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Molina Healthcare, Inc. MOH recently announced that its subsidiary, Molina Healthcare of Illinois, has been selected as one of four organizations to provide a Fully Integrated Dual Eligible Special Needs Plan (D-SNP) in Illinois. This contract, awarded by the Illinois Department of Healthcare and Family Services, positions Molina Healthcare for strategic growth while enhancing its service offerings for dual-eligible beneficiaries.
This new contract will replace Illinois' existing Medicare-Medicaid Alignment Initiative, which currently covers approximately 73,000 beneficiaries. With the go-live date set for Jan. 1, 2026, Molina Healthcare of Illinois stands to gain from the transition as it strengthens its foothold in the state’s healthcare landscape.
In December 2024, MOH secured wins by expanding its services to dual-eligible populations in Michigan and Idaho. Contract wins like these are expected to increase the overall membership and drive premiums. Premiums remain the most significant contributor to a health insurer’s top line. As of Dec. 31, 2024, MOH’s Medicaid and Medicare membership grew 7.7% and 40.7% year over year, respectively. For 2025, management estimates Medicaid and Medicare membership to be around 5 million and 250,000, respectively.
By integrating care services more efficiently under the new D-SNP model, Molina Healthcare can enhance patient outcomes while streamlining operations, potentially driving cost savings and improved member retention. This latest success reaffirms Molina Healthcare’s commitment to serving vulnerable populations and positions the company for continued expansion in the competitive healthcare market. It expects total revenues to rise approximately 8% year over year in 2025.
Shares of Molina Healthcare have gained 7.6% over the past three months compared with the industry’s 3.1% growth. MOH currently carries a Zacks Rank #4 (Sell).
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Stocks to Consider
Some better-ranked stocks in the broader Medical sector are Pediatrix Medical Group, Inc. MD, The Ensign Group, Inc. ENSG and Addus HomeCare Corporation ADUS. While Pediatrix Medical currently sports a Zacks Rank #1 (Strong Buy), Ensign and Addus HomeCare carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Pediatrix Medical’s current-year earnings increased 3 cents in the past week. MD beat earnings estimates in each of the trailing four quarters, with an average surprise of 19.4%. The consensus mark for its current-year revenues is pegged at $1.9 billion.