Molina Healthcare, Inc. is a
managed care
In the United States, managed care or managed healthcare is a group of activities intended to reduce the cost of providing health care and providing health insurance while improving the quality of that care. It has become the predominant system o ...
company headquartered in
Long Beach, California
Long Beach is a coastal city in southeastern Los Angeles County, California, United States. It is the list of United States cities by population, 44th-most populous city in the United States, with a population of 451,307 as of 2022. A charter ci ...
, United States. The company provides
health insurance
Health insurance or medical insurance (also known as medical aid in South Africa) is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses. As with other types of insurance, risk is shared among ma ...
to individuals through government programs such as
Medicaid
Medicaid is a government program in the United States that provides health insurance for adults and children with limited income and resources. The program is partially funded and primarily managed by U.S. state, state governments, which also h ...
and
Medicare.
History
Molina Healthcare was founded in 1980 by C. David Molina, an
emergency room
An emergency department (ED), also known as an accident and emergency department (A&E), emergency room (ER), emergency ward (EW) or casualty department, is a medical treatment facility specializing in emergency medicine, the acute care of pat ...
physician in Long Beach, California.
[In Good Compan]
''Hispanic Magazine''. He had seen an influx of patients using the emergency room for common illnesses such as a sore throat or the flu because they were being turned away by doctors who would not accept
Medi-Cal
The California Medical Assistance Program (Medi-Cal or MediCal) is the California implementation of the federal Medicaid program serving low-income individuals, including families, seniors, persons with disabilities, children in foster care, preg ...
. Molina established his first primary care clinic with the goal of treating the lowest-income patients, regardless of their ability to pay.
In September 2020, Molina Healthcare entered into an arrangement to purchase approximately all the assets of the Affinity Health Plan for about $380 million.
Leadership
For twenty years, the company was run by Dr. Molina's son, J. Mario Molina,
MD, a physician. He was the president and CEO of the company. John Molina, Mario's younger brother, was the
CFO of Molina Healthcare.
[How I Made It: J. Mario Molina and John Molin]
Los Angeles Times. The two took over Molina's operations after their father died in 1996 and continued to expand the company. In May 2017 J. Mario and John were removed from their positions by the Board of Directors, who cited poor financial performance as the reason for the change in leadership. In October 2017 the company announced
Joseph Zubretsky, the former CFO of Aetna, as Molina Healthcare's president and CEO.
Clinics
The first Molina Medical clinic was opened in Wilmington, California in 1980. The company formerly operated clinics in
Washington,
New Mexico
New Mexico is a state in the Southwestern United States, Southwestern region of the United States. It is one of the Mountain States of the southern Rocky Mountains, sharing the Four Corners region with Utah, Colorado, and Arizona. It also ...
,
Florida
Florida ( ; ) is a U.S. state, state in the Southeastern United States, Southeastern region of the United States. It borders the Gulf of Mexico to the west, Alabama to the northwest, Georgia (U.S. state), Georgia to the north, the Atlantic ...
and
Utah
Utah is a landlocked state in the Mountain states, Mountain West subregion of the Western United States. It is one of the Four Corners states, sharing a border with Arizona, Colorado, and New Mexico. It also borders Wyoming to the northea ...
. The clinics were opened to provide health care to low-income families and individuals. In August 2017 Molina Healthcare announced it would close several clinics in Michigan, Florida, New Mexico, Wisconsin, and Utah.
Becoming HMO
Molina Healthcare has focused on government-paid healthcare programs such as
SCHIP and
Medicaid
Medicaid is a government program in the United States that provides health insurance for adults and children with limited income and resources. The program is partially funded and primarily managed by U.S. state, state governments, which also h ...
since it became a
health maintenance organization
In the United States, a health maintenance organization (HMO) is a medical insurance group that provides health services for a fixed annual fee. It is an organization that provides or arranges managed care for health insurance, self-funded hea ...
in 1985. From 1985 to 1997, the company was based solely in California.
Expansion of health plans
* 1997: Molina Healthcare acquires Health Reach Family Health Care and enters the states of
Utah
Utah is a landlocked state in the Mountain states, Mountain West subregion of the Western United States. It is one of the Four Corners states, sharing a border with Arizona, Colorado, and New Mexico. It also borders Wyoming to the northea ...
and
Michigan
Michigan ( ) is a peninsular U.S. state, state in the Great Lakes region, Great Lakes region of the Upper Midwest, Upper Midwestern United States. It shares water and land boundaries with Minnesota to the northwest, Wisconsin to the west, ...
.
[http://www.alacrastore.com/mergers-acquisitions/Molina_Healthcare_Inc-2518417 , Alacrastore.]
* 2000: Molina Healthcare enters the state of
Washington.
* 2004: Molina Healthcare enters the state of
New Mexico
New Mexico is a state in the Southwestern United States, Southwestern region of the United States. It is one of the Mountain States of the southern Rocky Mountains, sharing the Four Corners region with Utah, Colorado, and Arizona. It also ...
.
* 2005: Molina Healthcare becomes a health plan in
Ohio
Ohio ( ) is a U.S. state, state in the Midwestern United States, Midwestern region of the United States. It borders Lake Erie to the north, Pennsylvania to the east, West Virginia to the southeast, Kentucky to the southwest, Indiana to the ...
.
* 2006: Molina Healthcare enters the state of
Texas
Texas ( , ; or ) is the most populous U.S. state, state in the South Central United States, South Central region of the United States. It borders Louisiana to the east, Arkansas to the northeast, Oklahoma to the north, New Mexico to the we ...
.
* 2007: Molina Healthcare enters
Missouri
Missouri (''see #Etymology and pronunciation, pronunciation'') is a U.S. state, state in the Midwestern United States, Midwestern region of the United States. Ranking List of U.S. states and territories by area, 21st in land area, it border ...
.
* 2008: Molina Healthcare enters
Florida
Florida ( ; ) is a U.S. state, state in the Southeastern United States, Southeastern region of the United States. It borders the Gulf of Mexico to the west, Alabama to the northwest, Georgia (U.S. state), Georgia to the north, the Atlantic ...
.
[https://www.reuters.com/article/2008/08/06/idUS100708+06-Aug-2008+BW20080806 , Reuters.]
* 2010: Molina Healthcare enters
Wisconsin
Wisconsin ( ) is a U.S. state, state in the Great Lakes region, Great Lakes region of the Upper Midwest of the United States. It borders Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michig ...
.
* 2012: Molina Healthcare enters
Illinois
Illinois ( ) is a U.S. state, state in the Midwestern United States, Midwestern United States. It borders on Lake Michigan to its northeast, the Mississippi River to its west, and the Wabash River, Wabash and Ohio River, Ohio rivers to its ...
.
* 2013: Molina Healthcare enters
South Carolina
South Carolina ( ) is a U.S. state, state in the Southeastern United States, Southeastern region of the United States. It borders North Carolina to the north and northeast, the Atlantic Ocean to the southeast, and Georgia (U.S. state), Georg ...
by acquiring assets from Community Health Solutions.
* 2013: Molina Healthcare acquires
New Mexico
New Mexico is a state in the Southwestern United States, Southwestern region of the United States. It is one of the Mountain States of the southern Rocky Mountains, sharing the Four Corners region with Utah, Colorado, and Arizona. It also ...
Lovelace Medicaid contract.
* 2014: Molina Healthcare acquires
Florida
Florida ( ; ) is a U.S. state, state in the Southeastern United States, Southeastern region of the United States. It borders the Gulf of Mexico to the west, Alabama to the northwest, Georgia (U.S. state), Georgia to the north, the Atlantic ...
Medicaid assets from First Coast Advantage.
* 2015: Molina Healthcare enters
Chicago
Chicago is the List of municipalities in Illinois, most populous city in the U.S. state of Illinois and in the Midwestern United States. With a population of 2,746,388, as of the 2020 United States census, 2020 census, it is the List of Unite ...
market, acquiring MyCare Chicago's Medicaid assets.
* 2015: Molina Healthcare enters
Puerto Rico
; abbreviated PR), officially the Commonwealth of Puerto Rico, is a Government of Puerto Rico, self-governing Caribbean Geography of Puerto Rico, archipelago and island organized as an Territories of the United States, unincorporated territo ...
.
* 2015: Molina Healthcare of
Washington is the first health care company in the state to cover "Virtual Urgent Care" services.
* 2015: Molina Healthcare acquires Medicaid assets of Integral Health Plan, Inc. in Florida.
* 2015: Molina Healthcare acquires Providence Human Services and Community Services from
Providence Service Corporation and renames them Pathways.
* 2015: Molina Healthcare adds online access to behavioral health.
* 2015: Molina Healthcare acquires HealthPlus MIChild and Medicaid programs of
Michigan
Michigan ( ) is a peninsular U.S. state, state in the Great Lakes region, Great Lakes region of the Upper Midwest, Upper Midwestern United States. It shares water and land boundaries with Minnesota to the northwest, Wisconsin to the west, ...
.
* 2015: Molina Healthcare acquires assets of Loyola Physician Partners' Medicaid Program of
Illinois
Illinois ( ) is a U.S. state, state in the Midwestern United States, Midwestern United States. It borders on Lake Michigan to its northeast, the Mississippi River to its west, and the Wabash River, Wabash and Ohio River, Ohio rivers to its ...
.
* 2017: Molina Healthcare exits the individual Marketplace in
Utah
Utah is a landlocked state in the Mountain states, Mountain West subregion of the Western United States. It is one of the Four Corners states, sharing a border with Arizona, Colorado, and New Mexico. It also borders Wyoming to the northea ...
and
Wisconsin
Wisconsin ( ) is a U.S. state, state in the Great Lakes region, Great Lakes region of the Upper Midwest of the United States. It borders Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michig ...
.
*2018: Molina Healthcare loses Medicaid contract with the state of New Mexico.
*2018: Molina Healthcare sells Pathways to Altar Capital
*2019: Molina Healthcare loses Medicaid contract with the state of Texas.
*2020: Molina Healthcare acquires Passport Health Plan in Kentucky.
*2021: Molina Healthcare acquires Magellan Complete Care line of business from
Magellan Health, Inc. With this acquisition, Molina enters Arizona, Massachusetts, and Virginia.
*2021: Molina Healthcare acquires Affinity Health Plan in New York.
*2021: Molina Healthcare acquires
Cigna's Medicaid contracts in Texas.
*2023: Molina Healthcare enters
Iowa
Iowa ( ) is a U.S. state, state in the upper Midwestern United States, Midwestern region of the United States. It borders the Mississippi River to the east and the Missouri River and Big Sioux River to the west; Wisconsin to the northeast, Ill ...
.
Going public
Molina Healthcare filed with the
Securities and Exchange Commission
The United States Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street crash of 1929. Its primary purpose is to enforce laws against market m ...
for an initial stock offering in December 2002 and went public in July 2003 with a stock offering of $102 million. The shares were priced at $17.50, and Molina raised approximately $124 million in the
initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...
.
[http://www.mwe.com/index.cfm/fuseaction/media.prdetail/object_id/dbf194bf-b5fa-43bd-971e-5b6c79f4eec2.cfm , McDermott] In its stock market debut, Molina sold 6.6 million shares at $20.30, making the company the third-best first day gainer of 2003.
Molina Healthcare was the first company from ''
Inc. Magazine''s "Inner City 100" list to go public.
Entering the Medicare market
Molina Healthcare entered the
Medicare market in 2006. The company currently offers Medicare health plan options in: Arizona, California, Florida, Idaho, Illinois, Kentucky, Massachusetts, Michigan, Nevada, New Mexico, New York, Ohio, South Carolina, Texas, Utah, Virginia, Washington and Wisconsin.
Entering MMIS market
Molina Healthcare acquired
Unisys
Unisys Corporation is a global technology solutions company founded in 1986 and headquartered in Blue Bell, Pennsylvania. The company provides cloud, AI, digital workplace, logistics, and enterprise computing services.
History Founding
Unis ...
' health information management business in December 2010 to create Molina Medicaid Solutions (MMS).
MMS has Medicaid Management Information Systems (MMIS) contracts with
Idaho
Idaho ( ) is a landlocked U.S. state, state in the Pacific Northwest and Mountain states, Mountain West subregions of the Western United States. It borders Montana and Wyoming to the east, Nevada and Utah to the south, and Washington (state), ...
,
Louisiana
Louisiana ( ; ; ) is a state in the Deep South and South Central regions of the United States. It borders Texas to the west, Arkansas to the north, and Mississippi to the east. Of the 50 U.S. states, it ranks 31st in area and 25 ...
,
Maine
Maine ( ) is a U.S. state, state in the New England region of the United States, and the northeasternmost state in the Contiguous United States. It borders New Hampshire to the west, the Gulf of Maine to the southeast, and the Provinces and ...
,
New Jersey
New Jersey is a U.S. state, state located in both the Mid-Atlantic States, Mid-Atlantic and Northeastern United States, Northeastern regions of the United States. Located at the geographic hub of the urban area, heavily urbanized Northeas ...
,
West Virginia
West Virginia is a mountainous U.S. state, state in the Southern United States, Southern and Mid-Atlantic (United States), Mid-Atlantic regions of the United States.The United States Census Bureau, Census Bureau and the Association of American ...
and the U.S. Virgin Islands. In Autumn 2018, Molina Healthcare, Inc. sold its Medicaid management information systems business, Molina Medicaid Solutions (MMS), to
DXC Technology. MMS was a wholly owned subsidiary of Molina Healthcare at the time of sale.
Entering health insurance marketplace
In 2014, Molina Healthcare began offering
Marketplace plans in nine states where it offered
Medicaid
Medicaid is a government program in the United States that provides health insurance for adults and children with limited income and resources. The program is partially funded and primarily managed by U.S. state, state governments, which also h ...
health plans through
State Facilitated Marketplaces and
Federally Facilitated Marketplace The Federally Facilitated Marketplace (FFM) is an organized marketplace for health insurance plans operated by the U.S. Department of Health and Human Services
The United States Department of Health and Human Services (HHS) is a cabinet-level ...
. On November 16, 2016 the
Seattle Times
''The Seattle Times'' is an American daily newspaper based in Seattle, Washington. Founded in 1891, ''The Seattle Times'' has the largest circulation of any newspaper in the state of Washington and the Pacific Northwest region. The Seattle Time ...
reported that about 11 million people currently get their coverage through the exchange. In August 2017 Molina announced it would stop offering plans on the health insurance marketplaces in Utah, Wisconsin, and Maine in 2018.
Dual eligible demonstration projects
Molina was selected to participate in dual eligible demonstration projects in California, Ohio, Illinois, Michigan, South Carolina
and Texas
to serve patients who are eligible for both Medicare and Medicaid.
Criticism and controversies
A 2023 report investigating "High Rates of Prior
Authorization Denials" reported that Molina Healthcare's
Medicaid
Medicaid is a government program in the United States that provides health insurance for adults and children with limited income and resources. The program is partially funded and primarily managed by U.S. state, state governments, which also h ...
plans for financially vulnerable people had some of the highest denial percentages in the country. It was reported, that Molina Healthcare operated plans that denied medical care under requests for prior authorization of services in more than 25% of cases in 2019. About 2.7 million people were enrolled in these plans at the time, while another 8.4 million people were enrolled in plans with denial rates higher than average at 15-25%. Some plans had even higher denial rates, as their Illinois plan 41% of requests.
Philanthropy
In May 2022, MolinaCares presented a $100,000 grant to support Compass Health's Broadway Campus Redevelopment Project. The grant will aid funding of construction of a 72,000 square-foot, state-of-the-art facility that will expand community-based behavioural health care services and its workforce in northwest Washington.
Awards and recognition
Molina Healthcare was awarded the 2011 Alfred P. Sloan Award for Business Excellence in Workplace Flexibility. The award ranked Molina Healthcare in the top 20 percent of employers nationally in terms of its programs, policies and culture for creating an effective and flexible workplace.
In 2006, Molina Healthcare was named among the 100 best corporate citizens by ''Business Ethics'' magazine.
In 2005, ''Time'' magazine recognized Dr. J. Mario Molina, then CEO of Molina Healthcare, as one of the 25 most influential Hispanics in America.
The company ranked 155th on the 2021
Fortune 500
The ''Fortune'' 500 is an annual list compiled and published by ''Fortune (magazine), Fortune'' magazine that ranks 500 of the largest United States Joint-stock company#Closely held corporations and publicly traded corporations, corporations by ...
list of the largest United States corporations by revenue. The company ranked 126th on the 2023
Fortune 500
The ''Fortune'' 500 is an annual list compiled and published by ''Fortune (magazine), Fortune'' magazine that ranks 500 of the largest United States Joint-stock company#Closely held corporations and publicly traded corporations, corporations by ...
list of the largest United States corporations by revenue.
Other awards and recognition
* 2014: Milwaukee Journal Sentinel Recognizes Molina Healthcare of Wisconsin with a Top Workplace Award 2014
* 2014: Molina Healthcare of New Mexico voted Best Places to Work by ''Albuquerque Business First''
* 2014: Molina Healthcare was one of 26 companies to participate in President Obama's SupplierPay 2014
* 2015: Molina Healthcare voted Top Ten Least Stressful Companies to Work for In America 2015
* 2015: Molina Healthcare ranked 301 in top Fortune 500 2015
* 2016: Molina Healthcare ranked 201 in top Fortune 500 2016
* 2017: Molina Healthcare ranked 156 in Fortune 500 2017
* 2023: Molina Healthcare of Kentucky awarded One of Kentucky's Best Places to Work
* 2023: Molina Healthcare recognized as one of America's Best-in-State Employers by Forbes
* 2023: Molina Healthcare recognized as one of Time's World's Best Companies of 2023
* 2023: Molina Healthcare recognized as one of Newsweek's Greatest Workplaces for Parents and Families 2023
References
External links
*
{{authority control
Companies listed on the New York Stock Exchange
Companies based in Long Beach, California
Health maintenance organizations
2003 initial public offerings