Molina Healthcare Reports 19% Revenue Growth to $40.7 Billion for Fiscal Year 2024

Molina Healthcare, Inc. reported significant financial growth for the fiscal year ending December 31, 2024, with total revenue reaching $40.7 billion, a 19% increase from $34.1 billion in 2023. Premium revenue also rose by 19%, amounting to $38.6 billion, driven by a combination of new Medicaid contracts, acquisitions, and organic growth. The company's net income for the year was $1.18 billion, or $20.42 per diluted share, compared to $1.09 billion, or $18.77 per diluted share, in the previous year. The medical care ratio (MCR) increased to 89.1%, up from 88.1% in 2023, reflecting higher medical costs associated with increased utilization and acuity among members.

Molina's membership grew to approximately 5.5 million members across 21 states, an increase from 5 million in 2023. This growth was partially offset by the loss of around 675,000 members due to Medicaid redeterminations. The company successfully executed several strategic initiatives, including the acquisition of Bright Health's California Medicare business and the launch of new health plans in Nebraska and California. Additionally, Molina secured new Medicaid contracts in states such as Florida, Michigan, and Texas, which are expected to contribute significantly to future revenue.

Operationally, Molina's Medicaid segment generated $30.6 billion in premium revenue, while the Medicare segment contributed $5.5 billion, reflecting a 33% increase from the previous year. The Marketplace segment also saw growth, with premium revenue rising to $2.5 billion. The company reported a general and administrative expense ratio of 6.7%, down from 7.2% in 2023, indicating improved operational efficiency. Molina's investment income increased by 5% to $452 million, further bolstering its financial position.

Looking ahead, Molina Healthcare aims for continued growth, targeting a revenue increase of 11% to 13% and earnings per share growth of 13% to 15% through 2027. The company plans to leverage its strong track record in winning government contracts and pursue additional acquisitions to enhance its market presence. However, it also faces challenges, including potential regulatory changes and the impact of Medicaid rate adjustments, which could affect its profitability and operational stability. The company remains committed to maintaining a strong capital foundation and enhancing its operational capabilities to navigate these uncertainties.