Molina Healthcare

Molina helps low-income individuals and families get health insurance through government programs. The company manages care for people using Medicaid, Medicare, and state marketplaces. It works to make essential healthcare more affordable for those who need it most.

What Molina Does

• Medicaid: Health plans for low-income families and individuals with disabilities; represented 75% of premium revenue in 2025.
• Medicare: Services for seniors and some disabled persons, including those eligible for both Medicare and Medicaid; accounts for 14% of premium revenue.
• Marketplace: Plans for people who buy insurance through state exchanges under the Affordable Care Act; contributes 10% of premium revenue.
• Other: Includes consulting services and commercial business from recent transactions; represented less than 1% of premium revenue in 2025.

Growth and Expansion

• Closed the acquisition of ConnectiCare Holding Company on February 1, 2025, for $350 million.
• Began new Medicaid and Medicare operations in Idaho, Michigan, Massachusetts, and Ohio on January 1, 2026.
• Expanded Medicaid services in Wisconsin through new contracts that commenced on January 1, 2025, and January 1, 2026.
• Withdrew legal action in May 2025 regarding a Virginia contract dispute, leading to the termination of operations in that state on June 30, 2025.

Operational Strengths

Molina maintains a pure-play focus on government-sponsored healthcare, allowing it to specialize in high-growth segments like dual-eligible populations who qualify for both Medicaid and Medicare. The company uses centralized services to manage administrative costs while maintaining 18 Medicaid health plans with accreditation from the National Committee for Quality Assurance.

The Scorecard

• Total revenue reached $45.4 billion for the year ended December 31, 2025, up 11.7% from 2024.
• Net income was $472 million in 2025, down 60% compared to $1.18 billion in the previous year.
• Medical Care Ratio, which measures medical costs as a percentage of premiums, rose to 91.7% in 2025 from 89.1% in 2024.
• Molina repurchased approximately 4.5 million shares of common stock for $1 billion during the first and third quarters of 2025.
• Operating cash flow was negative $298 million in Q4 2025, compared to negative $224 million in Q4 2024.

Bottom Line

Molina has shifted from a regional provider to a national manager of government-funded health programs. Despite rising medical costs and enrollment changes, the company continues to expand its reach through state contract wins and strategic acquisitions.