Molina Healthcare Exits Obamacare Exchanges in Two States, Experiences $230 Million Loss

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Molina Healthcare Exits Obamacare Exchanges in Two States, Experiences $230 Million Loss

Molina Healthcare has announced it is exiting the Obamacare exchanges in Utah and Wisconsin and has experienced a $230 million loss in the second quarter of 2017.

In the remaining Obamacare exchanges, the health insurer is planning to increase premiums by 55 percent next year, which will account for the loss of cost-sharing reduction subsidies. If the program was funded, premiums would only increase by 30 percent.

"We are disappointed with our bottom-line results for this quarter and have taken aggressive and urgent steps to substantially improve our financial performance going forward," said Joseph White, chief executive and financial officer of the company.

"Following a thorough review of our business operations, we have begun to implement a Company-wide restructuring plan that we expect will reduce annualized run-rate expenses by between $300 million and $400 million by late 2018 when fully implemented."

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