Molina Healthcare, Inc. reported the second quarter of 2021 GAAP earnings per diluted share of $3.16 and adjusted earnings per diluted share of $3.40. “We are pleased with our second quarter and year to date results as we continue to produce solid margin performance despite the challenges created by the pandemic” said Joseph Zubretsky, president and CEO of Molina Healthcare. “We accomplished this while generating approximately 50% year-over-year premium revenue growth and successfully integrating businesses representing approximately $5 billion in annual revenue.”
- Premium: Premium revenue was approximately $6.6 billion for the second quarter of 2021, an increase of 51% compared to the second quarter of 2020. The higher premium revenue reflects increased organic membership in Medicaid, Medicare, and Marketplace, along with the impact of acquisitions that closed in the second half of 2020.
- Net income: Net income for the second quarter was $185 million, or $3.16 per diluted share, compared to $276 million, or $4.65 per diluted share in the second quarter of 2020. Adjusted net income for the second quarter was $199 million, or $3.40 per diluted share, compared to $285 million, or $4.79 per diluted share in the second quarter of 2020.
- MCR Ratio: The consolidated MCR for the second quarter was 88.4%, compared to 82.3% in the second quarter of 2020. The net effect of COVID increased the consolidated MCR by 110 basis points and impacted all three lines of business. In the prior year, the net effect of COVID decreased the consolidated MCR by approximately 350 basis points.
- G&A ratio: The G&A ratio for the second quarter was 7.1%, compared to 7.5% for the second quarter of 2020. The adjusted G&A ratio for the second quarter was 6.9%, compared to 7.5% for the second quarter of 2020 reflecting disciplined cost management and the benefits of fixed cost leverage produced by substantial revenue growth.
- Future Goals: The Company now expects its full-year 2021 total revenue to be more than $26.0 billion, compared to the previous guidance of more than $25.0 billion, an increase of approximately 34% from the full year 2020. Premium revenue guidance is now expected to be more than $25.0 billion, compared to the previous guidance of more than $24.0 billion, an increase of approximately 37% from the full year 2020. The Company increased its full year 2021 adjusted earnings per share guidance to be no less than $13.25 per share, compared to the previous guidance of no less than $13.00.
