Molina posts huge loss, will exit two states' ACA markets
Molina Healthcare lost $230 million in the second quarter this year — catching investors, who expected a slim profit, off guard. The Affordable Care Act exchanges wreaked havoc on the health insurer, which is pulling out of Utah and Wisconsin, pruning its participation in other states and laying off 7% of its workforce. Most of Molina's business is in Medicaid contracts with states.
The numbers: $230 million net loss, compared with a $33 million profit in the same period a year ago. Revenue increased 15% to $5 billion. Molina will cut expenses by up to $400 million by the end of next year — $55 million has already come from layoffs and restructuring.