Description

Molina Healthcare: Membership Reset in Motion- Attrition Collapse & Enrollment Discipline Reshape the Growth Curve!

Molina Healthcare reported financial results for the fourth quarter and full year 2025, reflecting challenges primarily due to higher-than-expected medical cost trends and retroactive premium adjustments, particularly in Medicaid and Medicare segments. The company recorded a fourth quarter adjusted loss per share of $2.75 on $10.7 billion of premium revenue, significantly below expectations. This was largely driven by unexpected retroactive premium rate actions in California Medicaid totaling about $2 per share and continued elevated utilization in Medicare and Marketplace segments. For the full year, Molina Healthcare generated $43.1 billion in premium revenue, marking an 11% increase year-over-year, but adjusted earnings per share fell to $11.03, nearly half the initially guided $24.50. The company’s pretax margin was 1.6%, below long-term targets. Medicaid, representing about 75% of premium revenue, reported a full-year medical cost ratio (MCR) of 91.8% and a pretax margin of 2.8%. Despite the elevated 7.