Molina Healthcare 8K Updates Fiscal Year 2013 Guidance | MOH 21 Feb 13

Investor Day 2013A

February 21, 2013

New York, New York

Exhibit 99.2

Cautionary Statement

Safe

Harbor

Statement under the Private Securities Litigation Reform Act of 1995:

presentation and

our

accompanying

oral

remarks

contain

numerous

“forward

looking

statements”

regarding,

without

limitation:

our

short-term

and

long-term

revenue,

membership,

and

profitability

growth

projections;

market opportunities across all of our health plans related to dually eligible members, to the Affordable Care

Act

Medicaid

expansion,

and

the

insurance

exchanges

marketplaces; the

New

Mexico

Centennial

Care

program

and

the

Florida

Long

Term

Care

program; duals

and

ABD

opportunities

Illinois;

our

capital

requirements and potential financing sources; benefit expansions

in California and Utah; rate changes

expected in

2013; our

2013

financial

guidance; and

various

other

matters. All

our

forward-looking

statements are subject to numerous risks, uncertainties, and other factors that could cause our actual results

differ

materially. Anyone

viewing

listening

this

presentation

urged

read

the

risk

factors

and

cautionary

statements

found

under

Item

our

annual

report

Form

10-K,

well

the

risk

factors

and

cautionary

statements

our

quarterly

reports

and

our

other

reports

and

filings

with

the

Securities

and

Exchange

Commission

and

available

for

viewing

its

website

www.sec.gov.

Except to

the

extent

otherwise

required by

federal

securities

laws,

not

undertake

address or update forward-looking

statements

future

filings

communications

regarding

our

business

operating

results.

2013 Molina Healthcare, Inc.

This slide

2013 Molina Healthcare, Inc.

Today

Approx. Time

Topic

Speaker

2013 Molina Healthcare, Inc.

Juan José

Orellana, VP Investor Relations

Opening Remarks

12:30pm-12:35pm

1:45pm-2:00pm

12:35pm-1:10pm

1:10pm-1:45pm

2:00pm-2:15pm

2:15pm-2:45pm

2:45pm-3:05pm

3:05pm-3:50pm

3:50pm-4:30pm

4:30pm

Business Overview

Operations Review

Q&A

Break

Financial Discussion

Q&A

Financial Discussion

Q&A

End of Program

Dr. J. Mario Molina, Chief Executive Officer

Terry Bayer, Chief Operating Officer

Joseph White, Chief Accounting Officer

John Molina, Chief Financial Officer

Business Overview

J. Mario Molina, M.D.

President & Chief Executive Officer

February 21, 2013

New York, New York

Our Mission

To provide quality health services to financially

vulnerable families and individuals covered by

government programs.

2013 Molina Healthcare, Inc.

Strategic Intent

Our goal over the next three years is to increase the

annual revenue of the company from $6 billion to

$12 billion, while increasing profitability and

establishing a reputation as the premier health care

organization serving low-income persons served by

government programs.

2013 Molina Healthcare, Inc.

Non-risk fee based fiscal agent

services, business process

outsourcing, and care and

utilization management.

What Makes Us Unique

Risk-based health plan

outsourcing for Medicaid and

other government programs.

We are a multistate healthcare organization with broad capabilities focused exclusively on

government-sponsored

healthcare

programs

for

low

income

individuals

and

families.

Company owned or company

operated primary care

community clinics.

Managed Care

Health Plans

Medicaid Health

Information Mgmt.

Healthcare

Direct

2013 Molina Healthcare, Inc.

No other company in the Medicaid space can do all three

1.8 million members

Our Markets (4Q2012)

Business Snapshot

Californ

336

(18

clinics)

New

Mexico

91k

clinics)

Wiscons

46k

Michiga

220

Florida

73k

clinics)

Idaho

MMI

Utah

87k

Washing

ton

418

clinics)

Texas

282

W Virginia

MMIS

Ohio

244

Louisiana

MMIS

Maine

MMI

New Jersey

MMIS

Virgini

Direct

Delive

clinics)

75% TANF

15% ABD

8% CHIP

2% Medicare

Membership Profile

2013 Molina Healthcare, Inc.

Strategic decision to focus exclusively on government

programs

Capabilities in managed care, fiscal agent and direct

delivery

Diversification: balance between mature and

expanding markets

Market presence in key Medicaid markets

Management continuity

Main Elements of our Business Model

2013 Molina Healthcare, Inc.

Managed through difficult operating environment in

California, Texas, and Wisconsin

Revenues grew by $1.3 billion

Enrollment grew by an additional 100,000

Successful in Medicaid contract bids in Ohio and

Washington

Selected for Medicare Medicaid Plan (duals) contracts

in California, Ohio, and Illinois

Earned CMS certification for MMIS system in Idaho

2012 Performance Summary

2013 Molina Healthcare, Inc.

State finances in fiscal 2013 are

modestly recovering in step with

the slowly improving national

economy.

MCOs are becoming

increasingly focused on vertical

integration with providers.

Robust pipeline as States expand

service areas, increase eligibility

groups, and increasingly turn

over the most costly members to

managed care.

Medicaid and government

focused businesses are highly

valued for their growth potential.

Bad for investment income, good

for borrowing.

Affordable Care

Act

Expansion of Medicaid in several

states represents a strong

tailwind for pure-play Medicaid

competitors.

Growth in the Medicaid addressable market and greater adoption of

Medicaid managed care

Business Environment & State of the Industry

Direct Delivery

Competition

Low Interest

Rates

State Fiscal

Conditions

Medicaid & Dual

Eligible RFPs

photo: sacbee.com

photo: cnn.com

2013 Molina Healthcare, Inc.

2013 Molina Healthcare, Inc.

Mature Markets: high

managed care

penetration,

TANF

Examples:

California

Michigan

Management Priorities:

Actively manage margins

Efficiently gain market

Administrative cost

efficiency

2. Expanding Markets:

new regions, for

existing products

Examples:

Texas

Washington

Management Priorities:

Gain profitable market

Network re-contracting

Leverage existing

infrastructure

3. New Market/New

Products: duals,

marketplaces, carve-

ins

Examples:

California

Illinois

New Mexico

Management Priorities:

Invest in support

infrastructure

Build/Buy domain

experience

Three environmental factors have converged, each requiring different management priorities.

Business Environment and State of the Industry

2013 Molina Healthcare, Inc.

States are exhibiting new programmatic purchasing trends

State Customer Purchasing Trends

Inclusion or exclusion of separate specific

services from a general Medicaid contract

Carve-Ins & Carve Outs

Care Management

Required care management programs

based on nationally recognized and

accepted evidence-based clinical protocols

Complex Patients

Financial Measures

Focus on Quality

Migration of higher cost patients such as

the duals into managed care

Increasing the use of financial measures

such as MCR floors, profit limits, P4P

programs

Greater focus on quality measured by

NCQA accreditation, Star ratings, HEDIS,

CAPHS

2013 Molina Healthcare, Inc.

Listening to Our State Customers

RFP Award Date

8/2011

4/2012

6/2012

8/2012

11/2012

2/2013

Program Type

Star

Star+

PLUS

CHIP

Duals

TANF

ABD

Duals

ABD

TANF

ABD

LTC

Total Covered

Population

3.4M

122K

1.6M

48K

38K

735K

35K

Effective Date

3/2012

6/2013

7/2013

9/2013

Summer 2013

(ABD)

Winter 2013

(Duals)

1/2014

12/2013

State contract wins (trailing 18 months)

2013 Molina Healthcare, Inc.

Estimated potential

revenue run-rate by 2015 as a result of duals and Medicaid expansion

Please refer to the Company’s cautionary statements.

Long Term Incremental Growth Drivers

Duals

Current

Health Plan

Business

~$6B

~$4B

ACA

~$12B

Total

Duals denotes revenue potential for dual eligibles in CA, MI, OH, IL, WA and TX.

ACA denotes revenue potential as a result of Medicaid expansion in CA, MI, OH, NM, UT, WA, WI; and exchanges in CA, FL, MI, NM, OH, TX, UT, WA, WI.

~$2B

2012

2015

2013 Molina Healthcare, Inc.

Medicaid

& CHIP

Marketplaces

Employer

Non-group

& Other

Uninsured

Estimated Changes in Insurance Coverage by 2022*

March 2012 Baseline

July 2012 Estimate Incorporating

SCOTUS Decision on ACA

February 2013 Estimate Update

U.S. Medicaid Coverage Estimates

17M

22M

(3M)

(3M)(3M)

(33M)

11M

25M

(4M)

(30M)

12M

26M

(7M)

(4M)

(27M)

* Source: Congressional Budget Office, “Estimates for the Insurance Coverage Provisions of the Affordable Care Act Updated for the Recent Supreme Court Decision.” July 2012.

1. The change in employment-based coverage is the net result of increases in cost and losses of offers of health insurance from employers and changes in enrollment by workers and their families.

2. Other includes Medicare; the effects of the ACA are almost entirely on non-group coverage .

2013 Molina Healthcare, Inc.

Medicaid Expansion

Where

States

Stand

Medicaid

Expansion

February

2013

Participating

Leaning Toward Participating

Undecided/No Comment

Leaning Toward Not Participating

Not Participating

Federal Government Will

Bear Nearly All Medicaid

Expansion

Costs Over 2014-2022

States’

$73 billion

(7%)

Source(s):

1. Center on Budget and Policy Priorities analysis of the Congressional

Budget

Office

March

2012

baseline.

www.Cbpp.org

http://www.advisory.com/Daily-Briefing/2012/11/09/MedicaidMap

2013 Molina Healthcare, Inc.

Federal

$931

billion

(93%)

2013 Molina Healthcare, Inc.

Molina Healthcare will pursue entry into the health insurance

marketplaces in states where it currently has Medicaid

managed

care

contracts.

Requirement: State offers government-

subsidized products for low-income

persons(<250% of FPL) consistent with our

mission.

Be a partner with our state customers as they

manage the impact of the transition point

Extend our services to the low–income

uninsured who share many characteristics with

our low income population

134%

250%

(Health Insurance

Marketplace)

0 –

133% FPL

(Medicaid/CHIP)

Molina’s Participation in Health Insurance Marketplaces

2013 Molina Healthcare, Inc.

Membership by Product

2012

TANF/CHIP

83%

ABD &

Medicare

17%

Membership by Product

2008

TANF/CHIP

92%

ABD &

Medicare

1.3 Million Members

1.8 Million Members

Molina Has Experience With Complex Patients

Molina has added 173,000 Aged, Blind or Disabled members since 2008

Molina Market

Infrastructure

Mature Provider

Network

State Government

Program

TANF,

ABD,

CHIP

TANF,

ABD

TANF,

ABD,

CHIP

TANF,

ABD,

CHIP

TANF,

ABD,

CHIP

Federal Program

(Medicare SNP)

Direct Delivery

Presence

Existing Infrastructure Will Support Dual Eligible Patients

2013 Molina Healthcare, Inc.

2013 Molina Healthcare, Inc.

Pricing & Savings Targets for Duals

CMS Rate Setting Process

Guidance

Sample Aggregate Savings Targets

Under the Demonstrations

CMS Joint Rate Setting Process Under the Capitated Financial Alignment Initiative

Memorandum of Understanding (MOU) between CMS and the State of Ohio

Memorandum of Understanding (MOU) between CMS and the State of Massachusetts

Massachusetts

Not

a Molina State

MOU released August 2012

Ohio

Molina Selected for 3 Regions

MOU released December 2012

Savings targets may differ among

States with low historic Medicare

spending, low utilization of institutional

long-term care services, or a high

penetration of Medicaid managed care.

Savings percentages will be applied equally to the Medicaid and Medicare A/B components.

Rate updates will take place on January 1st of each calendar year.

Tailwinds & Headwinds

Medicaid expansion

Tailwinds

Footprint includes 4 out 5 largest

Medicaid Markets

Uniquely positioned to capture dual

eligible enrollment

Delayed State implementations

Headwinds

Industry tax

Medical cost pressure associated with

new contracts/populations

2013 Molina Healthcare, Inc.

2013 Molina Healthcare, Inc.

Mission

Priorities

Manage our growth

Organic growth

Medicaid expansion

Dual eligible population

RFPs

Leverage our business portfolio

Health plan business

MMS

Direct delivery

Strive for operational excellence

Quality Care

Star Ratings

Our Strategic Priorities

Our mission is to provide quality health

services to financially vulnerable

families and individuals covered by

government programs.

Margin Expansion

Operations Review

Terry Bayer

Chief Operations Officer

February 21, 2013

New York, New York

2013 Molina Healthcare, Inc.

Historical Revenue

2008-2012

Percent represents year over year increase (decrease)

Revenue

Total revenue up 26% over 2011

2013 Molina Healthcare, Inc.

+16%

+11%

+5%

+6%

Historical EOY Membership

2008-2012

Percent represents year over year increase (decrease)

Membership

Aggregate membership up 6% over 2011

1,256K

1,455K

1,613K

1,697K

1,797K

2008

2009

2010

2011

2012

2013 Molina Healthcare, Inc.

Quarterly MCR* 2011-2012

(2012 YE MCR 89.9%)

* Figures reflect medical care ratio net of premium tax

Quarterly Medical Care Ratio 2011-2012

Second Half 2012 improvement in MCR

California

Premium rate increase for

the ABD population

Approximately 2% rate

increase

retroactive to

July 1, 2011

Decrease in inpatient

utilization

California MCR* FY2012

* MCR net of premium tax

2013 Molina Healthcare, Inc.

2013 Molina Healthcare, Inc.

Texas

Effective March 1, 2012, Molina added three new service areas in

Texas. Medical care costs particularly among ABD patients in

Hidalgo and El Paso service area increased dramatically.

Remediation activities:

New President &

Management Team

Provider contract changes

–

Re-contracted at lower unit costs

–

Implementation of state required

fee schedules

–

Utilization management

Blended rate increase of

4% effective 9/1/2012

Molina Healthcare of Texas

Adjusted

Quarterly Medical Care Ratio 2012

1. Adjusted medical care ratio is estimated based upon retroactive adjustments

to revenue and medical cost for all quarters in 2012

Added new service

areas 3/1/2012

Molina Healthcare of Texas

Historical Enrollment Growth

2008-2012

2013 Molina Healthcare, Inc.

2013 Molina Healthcare, Inc.

Molina Selected To Expand Statewide in Ohio

In Q3 2013 Molina Healthcare will expand into 38 new counties.

* OH Molina members as of December 31, 2012

Ohio MCR 2008-2009

* MCR net of premium tax

2013 Expansion counties

Current service area

96%

92%

86%

84%

89%

New Molina Statewide Service

Area

1.6M eligibles (TANF+ABD)

2008

2009

2010

2011

2012

Source: Ohio Department of Job and Family Services

http://jfs.ohio.gov/rfp/JFSR1213078019/JFSR1213078019.stm

http://jfs.ohio.gov/ohp/bmhc/documents/reports/December2011

_CFC_Penetration-Enrollment.pdf

2013 Molina Healthcare, Inc.

Dayton

Columbus

Molina Selected To Serve Dual Eligibles in Ohio

Molina Healthcare will also participate in the 3-year dual eligibles

demonstration program in the Southwest, West Central, and

Central regions. Implementation is expected late 2013.

New Molina Integrated Care

Coordination Program Regions

45K Dual Eligible beneficiaries

West Central

Region

12k

Eligibles

Central

Region

16k

Eligibles

South West

Region

17k

Eligibles

Cincinnati

Source: Ohio Department of Job and Family Services

http://jfs.ohio.gov/rfp/JFSR1213078019/JFSR1213078019.stm

http://jfs.ohio.gov/ohp/bmhc/documents/reports/December2011_CFC_Penetration-

Enrollment.pdf

2013 Molina Healthcare, Inc.

Molina Selected for Centennial Care Contract in New Mexico

Molina will expand arranging for services beyond physical

and acute care by including behavioral health and long

term care, which were previously procured as separate

contracts

Approximately 735,000 beneficiaries

560,000 current Medicaid beneficiaries

Up to 175,000 individuals starting in 2014 (ACA)

Number of health plans reduced from 6 to 4

Effective January 1, 2014

In 2012, Molina’s contract in

New Mexico covered 90,000

New Mexicans and generated

$331 Million in premium

revenues.

Molina Healthcare of New Mexico selected

to participate in the

State’s Centennial Care plan (February 8, 2013)

1. Centennial Care: Ensuring Care for New Mexicans for the Next 100 Years and Beyond;

New Mexico Human Services Department; February 21, 2012

2013 Molina Healthcare, Inc.

New Opportunities in Florida –

Long Term Care Program

Molina will provide services to patients through the Florida

Statewide

Medicaid

Managed

Care

Long-Term

Care

(SMMC LTC) program

Regions awarded include Regions 5, 6 and 11

No change to price submission

Approximately 35,000 eligible members

Effective December 1, 2013

Molina Healthcare of Florida selected to provide health care

services to Long-Term Care patients (February 14, 2013)

1. Regions encompass Pasco, Pinellas, Hillsborough, Polk, Manatee, Hardee, Highland,

Miami-Dade, and Monroe counties

Historical IL Medicaid Enrollees

FY2006-2010

Illinois

ranks

the

largest

Medicaid

market

number

eligibles

Managed care penetration is less than 10%, at least 50% of

eligibles will be transitioned to managed care by 2015.

$ figures represent yearly Medicaid payments

2013 Molina Healthcare, Inc.

Why the Illinois Market?

Source:

http://www.medicaid.gov/Medicaid-CHIP-Program-Information/By-State/illinois.html

The Illinois Duals Opportunity

The Illinois Medicare-Medicaid Alignment Initiative (MMAI) is

expected to begin passive enrollment on 10/2013, with an

effective date of 1/2014.

2013 Molina Healthcare, Inc.

2013 Molina Healthcare, Inc.

The Illinois ABD Opportunity

Springfield

Decatur

Bloomington

Peoria

Central Illinois

15 Counties

13k

Eligibles

East St. Louis

3 Counties

Eligibles

Chicago

Illinois ABD for Central Illinois is expected to begin 6/2013 and

East St. Louis in 7/2013.

2013 Molina Healthcare, Inc.

2013 Molina Healthcare, Inc.

Duals –

What Are We Doing to Get Ready?

Dual Eligible

Readiness Review

Areas of Focus

Staffing capacity

and organizational

structure

Provider and

pharmacy

networks

Systems:

Claims,

Enrollment,

Payment, etc.

Person-first

services:

UM/Care

Coordination

Performance

and Quality

Improvement

Member

Protections

2013 Molina Healthcare, Inc.

2013 Molina Healthcare, Inc.

Duals –

Model of Care

Integrated

LTSS/Acute

And Rx

Care

Transition

Programs

Measuring

Improvements

Individualized

Care Plans

Medication

Reviews and

Medication

Therapy

Mgmt.

Interdisciplinary

Care Teams

Health Risk

Assessments

Care

Management

2013 Molina Healthcare, Inc.

2013 Molina Healthcare, Inc.

Q&A

2012 Results

John

Molina,

Chief

Financial

Officer

February 21, 2013

New York, New York

2013 Molina Healthcare, Inc.

Quarterly Results

Premium Revenue

Premium Tax Revenue

Service Revenue

Investment and Rental Income

Medical Care Costs

Medical Care Ratio

Service Costs

G&A Expense

G&A Ratio

Premium Tax Expense

Depreciation & Amortization

Operating Income

Interest Expense

Income Tax

Net Income

Diluted EPS

Weighted Average Diluted

Shares Outstanding

$1.5B

$38.0M

$55.4M

$5.2M

$1.3B

85.9 %

$43.1M

$153.4M

9.7 %

$38.0M

$16.3M

$54.1M

$4.3M

$24.5M

$25.6M

$0.54

47.1M

$1.2B

$44.0M

$49.2M

$2.2M

$1.0B

85.7 %

$39.0M

$125.0M

9.6 %

$44.0M

$12.1M

($16.1M)

$3.9M

$13.0M

($33.0M)

($0.72)

45.7M

Q4 2012

Q4 2011

Results for the quarter ended December 31, 2011 were affected by an impairment charge of $64.6 million related to the Company’s Missouri health plan.

Medical care ratio represents medical care costs as a percentage of premium revenue, net of premium taxes.

Computed as a percentage of total revenue.

2013 Molina Healthcare, Inc.

Year End Results

Premium Revenue

Premium Tax Revenue

Service Revenue

Investment and Rental Income

Medical Care Costs

Medical Care Ratio

Service Costs

G&A Expense

G&A Ratio

Premium Tax Expense

Depreciation & Amortization

Operating Income

Interest Expense

Income Tax

Net Income

Diluted EPS

Weighted Average Diluted

Shares Outstanding

$5.7B

$159.0M

$187.7M

$14.6M

$5.1B

89.9 %

$141.2M

$532.6M

8.8 %

$159.0M

$63.7M

$35.5M

$16.8M

$9.3M

$9.8M

$0.21

47.0M

$4.4B

$154.6M

$160.4M

$6.0M

$3.9B

86.8 %

$144.0M

$415.9M

8.7 %

$154.6M

$50.7M

$80.2M

$15.5M

$43.8M

$20.8

$0.45

46.4M

2012

2011

Results for the year ended December 31, 2011 were affected by an impairment charge of $64.6 million related to the Company’s Missouri health plan.

Medical care ratio represents medical care costs as a percentage of premium revenue, net of premium taxes.

Computed as a percentage of total revenue.

Earnings Margin 2006-2012

EBITDA Margin

H1N1 Flu

Excluding

Texas and

Missouri

After Tax Margin

Excluding

Missouri

write-down

TX & OH

Startup

H1N1 Flu

Excluding

Texas and

Missouri

Excluding

Missouri

write-down

TX & OH

Startup

1. P denotes results excluding Missouri write-down in 2011, and Texas and Missouri operations in 2012

2013 Molina Healthcare, Inc.

Long-Term Growth Update

John

Molina,

Chief

Financial

Officer

February 21, 2013

New York, New York

2013 Molina Healthcare, Inc.

Estimated potential

revenue run-rate by 2015 as a result of duals and Medicaid expansion

Please refer to the Company’s cautionary statements.

Long Term Incremental Growth Drivers

Duals

Current

Health Plan

Business

~$6B

~$4B

ACA

~$12B

Total

Duals denotes revenue potential for dual eligibles in CA, MI, OH, IL, WA and TX.

ACA denotes revenue potential as a result of Medicaid expansion in CA, MI, OH, NM, UT, WA, WI; and exchanges in CA, FL, MI, NM, OH, TX, UT, WA, WI.

~$2B

2012

2015

2013 Molina Healthcare, Inc.

Dual Eligibles Market Opportunity

State

Dual

Eligibles

Statewide

Estimated

Potential

Enrollment

Estimated

PMPM

Revenue

Annualized

Potential

Revenue

California

527K

392K

61K

$2,600

$1.9B

Ohio

115K

48K

24K

$2,600

$0.7B

Illinois

156K

18K

$2,600

$0.3B

Michigan

199K

62K

31K

$2,600

$1.0B

Washington

115K

40K

20K

$2,600

$0.6B

Texas

214K

160K

80K

$2,600

$2.5B

Total

1.3M

720K

225K

$2,600

$7.0B

Potential impact of delays in implementation, reduced Molina market share

or reductions in covered individuals

Estimated Total Revenue

$4.0B

Please refer to the Company’s cautionary statements.

Dual Eligibles

in Molina

Service Areas

($3.0B)

Source: Company estimates, figures may not add due to rounding.

Based on 50% market share in Molina Service areas and counties in Ohio, Illinois, Michigan, Texas and Washington. In California assumes 50% market share in San Diego, Riverside and San Bernardino markets. Membership projections exclude LA county

Assumes a $2,600 premium based on Ohio Medicaid dual eligibles premiums, estimated Medicare premiums and assumes 40% opt out of Medicare.

2013 start date

2014 Start date

2013 Molina Healthcare, Inc.

Medicaid Expansion Opportunity

State

Expansion

Eligibles in

Medicaid

Managed Care

Molina’s

Estimated

Enrollment

Estimated

Premium

PMPM

Annualized

Potential

Revenue

California

100K

$155

$185M

Florida

not included

Michigan

500K

100K

$215

$260M

New Mexico

100K

30K

$310

$110M

Ohio

500K

145K

$375

$650M

Texas

not included

Utah

125K

40K

$240

$115M

Washington

250K

125K

$230

$345M

Wisconsin

125K

15K

$130

$20M

Total

2.6M

555K

$ 1.7B

Please refer to the Company’s cautionary statements.

Source: Company estimates, figures may not add due to rounding.

Based on Molina’s current TANF and ABD premium

2013 Molina Healthcare, Inc.

State

Number of

Marketplace

Members in

Molina Markets

Molina’s

Estimated

Marketplace

Enrollment

Estimated

Premium

PMPM

Annualized

Potential

Revenue

California

1.4M

28K

$136M

Florida

546K

26K

$400

$122M

Michigan

246K

35K

$400

$87M

New Mexico

63K

$400

$19M

Ohio

264K

22K

$400

$106M

Texas

693K

66K

$400

$319M

Utah

87K

$400

$22M

Washington

266K

30K

$400

$14M

Wisconsin

76K

20K

$400

$54M

Illinois

not included

Total

3.6M

236K

$0.9B

Potential impact of delays in implementation, reduced Molina market

share or reductions in covered individuals

($0.3B)

Estimated Total Revenue

$0.6B

Marketplace Opportunity

Source: Company estimates, figures may not add due to rounding.

Please refer to the Company’s cautionary statements.

$400

Convertible Debt

Joseph

White,

Chief

Accounting

Officer

February 21, 2013

New York, New York

2013 Molina Healthcare, Inc.

$550M Convertible Debt Offering

Please refer to the Company’s cautionary statements.

Convertible Debt

$550M

Pay Down Revolver

($40M)

Pay Down Existing Notes

($187M)

Share Repurchase

($50M)

Call Spread

($74M)

Fees

($17M)

Balance from Proceeds

$182M

Sources and Uses

$550M Convertible Debt

Underlying shares (13.5 million)

1.125% coupon ($ 0.07 2013

EPS)

32.5% conversion ($40.77 per

share)

75.0% high call ($53.85 per

share)

Cash Settle

Maturity 1/15/2020

GAAP interest rate 6% ($0.21

2013 EPS related to non cash

interest expense)

$550,000,000

February 2013

1.125% Convertible Senior Notes due 2020

Interest payable January 15 and July 15

2013 Molina Healthcare, Inc.

Why a Convert?

Financing

Considerations

High Yield

Debt

Convertible

Debt

Equity

Coupon

High

Low

None

Dilution

None

Limited

High

Speed of execution

Slow

Fast

Moderate

$550,000,000

February 2013

1.125% Convertible Senior Notes due 2020

Interest payable January 15 and July 15

2013 Molina Healthcare, Inc.

MOH Convertible Note

We have issued debt with a 1.125%

coupon

We will pay additional cash if our

share price exceeds $40.77

(on 13.5

million shares)

We have bought a bond hedge

requiring counter parties to pay us the

amount we pay to the note holders in B

above

We must issue shares to the bond

hedge counter parties to make them

whole above a share price of $53.85

What Have We Done?

Convert –

Key Share Prices

Share Price

2/11/2013

Convertible

Price/Low Strike

Convertible

Price/High Strike

$30.77

$40.77

$53.85

32.5%

75%

2013 Molina Healthcare, Inc.

MOH Convertible Note Settlement

Note

Holders

2013 Molina Healthcare, Inc.

Underlying

13.5

million

Conversion

price

(low

strike)

$40.77

High Strike -

$53.85

Example : Share Price < $40.77

At Maturity

Share Price

Conversion Price

$550M

Principal Payment

MOH Convertible Note Settlement

Note

Holders

Bond Hedge

Counter

Parties

* 13.5 million underlying shares x $5 per

share ($45.77 market price less $40.77

conversion/low strike)

At Maturity

Price

Conversion

Price

but

High

Strike

Example

Price

$45.77

($5

above

low

strike)

Underlying

13.5

million

Conversion

price

(low

strike)

$40.77

High

Strike

$53.85

$550M

Principal Payment

$67.5M*

Conversion Premium

$67.5M*

Bond Hedge

(Cash Settlement)

Settlement

2013 Molina Healthcare, Inc.

2013 Molina Healthcare, Inc.

MOH Convertible Note Settlement

Note

Holders

Bond Hedge

Counter

Parties

*13.5 million underlying shares x $18.08 per share

($58.85 market price less $40.77 conversion/low

strike)

** $67.5 million (13.5 million underlying shares x $5 per

share( $58.85 market price less $53.75 high strike

price) divided by market price ($58.85)

2013 Molina Healthcare, Inc.

Underlying

13.5

million

Conversion price (low strike) -

$40.77

High Strike -

$53.85

Example : Share Price $58.85 ($5 above

high strike)

At Maturity

$550M

Principal Payment

$244M*

Conversion Premium

(Cash Settlement)

$244M*

Bond Hedge

Settlement

1.15M

MOH Common Stock**

Share Price

High Strike

2013 Molina Healthcare, Inc.

<$40.77

>$53.85

MOH Convertible Note Settlement

MOH share price $40.77

$40.77 MOH Share Price

$53.85

MOH Share Price

$53.85

Pay Principal

+ Cash Value of Shares

greater than $40.77

Settle hedge; receive cash

value of share price in

excess of $40.77

Issue shares at $53.85

Pay Principal +

+ Cash Value of Shares

greater than $40.77

Settle hedge; receive

cash value of share

price in excess of

$40.77

No Action

Pay principal

Note

Bond

Hedge

Warrant

No Action

2013 Molina Healthcare, Inc.

Value of convertible

debt at date of

issuance (with both

debt and option

components)

Value of debt component

at date of issuance, based

on present value of cash

flows

Value of option

component at date of

issuance

GAAP requires that convertible debt be bifurcated into:

A “vanilla”

debt component; and a

Derivative option component representing the value of the conversion feature.

•

For cash settled convertible debt the derivative is classified as a liability.

Accounting For Convertible Debt

Why 6% of interest expense for a 1.125% coupon sold at par?

2013 Molina Healthcare, Inc.

Accounting For Convertible Debt

Why 6 % of interest expense for a 1.125% coupon sold at par?

Value of convertible

debt at date of

issuance (with both

debt and option

components)

Value of debt component

at date of issuance, based

on present value of cash

flows

Value of option

component at date of

issuance

Value of the debt component is based on NPV of cash flows (principal plus interest)

Interest rate is estimate of what Molina would pay on similar non-convertible debt

The

debt

component

recoded

the

balance

sheet

net

debt

discount.

That discount is written off (the amount of the debt component is increased) over

time by the recognition of non-cash interest expense.

Non-cash interest expense will reduce EPS by an estimated $0.21 in 2013.

Value of the option based derivative liability is determined by subtracting the value of the

debt component from the value of the convertible at date of issuance.

The derivative liability will be matched by an asset derivative representing Molina’s right to

collect on the bond hedge.

Both derivatives (asset + liability) will be marked to market quarterly.

Funding Our Growth

John Molina,

Chief Financial Officer

February 21, 2013

New York, New York

2013 Molina Healthcare, Inc.

Capital Needs

Current regulatory

requirements

Future (anticipated) regulatory

requirements in currents

and new states

Capital demands on health plans in the event of losses

Costs of acquisitions and other expansions

Costs of MMS implementations in new and existing states

Costs of infrastructure

$6B

Revenues are

estimated to reach

$12B by 2015 as a

result of duals and

Medicaid expansion

2012

2015

Please refer to the Company’s cautionary statements.

$12B

2013 Molina Healthcare, Inc.

Sources of Capital

Current excess net worth

Issuance of securities –

debt

equity

convertible

Future earnings

Alternative Financing –

sale and lease back

capital leases

structured co-insurance or structured quota share

Please refer to the Company’s cautionary statements.

2013 Molina Healthcare, Inc.

Estimated regulatory capital at 12/31/12

approximately $0.5B; compared to a

requirement of approximately $0.3B.

1. Denotes estimated required regulatory capital for 12/31/12

2. Excess assumes actual regulatory capital as of 12/31/12

Regulatory Capital and Requirements

$0.3B

$0.2B

Excess

Regulatory

Capital

$0.5B

Surplus regulatory capital will support

$2.8B

incremental

revenue

$5.7B

$2.8B

Growth Capacity

with Existing

Regulatory

Capital

Current

Revenue

$8.5B

Required minimum net worth on average is 7% of revenue

Please refer to the Company’s cautionary statements.

Regulatory Capital

Growth Capacity

Required

Regulatory

2013 Molina Healthcare, Inc.

Issuance of securities

Convertible Debt………………

$550M

Pay Down Revolver…….………

($40M)

Pay Down Existing Notes……....

($187M)

Share Repurchase.……………..

($50M)

Call Spread……………………..

($74M)

Fees…………………………….

($17M)

Balance from Proceeds………...

$182M

On February 11, 2013, we issued $550M convertible notes

Please refer to the Company’s cautionary statements.

Net proceeds from convertible debt issuance supports $2.6 billion of revenue

Required minimum net worth on average is 7% of revenue

2013 Molina Healthcare, Inc.

Summary of Growth Capacity

Current required capital

$0.3B

$0.2B

$0.8 -

$1.1B

$5.7B

$2.8B

$2.6B

$13B -

$17B

Required minimum net worth on average is 7% of revenue

Current excess capital

Proceeds from convertible

Retained earnings @ 0.5%*

Retained earnings @ 1.0%*

Retained earnings @ 1.5%*

$0.1B

* Retained earnings @ % of net income margin, each 0.5% equates to $0.1B

Capital

$2.0B

Current Revenue

Capacity

Revenue capacity dependent

on profitability

Please refer to the Company’s cautionary statements.

Revenue Growth Capacity

2013 Molina Healthcare, Inc.

Alternative Financing

Sale and lease back

Capital leases

Structured co-insurance or structured quota

Please refer to the Company’s cautionary statements.

2013 Molina Healthcare, Inc.

Why We Might Want To Raise More Capital?

Acquisitions

Capital expenditures

Variability in profitability

Timing

New benefits

Growth above expectations

Desire for capital cushion (e.g. debt covenant and rating

agencies)

Regulatory capital in excess of minimum requirements

Regulatory requirements in advance of premium receipts

Please refer to the Company’s cautionary statements.

2013 Molina Healthcare, Inc.

Q&A

Guidance

John Molina,

Chief Financial Officer

February 21, 2013

New York, New York

2013 Molina Healthcare, Inc.

2013 Guidance

Premium Revenue

Premium Tax Revenue

Service Revenue

Investment and Other Income

Total Revenue

Medical Care Costs

Medical Care Ratio

Service Costs

G&A Expense

G&A Ratio

Premium Tax Expense

Depreciation & Amortization

Operating Income

Interest Expense Excluding Non-Cash

Interest Expense Non-Cash

Income Before Tax

Income Tax

Net Income

Weighted Average Diluted Shares Outstanding

Diluted EPS

EBITDA

$6.7B

$160M

$200M

$13M

$7B

$5.9B

88%

$170M

$600M

8.6%

$160M

$78M

$157M

$18M

$24M

$115M

$48M

$67M

46.1M

$1.45

$255M

Please refer to the Company’s cautionary statements.

Note(s):

1. Denotes guidance. Amounts are estimates and subject to change. Actual results may differ materially. See cautionary statement.

2. EBITDA includes approximately $20 million in depreciation and amortization recoded in service revenue and service costs related to our Molina Medical Solutions segment.

2013 Molina Healthcare, Inc.

2013 Guidance

Includes

Convertible Notes

Convertible Non-Cash Interest ($0.21) EPS

Product and Market Expansions

California & Ohio Dual Integration start up second half of year

Illinois ABD and California ABD expansion start up second half of year

Negligible rate increases

Additional administrative costs required to prepare for growth:

Ramp up for New Mexico Expansion (Implementation & Operations)

Illinois ABDs (Implementation & Operations)

California & Ohio Dual Integration programs (Implementation & Operations)

Implementation

costs for Florida LTC, Market Place, Medicaid Expansion and Duals

Integration in states other than California & Ohio

42% Effective Tax Rate

Anticipated Resolution of California AB 97 rate cuts

Excludes

Acquisitions

Operational ramp up

costs for Florida LTC, Market Place, Medicaid Expansion, and

Duals Integration in states other than California & Ohio

Rate impact of PCP parity rules

Anticipated Settlement for California rate disputes

Please refer to the Company’s cautionary statements.

2013 Molina Healthcare, Inc.

2013 Guidance: Issued 2/7/13 and 2/21/13

Premium Revenue

Premium Tax Revenue

Service Revenue

Investment and Other Income

Total Revenue

Medical Care Costs

Medical Care Ratio

Service Costs

G&A Expense

G&A Ratio

Premium Tax Expense

Depreciation and Amortization

Operating Income

Interest Expense Excluding Non-Cash

Interest Expense Non-Cash

Income Before Tax

Income Tax

Effective Tax Rate

Net Income

Weighted Average Diluted Shares Outstanding

Diluted EPS

EBITDA

Issued

2/7/13

$6.7B

$160M

$200M

$13M

$7B

$5.9B

88%

$170M

$600M

8.6%

$160M

$78M

$146M

$11M

$6M

$128M

$54M

42%

$74M

47.7M

$1.55

$245M

Please refer to the Company’s cautionary statements.

Issued

2/21/13

$6.7B

$160M

$200M

$13M

$7B

$5.9B

88%

$170M

$600M

8.6%

$160M

$78M

$157M

$18M

$24M

$115M

$48M

42%

$67M

46.1M

$1.45

$255M

Note(s):

Denotes

guidance.

Amounts

are

estimates

and

subject

change.

Actual

results

may

differ

materially.

See

cautionary

statement.

2. EBITDA includes approximately $20 million in depreciation and amortization recoded in service revenue and service costs related to our Molina Medical Solutions segment.

2013 Molina Healthcare, Inc.

Note(s):

Denotes

guidance.

Amounts

are

estimates

and

subject

change.

Actual

results

may

differ

materially.

See

cautionary

statement.

The

upsizing

the

Company’s

convertible

note

offering

from

the

$375

million

anticipated

launch

the

ultimate

amount

$550

million

resulted

The

upsizing

the

Company’s

convertible

note

offering

from

the

$375

million

anticipated

launch

the

ultimate

amount

$550

million

resulted

Increase in Revenue

Convertible Debt Issuance:

Convertible Coupon Interest

Convertible Non-Cash Interest

Incremental Interest Income (assumes 40bps investment income )

Other Fees and Costs

Impact of Share Buy Back

Subtotal -

Impact of Convertible Debt Issuance

2013 Guidance Issued 2/7/13

Revised 2013 Guidance

Pretax

EPS

$10.4M

($5.4M)

($17.0M)

$1.2M

($1.6M)

($22.8M)

$128M

$115M

$1.55

$1.45

$0.13

($0.07)

($0.21)

$0.02

($0.02)

$0.06

($0.23)

Total Change

($12.4M)

($0.10)

Add: Non-Cash Interest Expense related to New Convertible Debt

$17M

$0.21

Guidance excluding New Convertible Debt Non Cash Interest

$132M

$1.66

Please refer to the Company’s cautionary statements.

Guidance Bridge*

in incremental coupon interest of approximately $0.03 per diluted share for all of 2013.

in incremental non cash interest costs of approximately $0.07 per diluted share for all of 2013.

2013 Molina Healthcare, Inc.

Membership Growth

By year end we expect 2.0 million

members as a result both organic

growth and expansion into new

products and markets

Membership

2012

1.8M

members

New

Products &

Markets

Organic

Expansion

Organic

Growth

2013

2.0M

members

CA ABDs,

MI & OH

ABD Kids,

WI regions

CA & OH Duals,

IL ABDs

Please refer to the Company’s cautionary statements.

Note(s):

1. Denotes

guidance.

Amounts

are

estimates

and

subject

change.

Actual

results

may

differ

materially.

See

cautionary

statement.

2013 Molina Healthcare, Inc.

2013 Benefit Expansions

Please refer to the Company’s cautionary statements.

California

carved

Long

Term

Care

(LTC)

and

Home

Support

Services

(IHSS)

starting

9/1/13

Utah carved in the Pharmacy

Benefit

effective 1/1/13

Note(s):

1. Denotes

guidance.

Amounts

are

estimates

and

subject

change.

Actual

results

may

differ

materially.

See

cautionary

statement

2. Members will be rolled in the LTC and IHSS programs on their birth date.

UT Rx Carve In

CA LTC & IHSS Carve In

2013 Estimated Revenue

$30M

$70M

��

2013 Molina Healthcare, Inc.

Rate changes included in 2013 Guidance

Please refer to the Company’s cautionary statements.

State

2013

Rate Change

1, 2, 3

California

various

(3%)

Florida

n/a

None

Michigan

n/a

None

New Mexico

Jan-13

Ohio

Jan-13

Texas

various

Utah

Jan-13

(16%)

Washington

n/a

None

Wisconsin

Jan-13

Denotes

estimated

rate

changes

included

2013

guidance.

Amounts

are

estimates

and

subject

change.

Actual

results

may

differ

materially.

See

cautionary

statement.

2013 rates do not reflect potential rate changes as a result of PCP parity rules.

Does not include impact of risk adjustments.

Note(s):

2013 Molina Healthcare, Inc.

Admin Spend Investment is required to prepare for growth

Our FY 2013 guidance assumes

administrative costs are expected to be

600M or 8.6%

of total revenues

Administrative Costs

2013

Operational Costs

(CA, OH Duals, IL

ABD, NM)

Implementation

Costs

Current

Business

Implementation

Operational

Timing:

Up to a year before

membership

Timing:

Approx. 1-3 months

before membership

Functions:

Program & Benefit

Design

IT & Systems

Development

Functions:

Member Care

Activities

Claims

Call Center

Fixed

Variable

Guidance includes

implementation costs

for all

growth products

Guidance includes

operational costs for

only CA, OH Duals, IL

ABDs & NM build out

Market Place,

Medicaid Expansion,

Other Duals, FL LTC

0.4%

In 2013 guidance implementation &

operational costs related to growth are

approximately 0.7%

of total revenue or

$0.60 EPS

Excluded

Please refer to the Company’s cautionary statements.

Note(s):

1. Denotes

guidance.

Amounts

are

estimates

and

subject

change.

Actual

results

may

differ

materially.

See

cautionary

statement.

$22M

$29M

$550M

7.9%

0.3%

2013 Molina Healthcare, Inc.

Flu Trends

Please refer to the Company’s cautionary statements.

2.0

4.0

6.0

8.0

10.0

12.0

2,000

4,000

6,000

8,000

10,000

Google Flu Trends

CDC % ILI

Google Flu Trends vs. CDC % ILI

2013 Molina Healthcare, Inc.

Investment Highlights

Attractive sector growth prospects driven by government

policies and economic conditions

Focus on government-sponsored health care programs

Proven flexible health care services portfolio (risk-based,

fee-based and direct delivery)

Diversified geographic exposure in 15 states with

significant presence in high growth regions

Scalable administrative efficiencies stemming from

centralized and standardized functions

Seasoned management team with strong track record of

delivering earnings growth

Over 30 years of experience

Please refer to the Company’s cautionary statements.

2013 Molina Healthcare, Inc.

Q&A

Molina Healthcare (MOH) 8-KMolina Healthcare Updates Fiscal Year 2013 Guidance