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Molina Healthcare Sees FY20 GAAP EPS $11.20-$11.70 vs $11.82 Est.

The Company issued its full year 2020 earnings guidance, including GAAP earnings per diluted share of $11.20 - $11.70 and premium revenue growth of 7.4%. Full year guidance highlights: Medicaid after-tax margins are

Benzinga · 02/10/2020 21:17

The Company issued its full year 2020 earnings guidance, including GAAP earnings per diluted share of $11.20 - $11.70 and premium revenue growth of 7.4%.

Full year guidance highlights:

  • Medicaid after-tax margins are expected to perform well benefiting from stable rate and cost trend environments.
  • Medicare after-tax margins are expected to be strong despite the impact of the Health Insurer Fee.
  • Marketplace after-tax margins are expected to be lower reflecting pricing actions taken for the year.

Full year guidance reflects the following:

  • The reintroduction of the Health Insurer Fee in 2020 with an impact of approximately $0.30 per diluted share.
  • Steady state in Texas for the full year 2020. The Company is currently exercising its protest rights on the recently announced STAR+PLUS RFP award. The Company believes that the effective date of the new contract would be no earlier than January 1, 2021.
  • The YourCare Health Plan and NextLevel Health Partners acquisitions are not included in guidance as the transactions have not closed. Together they have over $500 million in annualized premium revenue.