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Molina Secures Deal From AHCA to Serve Florida's Medicaid Members

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Key Takeaways

  • MOH was selected by AHCA to provide managed care for Florida's Medicaid and CHIP enrollees.
  • The new contract covers 120,000 members and carries estimated 2025 premiums of around $5 billion.
  • The deal is expected to strengthen MOH's Florida footprint and support its overall membership growth.

Molina Healthcare, Inc. (MOH - Free Report) recently announced that its subsidiary, Molina Healthcare of Florida, has been chosen by the Florida Agency for Health Care Administration (“AHCA”) to provide managed care services across the state. To this effect, AHCA has issued a Notice of Agency Decision indicating its intent to award a new contract to MOH. 

Under this award, Molina will serve as the exclusive provider of managed care services for the Statewide Medicaid Managed Care (SMMC) Program and the Children’s Health Insurance Program (CHIP), specifically for enrollees in the Title XIX and Title XXI Children’s Medical Services (CMS) Program. 

The total premium payments under this program for 2025 are estimated to be around $5 billion. While the specific contract start date is yet to be determined, the agreement is expected to run through Dec. 31, 2030.

Molina was the only plan selected through the procurement process and expects to provide care for roughly 120,000 enrollees.

Benefits of the Recent Move to Molina

The recent contract win is expected to bring improved health outcomes for Florida’s medically vulnerable pediatric population. It will further serve as a means to strengthen the footprint of the health insurer across Florida. 

The strength of Molina’s Medicaid and Medicare business has fetched numerous contract wins from time to time. This year, MOH’s subsidiary, Molina Healthcare of Illinois, was selected to receive a contract from the Illinois Department of Healthcare and Family Services in a bid to provide services under a Fully Integrated Dual Eligible Special Needs Plan, or D-SNP. 

Such contract wins reinforce the faith that members have in a particular health insurer and may serve as a means to retain existing customers as well as attract new ones. This, in turn, is expected to increase the overall membership and subsequently drive premiums. Premiums remain the most significant contributors to a health insurer’s top line.

As of Sept. 30, 2025, overall membership of Molina was 5.6 million, which inched up 0.5% year over year. Consolidated premiums improved 12.9% year over year in the first nine months of 2025. Premiums from the Medicaid and Medicare business lines witnessed year-over-year increases of 7.3% and 10.3%, respectively, during the same time frame.

MOH’s Share Price Performance & Zacks Rank

Shares of Molina have declined 17.2% in the past three months against the industry’s 0.2% growth.

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Image Source: Zacks Investment Research

MOH currently has a Zacks Rank #5 (Strong Sell).

Stocks to Consider

Some better-ranked stocks in the Medical space are Exact Sciences Corporation (EXAS - Free Report) , ANI Pharmaceuticals, Inc. (ANIP - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) . While Exact Sciences sports a Zacks Rank #1 (Strong Buy), ANI Pharmaceuticals and IDEXX Laboratories carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Exact Sciences’ earnings surpassed estimates in each of the last four quarters, the average surprise being 352.28%. The Zacks Consensus Estimate for EXAS’ 2025 earnings is pegged at 43 cents per share. A loss of 23 cents per share was incurred in the prior year. The consensus mark for revenues implies an improvement of 17.1% from the year-ago reported figure. The consensus mark for EXAS’ 2025 earnings has moved 19.4% north in the past 30 days. 

The bottom line of ANI Pharmaceuticals outpaced estimates in each of the last four quarters, the average surprise being 21.24%. The Zacks Consensus Estimate for ANIP’s 2025 earnings indicates an improvement of 40.2% from the year-ago reported figure, while the same for revenues implies growth of 41.6%. The consensus mark for ANIP’s 2025 earnings has moved 0.6% north in the past 60 days. 

IDEXX Laboratories’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.12%. The Zacks Consensus Estimate for IDXX’s 2025 earnings suggests an improvement of 21.2% from the year-ago reported figure, while the same for revenues suggests growth of 9.9%. The consensus mark for IDXX’s 2025 earnings has moved 0.5% north in the past seven days. 

Shares of Exact Sciences and IDEXX Laboratories have gained 51.4% and 6.8%, respectively, in the past three months. However, ANI Pharmaceuticals stock has declined 7.4% in the same time frame. 

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