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Molina Healthcare Expands Dual Eligible Services in Michigan, Idaho

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Molina Healthcare, Inc. MOH recently announced that it has secured significant wins by expanding its services to dual-eligible populations in Michigan and Idaho. In Michigan, the Michigan Department of Health and Human Services has awarded Molina Healthcare of Michigan a contract for its Highly Integrated Dual Eligible Special Needs Plan. Molina Healthcare of Idaho has been selected to administer the state’s Medicare Medicaid Coordinated Plan and Idaho Medicaid Plus Plan. 

This move bodes well for MOH as these contracts strengthen Molina Healthcare’s position as a leader in managed healthcare, providing services to individuals eligible for Medicare and Medicaid. The newly launched benefit, MI Coordinated Health, will cover the entire lower peninsula, vastly increasing Molina Healthcare’s regional presence from just two areas under the current Michigan Health Link program. It will go live on Jan. 1, 2026, with a seven-year term (plus optional extensions).

In Idaho, the programs will serve approximately 11,000 dual-eligible members and highlight Molina Healthcare’s expanding reach in the state. These contracts will begin Jan. 1, 2026, with an initial four-year term and an optional one-year extension.

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 Sept. 30, 2024, MOH’s Medicaid and Medicare membership grew 3.9% and 42.8% year over year, respectively.For 2024, management estimates Medicaid and Medicare membership to be around 5.1 million and 250,000, respectively.

Shares of Molina Healthcare have gained 1.1% in the past against the industry’s 10.6% decline. MOH currently carries a Zacks Rank #3 (Hold).

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Stocks to Consider

Some better-ranked in the broader Medical sector are Pediatrix Medical Group, Inc. (MD - Free Report) , CareDx, Inc. (CDNA - Free Report) and Encompass Health Corporation (EHC - Free Report) . Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Pediatrix Medical’s current-year earnings indicates 7.1% year-over-year growth. MD beat earnings estimates in three of the trailing four quarters and met once, with an average surprise of 9.9%. The consensus mark for its current-year revenues is pegged at $2 billion.

The Zacks Consensus Estimate for CareDx’s current-year earnings indicates a 167.2% year-over-year improvement. CDNA beat earnings estimates in each of the trailing four quarters, with an average surprise of 135.2%. The consensus mark for revenues implies 17.5% growth from the year-ago period.

The Zacks Consensus Estimate for Encompass Health’s 2024 earnings implies a 17.6% increase from the year-ago reported figure. EHC beat earnings estimates in each of the trailing four quarters, with an average surprise of 13.6%. The consensus mark for its current-year revenues is pegged at $5.34 billion, which indicates an 11.2% year-over-year increase.


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