Medicaid HMO Molina Healthcare, Long Beach, Calif., had a successful initial public offering, but in Michigan, regulators took control of a troubled Medicaid HMO for the second time since May. Molina's share price climbed after the 511,000-member managed-care plan made its debut on the New York Stock Exchange in a $115.5 million IPO. The company's stock was trading at $20.60 per share midday today, up from the IPO price of $17.50 per share. Molina is the third Medicaid managed-care company to go public since late 2001. In stark contrast, Michigan regulators seized control of 117,300-member Wellness Plan, Detroit, in an effort to ensure continued service. Wellness Plan, which lost $8 million last year, has been under state supervision since November 2001. In May, Michigan took control of 71,000-member Community Choice Michigan in Okemos. A third Medicaid HMO -- 92,500-member Great Lakes Health Plan, Southfield, Mich. -- is operating under state supervision, one regulatory step away from rehabilitation. -- by Laura B. Benko
Medicaid HMOs' financial outlook a mixed bag
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