Molina Healthcare reports $230M loss, will reduce Obamacare participation – California News

Molina Healthcare reports $230M loss, will reduce Obamacare participation – California News


Long Beach-based Molina Healthcare reported a $230-million loss for its April-to-June quarter, a period that includes the moment in early May when the Fortune 500 company’s board of directors fired two of its key leaders.

The firm reported a $33-million profit for the comparable three-month period in 2016. Company executives are scheduled to discuss the results with financial analysts during a conference call scheduled for 2 p.m. today.

Molina Healthcare announced earnings figures Wednesday, shortly after the close of trading. The release of quarterly financial data followed recent news that the company would lay off more than 1,400 people.

Company executives also revealed Molina Healthcare will pull out of government-sponsored “marketplace” health plans in Utah and Wisconsin after the end of this year. Covered California is an example of the government-supported health insurance marketplaces that came into existence after the signing of the Affordable Care Act in 2010.

Molina Healthcare executives may later make additional decisions to cease offering marketplace plans in the seven other states where the company has offered such products. The company also plans to raise marketplace plan premiums by 55 percent.

Molina Healthcare’s board fired J. Mario Molina and John Molina from their respective posts as chief executive and chief financial officer in early May. The brothers are sons of the company’s founder, the late C. David Molina.

More to come.

click here to read more.

Share this post

Post Comment