Molina Reports Strong 3Q Earnings

Long Beach-based insurer Molina Healthcare more than doubled its earnings for the quarter ending Sept. 30, buoyed by recent market entries in the three states.

Molina, which specializes in managed care plans in the Medicaid market, reported net income in the quarter of $7.6 million on revenue of $1.6 billion. That compares to net income of $3.3 million on revenue of $1.4 billion for the third quarter of 2012.

Premium collection was up 9% for the quarter, buoyed by a 5% increase in overall enrollment, to 1.92 million from 1.82 million, and a 4% increase in monthly revenue per enrollee.

For the first nine months of 2013, Molina reported net income of $62.1 million on revenue of $4.9 billion. That compares to the first nine months of last year, when it reported a loss of $15.8 million on revenue of $4 billion.

Company officials said the gains were attributed to entering the New Mexico, South Carolina and Illinois markets, and stemming losses associated with its business in Texas.

“I am pleased with the third quarter results, particularly because medical margins increased at all but one of our health plans,” said J. Mario Molina, M.D., Molina Healthcare's chief executive officer.  I remain optimistic about our future long-term prospects.”