![]() Molina Healthcare J. Mario Molina, MD President & Chief Executive Officer 32 J.P. Morgan Healthcare Conference January 13-16, 2014 San Francisco Exhibit 99.1 nd |
![]() 2 © 2014 Molina Healthcare, Inc. Cautionary Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This slide presentation and our accompanying oral remarks contain numerous “forward-looking statements” regarding, without limitation: our revenue, membership, and profitability growth projections; market and growth opportunities related to Medicare and Medicaid dually eligible members, to the Affordable Care Act (ACA) Medicaid expansion, and to the state insurance exchanges or marketplaces; the ACA annual health industry fee and its expected reimbursement by states, including any tax impact; rate matters in Washington; and various other matters. All of our forward-looking statements are subject to numerous risks, uncertainties, and other factors that could cause our actual results to differ materially. Anyone viewing or listening to this presentation is urged to read the risk factors and cautionary statements found under Item 1A in our annual report on Form 10-K, as well as the risk factors and cautionary statements in our quarterly reports and in our other reports and filings with the Securities and Exchange Commission and available for viewing on its website at www.sec.gov. Except to the extent otherwise required by federal securities laws, we do not undertake to address or update forward-looking statements in future filings or communications regarding our business or operating results. |
![]() 3 © 2014 Molina Healthcare, Inc. Health Plan Enrollment as of January 10, 2014 1 1. Reflects preliminary enrollment figures. 2. January 2014 enrollment includes South Carolina acquisition. 3. As of September 1, 2013, Illinois health plan began serving ABD members. 4. As of January 1, 2014, South Carolina health plan began serving South Carolina Medicaid members, as a result of the South Carolina Solutions asset acquisition. Molina Healthcare Health Plan Enrollment Growth Dec 2013 - Jan 2014 2 2.1 million members WA 409K CA 441K UT 86K NM 162K TX 249K FL 89K SC 4 137K IL 3 5K WI 92K MI 213K OH 255K 11% Growth |
![]() 4 © 2014 Molina Healthcare, Inc. Long Term Incremental Growth Drivers 1. All amounts are estimates and subject to change. 2. Acquisitions denote New Mexico (Lovelace), and South Carolina (Community Health Solutions assets). 3. Duals denotes revenue potential for dual eligibles in CA, MI, OH, TX, IL. 4. ACA denotes revenue potential as a result of Medicaid expansion in CA, IL, MI, NM, and WA; and Marketplace in CA, FL, MI, NM, TX, UT, WA, OH, and WI. Estimated potential revenue run-rate by year-end 2015 associated with growth activities Current Health Plan Business & Acquisitions 2015 ~$12.5B Duals 3 ~$8.5B ~$2B ACA 4 Total 2015 ~$2B Revenue 1 Please refer to the Company’s cautionary statements. 2 |
![]() 5 © 2014 Molina Healthcare, Inc. Health Plan Footprint & Planned Growth Fully Integrated Dual Eligible Pilots Long Term Care Medicaid Health Plan Markets WA CA UT NM TX SC FL WI MI IL OH |
![]() 6 © 2014 Molina Healthcare, Inc. Medicaid Expansion Where Molina States Stand on Medicaid Expansion as of December 20, 2013 1 Expanding Coverage Considering Expansion Not Expanding Coverage at this Time CA WA UT NM TX WI MI FL OH SC IL 1. The Advisory Board Company. Beyond the pledges: Where the states stand on Medicaid. |
![]() 7 © 2014 Molina Healthcare, Inc. Medicaid Application Activity Marketplace Applicants Determined Eligible for Medicaid in Molina States Oct 1, 2013 to Nov 30, 2013 (1)(2) 1. U.S. Department of Health and Human Services .“Health Insurance Marketplace: December Enrollment Report, November 13, 2013. 2. Does not represent Molina enrollment expectations. # Marketplace Applicants Determined Eligible for Medicaid 182K 154K |
![]() 8 © 2014 Molina Healthcare, Inc. Welcome-Mat Effect Medicaid enrollment increased by ~16% in MA as a result of outreach efforts The intensity of outreach and awareness efforts associated with the Affordable Care Act may affect the increase in Medicaid enrollment and participation among individuals previously eligible but who did not enroll. MA Medicaid Unadjusted Enrollment Rates 1 20% 30% 40% 50% 60% 70% 80% 2003 2004 2005 2006 2007 2008 2009 2010 2011 Controls Massachusetts 1. Health Affairs Journal. “Medicaid ‘Welcome-Mat’ Effect of Affordable Care Act Implementation Could be Substantial”, July 2013. |
![]() 9 © 2014 Molina Healthcare, Inc. Texas Going Live: 1/1/15 State will work with existing Medicaid Providers California Molina Counties: San Diego, Riverside, San Bernardino Going Live: 4/1/14 Medicare-Medicaid Plan (MMP) Implementations Illinois Molina Counties: Central Region Going Live: 2/1/14 Ohio Molina Counties: 13 counties in 3 Regions (Southwest, Central and West Central Regions) Going Live: 3/1/14 South Carolina Selected for demonstration project, Readiness Review Next Going Live: 7/1/14 Michigan Molina Counties: Wayne, Macomb Going Live: 10/1/14 Contracts awarded to MOH State working with existing providers Dual Eligible |
![]() 10 © 2014 Molina Healthcare, Inc. Levels of Patient Care Long Term Care Dual Eligible Seniors & Persons with Disabilities Temporary Assistance to Needy Families Number of potential enrollees |
![]() 11 © 2014 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 Dual Eligibles Most Common Diagnoses Inpatient Services: Affective psychosis Septicemia Pneumonia Chronic bronchitis Outpatient Services: Essential hypertension Respiratory and other chest Diabetes mellitus Fever and fatigue Joint disorders 1. KFF.org. Care involving use of rehab procedures |
![]() 12 © 2014 Molina Healthcare, Inc. Enrollment ramp up has been slow due to delays on federal and state websites • Spanish language sites later start 8 out of 10 low-income Americans still don’t understand the program 1 Molina pricing assumed higher medical costs and utilization compared to existing membership Enrolled individuals at Molina health plans are primarily the uninsured and previous Medicaid recipients that had lost their eligibility Marketplace Please refer to the Company’s cautionary statements. 1. Thomson Reuters. “Most Uninsured Americans lack knowledge about Obamacare: survey”, January 9, 2014. |
![]() 13 © 2014 Molina Healthcare, Inc. Preparing for Growth – Operational Priorities Infrastructure build precedes revenue Product development Pricing Network customization Premium billing and collection Marketing/Sales/ Advertising LTSS management Hired 4K employees in 2013 Dedicated team for Marketplace Expanded Medicare team for Duals Demonstration Premium billing & collections Upgraded care management software Clear Coverage™ Telephony upgrade |
![]() 14 Status of Reimbursement – ACA Fee in Molina States State Fee Reimburse ment Tax Gross Up Comments California Yes Unknown Health plan association has received email from state committing to reimbursement of fee. Florida Yes Actuarial rate memorandum (Milliman) calls for reimbursement of fee and tax impact. Illinois Yes Yes Actuarial rate memorandum (Milliman) calls for reimbursement of fee and tax impact. Michigan Yes Yes Actuarial rate memorandum (Milliman) calls for reimbursement of fee and tax impact. New Mexico Yes Unknown Verbal representation to HPs at rate meeting only. Ohio Yes Unknown Actuarial rate memorandum (Mercer) calls for reimbursement of fee - silent on tax impact. South Carolina No revenue in 2013. Texas Yes Unknown Verbal representation to HPs at rate meeting only. Utah No No Washington Yes Yes Contract specifically calls for reimbursement of fee and tax impact. Wisconsin Yes Unknown Per contract: "The parties agree to amend the contract as needed to address federal regulations and guidance regarding application of the health insurance tax.” |
![]() 15 © 2014 Molina Healthcare, Inc. State of Washington is seeking to recover premiums previously paid to the company as part of a retroactive premium change One-time recovery affects revenue recorded during July through December of 2013 The premium recovery is estimated to reduce pre-tax income for 4Q2013 by approximately $15M This item was not included in guidance issued October 30, 2013 Washington Retroactive Rate Reduction Please refer to the Company’s cautionary statements. |
![]() 16 © 2014 Molina Healthcare, Inc. Tailwinds & Headwinds Medicaid expansion Tailwinds Footprint includes 4 of 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 |
![]() 17 © 2014 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 16 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. |
![]() 18 © 2014 Molina Healthcare, Inc. Breakout |