http://abcnews.go.com/Health/wireStory/molina-healthcare-exit-aca-exchanges-utah-wisconsin-48998665
4 replies (most recent on top)
If you read the Q2 Earnings Call transcript you will see that the interim CEO Joe White says he would be surprised if Molina didn't pull out of the exchanges in other markets ... so this is just the beginning
The two states were costing Molina more than the revenue due to competition companies. Eliminating them will create more strength for the other states. As they say, in order to build a better structured home you need to demolish the weak parts first and rebuild stronger.
It would have been a nail in the coffin if Molina remained in the ACA exchanges in Utah and Wisconsin. The company has lost money in those exchanges for the last two years. The medical cost ratios for both plans have exceeded 100% during those times. It's sad that we have to walk away, but the company has to profitable to fulfill its core mission.
Molina employees already received an e-mail about this and it's also detailed in the recent earnings results transcript from the announcement made on 8/2/17...