Molina Healthcare Inc · NYSE:MOH
Molina Healthcare — 29th Annual J.P. Morgan Healthcare Conference (January 2011)
12 slides from Molina Healthcare's conference presentation, Jan 11, 2011
Slide 1: 29th Annual J.P. Morgan Healthcare Conference - Molina Healthcare
29th Annual J.P. Morgan Healthcare Conference San Francisco January 10, 2011 Molina Healthcare, Inc. J. Mario Molina, MD Chief Executive Officer
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" regarding our operations for 2010 and subsequent fiscal years. All of our forwa
Slide 3: Who We Are
3 Fee-based fiscal agent services, business process outsourcing, and care and utilization management Non-risk, fee business with higher margins and no regulatory capital requirement Who We Are 3 No other company in the Medicaid space can do all three Health Plans Medicaid Health Information Mgmt Hea
Slide 4: Business Snapshot
Business Snapshot 4 Markets and members served - Q3 2010 Washington 353,000 California 349,000 New Mexico 91,000 Utah 78,000 Texas 96,000 Missouri 79,000 Michigan 225,000 Ohio 241,000 Florida3 57,000 Health plan enrollment growth Health plan membership profile (in thousands) (in thousands) Molina He
Slide 5: Molina grows in Wisconsin
Molina Healthcare acquired Abri Health Plan in Wisconsin on September 1, 2010 Platform for enrollment growth in Southeast Wisconsin (250K eligibles) Highly fragmented Medicaid market with potential for growth Contributes to revenue diversification Recently announced new leadership 5 Molina grows in
Slide 6: New Contracts for Texas
New Contracts for Texas 6 CHIP RSA Contract began September 1, 2010 ^ 54,000 new members already enrolled STAR+PLUS contract award in the Dallas Service Area Contract effective Q1 2011 Molina Healthcare of Texas Medicaid Service Area STAR+PLUS Dallas service area Collin Dallas Ellis Navarro Hunt Kau
Slide 7: California 1115 Medicaid Waiver
California 1115 Medicaid Waiver Expanded Coverage: covers more uninsured individuals through Medicaid by raising eligibility to 133% of FPL in 2014 Improved Care for vulnerable populations: enrollment of seniors and persons with disability (SPD) in Medicaid managed care (380K new eligibles in CA; 26
Slide 8: Expanding the business
8 Expanding the business Expanding the business Organic Growth Growth through Acquisitions 666 670 777 920 1,033 411 479 479 535 563 1,077 1,149 1,256 1,455 1,597 RFP Awards Tactical Acquisitions Direct Delivery TX Dallas ABD TX CHIP RSA WI Medicaid Southeast TX Laredo WI Abri WA Molina Medical @ Co
Slide 9: Third Quarter Results
Premium Revenue Service Revenue Investment Income Medical Care Costs Medical Care Ratio Service Costs G&A Expense G&A Ratio Premium Tax Expense Depreciation & Amortization Interest Expense Income Tax Net Income Diluted EPS Weighted Average Diluted Shares Outstanding $1.0B $32.3M $1.8M $845.9M 84.2%
Slide 10: Recent Performance and earnings outlook factors
10 Factors influencing our earnings outlook: Our better than anticipated performance during the third quarter of 2010 Lower medical utilization at most of our health plans Rate decreases in New Mexico effective November 1, 2010 Higher than anticipated stabilization costs in our MMS segment in the fi
Slide 11: Near and long term catalysts
Near and long term catalysts 11 Before Reform Opportunities State budgets under pressure leading to MCO RPF activity ABD expansion; more states are evaluating transitioning this population to managed care Technology requirements (ICD-10) generating Fiscal Agent RFP activity Interest in new demonstra
Slide 12: Break out Session - Investor Day 2011A
12 Break out Session - Sussex Room Molina Healthcare Investor Day 2011A January 26, 2011 New York City
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