Molina Healthcare posts $97M net loss as restructuring efforts continue

Following leadership changes and layoffs earlier this year, Molina Healthcare reported a net loss in the third quarter of fiscal year 2017, but said it made significant progress on its restructuring plan to save $200 million by Jan. 1.

The payer reported total revenue of $5 billion in the third quarter of 2017, up from $4.5 billion reported in the same period in 2016. Molina attributed the 10.7 percent year-over-year increase in part to improved performance in its nonmarketplace and marketplace businesses.

However, the payer saw expenses climb 15.4 percent to $5.1 billion in the third quarter of this year, compared to the same period a year prior. Molina recorded restructuring and impairment costs of $247 million in the third quarter of this year.

"While there's still more work ahead, our improved performance and our continued success toward achieving $200 million in annualized run-rate savings as of January 1, 2018, demonstrate that we are on the right track," said Joseph White, CFO and interim president and CEO of Molina.

Molina ended the third quarter of this year with a net loss of $97 million, compared to net income of $42 million in the same period last year.

While not affecting third quarter performance, Molina said it anticipates $85 million in unreimbursed expenses due to President Donald Trump's decision to end cost-sharing reduction payments. CSRs offset the cost of offering coverage to lower-income Americans. As a result, the insurer is raising premiums on its 2018 marketplace plans by 55 percent.

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