• UnitedHealth Group, but specialized in government-funded healthcare programs like Medicaid and Medicare.
• An insurance company like Elevance Health (formerly Anthem), but primarily serving beneficiaries of Medicaid and Medicare plans.

• Medicaid Managed Care: Provides comprehensive health insurance coverage and services to low-income individuals and families through state Medicaid programs.
• Medicare Advantage: Offers health plans for eligible seniors and individuals with disabilities, covering medical and prescription drug benefits.
• Marketplace Health Plans (Affordable Care Act): Delivers subsidized health insurance coverage and services to individuals and families via state and federal health insurance marketplaces.
• Integrated Dual Eligible Plans: Manages coordinated health and long-term care benefits for individuals who qualify for both Medicaid and Medicare.

Molina Healthcare (MOH) primarily serves individuals through government-sponsored healthcare programs and health insurance marketplaces. Its major customer categories are:

• Medicaid Members: Individuals and families who qualify for state-sponsored Medicaid programs. Molina contracts with various state governments to provide managed care services to these low-income populations.
• Medicare Members: Seniors and individuals with disabilities enrolled in Molina's Medicare Advantage plans (Medicare Part C) and Medicare Prescription Drug Plans (Medicare Part D).
• Health Insurance Marketplace Members: Individuals and families who purchase health insurance plans through the Affordable Care Act (ACA) exchanges (also known as the public health insurance marketplaces).

Joseph Zubretsky President and Chief Executive Officer

Joseph Zubretsky has over 35 years of experience in the insurance and financial services sectors. Prior to joining Molina Healthcare as President and CEO in 2017, he served as President and Chief Executive Officer for The Hanover Insurance Group from June 2016 to October 2017. Before that, he held several senior executive roles at Aetna for nearly nine years, including Chief Executive Officer of its Healthagen Holdings subsidiary, Senior Executive Vice President of National Businesses, and Executive Vice President and Chief Financial Officer from 2007 to 2013. He began his career at Coopers & Lybrand as a partner in its national insurance practice. Zubretsky was also a partner at Brera Capital Partners, a global private equity firm, and held executive positions at Unum Group and MassMutual Financial Group.

Mark Keim Senior Executive Vice President and Chief Financial Officer

Mark Keim joined Molina Healthcare in January 2018 and was appointed Chief Financial Officer in February 2021. He has decades of experience in managed care and financial services. Previously, he served as Global Head of Strategy and Corporate Development at Aetna and Executive Vice President of Corporate Development and Strategy at The Hanover Insurance Group, where he worked alongside Joseph Zubretsky. Keim also had an accomplished career at GE Capital. In September 2024, his role was expanded to include leadership of the Company's Medicaid Health Plans and Marketplace business.

James Woys Executive Vice President, Health Plan Services

James Woys serves as the Executive Vice President, Health Plan Services at Molina Healthcare.

Jeff Barlow Chief Legal Officer and Corporate Secretary

Jeff Barlow serves as the Chief Legal Officer and Corporate Secretary for Molina Healthcare.

Lawrence Anderson EVP, Chief Human Resources Officer

Lawrence Anderson holds the position of Executive Vice President, Chief Human Resources Officer at Molina Healthcare.

Molina Healthcare (MOH) faces several key risks to its business, primarily due to its heavy reliance on government-sponsored healthcare programs and the inherent challenges in managing healthcare costs.

1. Reliance on Government Programs and Regulatory/Policy Changes

   Molina Healthcare's business model is heavily dependent on government-sponsored healthcare programs, including Medicaid, Medicare, and those under the Affordable Care Act (ACA). Consequently, the company is highly susceptible to political uncertainty and potential shifts in healthcare policies. Changes in government funding mechanisms, eligibility criteria for beneficiaries, or program structures, especially concerning Medicaid, could significantly impact Molina's operations and financial performance. A projected $880 billion cut to the Medicaid budget in the coming years is identified as a primary risk for Molina Healthcare, given that approximately 88.35% of its subscribers were enrolled in Medicaid in 2024.

2. Medical Cost Management and Medical Loss Ratio (MLR) Pressures

   A significant risk for Molina Healthcare is its ability to accurately predict and effectively manage medical care costs. The company has experienced ongoing pressure on its Medical Loss Ratio (MLR) across all segments, indicating challenges in controlling healthcare expenses. For example, Molina reported a 170 basis point miss on MLR in the fourth quarter of 2024, contributing to disappointing financial results and downward revisions of its earnings guidance. Furthermore, the company is facing investigations and securities class action lawsuits alleging inadequate disclosure of adverse developments in medical cost trends and discrepancies between premium rates and medical expenses.

3. Competition and Contract Retention

   The healthcare sector is characterized by increasing competition and consolidation, posing a risk to Molina Healthcare's ability to maintain and expand its customer base. To remain competitive, Molina must continuously innovate and offer compelling services. The potential loss of significant state Medicaid contracts could have a material adverse effect on the company's business, financial condition, cash flows, and results of operations.

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Molina Healthcare (MOH) primarily operates in the U.S. government-sponsored healthcare programs, with its main products and services focused on Medicaid, Medicare, and Health Insurance Marketplace plans. The addressable markets for these services in the U.S. are as follows:

• Medicaid (U.S.): The total enrollment in the Medicaid program in the U.S. was approximately 79.15 million beneficiaries in December 2024. Total Medicaid expenditures in the U.S. were $900.3 billion in the 2023 fiscal year.

• Medicare (U.S.): The U.S. Medicare-eligible population is projected to reach 73.2 million individuals as of 2024. The Medicare Advantage market penetration was 48.2% in 2024.

• Health Insurance Marketplace (ACA) (U.S.): Null

Molina Healthcare (MOH) is anticipated to drive future revenue growth over the next 2-3 years through a combination of strategic initiatives and market expansions:

1. Strategic Acquisitions: Molina Healthcare has a history of executing strategic acquisitions that significantly contribute to its premium revenue and expand its member base. Recent examples include the acquisition of ConnectiCare in February 2025, projected to add approximately $1.4 billion in annual premium revenue and about 140,000 members, and the acquisition of Bright Health's Medicare Advantage business in California in January 2024, which added 109,000 members.

2. Expansion in Government Contracts and Dual Special Needs Plans (D-SNPs): The company is actively securing new government contracts across various states, such as Michigan, Massachusetts, Nevada, Illinois, Georgia, and Texas. These contract wins are expected to drive substantial premium revenue by 2027. Furthermore, Molina plans to increase its presence in Dual Special Needs Plans (D-SNP) markets by 23% for 2025, aligning with CMS rules aimed at streamlining care for dual-eligible individuals, which is expected to boost both membership and revenue.

3. Membership Growth in Core Government Programs: Molina anticipates significant membership growth in its core government-sponsored programs, including Medicaid and Medicare Advantage. The company projects its Medicaid membership to reach 5.1 million people by the end of 2025, with ACA and Medicare enrollment also expected to grow to 580,000 and 250,000 members, respectively, by the close of 2025. This growth is a direct result of strategic acquisitions and new contract wins.

4. Strategic Management of the Marketplace Segment: While facing utilization pressures, Molina is strategically managing its Marketplace business to ensure profitable growth. The company plans to materially reprice and reduce its Marketplace exposure, with rate increases averaging 30% and a 20% reduction in county coverage, to create a smaller, more profitable segment.

Share Repurchases

• Molina Healthcare announced a share repurchase program of up to $1,000 million in April 2025, valid until December 31, 2026.
• The company executed $1 billion in share repurchases so far in 2025.
• Annual share buybacks for Molina Healthcare were $1 billion in 2024 and $400 million in 2022.

Share Issuance

• Molina Healthcare's shares outstanding decreased from 59.3 million in 2020 to 54 million in October 2025, indicating a net reduction due to repurchases rather than significant issuance.

Outbound Investments

• Molina Healthcare acquired ConnectiCare for $350 million in July 2024 (closed February 2025), adding approximately 140,000 members.
• In September 2020, Molina Healthcare acquired substantially all the assets of Affinity Health Plan for approximately $380 million, to deepen its service offerings in New York.
• Molina Healthcare made other acquisitions in 2021, including the Magellan Complete Care line of business from Magellan Health, Inc. and Cigna's Medicaid contracts in Texas.

Capital Expenditures

• Molina Healthcare invested $100 million in property, plant, and equipment in 2024, following $84 million in 2023.
• The company's regular capital expenditures range between $10 million to $35 million quarterly, reflecting ongoing investments in operations.