Molina Reports Mixed Financial News
Medicaid-dominant insurer Molina Healthcare had its net income grow 8.1% to $1.2 billion in 2024 as revenue spiked 19.3% to $40.7 billion. For the fourth quarter, net income rose 16.2% to $251 million as revenue increased 16% to $10.5 billion.
But like other insurers, Molina struggled with medical expenses and had an 89.1% medical loss ratio (MLR) in 2024, one percentage point higher than in 2023. Membership expanded by 10.8%. Molina expects Medicaid spending to increase by 4.5% in 2025, but thinks cost pressures will ease. Molina sees growth and financial success in 2026 and beyond with new state Medicaid awards and success on bidding in existing states.
Molina Healthcare CEO Joe Zubretsky downplayed attempts by Republicans to gut or limit Medicaid in upcoming reconciliation bills. He thinks any cuts will be marginal. See my blog this week on the topic: https://www.healthcarelabyrinth.com/will-medicaid-and-the-affordable-care-act-see-huge-cuts/ .
Additional articles: https://www.healthcaredive.com/news/molina-earnings-q4-2024-medicaid/739391/ and https://www.fiercehealthcare.com/payers/medicaid-cuts-washington-will-be-marginal-says-molina-healthcare-ceo
(Some articles may require a subscription.)
#medicaid #managedcare #molina #margins
https://www.modernhealthcare.com/finance/molina-healthcare-medicaid-costs-cuts-2025
Trump Administration Plans On Laying Off Thousands In Healthcare
U.S. Department of Health and Human Services (HHS) leadership has reportedly been tasked with laying off thousands from the department’s workforce. This includes agencies that report into HHS as well.
#hhs #trump #staffing
House Making Progress On A Budget Agreement
The House met with President Trump today and reportedly made progress overcoming a stalemate on moving a budget bill desired by the president. The fractious caucus has a path forward but has many remaining issues. Few if any votes could be lost by Speaker Johnson to pass a GOP-only budget reconciliation bill.
#budgetreconciliation #trump #congress #healthcare
https://thehill.com/homenews/house/5131668-house-republicans-trump-legislative-agenda
Hospital Recovery in 2024
Advisory firm Kaufmann Hall’s review of 1,300 hospitals nationwide finds that outpatient revenue and below-inflation expense increases fueled a 9% year-over-year increase in 12-month operating margins. The hospitals had a collective 4.9% median operating margin across the year and ended on a strong note with a 7.6% median operating margin for December alone.
#hospitals #margins
Musk And DOGE Access Temporarily Restricted In Light Of Lawsuit
The Trump administration has agreed to limit access to the Department of the Treasury payment system records for Elon Musk and people outside of the agency working on the Department of Government Efficiency (DOGE) commission. This comes after government labor unions and an advocacy group sued the Treasury Department.
#doge #spending #trump
Medical Debt Rule Now In Limbo
With the Trump administration targeting the Consumer Financial Protection Bureau (CFPB) for potential closure and a freeze on finalization and implementation of regulations, the fate of the Biden administration’s medical debt rule is in doubt.
#medicaldebt #biden #trump #healthcare
— Marc S. Ryan
