Q2 2024 Molina Healthcare Inc Earnings Call Transcript
Key Points
- Molina Healthcare Inc (MOH) reported adjusted earnings per share of $5.86, in line with expectations.
- The company reaffirmed its full-year 2024 guidance with $38 billion in premium revenue and at least $23.50 in earnings per share.
- Medicare segment outperformed with an MCR of 84.9%, driven by favorable risk adjustment results and benefit adjustments.
- Marketplace segment performed better than expected with an MCR of 71.6%, benefiting from higher special enrollment period membership gains.
- The acquisition of ConnectiCare is expected to provide earnings accretion of $1 per share, adding to Molina's embedded earnings.
- Medicaid segment experienced higher medical cost pressure with an MCR of 90.8%, above the long-term target range.
- The second quarter included a one-time prior-year retroactive premium adjustment in California, negatively impacting results.
- Ongoing acuity shift due to Medicaid redeterminations led to slightly higher than expected medical costs in the legacy Medicaid portfolio.
- Operating cash flow for the first six months of 2024 was lower than the prior year due to the timing of corridor payments, CMS receipts, and taxes.
- The full-year consolidated MCR guidance increased slightly to 88.4%, driven by second-quarter performance in Medicaid.
Good morning, and welcome to the Molina Healthcare second quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Jeffrey Geyer, Head of Investor Relations. Please go ahead, sir.
Good morning, and welcome to Molina Healthcare's second-quarter 2024 earnings call. Joining me today are Molina's President and CEO, Joe Zubretsky, and our CFO, Mark Keim. A press release announcing our second quarter 2024 earnings was distributed after the market closed yesterday and is available on our Investor Relations website. Shortly after the conclusion of this call, a replay will be available for 30 days. The numbers to access the replay are in the earnings release. For those of you who listen to the rebroadcast of this presentation, we remind you that all of the remarks are made as of today, Thursday, July 25, 2024, and has not been updated subsequent to the initial earnings call.
On this call, we
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