California Healthline Daily Edition

Summaries of health policy coverage from major news organizations

full issue

Molina Blames Participation In Health Law For ‘Clearly Unacceptable’ Earnings

The company hinted it might withdraw from the marketplaces, saying there are “simply too many unknowns” to commit to participation beyond 2017.

Los Angeles Times: Molina Healthcare Stock Dives On 'Clearly Unacceptable' Earnings 
Molina Healthcare Inc. shares plunged Thursday, the day after the Long Beach insurer said losses related to its participation in the Affordable Care Act marketplace led to “clearly unacceptable” earnings for 2016. The insurer reported after the close of regular trading Wednesday that its adjusted earnings per diluted share fell to 50 cents last year, down from $2.57 the year before. (Masunaga, 2/16)

State of Health: CEO Of California-Based Health Insurer Says Obamacare Just Needs A Tune-Up 
[CEO J. Mario] Molina says there’s been a serious downside to his company’s success: a provision of the Affordable Care Act known as “risk transfer.” The program was designed to help insurance companies cover losses, if they ended up with a lot of really sick, expensive patients. The way it works: companies with fewer sick patients pay some of their revenues to the companies that have more. It was a fine idea, Molina said, but the formula lawmakers came up with to calculate risk was all wrong. (Dembosky, 2/17)

This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.