Molina Healthcare Reports 39% Increase in First-Quarter Profit
Long Beach-based health insurer Molina Healthcare on Tuesday reported a 39% increase in first-quarter profit that company officials credited to membership growth and higher premiums, the Los Angeles Times reports. Molina reported first-quarter net income of $11.1 million, or 43 cents per share, up from $8 million, or 40 cents per share, one year earlier. First-quarter revenue increased 14% to $217.9 million from $191.4 million a year earlier, including $26.9 million from a 14% increase in membership. Premium increases in Washington and Michigan accounted for $7.7 million in revenue, "more than offsetting" lower premiums in California, the Times reports. Molina officials confirmed its full-year guidance of a net income of $47.5 million to $50.2 million and said they expected to complete by the third quarter the purchase of New Mexico-based Health Care Horizons and the Medicaid and Basic Health plan businesses of Blue Cross in Washington. Company CEO Dr. J. Mario Molina said, "These results demonstrate that our core operations remain strong and stable as we integrate our recent acquisitions. We have the ability to effectively manage current operations while at the same time laying the foundations for enhanced performance from acquisitions consummated later in the year" (Girion, Los Angeles Times, 5/12).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.