Molina Healthcare is on a winning streak, securing contracts in new states and counties to provide insurance coverage to those with low incomes.
The string of Medicaid contract wins amounts to $5.8 billion in additional annual premium revenue, CEO Joe Zubretsky said on an earnings call with investors on Thursday.
“The new business wins will have a profound impact on our company over the next few years,” he said.
Most notably, Molina won a sizable contract in Los Angeles County in California, which executives said will add significant premium revenue and membership.
Molina beat out the incumbent Centene to care for Medicaid members in L.A. Centene’s CEO Sarah London said on her company’s earnings call earlier this week that the payer is appealing the award and plans to “exhaust all available avenues of appeal.” She mentioned possibly taking the matter to court.
In addition to California, Molina was awarded statewide contracts in two new states, Iowa and Nebraska, expanding Molina’s footprint to a total of 20 states.
The Long Beach, California-based insurer also defended its plan in Mississippi and will continue serving members across the entire state.
Zubretsky said the company is already underway on building out staff and scaling IT platforms for the significant expansion in California.
For the third quarter, Molina’s profit increased to $230 million from the prior-year period on a greater revenue base of nearly $8 billion.