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| 8-K - MOLINA HEALTHCARE, INC. 8-K - MOLINA HEALTHCARE, INC. | a52361606.htm |
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Exhibit 99.1
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Molina Healthcare, Inc.JP Morgan Healthcare Conference Joe Zubretsky, President and Chief Executive
OfficerJanuary 14, 2021
Cautionary Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This presentation and the accompanying oral remarks include forward-looking statements regarding, without limitation, the Company’s strategic position, its projected 2021 premium revenues and future revenue growth prospects, political and
judicial developments, the continuing impacts of the COVID-19 pandemic during 2021, Medicaid rates and risk corridor provisions, and our 2021 Marketplace business and membership. The Company intends such forward-looking statements to be
covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company cannot guarantee that it will actually achieve the plans, outlook, or expectations disclosed
in its forward-looking statements and, accordingly, you should not place undue reliance on the Company’s forward-looking statements. Those risks and uncertainties are discussed under Item 1A in the section entitled “Risk Factors” in the
Company’s Annual Report on Form 10-K and also in the Company’s quarterly reports and other reports and filings with the Securities and Exchange Commission, or SEC. These reports can be accessed under the investor relations tab of the
Company’s website or on the SEC’s website at www.sec.gov. Given these risks and uncertainties, the Company can give no assurances that its forward-looking statements will prove to be accurate, or that the results or events projected or
contemplated by its forward-looking statements will in fact occur. All forward-looking statements in this presentation represent management’s judgment as of January 14, 2021, and, except as otherwise required by law, the Company disclaims any
obligation to update any forward-looking statements to conform the statement to actual results or changes in its expectations.
Compelling Strategic Position 4Q20 First Glimpse 2020 Full Year Performance 2021 Initial
Outlook Today’s Agenda
Compelling Strategic Position Despite pandemic, business remains resilient and strategy
unchanged Growth Strategy Grow premium revenue ~13% and ~25% in 2020 and 2021, respectivelyOrganic growth opportunities remain compellingExpert acquisition team, disciplined approach Focused on managed care fundamentalsMaintain industry
leading margin positionGenerate significant excess cash flow and capital Operating Metrics Business Environment Democrats control Congress and The White HouseSCOTUS threat diminishedSupport for Medicaid expansion and Marketplace
subsidies
Molina’s Footprint Expanded in 2020 Checked the box on all aspects of our growth strategy initiatives
in 2020 despite the global
pandemic Executed
on meaningful and accretive acquisitions Retained all of our existing Medicaid contracts Won new state contract New state; acquisition New state; RFP win and acquisition Existing State; expanded due to acquisitions
4Q20 First Glimpse & 2020 Full Year Performance
4Q20 First Glimpse Normalized performance continues to be strong and in line with previous
expectations Quarter impacted by recently enacted COVID risk sharing corridors, likely to be a net decrease to 4Q earnings of (~$3.50) per share Strong normalized performance, excluding the net impact of COVID and a one-time item,
continues with 4Q projected to be ~$3.00 per share One-time non-recurring items yield a benefit of ~$1.00 per share
2020 Full Year Performance 2020 full year normalized earnings; continued strong
performance Normalized performance projected to exceed full year GAAP guidance of $11.20 – $11.70 per share Net negative impact of COVID (~$2.00) per share Positive benefit from one-time non-recurring items of ~$1.00 per share
2021 Initial Outlook
2021 Medicaid Rate Environment Modest challenges from temporary COVID risk sharing corridors but
actuarial soundness preserves outlook for margins Many COVID risk sharing corridors extend into 2021COVID risk sharing corridors are expected to be temporary2020 corridors enacted retrospectively2021 corridors enacted prospectively,
providing greater visibility Known on 85% of revenueAverage increase of ~1.7%Some states assumed COVID-related utilization suppression Rates reflect cost trend and are actuarily sound Core Rates COVID Risk Sharing Corridors
2021 Marketplace Update Improved outlook in 2021 driven by enhanced operating performance 2020
performance disappointing but confined and correctable Targeted price increases in 2021 Begin 2021 with over 500,000 members Revenue growth of over 25% Target mid-single digit pre-tax margin for 2021
2021 Initial Premium Revenue Outlook Continued execution of growth strategy leads to 2021 premium
revenue of over $23 billion, or ~25% increase over 2020 MCC acquisition Benefit carve-ins and carve-outs Organic growth in Medicare and Marketplace Kentucky, Passport, and YourCare full year Resumption of membership
redetermination Does not include Affinity Puerto Rico exit
2021 Outlook Durable earnings catalysts largely mitigate temporary earnings
challenges Catalysts Challenges COVID risk sharing corridorsCOVID medical costsResumption of membership redeterminationMedicare risk adjustmentRx carve-outs Strong normalized performance in Medicaid and MedicareMarketplace margin
recovery and growthContinued COVID-related utilization suppressionHIF eliminationAccretion of MCC
Compelling Strategic Position Despite pandemic, business remains resilient and strategy
unchanged Growth Strategy Operating Metrics Business Environment
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