Long Beach, Calif.-based Molina Healthcare amended its recent earnings report to show a greater net income than previously reported, decreasing its fourth quarter loss by $44 million.
Molina initially reported a net loss of $91 million in the fourth quarter of 2016, but revised the loss to $47 million. The initial results published in February did not include a retroactive contract amendment in the fourth quarter. The amendment changed the minimum medical loss ratio calculation under California's expanded Medicaid program.
Joseph White, chief accounting officer for Molina, told the Press-Telegram the insurer "frankly missed" the discrepancy and "in the course of our audit, we went out and found it."
The revision raises Molina's fiscal year 2016 net income to $52 million, up from its initial report of $8 million. However, Molina's net income for fiscal year 2016 still dropped significantly from $143 million in 2015.
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