Q4 2024 Molina Healthcare Inc Earnings Call Transcript
Key Points
- Molina Healthcare Inc (MOH) reported a full-year premium revenue growth of 19% year-over-year, reaching $38.6 billion.
- The Marketplace segment significantly outperformed its long-term target margins with a full-year MCR of 75.4%, allowing for reinvestment into pricing for 2025.
- Molina Healthcare Inc (MOH) secured significant new contract wins, including a Medicaid managed care services contract in Georgia, expected to generate $2 billion in annual premium revenue.
- The company successfully defended key RFPs, retaining traditional Medicaid contracts in Michigan, Florida, and Wisconsin, representing over $2 billion in renewed premium revenues.
- Molina Healthcare Inc (MOH) projects 2025 premium revenue of approximately $42 billion, with an expected adjusted earnings per share growth of at least 8% year-over-year.
- The fourth quarter results did not meet expectations, with a consolidated MCR of 90.2% due to higher-than-expected medical cost pressure in Medicaid and Medicare segments.
- Medicaid experienced higher utilization, particularly for LTSS, pharmacy, and behavioral health services, leading to a higher-than-anticipated medical cost trend.
- The Medicare segment's full-year MCR was 89.1%, above the long-term range, due to continued higher utilization and revenue recognition adjustments.
- The company faced a contract loss in Virginia, which is under protest, potentially impacting future revenue.
- Molina Healthcare Inc (MOH) anticipates continued elevated medical cost trends in 2025, with projected Medicaid MCR slightly above the target range.
Good day, and welcome to the Molina Healthcare fourth-quarter 2024 earnings conference call. (Operator Instructions). This event is being recorded.
I would now like to turn the conference over to your host today, Jeffrey Geyer. Please go ahead.
Good morning, and welcome to Molina Healthcare's fourth quarter and full year 2024 earnings call. Joining me today are Molina's President and CEO, Joe Zubretsky; and our CFO, Mark Keim. A press release announcing our fourth quarter and full year 2024 earnings was distributed after the market closed yesterday and is available on our Investor Relations website.
Shortly after the conclusion of this call, a replay will be available for 30 days. The numbers to access the replay are in the earnings release. For those of you who listen to the rebroadcast of this presentation, we remind you that all of the remarks made as of today, Thursday, February 6, 2025, and have not been updated subsequent to the initial earnings call.
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