Molina Healthcare reports 4Q loss on costs
Molina Healthcare Inc. posted a fourth-quarter loss Thursday on higher medical costs.
The company lost $4.5 million, or 18 cents per share, compared with profit of $14.8 million, or 55 cents per share, during the same period a year prior. Revenue rose 19 percent to $964.2 million from $812.5 million.
Analysts polled by Thomson Reuters expected a loss of 16 cents per share on revenue of $961.1 million.
Expenses rose 23 percent to $967.9 million, driven mainly by rising medical costs. The medical care ratio was rose to 86.8 percent from 84.8 percent. The medical care ratio is the percentage of premiums paid to cover medical claims.
For the full year, the company earned $30.9 million, or $1.19 per share, after profit of $59.6 million, or $2.15 per share, in 2008. Revenue rose to $3.67 billion from $3.11 billion.
Looking ahead, the company expects 2010 profit of about $1.50 per share on $3.9 billion in revenue. [Read the full article]
Ladies and gentlemen, thank you for standing by. Welcome to the Molina Healthcare fourth quarter earnings conference call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. (Operator instructions) As a reminder this conference is being recorded, Thursday February 11, 2010. I would now like to turn the conference over to Juan José Orellana, Vice President of Investor Relations. Please go ahead, sir. Thank you, Todd. Hello everyone, and thank you for joining us. The purpose of this call is to discuss Molina Healthcare financial results for the fourth quarter and year ended December 31, 2009. The company earnings release reporting its results was issued today after the market closed, and it is now posted for viewing on our company website. On the call with me today are Dr. Mario Molina, our CEO; John Molina, our CFO; Terry Bayer, our COO; Dr. [Read the full article]
Health insurer WellPoint blames the Great Recession and rising medical costs for its planned 39 percent rate increase for some California customers. To President Barack Obama, however, it’s Exhibit A in his campaign to revive the health care overhaul.
Health and Human Services Secretary Kathleen Sebelius, who received the company’s explanation in a letter Thursday, said “it remains difficult to understand” how premium increases of that size by can be justified when WellPoint Inc. reported a $2.7 billion profit in the last quarter of 2009.
“This is a stark illustration of what the status quo means for American families,” said White House spokesman Reid Cherlin. [Read the full article]
The insurer HealthSpring said Friday it entered into a new $350 million credit facility and took around $7 million in charges for ending its previous agreements before they matured.
That is expected to reduce its annual profit by about 7 cents per share, leaving it with earnings of about $2.18 to $2.43 per share. It had forecast a profit of $2.25 to $2.50 per share.
The credit facility consists of $175 million in five-year term loans, and a $175 million credit facility that will last for four years. HealthSpring said it drew $25 million from the four-year credit facility at closing.
HealthSpring Inc. said it used borrowings under the old credit facility, along with cash on hand, to pay back $237 million in debt. That agreement was scheduled to mature on Oct. 1, 2012.
Copyright © 2010 The Associated Press. All rights reserved. [Read the full article]