Molina's operating income, profit fall in Q2

Molina Healthcare reported lower operating income and profit in the second quarter of fiscal year 2019, the health insurer said in an earnings release

Molina's total revenue fell 14.1 percent to $4.2 billion in the second quarter ended June 30, compared to $4.9 billion in the same quarter a year prior. Premium revenue fell 10.3 percent year over year due to lower Medicaid membership stemming from the loss of the company's New Mexico Medicaid contract and the resizing of its Florida Medicaid contract.

At the same time, Molina's expenses also dropped. The health insurer recorded total operating expenses of $3.9 billion in the second quarter of this year, down 13.5 percent from $4.5 billion reported in the same period of 2018. 

Molina saw its operating income drop 22.5 percent in the most recent quarter to $265 million, down from $342 million in the second quarter of last year.

Molina ended the quarter with net income of $196 million, down 3 percent from $202 million reported in the same period a year prior.

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