Molina Healthcare, Inc. (MOH - Free Report) recently announced that its wholly owned subsidiary, Molina Healthcare of Florida, Inc., has been granted Medicaid Managed Care contracts by the Florida Agency for Health Care Administration (AHCA ) in Regions 8 and 11 of the Florida Statewide Medicaid Managed Care Invitation to Negotiate (ITN). Services under this new contract are expected to commence on Jan 1, 2019.
The managed healthcare service provider caters to around 105,000 Medicaid members residing in the above-mentioned areas including Miami-Dade, Monroe, Sarasota, DeSoto, Charlotte, Glades, Hendry and Collier Counties. Revenues from these regions account for around $550 million.
The contract awards will enable the company to serve quality health care to the Medicaid members in Regions 8 and 11 as well as expand its Marketplace and Medicare businesses in Florida. Moreover, this geographic footprint would contribute to the enterprise business portfolio of the company, lending it an overall boost.
Molina Healthcare has filed protests of AHCA’s Medicaid Managed Care awards across all the 11 regions of Florida in May 2018. The outcome of these negotiations between Molina Healthcare and AHCA is the grant of awards in Regions 8 and 11. The company has withdrawn its protests from all the regions at present. Apart from the two regions where Molina Healthcare will provide care for Medicaid beneficiaries in 2019, the company would also continue to offer Medicare as well as Marketplace products across Florida.
Medicare is a federal program that offers hospital, medical insurance and drug benefits to senior citizens aged 65 and above as well as to disabled people. Molina Healthcare, a primary operator in the government plans for Medicare and Medicaid, has grown its Medicaid membership from the expansion of Medicaid in 2014 under the HealthCare Reform Act. This business continues to remain lucrative as several US states are increasingly outsourcing this plan to private insurers for its effective cost management.
Shares of this Zacks Rank #3 (Hold) company have surged 38.5% in the past year, outperforming the industry’s growth of 33.7%.
Stocks to Consider
Investors interested in the Medical HMO industry might take a look at the better-ranked stocks like WellCare Health Plans, Inc. (WCG - Free Report) , Triple-S Management Corporation (GTS - Free Report) and Humana Inc. (HUM - Free Report) .
WellCare offers managed care services for government-sponsored health care programs. Sporting a Zacks Rank #1 (Strong Buy), the company delivered an average four-quarter positive surprise of 51.70%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Triple-S and its subsidiaries offer a portfolio of managed care and related products in the commercial, Medicare and Medicaid markets in Puerto Rico and the United States. It holds a Zacks Rank #2 (Buy) and came up with an average whopping four-quarter beat of 260.65%.
Humana operates as a health and well-being company in the United States. It has a Zacks Rank of 2 and pulled off an average four-quarter earnings surprise of 6.16%.
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