Molina Healthcare Inc · NYSE:MOH
Molina Healthcare — 34th Annual J.P. Morgan Healthcare Conference 2016
22 slides from Molina Healthcare's conference presentation, Jan 11, 2016
Slide 1: 34th Annual J.P. Morgan Healthcare Conference
Exhibit 99.1 34th J. President January Mario Annual 11-15, Molina, & Chief JP 2016 Morgan MD Executive / San Healthcare Francisco, OfficerConference California
Slide 2: Cautionary Statement and Safe Harbor Statement
Cautionary Safe growth announced could well to 2© 2016 theas Harbor cause extent the and MOLINA risk in Statement acquisition our Statement otherwise 2015; factors actual HEALTHCARE, theresults and required under expectations headwinds cautionary the to by differ Private and federal INC. andstatemen
Slide 3: Our mission
Our To 3© 2016 provide mission MOLINA quality HEALTHCARE, health care to people INC.receiving government assistance
Slide 4: Our Health Plan footprint today
Our Health Puerto USVI Molina Primary Pathways2 1. 2. 13© Members 1% 10% 9% 13% 65% 4Member .9M Total Pathways 2016 ABD Duals Medicare footprint TANF Marketplace Expansion Rico plan Health Medicaid MOLINA enrollment Care Mix& footprint was today Direct CHIP plans previously Solutions HEALTHCARE, rel
Slide 5: Our significant membership growth over the last 10 years
Our Significant 3.0M 3.9M 136k 4.0M 2.0M 1.0M 64k 2005 0.0M 1. 5© Total 2016 membership 2006 53k 135k 0.9M MOLINA enrollment 66k 2007 historical 21k2008 growth HEALTHCARE, asenrollment of 2009 December 2010growth 2011 31 INC. for 2012 over each 2013 theyear last 2014 from 10 Jan years1 2005 -16 “201
Slide 6: Our historical revenue growth over the last 10 years
Our Historical 16.0B 12.0B 14.3B 28.0B 0.0B 1.7B 4.0B 64k 1. 2. 6©005 Total 2015 2016 revenue 135k 2006 136k 53k Outlook MOLINA revenue revenue 66k 2007 growth 21k as 2008 HEALTHCARE, has reported provided 2009 outpaced 2010 inbythe the historical 2011 Company“s Company INC. 2012membership 2013 in10
Slide 7: Medicaid/CHIP enrollment growth
Medicaid Care Medicaid/CHIP 85M 136k Growth 81.5M 53k 80.8M 77.9M 72.1M 75M 135k 76.3M 21k January 70M 2013 65M members 1. Systems/Statistics 7© CMS, 2016 79.8M Act, 3.9M 2014 82.2M 66k 64k MOLINA in 2016 Office steady growth the 2015 2.6M members December Medicaid of Growth 2016 organic 80M HEALTHC
Slide 8: People with serious needs drive Medicaid spending
$500 2010-2014 $283 $295 $400 People 3% Serious $184 $100 Medicaid Source: 2010 1. Sources: 2. Total © 2011 MACStats: 2016 Medicaid Expenditures $282 30% $125 2011 spend with “2014 Multiple MOLINA Truven spending Managed $145 2012 $284 People $468B includes Other Medicaid March Benefit Health 61% 20
Slide 9: Increasing complexity drives higher spend
Increasing Complex Long $$$$$ Dual Seniors Expansion Medicaid Assistance Temporary Number 9© 2016 Eligible Term & MOLINA ofmembers Persons complexity $$ to potential Care $$$$$ Needy HEALTHCARE, $$$ continue enrollees drives Families with Disabilities tohigher transition INC. spendinto managed care
Slide 10: How will we continue to grow?
How Organic In-market Transition Marketplace © 10 2016 willMOLINA growth we acquisitions of members continue in HEALTHCARE, existing to and grow? markets benefits and from INC.RFPs FFS to managed care Capability -based provider acquisitions
Slide 11: Executing on strategy: RFPs and contract wins
Executing 1Region Regions 1. §© Michigan “beneficiaries Washington state that 11Molina Awarded Won Expands HealthPlus New Successful Combines Molina 2016 willall Medicaid 1MOLINA 2serve is9did -10 on current contracts one regions physical re-procurement across and our not members more ofcontract HAP
Slide 12: Acquisition strategy and criteria
Acquisition How New Diversification Rationale Administrative Increased Criteria Sizeable Difficult Valuable © 12 2016 Managed do MOLINA the Medicaid /expensive talent member pieces strategy Care “cost revenue, HEALTHCARE, care population fitleverage /State timely together? oversite Existing risk, to
Slide 13: Executing on strategy: acquisitions
9Executing §May Michigan Washington Status: 2015 *July In-market Estimated Note: acquisitions generally Capability September August Illinois closed Florida acquisitions: acquisitions revenue on asset based October status: our announced Florida Illinois November purchases§ growth Illinois based provi
Slide 14: Behavioral health diagnoses in Medicaid
Diagnoses Mental 68% Source: Other © Prevalence 2X Treatment 2X-3X 14 2016 49% of Behavioral and adults Annals MOLINA of of substance chronic behavioral mental with ofHealth Internal HEALTHCARE, 49% physical illness useof and Conditions disorders Medicine: Medicaid among mental healthare the INC. he
Slide 15: Introducing Pathways
Introducing A Pathways Mental Autism Intellectual Child 1. © 15 capability Other 2016Welfare Other & MOLINA includes provides and Pathways -based 111% Health Mental Educational, HEALTHCARE, aprovider growing Child Developmental acquisition 10% number Probational, 44% INC. behavioral Health andAdult
Slide 16: Medicaid and social services focus
Medicaid §CMS Social 1. Sources: 2. Conway, © Housing Interpersonal Kaiser New 2016 has will health England MOLINA M.D., Health announced and focus Social issues social safety, and on: Journal News service HEALTHCARE, Darshak become services a and§ 5-year, Feds of needs Medicine: Transportation aFun
Slide 17: Home and community-based services spending
Home Behavioral Prevocational Adult other In-home services Mental 3% Medicaid 1. 2. © 17 Mathematica Other 2016 4%15% day and Health MOLINA Personal includes round-the-clock HCBS services In-home Community andservices Case mental Policy Expenditures total expenses care HEALTHCARE, Group residential
Slide 18: Continued dual eligible growth
Continued Dual 1. 2. © December Enrollment USVI South Puerto Total MMP 18 CMS South 2016 eligible 18K Markets Michigan—9K Carolina Rico MOLINA enrollment Carolina 51K December organic Texas—14K markets 2—<1K isHEALTHCARE, growth data currently 2014 Ohio as in of 20151 2KMedicare-Medicaid December, e
Slide 19: Marketplace enrollment
Penalty 15M §[Graphic Puerto USVI Marketplace 3Q2015 93% 1. © 19 Leverages Low Company“s 2016 ofMCR Rico Molina for MOLINA Jan Appears not Molina 2016 existing 226K operations not enrollment having marketplace sustainable Here] HEALTHCARE, Enrollment 325K1 Medicaid coverage as members in of network§
Slide 20: One flexible management team
One Flexible management © 20 2016 of aMOLINA health kindteam services HEALTHCARE, Uniqueportfolio culture(health INC.plans, direct delivery, MMIS) Focused on people receiving government assistance Scalable administrative infrastructure Consistent Medicaid national brand Seasoned
Slide 21: Headwinds and tailwinds
§The Headwinds Tailwinds and © 21Top 2016 retroactive§ year line MOLINA ahead revenue/membership Marketplace HEALTHCARE,growth fromINC. state § Premium recoveries§ rates existing Marketplace managed MCRcare convergence state acquisitions§ Pent-up demand new § Dual eligible experience in all 6 contra
Slide 22: Q&A
eo ; Q&A BRRMOUINA
Molina Healthcare — 34th Annual J.P. Morgan Healthcare Conference 2016 on 6ix