Molina Healthcare, Inc.’s (MOH – Free Report) Nevada health plan subsidiary won a Medicaid-managed care contract from the Nevada Department of Health and Human Services — Division of Health Care Financing and Policy (DHCFP).
The new four-year contract comes with the feasibility of two-year extension and will be effective Jan 1, 2022. The health insurer’s Nevada health plan is one of the four Managed Care Organizations providing healthcare coverage to around 630,000 Medicaid beneficiaries in Clark County (Las Vegas area) and Washoe County (Reno area) through the TANF, CHIP and Medicaid Expansion programs.
The company will also take part in the state-based Affordable Care Act Exchange. The latest deal is likely to empower Molina in dispensing enhanced healthcare services and programs on a continual basis, thereby serving the regional residents with greater efficiency.
The recent move seems a time opportune one, considering the ample prospects prevalent in the Medicaid market. Per a McKinsey report, continuous program expansions and the inclination of complex high-need population toward managed care programs can be cited as one of the major factors driving growth across the Medicaid market.
The same article highlighted another important fact put forward by the Centers for Medicare & Medicaid Services (CMS), which projects the Medicaid plan to evolve into a roughly $1-trillion program by 2026 from the $629-billion program in 2018.
In April, the health insurer’s Ohio health plan unit was chosen as an awardee in all three regions across the state to the Medicaid managed care RFA. The contract was granted by the Ohio Department of Medicaid or ODM on Sep 30, 2020.
The leading company, currently carrying a Zacks Rank #3 (Hold), offers managed healthcare services under the Medicaid and Medicare programs, and through the state insurance marketplaces. Molina is focused on government-sponsored healthcare programs for families and individuals.
In 2020, the Medicaid premium revenues contributed to 73% of the company’s top line. Its Medicaid contracts with the states of California, Ohio, Texas and Washington accounted for around 10% or more of the consolidated Medicaid premium revenues in the years 2019 and 2020. Other healthcare providers boasting a strong Medicaid business across the United States include Humana Inc. (HUM – Free Report) , Centene Corporation (CNC – Free Report) and Cigna Corporation (CI – Free Report) .
Shares of Molina have gained 33.3% in a year’s time, outperforming its industry‘s rally of 29.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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