Molina Healthcare misses by $1.44, beats on revs
- Reports Q3 (Sep) loss of $1.62 per share, excluding non-recurring items, $1.44 worse than the Capital IQ Consensus of ($0.18); revenues rose 10.7% year/year to $5.03 bln vs the $4.95 bln Capital IQ Consensus.
- "Our third quarter results do not include any potential impact from the October 12, 2017, direction to Centers for Medicare and Medicaid Services (CMS) from Acting Department of Health and Human Services Secretary Hargan to cease payment of Marketplace CSR subsidies. At September 30, 2017, we had a total of approximately $220 million in excess CSR subsidies, recorded as a payable to CMS. This payable represents the extent to which payments received by us from CMS exceeded our estimate of the actual cost of member subsidies incurred by us through September 30, 2017."
- Marketplace 2018 Update
- We have taken the following steps in regards to our participation in the ACA Marketplace in 2018:
- As previously announced, we will exit the Utah and Wisconsin ACA Marketplaces effective December 31, 2017.
- In our remaining Marketplace plans, we are increasing 2018 premiums by 55% to take into account the absence of cost sharing reduction (CSR) subsidies and other risks related to ACA Marketplace uncertainties.
- We have reduced the scope of our 2018 participation in the state of Washington Marketplace.
- We continue to monitor the current political and programmatic developments pertaining to the ACA Marketplace.
- "As previously disclosed, we estimate that our restructuring plan will reduce annualized run-rate expenses by approximately $300 million to $400 million when completed by the end of 2018. We have already achieved $200 million of these run-rate reductions on an annualized basis, which will take full effect no later than January 1, 2018."
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