Reported about 18 hours ago
Molina Healthcare's stock dropped over 20% after the company reported disappointing third-quarter earnings, with adjusted EPS of $1.84 missing expectations significantly due to increased medical costs. The company's medical care ratio (MCR) was alarming at 92.6%, exceeding prior year figures and suggesting broader issues as many customers utilized their ACA plans. Concerns are mounting as federal subsidies that make ACA plans affordable are set to expire, possibly reducing enrollment and increasing costs for remaining clients. Molina's future hinges on stabilizing medical costs and adjusting their financial outlook for the upcoming quarter.
Source: YAHOO