Health insurer reports huge loss after Trump’s decision on Obamacare
California-based Molina Healthcare, Inc., which operates in 17 states, has reported a $73 million loss due to a decision made by President Trump regarding Obamacare.
Molina Healthcare said Monday that President Trump’s decision to end the Affordable Care Act’s cost-sharing subsidies for low-income people cost the company $73 million in the final three months of 2017. Molina has since curtailed its participation in the ACA marketplaces for 2018.
Between the lines: The $73 million loss shows the magnitude of Trump’s move to stop paying the subsidies to insurers, and indicates Molina had to pay out a lot of medical claims for that subset of enrollees. Centene, another large ACA insurer, recently said it lost $22 million from the nonpayment of cost-sharing subsidies.
A press release posted on the Molina Healthcare website Monday included the following statement:
“Our fourth quarter results are emblematic of the significant transition Molina is undertaking,” said Joe Zubretsky, president and CEO. “The disappointment of contract losses and related goodwill charges, continued restructuring costs, and catch up adjustments to unacceptable Marketplace results are legacies of the past. Looking forward, the core business results showed improvement quarter over quarter, and we took steps to strengthen the quality of the balance sheet, all of which serve as a solid platform to achieve our margin recovery and sustainability plan we outlined for investors last month. Medical cost control, administrative cost discipline, and capital strength remain at the fore of our plan.”
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