Molina Healthcare plans to significantly scale back its Affordable Care Act business beginning in 2027, limiting operations to six states and reducing premiums by a meaningful margin. The decision follows ongoing pressure on ACA profitability, including falling membership and higher medical costs. The company is restructuring its portfolio to sharpen focus on Medicaid and Medicare Advantage, adjusting its business mix and risk profile. Molina Healthcare shares trade at $197.55, up 10.7% year to date and 19.7% over the past year, though longer-term returns over three and five years show declines of 34.5% and 27.6%.
Molina Healthcare IncMolina Healthcare plans to significantly scale back its ACA business due to falling membership and higher medical costs, indicating reduced end-customer demand for its ACA plans.