Skip to main content
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Blogs
    • AI
    • Deals
    • Layoff Tracker
    • HIMSS 2023
  • Opinion
    • Breaking Bias
    • Commentaries
    • Letters
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - AI and Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Sponsored Video Series - One on One
    • Sponsored Video Series - Checking In with Dan Peres
  • Data & Insights
    • Data & Insights Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Insurance
February 11, 2021 11:29 AM

Molina reports $100 million year-over-year drop in profits in 2020

Nona Tepper
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Sipa USA via AP

    Molina Healthcare reported a $100 million year-over-year drop in profits in 2020, with a rise in COVID-19 costs, acquisition expenses and the extension of the risk-sharing corridors during the public health crisis cutting into the Long Beach, Calif.-based insurer's bottom line.

    During the fourth quarter ended Dec. 31, Molina reported $34 million in profits, down nearly 80% from the $168 million generated in the prior-year period. The payer's profits dipped to $673 million at year's end, down 8% from the $737 million reported for 2019.

    CEO Joe Zubretsky said California, Michigan and Ohio all submitted surprise risk-sharing payments to CMS in December, which added a $400 million expense to the insurer's bottom line. For the year, the company incurred $565 million in risk-sharing corridor expenses. As more people get vaccinated, and the public health emergency subsides, Zubretsky said more people will return to doctor's offices, and the uptick in utilization will cause a decline in these expenses. Right now, the lack of utilization also impacted the company's ability to collect risk scores.

    "Seniors didn't access healthcare so interacting with them was a challenge for many of our companies," Zubretsky said. "Next year, we'll either attain the risk scores because they'll be getting served, or if we aren't satisfied with that, then we can include that in our bids."

    Revenue proved a bright spot for the insurer. The company's revenue reached $5.2 billion during its fourth quarter, up 23% from $4.2 billion year-over-year. For calendar 2020, Molina generated $19.4 billion in revenue, up 15% from $16.8 billion the year before, reflecting growth in Medicaid thanks to its acquisition of Passport Health Plan in Kentucky and YourCare Health Plan in New York. The public health crisis also caused a rise in the number of lower-income adults and children on the company's rolls, Zubretsky said.

    The insurer ended the year with nearly 3.6 million Medicaid enrollees, up from 2.9 million in 2019. Zubretsky said the company added at least 100,000 people during every quarter of the public health crisis. If the emergency extends beyond April, the company could add up to $150 million in revenue every month. Acting HHS Secretary Norris Cochran recently sent a letter to governors saying he expected the public health emergency to extend through 2021.

    In addition to the pause on Medicaid redeterminations, Zubretsky said he hoped the federal government's move to open a special enrollment period for the Affordable Care Act exchanges would boost the company's marketplace business, which remained essentially flat year-over-year with approximately 400,000 members. Zubretsky said more companies offering more plans made the ACA very competitive in 2020. Molina also reported a $128 million risk-corridor judgment loss in its marketplace business. Through the special enrollment period, Zubretsky estimated Molina could add up to 30,000 new marketplace members.

    "Just what's come out of the White House these past three weeks is incredibly bullish on government-sponsored healthcare," Zubretsky said.

    The company is still waiting to hear from New York authorities about its $380 million plan to acquire Affinity Health Plan. Zubretsky said he expects the acquisition, if approved, to close during the second quarter, a deal that could add up to $600 million to the company's balance sheet.

    The company is also open to even more acquisitions in new markets that offer Medicare Advantage or Dual Eligible Special Needs Plans this year, Zubretsky said.

    "We love high acuity," he said. "And if it's underperforming but not broken, all the better."

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    UnitedHealthcare_i_i_i_i copy_i.png
    UnitedHealth to scrap some Medicare Advantage plans
    US sort term insurance
    States resist Biden proposal limiting short-term health insurance
    Most Popular
    1
    CMS tries luring providers to revamped Medicare ACOs
    2
    Oregon joins other states in setting ratios for nurse staffing
    3
    Blue Shield CA taps Amazon, Mark Cuban, CVS for new PBM model
    4
    A health innovation hub grows in Lake Nona Medical City
    5
    Hospital-at-home providers push for Medicaid coverage
    Sponsored Content
    Daily Finance Newsletter: Sign up to receive daily news and data that has a direct impact on the business and financing of healthcare.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Help Center
    • Advertise with Us
    • Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Blogs
      • AI
      • Deals
      • Layoff Tracker
      • HIMSS 2023
    • Opinion
      • Breaking Bias
      • Commentaries
      • Letters
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - AI and Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Sponsored Video Series - One on One
      • Sponsored Video Series - Checking In with Dan Peres
    • Data & Insights
      • Data & Insights Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing