Description

Molina Healthcare’s 91.1% MCR: Is Medical Cost Risk Still Too High?

Molina Healthcare reported first quarter 2026 adjusted earnings per share of $2.35 on premium revenues of approximately $10.2 billion. The company described these results as solid within a context of modest expectations shaped by ongoing challenges in managing medical costs. The consolidated Medical Cost Ratio (MCR) stood at 91.1%, with segment-specific MCRs of 92% in Medicaid, 89.8% in Medicare, and 84% in Marketplace. The Medicaid business showed a modestly favorable medical cost trend compared to expectations, with a continued disciplined approach to cost management. Molina Healthcare affirmed its full-year 2026 guidance of roughly $42 billion in premium revenue and adjusted earnings per share of at least $5. Medicaid membership is expected to decline by approximately 6% during 2026, an increase from the prior estimate of 2%, largely driven by higher attrition in California (particularly due to undocumented immigrant populations), Illinois, New York, and Texas.