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.
More articles on payer issues:
MDwise to lay off 79 employees in departure from Indiana Medicaid program
4 obstacles Anthem faces in pursuit of Cigna merger
CareSource sees 2017 ACA exchange enrollment increase 20%
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
