Los Angeles Business Journal

Molina Healthcare Appeals Exclusion from Ohio’s Medicare Program

By Deborah Crowe Monday, April 16, 2012

Molina Healthcare Inc. said late Monday that its Ohio health plan has filed a formal protest of Medicaid contracts, which last week excluded Molina.

Molina Healthcare of Ohio Inc., a Columbus-based subsidiary of the Long Beach managed care company, filed the protest with the Ohio Department of Jobs and Family Services. It challenged the scoring of Molina’s proposal and identifies scoring errors that, if corrected, would alter the results.

About $1 billion of the $4.6 billion in premium revenue the company received last year came from the Ohio contract.

“We believe that fundamental flaws in the scoring of Molina’s response changed the outcome … and precluded consideration of the best solutions for Ohio’s most vulnerable citizens,” Mario Molina, Molina Healthcare chief executive, said in a statement. “We urge (the agency) to re-examine its scoring analysis.”

The announcement was made after the markets closed. Shares of the company, which was the largest decliner on the LABJ Stock Index last week, on Monday closed down 19 cents, or 1 percent, to $25.59.