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LONG BEACH, Calif. - Molina Healthcare, Inc. (NYSE: MOH), a Fortune 500 company known for providing managed healthcare services with a market capitalization of $17.54 billion and annual revenue of $39.16 billion, has been selected to administer a Fully Integrated Dual Eligible Special Needs Plan (D-SNP) in Illinois. According to InvestingPro data, the company has demonstrated robust growth with revenue increasing by 18.67% over the last twelve months. This announcement comes as the Illinois Department of Healthcare and Family Services aims to transition from its Medicare-Medicaid Alignment Initiative (MMAI), currently serving around 73,000 beneficiaries.
The new contract, set to commence on January 1, 2026, is slated to have an initial duration of four years with the possibility of extensions, provided the total term does not surpass ten years. Molina Healthcare of Illinois, Inc., a subsidiary of Molina Healthcare, is one of four managed care organizations awarded this contract. The company’s strong financial health is reflected in its "GREAT" overall score from InvestingPro, which notes that the company holds more cash than debt on its balance sheet and maintains solid profitability metrics.
Molina Healthcare operates under Medicaid and Medicare programs and through state insurance marketplaces. The awarding of this contract aligns with the company’s service offerings and expands its role in providing healthcare to dual-eligible individuals, who qualify for both Medicare and Medicaid benefits.
While this development is positive for Molina Healthcare, which currently trades at a P/E ratio of 15.43, the company has included a safe harbor statement acknowledging potential risks and uncertainties that could impact the realization of the contract. For a deeper understanding of Molina Healthcare’s financial position and growth prospects, investors can access comprehensive analysis and additional insights through InvestingPro’s detailed research reports. These include the possibility of legal challenges, delays in the contract start date, or a shorter contract term than anticipated. As with any forward-looking statements, Molina Healthcare cautions that actual results may vary due to these risks.
The information for this article is based on a press release statement from Molina Healthcare, Inc. Investors and stakeholders are advised to consider the inherent risks disclosed by the company in its filings with the Securities and Exchange Commission, which detail factors that could affect the company’s operations and financial performance.
In other recent news, Molina Healthcare reported its fourth-quarter 2024 earnings, revealing an adjusted earnings per share (EPS) of $5.05, which fell short of the expected $5.77. However, the company’s revenue exceeded forecasts, reaching $10.5 billion against a forecast of $10.32 billion. Despite the revenue beat, the stock reacted negatively, dropping significantly in after-hours trading. For the full year 2024, Molina Healthcare achieved a 19% year-over-year increase in premium revenue, totaling $38.6 billion, with a full-year adjusted EPS of $22.65, marking an 8.5% increase compared to the previous year. The company anticipates further growth in 2025, projecting a premium revenue of $42 billion and an adjusted EPS of $24.50. In addition, Molina Healthcare’s recent acquisition of ConnectiCare is expected to add $1.2 billion in revenue for 2025. Cantor Fitzgerald maintained an Overweight rating on Molina Healthcare, with a price target of $356.00, highlighting the company’s significant exposure to Medicaid expansion as a substantial part of its revenue stream. These developments indicate Molina Healthcare’s strategic positioning and growth trajectory in the healthcare market.
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