Molina Healthcare Gets New Medi-Cal Contracts
January 03 2023 - 7:30AM
Dow Jones News
By Will Feuer
Molina Healthcare Inc. said the California Department of Health
Care Services has awarded the health-insurance company new Medi-Cal
contracts starting on Jan. 1, 2024.
The company said its awards include contracts for Riverside,
Sacramento, San Bernardino and San Diego Counties and as a
subcontractor in Los Angeles County. The California agency also
agreed to grant Molina a contract to offer D-SNP products for dual
eligible members in Los Angeles County.
Last week, the California Department of Health Care Services
said it was awarding Medi-Cal contracts to five providers, a
reversal from an August 2022 announcement in which the agency said
it intended to only contract with three. Molina said its footprint
was unaffected by the change.
Molina said its Medi-Cal membership is expected to grow from
about 600,000 members as of Sept. 30 to about 1.2 million members
in 2024.
Molina's current annual premium revenue from its Medi-Cal
contract is now expected to grow from about $1.9 billion to about
$3.9 billion for 2024, below the $5.5 billion it previously
expected based on the California agency's August announcement.
Molina said its projection doesn't include potential additional
revenue from the D-SNP contract.
Medi-Cal is California's state implementation of the Medicaid
health-care program.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
January 03, 2023 07:15 ET (12:15 GMT)
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