Molina Loses Florida Medicaid ContractTuesday, September 24, 2013
Molina Healthcare Inc. on Tuesday said that it plans to protest its exclusion from Florida’s Medicaid managed care market.
Florida’s Agency for Health Care Administration did not include the Long Beach managed care provider’s Florida unit among the 10 entities that will provide care to low-income residents beginning in October 2014, under rules that will limit the number of providers in the market.
Molina Healthcare of Florida, which entered the Florida market in 2009, had 74,440 Medicaid members as of the end of the first quarter. The subsidiary retained a contract provide Medicaid long-term care, but that is considered a much smaller market. It also has a small Medicare presence in the state serving seniors, and is bidding to join Florida’s health insurance exchange for the individual market under the federal Affordable Care Act.
Molina said in a regulatory filing that its Florida health plan had revenue of $120 million in the first half this year — about 4 percent of the company’s total revenue —and reported a net operational loss of $650,000.
“The company does not expect this matter to affect its earnings during fiscal year 2013, or to impact the previously awarded contracts under the…long-term care program,” it said in a statement, adding that it could not yet predict the impact its protest is unsuccessful.
Shares closed down 32 cents, or 1 percent, to $36.05 on the New York Stock Exchange