Molina reports $100 million year-over-year drop in profits i

Molina reports $100 million year-over-year drop in profits in 2020


Molina reports $100 million year-over-year drop in profits in 2020
Sipa USA via AP
Molina Healthcare reported a $100 million year-over-year drop in profits in 2020, with a rise in COVID-19 costs, acquisition expenses and the extension of the risk-sharing corridors during the public health crisis cutting into the Long Beach, Calif.-based insurer's bottom line.
During the fourth quarter ended Dec. 31, Molina reported $34 million in profits, down nearly 80% from the $168 million generated in the prior-year period. The payer's profits dipped to $673 million at year's end, down 8% from the $737 million reported for 2019.
CEO Joe Zubretsky said California, Michigan and Ohio all submitted surprise risk-sharing payments to CMS in December, which added a $400 million expense to the insurer's bottom line. For the year, the company incurred $565 million in risk-sharing corridor expenses. As more people get vaccinated, and the public health emergency subsides, Zubretsky said more people will return to doctor's offices, and the uptick in utilization will cause a decline in these expenses. Right now, the lack of utilization also impacted the company's ability to collect risk scores.

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