MOLINA HEALTHCARE, INC. (NYSE:MOH) Files An 8-K Regulation FD DisclosureItem 7.01.Regulation FD Disclosure.
On February 1, 2018, and as confirmed on February 5, 2018, the Florida Agency for Health Care Administration (AHCA) notified our Florida health plan, Molina Healthcare of Florida, Inc., that it was selected as a candidate to negotiate for the award of a managed care contract for Region 11 of the Florida Statewide Medicaid Managed Care Invitation to Negotiate (ITN). The start date for the new contract for Region 11, which includes Miami-Dade and Monroe counties, is scheduled for January 1, 2019. The ITN does not affect the Florida plan’s current Medicaid contract with AHCA, which runs through December 31, 2018. The ITN was originally issued on July 14, 2017, and our Florida health plan submitted its bid on October 31, 2017.Contract awards under the ITN are expected to be issued by AHCA in April 2018.
Currently, the Florida health plan services eight of the eleven Regions, with statewide Medicaid membership of approximately 350,000 as of September 30, 2017, 59,000 of whom are in Region 11. Under the existing Medicaid contract, the aggregate Medicaid premium revenue of the Florida plan amounted to approximately $1.1 billion for the nine months ended September 30, 2017, or approximately 8% of our total premium revenue. The Florida health plan is seeking to understand the basis for AHCA’s preliminary selection of candidates under the ITN, and intends to take all appropriate actions to both protect its rights and ensure continuity of care for its members.
Note: The information furnished herewith to Item 7.01 of this Current Report on Form 8-K shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This report contains “forward-looking statements” regarding our Florida health plan and its participation in the Florida ITN. All of our forward-looking statements are based on our current expectations that are subject to numerous risk factors that could cause actual results to differ materially, including, without limitation, risks related to: current uncertainties regarding the ITN and the basis for candidate selections, the negotiation process and the ultimate award of contracts, and potential protest filings by health plans. Additional information regarding the risk factors to which we are subject is provided in greater detail in our periodic reports and filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K. These reports can be accessed under the investor relations tab of our company website or on the SEC’s website at www.sec.gov. Given these risks and uncertainties, we can give no assurances that our forward-looking statements will prove to be accurate, or that any other results or events projected or contemplated by our forward-looking statements will in fact occur, and we caution investors not to place undue reliance on these statements. All forward-looking statements in this report represent our judgment as of the date hereof, and we disclaim any obligation to update any forward-looking statements to conform the statement to actual results or changes in our expectations that occur after the date of this report.
About MOLINA HEALTHCARE, INC. (NYSE:MOH)
Molina Healthcare, Inc. offers Medicaid-related solutions for low-income families and individuals, and assists government agencies in their administration of the Medicaid program. The Company operates through three segments: Health Plans, Molina Medicaid Solutions and Other. Its Health Plans segment consists of health plans in approximately 10 states and the Commonwealth of Puerto Rico, and its direct delivery business. Its direct delivery business consists of the operation of primary care clinics in various states in which it operates health plans. Its Molina Medicaid Solutions segment provides design, development, implementation (DDI) and business process outsourcing (BPO) solutions to state governments for their Medicaid management information systems (MMIS). The Other segment includes other businesses, such as its Pathways Health and Community Support LLC (Pathways) behavioral health and social services provider.