- Oops!Something went wrong.Please try again later.
Molina Healthcare, Inc. MOH recently announced that its Ohio health plan unit has been chosen as an awardee in all three regions across the state to the Medicaid managed care RFA. The contract was granted by the Ohio Department of Medicaid or ODM on Sep 30, 2020.
Scheduled to start in early 2022, the new contract for Molina’s Ohio health plan will provide medical care coverage to Medicaid beneficiaries through Ohio’s Covered Family and Children, Expansion, and Aged, Blind or Disabled programs. Notably, these plans cover around 3 million members.
This even strengthens the position of the company in the area where it has been serving for more than 15 years.
The leading health insurer offers managed healthcare services under the Medicaid and Medicare programs, and through the state insurance marketplaces. Molina is focused on government-sponsored health care programs for families and individuals.
In 2020, the Medicaid premium revenues contributed to 73% of the company's total revenues. The company's Medicaid contracts with the states of California, Ohio, Texas and Washington accounted for around 10% or more of the consolidated Medicaid premium revenues in the years 2019 and 2020.
Contract wins have been benefiting many health insurers of late. Molina’s peers, namely UnitedHealth Group Incorporated UNH was also recently selected by the state of Hawaii for administering its QUEST Integration Medicaid program across the region. The list includes the islands of Hawaii, Kauai, Lanai, Maui, Molokai and Oahu. Additionally, Centene Corporation CNC also disclosed that its Hawaii subsidiary Ohana Health Plan secured a contract from the Hawaii Department of Human Services.
Further, Humana Inc. HUM noted that the Ohio Department of Medicaid (ODM) will provide medical care coverage to Medicaid beneficiaries who reside in Ohio.
Shares of Molina have gained 51.3% in a year’s time, outperforming its industry's rally of 29.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company carries a Zacks Rank #4 (Sell)
Apart from contract wins, other factors, such as inorganic growth story and restructuring initiatives poise the company well for growth.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research