Molina Healthcare Inc · NYSE:MOH
Molina Healthcare — 33rd Annual J.P. Morgan Healthcare Conference (January 2015)
17 slides from Molina Healthcare's conference presentation, Jan 13, 2015
Slide 1: 33rd Annual J. P. Morgan Healthcare Conference
33rd Annual J. P. Morgan Healthcare Conference J. Mario Molina, MD President & Chief Executive Officer January 12-15, 2015 / San Francisco, California
Slide 2: Cautionary Statement
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 future business plans; the expected start dates of our Med
Slide 3: Presence in Key Medicaid Markets
Presence in Key Medicaid Markets1 Health Plan footprint includes 4 of 5 largest Medicaid Markets Molina Health Plans Molina Medicaid Solutions Direct Delivery ENROLLMENT BY PRODUCT2 3Q14 Jan 15 Ä Duals 15K 35K 20K Medicare 45K 45K 0 Marketplace 15K 110K 95K Medicaid 2.3M 2.6M 300K Total 2.4M 2.8M 41
Slide 4: Our Growth Story
Our Growth Story REVENUE GROWTH $ BILLIONS $6.9 $6.6 $5.9 $4.5 $3.9 FY10 FY11 FY12 FY13 3Q14 YTD ENROLLMENT GROWTH MILLIONS 2.4 1.9 1.8 1.6 1.5 FY10 FY11 FY12 FY13 3Q14
Slide 5: Managing Our Growth
Managing Our Growth 2013 INCUBATE Acquire new business Design systems Test readiness Invest in infrastructure New business: SC, Duals, Marketplace, Medicaid Expansion, NM & FL re-procurements, WI Medicare TRANSITION & GROW Transition members into model of care Address pent-up demand Adjust premiums
Slide 6: Medicaid Enrollment and Spending
Medicaid Enrollment and Spending Managed Care Organizations and Fee-For-Service FY 20111 57M $407B Fee-For-Service 57M 26% $315B 77% 77% of Medicaid spending remains in Fee-for-Service Managed Care 42M 74% $92B 23% MEDICAID ENROLLMENT 2011 MEDICAID SPEND 2011 1. Managed care includes only risk based
Slide 7: Medicaid Long Term Services and Supports (LTSS)
Medicaid Long Term Services and Supports (LTSS) Full Medicaid LTSS Spend in 2012: $140 Billion 6% 3% People with Other/Multiple Serious Mental Illness Populations 30% People with Developmental 61% Disabilities Older People & People with Physical Disabilities 1. Truven Health Analytics. ‘Medicaid Exp
Slide 8: Molina Long Term Services & Support (LTSS) Footprint
Molina Long Term Services & Support (LTSS) Footprint As of January 2015 SERVICE AREAS: MMP Demonstrations LTSS “Stand Alone” LTSS and Acute Care Home and Community- Based Services (HCBS)
Slide 9: Medicare-Medicaid Plan (MMP) Implementations
Medicare-Medicaid Plan (MMP) Implementations Dual Eligibles ENROLLMENT January 151 California 17K Illinois 5K Michigan Go live 5/15 Ohio 12K South Carolina Go live 2/15 Texas Go live 3/15 Total 35K Contracts awarded to MOH State working with existing providers 1.Enrollment described in this column r
Slide 10: Jacksonville Footprint Expansion
Jacksonville Footprint Expansion First Coast Advantage Acquisition Jacksonville Service Area served by First Coast Advantage Existing Service Area New Service Area On December 1st , Molina acquired Medicaid business assets of a Florida health plan, First Coast Advantage Approximately 64,000 members
Slide 11: Puerto Rico Contract Award
Puerto Rico Contract Award One Health Plan Awarded in Each Region San Juan Ponce Southwest East On December 8th, awarded a managed care contract by the Puerto Rico Health Insurance Administration for the East and Southwest regions 350,000 new members expected Anticipate annualized revenue of $750 mi
Slide 12: Marketplace Year Two
Marketplace Year Two 2014 pricing assumed higher medical costs and utilization compared to existing membership Higher premiums Low enrollment (17K) 2015 focused on competitive pricing in existing markets Premiums adjusted downward in nearly every market Significant sign up activity during open enrol
Slide 13: Status of Reimbursement
Status of Reimbursement ACA Fee in Molina States Expected State ACA Fee Gross Up Revenue Recognized Revenue1 California $7.3 $4.4 $11.6 $0.0 Florida $3.6 $2.3 $5.8 $5.8 Illinois $0.1 $0.1 $0.2 $0.2 Michigan $10.7 $6.8 $17.5 $8.0 New Mexico $7.1 $4.3 $11.3 $11.3 Ohio $18.2 $12.2 $30.4 $30.4 South Car
Slide 14: The Year Ahead
The Year Ahead TAILWINDS Medicaid expansion Footprint includes 4 of 5 largest Medicaid markets Uniquely positioned to capture Dual Eligible enrollment Marketplace open enrollment HEADWINDS Delay in state program implementations ACA reimbursement Medical cost pressure associated with new contracts/po
Slide 15: Investment Highlights
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 wi
Slide 16: Breakout BBRMOUNA
Breakout BBRMOUNA
Slide 17: Appendix A
Appendix A ‘TeXAS HEALTH AND HUMAN SERVICES COMMISSION December 30,2014 ‘To: All contracted Manage Care Organizations affected by the Health Insurer Providers Fee ‘In accordance wth he drive issued by the Governor, this eter i formal notifstion hat [HHSC will develop and implement «procedure, nd wl
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