Molina Healthcare Inc · NYSE:MOH
Molina Healthcare — 28th Annual J.P. Morgan Healthcare Conference (January 2010)
16 slides from Molina Healthcare's conference presentation, Jan 12, 2010
Slide 1: 28th Annual J.P. Morgan Healthcare Conference
28th Annual J.P. Morgan Healthcare Conference Molina Healthcare, Inc. J. Mario Molina, MD San Francisco January 12, 2010
Slide 2: Cautionary statement
Cautionary statement 2 Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This slide presentation, as well as our accompanying oral remarks, contain numerous "forward looking statements" related to future events, developments, plans, projections, or conditions. All of
Slide 3: Business Snapshot
Business Snapshot 3 Membership growth Our members in thousands Washington 334,000 California 351,000 New Mexico 94,000 Utah 69,000 Michigan 223,000 Ohio 216,000 Texas 40,000 Markets and members served - Q4 '09E Missouri 78,000 Florida 50,000 87% TANF 8% 5% AGED, BLIND & DISABLED MEDICARE <1% 87% TAN
Slide 4: Fourth Quarter 2009 Preliminary Financial Results
Fourth Quarter 2009 Preliminary Financial Results 4 $809M 84.7% 11.3% 8.1% $8.7M $14.8M $0.55 26.8M Premium Revenue Medical Care Ratio G&A Ratio Core G&A Ratio (excluding Premium Tax) Depreciation & Amortization Net Income Diluted EPS Diluted Shares Outstanding 4Q '08 $962M 87.2% 12.3% 8.2% $9.6M ($
Slide 5: Full Year 2009 Preliminary Financial Results
Full Year 2009 Preliminary Financial Results 5 $3.1B 84.8% 11.1% 8.0% $33.7M $59.6M $2.15 27.8M Premium Revenue Medical Care Ratio G&A Ratio Core G&A Ratio (excluding Premium Tax) Depreciation & Amortization Net Income Diluted EPS Diluted Shares Outstanding 2008 $3.7B 86.7% 10.9% 7.6% $38.0M $29M-$3
Slide 6: Fourth Quarter 2009 Preliminary Financial Results drivers
6 Higher utilization due to widespread flu across Molina markets Higher emergency room costs Margin compression related to state budget shortfalls rate decreases in New Mexico and Washington Missouri pharmacy carve-out Enrollment growth and the higher costs associated with new members Higher general
Slide 7: 2009-2010 Flu Season
2009-2010 Flu Season Note: Google begins flu season tracking in July Source: Google Flu Trends (http://www.google.org/flutrends) Q3 Q4 Q1 Q2 7 United States Flu Activity (GoogleFlu) Number of Patients with Flu-Like Symptoms Note: CDC begins flu season tracking in September/October Source: CDC (http:
Slide 8: 2009-2010 Flu Season in Molina Markets
2009-2010 Flu Season in Molina Markets 8 Source: Google Flu Trends (http://www.google.org/flutrends) '09Q3 '09Q4 United States & Molina Top Membership Markets Number of Patients with Flu-Like Symptoms '10Q1 '10Q1 '10Q2 over 75% of Molina's membership resides in these states Flu activity has resulted
Slide 9: Length of Enrollment (LOE)
Length of Enrollment (LOE) 9 As length of enrollment increases, the paid PMPM decreases. Costs tend to be higher in the early months of a member's enrollment history. 2 Note: E denotes estimate. The Company is currently in the process of finalizing its results for the fourth quarter and full year 20
Slide 10: Admin Expense Change - Q3 versus Q4
0.7% 0.9% 1.6% Admin Expense Change - Q3 versus Q4 10 8.2% 4.1% 12.3% Core Admin Premium Tax Total Admin Q4E Change 7.5% 3.2% 10.7% Q3 Medicare Marketing Data Center Move Network Development Cost to serve new members / programs CA, OH, WA Increases Comments Note: E denotes estimate. The Company is c
Slide 11: Premium Tax Change - Q3 versus Q4E
3.2% 4.1% Premium Tax Change - Q3 versus Q4E 11 $29.1M $4.8M ($2.2M) $4.5M $1.7M $0.9M $38.8M Q3 Premium Tax (PT) Ohio PT Increase 5.5% to 7.7% California PT Reduced from 5.5% to 2.35% California Retro PT 1/1/09 - 9/30/09 Washington B&O Tax - Retro Other General Revenue Increases Q4 Premium Tax E Do
Slide 12: Restoration of California
Restoration of California 12 1. Yolo County Our objectives in California are to restore our profitability and maintain a sustainable presence in the state. Every market is under evaluation. Exiting Access for Infants and Mothers (AIM) program effective July 2010 Provided state with notice of Yolo ex
Slide 13: CA Governor's Budget Summary
CA Governor's Budget Summary 13 BUDGET SOLUTIONS PLAN B; if fed funds are lacking Eliminate the Healthy Families program Eliminate CalWorks Eliminate coverage for all optional beneficiaries Eliminate almost all optional Medi-Cal benefits Eliminate Prop 99 Programs (AIM, MRMIP) Eliminate transitional
Slide 14: Growth Strategy
Growth Strategy Leveraging technology to sustain growth The new Molina IT Operations Center is located in Albuquerque's Mesa Del Sol District and began operating in November 2009. 14 1. Leverage our core business Expand the business: Increased market penetration in existing markets Strategic acquisi
Slide 15: Healthcare reform
Healthcare reform 15 House and Senate have each passed a health care reform bill and key differences are being negotiated Both bills include expansions of Medicaid to higher income levels (150% of FPL in House bill, 133% of FPL in Senate) The House bill includes a public insurance option Negotiation
Slide 16: Molina 2010 Investor Day
16 Molina 2010 Investor Day January 27, 2010 New York City www.molinahealthcare.com
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