Molina names insurance veteran as new CEO
- Molina Healthcare has tapped Joseph Zubretsky to be its new president and CEO, replacing Mario Molina, who was ousted in May. Joseph White, who was serving as interim CEO, will remain as chief financial officer of the managed care company.
- Zubretsky, a former Aetna official, most recently was president and CEO of The Hanover Insurance Group.
- Long Beach, Calif.-based Molina offers Medicare plans in 11 states and Medicaid plans in those same states and Puerto Rico. The company also sells individual insurance on a number of Affordable Care Act exchanges.
With Tuesday’s announcement, Molina hopes to put this year’s disappointing financial results and management upheaval to rest.
“Joe is the right CEO to lead Molina during this transition period,” Dale Wolf, chairman of Molina’s board of directors, said in a statement. “He has a track record of strong leadership across multiple businesses, both inside and outside managed care, and has first-hand experience in leading restructuring efforts at previous organizations.”
Molina abruptly fired Mario Molina and his brother John Molina, who was CFO, in May, citing a poor financial performance and plans to drive profitability through organizational improvements. However, some speculated that Mario Molina’s outspoken criticism of Republican ACA repeal efforts may have been the real reason for his removal. Molina was especially concerned about the possibility that Republicans might stop funding cost-sharing reduction subsidies, which help payers cover care for lower-income Americans in the exchanges.
In August, Molina reported a $230 million loss for the 2017 second quarter, attributing the hit to issues related to participation in the ACA markets. In response, the company said it would eliminate about 1,500 jobs — or 7% of its workforce — and cut annual spending by $300 million to $400 million. It also said it would set aside $78 million in a reserve fund to meet expected shortfalls in the second half of the year.
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