Molina Healthcare (MOH) 8-K/A Regulation FD Disclosure

See

cautionary language regarding the Company’s guidance and other forward-looking statements.

300K

300K

321K

253K

0

100

200

300

400

'04

'05

'06 E

'07 E

86.2%

88.0%

86.2%

83.7%

50%

69%

88%

107%

California excluding Dual Eligibles

Membership

(in thousands)

Opportunities:

In 2007 a one percent change in the MCR changes

medical costs by $3.6M (

$0.07 -$0.08 EPS).

Guidance includes only a 1.75% rate increase.

Utilization is well managed.

Re-contracting efforts have shown success in the

second half of 2006.

Excess clinic capacity can reduce capitation expense.

Challenges:

Termination of certain contracts may decrease enrollment.

Guidance assumes savings of $7.4M (

$0.16 EPS) as the

MCR drops  from anticipated 2006 levels to approximately

86.2%.

Most savings will need to come from contracting.

Projected decrease in MCR may be difficult to achieve

with limited premium increases.

Medical Care Ratio

~

~

~

~