
|
|
|
57
|
|
Other (4)
|
|
|
-
|
|
|
|
7
|
|
|
|
-
|
|
|
|
25
|
|
|
|
-
|
|
|
-
|
|
|
|
|
(18
|
)
|
|
|
|
55.2
|
|
|
$
|
18,854
|
|
|
$
|
341.39
|
|
|
$
|
17,073
|
|
|
$
|
309.14
|
|
|
90.6
|
%
|
|
|
$
|
1,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2016
|
|
|
|
Member Months (1)
|
|
|
Premium Revenue
|
|
|
Medical Care Costs
|
|
|
MCR (2)
|
|
|
Medical Margin
|
|
|
|
|
Total
|
|
|
PMPM
|
|
|
Total
|
|
|
PMPM
|
|
|
|
|
California
|
|
|
8.2
|
|
|
$
|
2,378
|
|
|
$
|
291.41
|
|
|
$
|
2,029
|
|
|
$
|
248.70
|
|
|
85.3
|
%
|
|
|
$
|
349
|
|
Florida
|
|
|
6.7
|
|
|
|
1,938
|
|
|
|
290.56
|
|
|
|
1,765
|
|
|
|
264.60
|
|
|
91.1
|
|
|
|
|
173
|
|
Illinois
|
|
|
2.3
|
|
|
|
603
|
|
|
|
258.72
|
|
|
|
568
|
|
|
|
243.71
|
|
|
94.2
|
|
|
|
|
35
|
|
Michigan
|
|
|
4.7
|
|
|
|
1,527
|
|
|
|
323.36
|
|
|
|
1,345
|
|
|
|
284.82
|
|
|
88.1
|
|
|
|
|
182
|
|
New Mexico
|
|
|
3.0
|
|
|
|
1,305
|
|
|
|
430.15
|
|
|
|
1,209
|
|
|
|
398.49
|
|
|
92.6
|
|
|
|
|
96
|
|
New York (3)
|
|
|
0.2
|
|
|
|
82
|
|
|
|
446.72
|
|
|
|
79
|
|
|
|
431.73
|
|
|
96.6
|
|
|
|
|
3
|
|
Ohio
|
|
|
4.0
|
|
|
|
1,967
|
|
|
|
486.66
|
|
|
|
1,747
|
|
|
|
432.36
|
|
|
88.8
|
|
|
|
|
220
|
|
Puerto Rico
|
|
|
4.0
|
|
|
|
726
|
|
|
|
180.65
|
|
|
|
694
|
|
|
|
172.57
|
|
|
95.5
|
|
|
|
|
32
|
|
South Carolina
|
|
|
1.3
|
|
|
|
378
|
|
|
|
296.58
|
|
|
|
320
|
|
|
|
250.97
|
|
|
84.6
|
|
|
|
|
58
|
|
Texas
|
|
|
4.3
|
|
|
|
2,461
|
|
|
|
576.69
|
|
|
|
2,110
|
|
|
|
494.41
|
|
|
85.7
|
|
|
|
|
351
|
|
Utah
|
|
|
1.8
|
|
|
|
447
|
|
|
|
251.63
|
|
|
|
423
|
|
|
|
238.03
|
|
|
94.6
|
|
|
|
|
24
|
|
Washington
|
|
|
8.4
|
|
|
|
2,222
|
|
|
|
263.80
|
|
|
|
2,015
|
|
|
|
239.21
|
|
|
90.7
|
|
|
|
|
207
|
|
Wisconsin
|
|
|
1.6
|
|
|
|
398
|
|
|
|
255.30
|
|
|
|
388
|
|
|
|
248.28
|
|
|
97.2
|
|
|
|
|
10
|
|
Other (4)
|
|
|
-
|
|
|
|
13
|
|
|
|
-
|
|
|
|
82
|
|
|
|
-
|
|
|
-
|
|
|
|
|
(69
|
)
|
|
|
|
50.5
|
|
|
$
|
16,445
|
|
|
$
|
325.87
|
|
|
$
|
14,774
|
|
|
$
|
292.75
|
|
|
89.8
|
%
|
|
|
$
|
1,671
|
|
__________________
|
|
|
|
(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 December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
Amount
|
|
|
PMPM
|
|
|
% of Total
|
|
|
Amount
|
|
|
PMPM
|
|
|
% of Total
|
Fee for service
|
|
|
$
|
3,052
|
|
|
$
|
226.66
|
|
|
71.8
|
%
|
|
|
$
|
2,837
|
|
|
$
|
223.43
|
|
|
73.8
|
%
|
Pharmacy
|
|
|
|
659
|
|
|
|
48.88
|
|
|
15.4
|
|
|
|
|
592
|
|
|
|
46.57
|
|
|
15.4
|
|
Capitation
|
|
|
|
338
|
|
|
|
25.13
|
|
|
8.0
|
|
|
|
|
317
|
|
|
|
24.93
|
|
|
8.2
|
|
Direct delivery
|
|
|
|
11
|
|
|
|
0.80
|
|
|
0.3
|
|
|
|
|
23
|
|
|
|
1.80
|
|
|
0.6
|
|
Other
|
|
|
|
191
|
|
|
|
14.23
|
|
|
4.5
|
|
|
|
|
75
|
|
|
|
5.95
|
|
|
2.0
|
|
|
|
|
$
|
4,251
|
|
|
$
|
315.70
|
|
|
100.0
|
%
|
|
|
$
|
3,844
|
|
|
$
|
302.68
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
Amount
|
|
|
PMPM
|
|
|
% of Total
|
|
|
Amount
|
|
|
PMPM
|
|
|
% of Total
|
Fee for service
|
|
|
$
|
12,682
|
|
|
$
|
229.63
|
|
|
74.3
|
%
|
|
|
$
|
10,993
|
|
|
$
|
217.84
|
|
|
74.4
|
%
|
Pharmacy
|
|
|
|
2,563
|
|
|
|
46.40
|
|
|
15.0
|
|
|
|
|
2,213
|
|
|
|
43.84
|
|
|
15.0
|
|
Capitation
|
|
|
|
1,360
|
|
|
|
24.63
|
|
|
8.0
|
|
|
|
|
1,218
|
|
|
|
24.13
|
|
|
8.2
|
|
Direct delivery
|
|
|
|
73
|
|
|
|
1.33
|
|
|
0.4
|
|
|
|
|
78
|
|
|
|
1.55
|
|
|
0.5
|
|
Other
|
|
|
|
395
|
|
|
|
7.15
|
|
|
2.3
|
|
|
|
|
272
|
|
|
|
5.39
|
|
|
1.9
|
|
|
|
|
$
|
17,073
|
|
|
$
|
309.14
|
|
|
100.0
|
%
|
|
|
$
|
14,774
|
|
|
$
|
292.75
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table provides the details of our medical claims and
benefits payable as of the dates indicated:
|
|
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
Fee-for-service claims incurred but not paid (IBNP)
|
|
|
$
|
1,717
|
|
|
$
|
1,352
|
Pharmacy payable
|
|
|
|
112
|
|
|
|
112
|
Capitation payable
|
|
|
|
67
|
|
|
|
37
|
Other (1)
|
|
|
|
296
|
|
|
|
428
|
|
|
|
$
|
2,192
|
|
|
$
|
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 December 31, 2017 and 2016, we had recorded
non-risk provider payables of approximately $122 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 was less (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:
|
|
|
Year Ended December 31,
|
|
|
|
2017
|
|
|
2016
|
Medical claims and benefits payable, beginning balance
|
|
|
$
|
1,929
|
|
|
|
$
|
1,685
|
|
Components of medical care costs related to:
|
|
|
|
|
|
|
Current period
|
|
|
|
17,037
|
|
|
|
|
14,966
|
|
Prior period
|
|
|
|
36
|
|
|
|
|
(192
|
)
|
Total medical care costs
|
|
|
|
17,073
|
|
|
|
|
14,774
|
|
|
|
|
|
|
|
|
Change in non-risk provider payables
|
|
|
|
(106
|
)
|
|
|
|
58
|
|
Payments for medical care costs related to:
|
|
|
|
|
|
|
Current period
|
|
|
|
15,130
|
|
|
|
|
13,304
|
|
Prior period
|
|
|
|
1,574
|
|
|
|
|
1,284
|
|
Total paid
|
|
|
|
16,704
|
|
|
|
|
14,588
|
|
Medical claims and benefits payable, ending balance
|
|
|
$
|
2,192
|
|
|
|
$
|
1,929
|
|
|
|
|
|
|
|
|
Benefit from prior period as a percentage of:
|
|
|
|
|
|
|
Balance at beginning of period
|
|
|
|
(1.9
|
)%
|
|
|
|
11.4
|
%
|
Premium revenue, trailing twelve months
|
|
|
|
(0.2
|
)%
|
|
|
|
1.2
|
%
|
Medical care costs, trailing twelve months
|
|
|
|
(0.2
|
)%
|
|
|
|
1.3
|
%
|
|
|
|
|
|
|
|
Days in claims payable, fee for service (1)
|
|
|
|
54
|
|
|
|
|
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 $99 million and $94 million, as of
December 31, 2017 and 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 December 31,
|
|
|
Year Ended December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
$(262
|
)
|
|
|
$(47
|
)
|
|
|
$(512
|
)
|
|
|
$52
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, and amortization of intangible assets and capitalized
software
|
|
|
36
|
|
|
|
43
|
|
|
|
165
|
|
|
|
161
|
|
Interest expense
|
|
|
33
|
|
|
|
25
|
|
|
|
118
|
|
|
|
101
|
|
Income tax (benefit) expense
|
|
|
(54
|
)
|
|
|
16
|
|
|
|
(100
|
)
|
|
|
153
|
|
EBITDA
|
|
|
$(247
|
)
|
|
|
$37
|
|
|
|
$(329
|
)
|
|
|
$467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
Year Ended December 31,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Amount
|
|
|
Per Diluted share
|
|
|
Amount
|
|
|
Per Diluted share
|
|
|
Amount
|
|
|
Per Diluted share
|
|
|
Amount
|
|
|
Per Diluted share
|
Net (loss) income
|
|
|
$
|
(262
|
)
|
|
|
$
|
(4.59
|
)
|
|
|
$
|
(47
|
)
|
|
|
$
|
(0.85
|
)
|
|
|
$
|
(512
|
)
|
|
|
$
|
(9.07
|
)
|
|
|
$
|
52
|
|
|
|
$
|
0.92
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
6
|
|
|
|
|
0.11
|
|
|
|
|
8
|
|
|
|
|
0.16
|
|
|
|
|
30
|
|
|
|
|
0.55
|
|
|
|
|
32
|
|
|
|
|
0.57
|
|
Income tax effect (1)
|
|
|
|
(2
|
)
|
|
|
|
(0.04
|
)
|
|
|
|
(3
|
)
|
|
|
|
(0.06
|
)
|
|
|
|
(11
|
)
|
|
|
|
(0.20
|
)
|
|
|
|
(12
|
)
|
|
|
|
(0.21
|
)
|
Amortization of intangible assets, net of tax effect
|
|
|
|
4
|
|
|
|
|
0.07
|
|
|
|
|
5
|
|
|
|
|
0.10
|
|
|
|
|
19
|
|
|
|
|
0.35
|
|
|
|
|
20
|
|
|
|
|
0.36
|
|
Adjusted net (loss) income
|
|
|
$
|
(258
|
)
|
|
|
$
|
(4.52
|
)
|
|
|
$
|
(42
|
)
|
|
|
$
|
(0.75
|
)
|
|
|
$
|
(493
|
)
|
|
|
$
|
(8.72
|
)
|
|
|
$
|
72
|
|
|
|
$
|
1.28
|
|
__________________
|
|
(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.
|
MOLINA HEALTHCARE, INC.
2018 PRELIMINARY GUIDANCE
|
|
Reconciliation of Non-GAAP Financial Measures (in
millions, except per-share amounts)
|
|
|
|
|
Low End
|
|
|
High End
|
Net income
|
|
|
$
|
202
|
|
|
|
$
|
236
|
|
Adjustments:
|
|
|
|
|
|
|
Depreciation, and amortization of intangible assets and capitalized
software
|
|
|
|
150
|
|
|
|
|
150
|
|
Interest expense
|
|
|
|
125
|
|
|
|
|
125
|
|
Income tax expense
|
|
|
|
155
|
|
|
|
|
165
|
|
EBITDA
|
|
|
$
|
632
|
|
|
|
$
|
676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Low End
|
|
|
High End
|
|
|
|
Amount
|
|
|
Per share (2)
|
|
|
Amount
|
|
|
Per share (2)
|
Net income
|
|
|
$
|
202
|
|
|
|
$
|
3.00
|
|
|
|
$
|
236
|
|
|
|
$
|
3.50
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
20
|
|
|
|
|
0.30
|
|
|
|
|
20
|
|
|
|
|
0.30
|
|
Income tax effect (1)
|
|
|
|
(5
|
)
|
|
|
|
(0.07
|
)
|
|
|
|
(5
|
)
|
|
|
|
(0.07
|
)
|
Amortization of intangible assets, net of tax effect
|
|
|
|
15
|
|
|
|
|
0.23
|
|
|
|
|
15
|
|
|
|
|
0.23
|
|
Adjusted net income
|
|
|
$
|
217
|
|
|
|
$
|
3.23
|
|
|
|
$
|
251
|
|
|
|
$
|
3.73
|
|
__________________
|
|
(1)
|
|
Income tax effect calculated at the statutory tax rate of 22.5%.
|
(2)
|
|
Computation assumes 67.3 million diluted weighted average shares
outstanding.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180212006254/en/
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|