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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2017	Feb. 23, 2018	Jun. 30, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	MOLINA HEALTHCARE INC
Entity Central Index Key	0001179929
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 2,952.7
Entity Common Stock, Shares Outstanding		59,727,000

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenue:
Premium revenue	$ 18,854	$ 16,445	$ 13,261
Service revenue	521	539	253
Premium tax revenue	438	468	397
Health insurer fees reimbursed	0	292	244
Investment income and other revenue	70	38	23
Total revenue	19,883	17,782	14,178
Operating expenses:
Medical care costs	17,073	14,774	11,794
Cost of service revenue	492	485	193
General and administrative expenses	1,594	1,393	1,146
Premium tax expenses	438	468	397
Health insurer fees	0	217	157
Depreciation and amortization	137	139	104
Impairment losses	470	0	0
Restructuring and separation costs	234	0	0
Total operating expenses	20,438	17,476	13,791
Operating (loss) income	(555)	306	387
Interest expense	118	101	66
Other income, net	(61)	0	(1)
Total other expenses, net	57	101	65
(Loss) income before income tax (benefit) expense	(612)	205	322
Income tax (benefit) expense	(100)	153	179
Net (loss) income	$ (512)	$ 52	$ 143
Net (loss) income per share:
Basic (in dollars per share)	$ (9.07)	$ 0.93	$ 2.75
Diluted (in dollars per share)	$ (9.07)	$ 0.92	$ 2.58
Weighted average shares outstanding:
Basic (in shares)	56	55	52
Diluted (in shares)	56	56	56

Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (262)	$ (97)	$ (230)	$ 77	$ (47)	$ 42	$ 33	$ 24	$ (512)	$ 52	$ 143
Other comprehensive (loss) income:
Unrealized investment (loss) gain									(5)	3	(5)
Less: effect of income taxes									(2)	1	(2)
Other comprehensive (loss) income, net of tax									(3)	2	(3)
Comprehensive (loss) income									$ (515)	$ 54	$ 140

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 3,186	$ 2,819	$ 2,329	$ 1,539
Investments	2,524	1,758
Restricted investments	169	0
Receivables	871	974
Income taxes refundable	54	39
Prepaid expenses and other current assets	185	131
Derivative asset	522	267
Total current assets	7,511	5,988
Property, equipment, and capitalized software, net	342	454
Deferred contract costs	101	86
Intangible assets, net	69	140
Goodwill	186	620
Restricted investments	119	110
Deferred income taxes	103	10
Other assets	40	41
Total assets	8,471	7,449	6,576
Current liabilities:
Medical claims and benefits payable	2,192	1,929	$ 1,685	$ 1,201
Amounts due government agencies	1,542	1,202
Accounts payable and accrued liabilities	366	385
Deferred revenue	282	315
Current portion of long-term debt	653	472
Derivative liability	522	267
Total current liabilities	5,557	4,570
Long-term debt	1,318	975
Lease financing obligations	198	198
Deferred income taxes	0	15
Other long-term liabilities	61	42
Total liabilities	7,134	5,800
Stockholders’ equity:
Common stock, $0.001 par value; 150 shares authorized; outstanding: 60 shares at December 31, 2017 and 57 shares at December 31, 2016	0	0
Preferred stock, $0.001 par value; 20 shares authorized, no shares issued and outstanding	0	0
Additional paid-in capital	1,044	841
Accumulated other comprehensive loss	(5)	(2)
Retained earnings	298	810
Total stockholders’ equity	1,337	1,649
Total liabilities and stockholders' equity	$ 8,471	$ 7,449

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares outstanding	60,000,000	57,000,000
Preferred stock, par value (dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings
Beginning Balance, shares at Dec. 31, 2014	49	50
Beginning Balance at Dec. 31, 2014	$ 1,010	$ 0	$ 396	$ (1)	$ 615
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	143				143
Other comprehensive income (loss), net	(3)			(3)
Common stock offering, including issuance costs, shares		6
Common stock offering, including issuance costs	373		373
1.625% Convertible Notes exchange transaction	0
Share-based compensation, shares		0
Share-based compensation	26	$ 0	26
Tax benefit from share-based compensation	$ 8		8
Ending Balance, shares at Dec. 31, 2015	55	56
Ending Balance at Dec. 31, 2015	$ 1,557	$ 0	803	(4)	758
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	52				52
Other comprehensive income (loss), net	2			2
1.625% Convertible Notes exchange transaction	0
Share-based compensation, shares		1
Share-based compensation	36	$ 0	36
Tax benefit from share-based compensation	$ 2		2
Ending Balance, shares at Dec. 31, 2016	56	57
Ending Balance at Dec. 31, 2016	$ 1,649	$ 0	841	(2)	810
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(512)				(512)
Other comprehensive income (loss), net	(3)			(3)
Issuance of common stock in connection with 1.625% Notes exchange, shares		3
1.625% Convertible Notes exchange transaction	161		161
Share-based compensation, shares		0
Share-based compensation	42	$ 0	42
Ending Balance, shares at Dec. 31, 2017		60
Ending Balance at Dec. 31, 2017	$ 1,337	$ 0	$ 1,044	$ (5)	$ 298

Consolidated Statements of Stockholders' Equity (Parenthetical) - 1.625% Convertible Notes	Dec. 31, 2017
Debt Instrument [Line Items]
Percentage of contractual interest rate	1.625%
Convertible Debt
Debt Instrument [Line Items]
Percentage of contractual interest rate	1.625%

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating activities:
Net (loss) income	$ (512)	$ 52	$ 143
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	178	182	126
Impairment losses	470	0	0
Deferred income taxes	(94)	22	(7)
Share-based compensation	46	26	23
Non-cash restructuring charges	60	0	0
Amortization of convertible senior notes and lease financing obligations	32	31	30
Loss on debt extinguishment	14	0	0
Other, net	21	16	19
Changes in operating assets and liabilities:
Receivables	103	(348)	56
Prepaid expenses and other current assets	(56)	(69)	(35)
Medical claims and benefits payable	263	226	482
Amounts due government agencies	341	473	202
Accounts payable and accrued liabilities	(12)	(4)	84
Deferred revenue	(34)	92	24
Income taxes	(16)	(26)	(22)
Net cash provided by operating activities	804	673	1,125
Investing activities:
Purchases of investments	(2,718)	(1,929)	(1,923)
Proceeds from sales and maturities of investments	1,771	1,966	1,126
Purchases of property, equipment and capitalized software	(86)	(176)	(132)
(Increase) decrease in restricted investments held-to-maturity	(12)	4	(6)
Net cash paid in business combinations	0	(48)	(450)
Other, net	(28)	(19)	(35)
Net cash used in investing activities	(1,073)	(202)	(1,420)
Financing activities:
Proceeds from senior notes offerings, net of issuance costs	325	0	689
Proceeds from borrowings under credit facility	300	0	0
Proceeds from common stock offering, net of issuance costs	0	0	373
Proceeds from employee stock plans	19	18	18
Cash paid for financing transaction fees	(7)	0	0
Other, net	(1)	1	5
Net cash provided by financing activities	636	19	1,085
Net increase in cash and cash equivalents	367	490	790
Cash and cash equivalents at beginning of period	2,819	2,329	1,539
Cash and cash equivalents at end of period	3,186	2,819	2,329
Supplemental cash flow information:
Income taxes	7	153	197
Interest	78	66	38
Schedule of non-cash investing and financing activities:
Issuance of common stock in exchange for 1.625% Convertible Notes	193	0	0
Component of 1.625% Convertible Notes allocated to additional paid-in capital, net of income taxes	(32)	0	0
Net increase to additional paid-in capital	161	0	0
Common stock used for stock-based compensation	(22)	(8)	(15)
Details of business combinations:
Fair value of assets acquired	0	(186)	(389)
Fair value of liabilities assumed	0	28	41
Payable to seller	0	8	0
Amounts advanced for acquisitions	0	102	(102)
Net cash paid in business combinations	0	(48)	(450)
Details of change in fair value of derivatives, net:
Change in fair value of derivatives, net	0	0	0
1.125% Call Option
Details of change in fair value of derivatives, net:
Change in fair value of derivatives, net	255	(107)	45
1.125% Conversion Option
Details of change in fair value of derivatives, net:
Change in fair value of derivatives, net	$ (255)	$ 107	$ (45)

Consolidated Statements of Cash Flows (Parenthetical)	Dec. 31, 2017
1.125% Call Option
Fixed interest rate on derivative	1.125%
1.125% Conversion Option
Fixed interest rate on derivative	1.125%
1.625% Convertible Notes
Percentage of contractual interest rate	1.625%
Convertible Debt \| 1.625% Convertible Notes
Percentage of contractual interest rate	1.625%

Basis of Presentation

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Organization and Operations

Molina Healthcare, Inc. provides quality managed healthcare to people receiving government assistance. We offer cost-effective Medicaid-related solutions to meet the health care needs of low-income families and individuals, and to assist government agencies in their administration of the Medicaid program. We have three reportable segments. These segments consist of our Health Plans segment, which constitutes the vast majority of our operations; our Molina Medicaid Solutions segment; and our Other segment.

As of December 31, 2017, the Health Plans segment consisted of health plans operating in 12 states and the Commonwealth of Puerto Rico. These health plans served approximately 4.5 million members eligible for Medicaid, Medicare, and other government-sponsored health care programs for low-income families and individuals. This membership includes Affordable Care Act Marketplace (Marketplace) members, most of whom receive government premium subsidies. The health plans are operated by our respective wholly owned subsidiaries in those states, each of which is licensed as a health maintenance organization (HMO).

Our health plans’ state Medicaid contracts generally have terms of three to four years. These contracts typically contain renewal options exercisable by the state Medicaid agency, and allow either the state or the health plan to terminate the contract with or without cause. The contracts are subject to risk of loss when a state issues a new request for proposal (RFP) open to competitive bidding by other health plans. If one of our health plans is not a successful responsive bidder to a state RFP, its contract may be subject to non-renewal. See below for further information regarding our Florida and New Mexico Medicaid contracts.

In addition to contract renewal, our state Medicaid contracts may be periodically amended to include or exclude certain health benefits (such as pharmacy services, behavioral health services, or long-term care services); populations such as the aged, blind or disabled (ABD); and regions or service areas.

The Molina Medicaid Solutions segment provides support to state government agencies in the administration of their Medicaid programs including business processing, information technology development, and administrative services. Molina Medicaid Solutions is under contract with Medicaid agencies in six states, and the U.S. Virgin Islands.

The Other segment includes primarily our Pathways behavioral health and social services provider, and corporate amounts not allocated to other reportable segments.

2017 and Recent Developments – Health Plans Segment

Florida Health Plan. On February 1, 2018, we were selected by the Florida Agency for Health Care Administration (AHCA) to negotiate for the award of a managed care contract in only one region of Florida. That region—Region 11—comprises Miami-Dade and Monroe counties, where we currently serve 59,000 Medicaid members. As of December 31, 2017, we served approximately 360,000 Medicaid members in Florida, which represented approximately $1,486 million premium revenue for the year ended December 31, 2017. This decision does not affect the Florida health plan’s current contracts with AHCA, which run through December 31, 2018. We recorded impairment charges in connection with this event. Refer to Note 8, “Goodwill and Intangible Assets, Net,” for further information.

New Mexico Health Plan. In January 2018, our New Mexico health plan was notified by the New Mexico Human Services Department (HSD) that the health plan had not been selected for the tentative award of a Medicaid contract effective January 1, 2019. As of December 31, 2017, we served approximately 224,000 Medicaid members in New Mexico, which represented approximately $1,205 million premium revenue for the year ended December 31, 2017. This decision does not affect the New Mexico plan’s current contract with HSD which runs through December 31, 2018. We recorded impairment charges in connection with this event. Refer to Note 8, “Goodwill and Intangible Assets, Net,” for further information.

Illinois Health Plan. In August 2017, our Illinois health plan was awarded a statewide Medicaid managed care contract by the Illinois Department of Healthcare and Family Services. This Medicaid contract further integrates behavioral health and physical health by combining the state’s three current managed care programs into one program. The contract began January 1, 2018, and will continue for four years with options to renew annually for up to four additional years.

Mississippi Health Plan. In June 2017, Molina Healthcare of Mississippi, Inc. was awarded a Medicaid Coordinated Care Contract for the statewide administration of the Mississippi Coordinated Access Network (MississippiCAN). The operational start date for the program is currently scheduled for October 1, 2018, pending the completion of a readiness review. The initial term of the contract is through June 2020, with options to renew annually for up to two additional years.

Washington Health Plan. In May 2017, our Washington health plan was selected by the Washington State Health Care Authority to negotiate and enter into managed care contracts for the North-Central region of the state’s Apple Health Integrated Managed Care Program. The new contract commenced January 1, 2018.

Terminated Medicare Acquisition. In August 2016, we entered into agreements with each of Aetna Inc. and Humana Inc. to acquire certain assets related to their Medicare Advantage business. In February 2017, our agreements with each of Aetna and Humana were terminated by the parties pursuant to the terms of the agreements, under which we received an aggregate termination fee of $75 million from Aetna and Humana in the first quarter of 2017. This fee is reported in “Other income, net” in the accompanying consolidated statements of operations.

Impairment Losses

Refer to Note 8, “Goodwill and Intangible Assets, Net,” for a discussion of goodwill and intangible assets impaired in 2017.

Consolidation

The consolidated financial statements include the accounts of Molina Healthcare, Inc., its subsidiaries, and variable interest entities in which Molina Healthcare, Inc. is considered to be the primary beneficiary. See Note 18, “Variable Interest Entities (VIEs),” for more information regarding these variable interest entities. All significant inter-company balances and transactions have been eliminated in consolidation. Financial information related to subsidiaries acquired during any year is included only for periods subsequent to their acquisition. In the opinion of management, all adjustments considered necessary for a fair presentation of the results as of the date and for the periods presented have been included; such adjustments consist of normal recurring adjustments.

Presentation and Reclassification

The Centers for Medicare and Medicaid Services (CMS) incorporates the Health Insurer Fee (HIF) in our Medicare and Marketplace premium rates. We have therefore reclassified such amounts in our consolidated statements of operations to premium revenue, from health insurer fees reimbursed, for all applicable periods presented. The amounts reclassified from health insurer fees reimbursed to premium revenue for years ended December 31, 2016, and 2015, amounted to $53 million and $20 million, respectively.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Estimates also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Principal areas requiring the use of estimates include:


•	The determination of medical claims and benefits payable of our Health Plans segment;


•	Health plan contractual provisions that may limit revenue recognition based upon the costs incurred or the profits realized under a specific contract;


•	Health plan quality incentives that allow us to recognize incremental revenue if certain quality standards are met;


•	Molina Medicaid Solutions segment revenue and cost recognition;


•	Settlements under risk or savings sharing programs;


•	The assessment of deferred contract costs, deferred revenue, long-lived and intangible assets, and goodwill for impairment;


•	The determination of reserves for potential absorption of claims unpaid by insolvent providers;


•	The determination of reserves for the outcome of litigation;


•	The determination of valuation allowances for deferred tax assets; and


•	The determination of unrecognized tax benefits.

Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Significant Accounting Policies

Certain of our significant accounting policies are discussed within the note to which they specifically relate.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash and short-term, highly liquid investments that are both readily convertible into known amounts of cash and have a maturity of three months or less on the date of purchase.

Investments

Our investments are principally held in debt securities, which are grouped into two separate categories for accounting and reporting purposes: available-for-sale securities, and held-to-maturity securities. Available-for-sale securities are recorded at fair value and unrealized gains and losses, if any, are recorded in stockholders’ equity as other comprehensive income, net of applicable income taxes. Held-to-maturity securities are recorded at amortized cost, which approximates fair value, and unrealized holding gains or losses are not generally recognized. Realized gains and losses and unrealized losses judged to be other than temporary with respect to available-for-sale and held-to-maturity securities are included in the determination of net (loss) income. The cost of securities sold is determined using the specific-identification method.

Our investment policy requires that all of our investments have final maturities of 10 years or less (excluding variable rate securities where interest rates may be periodically reset), and that the average maturity be three years or less. Investments and restricted investments are subject to interest rate risk and will decrease in value if market rates increase. Declines in interest rates over time will reduce our investment income.

In general, our available-for-sale securities are classified as current assets without regard to the securities’ contractual maturity dates because they may be readily liquidated. We monitor our investments for other-than-temporary impairment. For comprehensive discussions of the fair value and classification of our current and non-current investments, see Note 4, “Fair Value Measurements,” Note 5, “Investments,” and Note 9, “Restricted Investments, Non-current.”

Long-Lived Assets, including Intangible Assets

Long-lived assets consist primarily of property, equipment, capitalized software (see Note 7, “Property, Equipment, and Capitalized Software, Net”), and intangible assets (see Note 8, “Goodwill and Intangible Assets, Net”).

Deferred Contract Costs

Direct costs associated with our Molina Medicaid Solutions contracts, other than software-related costs for which we apply the guidance for internal-use software, are expensed as incurred unless corresponding revenue is deferred. We defer recognition of any contingent revenue until the contingency has been removed. If revenue is deferred, direct costs relating to delivered service elements are deferred as well, and recognized on a straight-line basis over the period of revenue recognition.

The recoverability of deferred contract costs associated with a particular contract is analyzed on a periodic basis using the undiscounted estimated cash flows of the whole contract over its remaining contract term. If such undiscounted cash flows are insufficient to recover the long-lived assets and deferred contract costs, the deferred contract costs are written down by the amount of the cash flow deficiency. If a cash flow deficiency remains after reducing the balance of the deferred contract costs to zero, any remaining long-lived assets are evaluated for impairment. Any such impairment recognized would equal the amount by which the carrying value of the long-lived assets exceeds the fair value of those assets.

Business Combinations

Accounting for acquisitions requires us to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the final determination of the values of assets acquired or liabilities assumed, or one year after the date of acquisition, whichever comes first, any subsequent adjustments are recorded within our consolidated statements of operations.

Premium Revenue - Health Plans

Premium revenue is generated primarily from our Medicaid, Medicare and Marketplace contracts, including agreements with other managed care organizations for which we operate as a subcontractor. Premium revenue is generally received based on per member per month (PMPM) rates established in advance of the periods covered. These premium revenues are recognized in the month that members are entitled to receive health care services, and premiums collected in advance are deferred. The state Medicaid programs and the federal Medicare program periodically adjust premiums. Additionally, many of our contracts contain provisions that may adjust or limit revenue or profit, as described below. Consequently, we recognize premium revenue as it is earned under such provisions.

The following table summarizes premium revenue for the periods indicated:



	Year Ended December 31,
	2017				2016				2015
	Amount		% of Total		Amount		% of Total		Amount		% of Total
	(Dollars in millions)
California	$	2,701	14.3	%	$	2,378	14.4	%	$	2,200	16.6	%
Florida	2,568		13.6		1,938		11.8		1,199		9.1
Illinois	593		3.1		603		3.7		398		3.0
Michigan	1,596		8.5		1,527		9.3		1,072		8.1
New Mexico	1,368		7.3		1,305		7.9		1,237		9.3
New York	181		1.0		82		0.5		—		—
Ohio	2,216		11.8		1,967		12.0		2,035		15.3
Puerto Rico	732		3.9		726		4.4		567		4.3
South Carolina	445		2.4		378		2.3		348		2.6
Texas	2,813		14.9		2,461		15.0		1,963		14.8
Utah	535		2.8		447		2.7		334		2.5
Washington	2,608		13.8		2,222		13.5		1,605		12.1
Wisconsin	491		2.6		398		2.4		262		2.0
Other	7		—		13		0.1		41		0.3
	$	18,854	100.0	%	$	16,445	100.0	%	$	13,261	100.0	%

Certain components of premium revenue are subject to accounting estimates and fall into the following categories:

Contractual Provisions That May Adjust or Limit Revenue or Profit

Medicaid

Medical Cost Floors (Minimums), and Medical Cost Corridors. A portion of our premium revenue may be returned if certain minimum amounts are not spent on defined medical care costs. In the aggregate, we recorded a liability under the terms of such contract provisions of $135 million and $272 million at December 31, 2017 and December 31, 2016, respectively, to amounts due government agencies. Approximately $96 million and $244 million of the liability accrued at December 31, 2017 and December 31, 2016, respectively, relates to our participation in Medicaid Expansion programs.

In certain circumstances, the health plans may receive additional premiums if amounts spent on medical care costs exceed a defined maximum threshold. Receivables relating to such provisions were insignificant at December 31, 2017 and December 31, 2016.

Profit Sharing and Profit Ceiling. Our contracts with certain states contain profit-sharing or profit ceiling provisions under which we refund amounts to the states if our health plans generate profit above a certain specified percentage. In some cases, we are limited in the amount of administrative costs that we may deduct in calculating the refund, if any. Liabilities for profits in excess of the amount we are allowed to retain under these provisions were insignificant at December 31, 2017 and December 31, 2016.

Retroactive Premium Adjustments. State Medicaid programs periodically adjust premium rates on a retroactive basis. In these cases, we must adjust our premium revenue in the period in which we learn of the adjustment, rather than in the months of service to which the retroactive adjustment applies.

Medicare

Risk Adjustment: Our Medicare premiums are subject to retroactive increase or decrease based on the health status of our Medicare members (as measured by member risk score). We estimate our members’ risk scores and the related amount of Medicare revenue that will ultimately be realized for the periods presented based on our knowledge of our members’ health status, risk scores and CMS practices. Consolidated balance sheet amounts related to anticipated Medicare risk adjustment premiums and Medicare Part D settlements were insignificant at December 31, 2017 and December 31, 2016.

Minimum MLR: Additionally, federal regulations have established a minimum annual medical loss ratio (Minimum MLR) of 85% for Medicare. The medical loss ratio represents medical costs as a percentage of premium revenue. Federal regulations define what constitutes medical costs and premium revenue. If the Minimum MLR is not met, we may be required to pay rebates to the federal government. We recognize estimated rebates under the Minimum MLR as an adjustment to premium revenue in our consolidated statements of operations.

Marketplace

Premium Stabilization Programs: The Affordable Care Act (ACA) established Marketplace premium stabilization programs effective January 1, 2014. These programs, commonly referred to as the “3R’s,” include a permanent risk adjustment program, a transitional reinsurance program, and a temporary risk corridor program. We record receivables or payables related to the 3R programs and the Minimum MLR when the amounts are reasonably estimable as described below, and, for receivables, when collection is reasonably assured. Our receivables (payables) for each of these programs, as of the dates indicated, were as follows:



	December 31, 2017								December 31, 2016
	Current Benefit Year			Prior Benefit Years		Total			December 31, 2016
	(In millions)
Risk adjustment	$	(912	)	$	—	$	(912	)	$	(522	)
Reinsurance	—			10		10			55
Risk corridor	—			—		—			(1		)
Minimum MLR	(2		)	—		(2		)	(1		)

•

Risk adjustment: Under this permanent program, our health plans’ composite risk scores are compared with the overall average risk score for the relevant state and market pool. Generally, our health plans will make a risk transfer payment into the pool if their composite risk scores are below the average risk score, and will receive a risk transfer payment from the pool if their composite risk scores are above the average risk score. We estimate our ultimate premium based on insurance policy year-to-date experience, and recognize estimated premiums relating to the risk adjustment program as an adjustment to premium revenue in our consolidated statements of operations.


•	Reinsurance: This program was designed to provide reimbursement to insurers for high cost members and ended December 31, 2016; we expect to settle the outstanding receivable balance in the first quarter of 2018.


•	Risk corridor: This program was intended to limit gains and losses of insurers by comparing allowable costs to a target amount as defined by CMS, and ended December 31, 2016; all outstanding payable balances were settled in the third quarter of 2017. We are owed, but have not recorded $128 million in risk corridor payments from CMS related to benefit year 2016 and 2015.

Additionally, the ACA established a Minimum MLR of 80% for the Marketplace. The medical loss ratio represents medical costs as a percentage of premium revenue. Federal regulations define what constitutes medical costs and premium revenue. If the Minimum MLR is not met, we may be required to pay rebates to our Marketplace policyholders. Each of the 3R programs is taken into consideration when computing the Minimum MLR. We recognize estimated rebates under the Minimum MLR as an adjustment to premium revenue in our consolidated statements of operations.

Quality Incentives

At several of our health plans, revenue ranging from approximately 1% to 3% of certain health plan premiums is earned only if certain performance measures are met.

The following table quantifies the quality incentive premium revenue recognized for the periods presented, including the amounts earned in the periods presented and prior periods. Although the reasonably possible effects of a change in estimate related to quality incentive premium revenue as of December 31, 2017 are not known, we have no reason to believe that the adjustments to prior periods noted below are not indicative of the potential future changes in our estimates as of December 31, 2017.



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Maximum available quality incentive premium - current period	$	150		$	147		$	118

Amount of quality incentive premium revenue recognized in current period:
Earned current period	$	97		$	104		$	66
Earned prior periods	10			47			13
Total	$	107		$	151		$	79

Quality incentive premium revenue recognized as a percentage of total premium revenue	0.6		%	0.9		%	0.6		%

Medical Care Costs - Health Plans

Expenses related to medical care services are captured in the following categories:

Fee-for-service expenses. Nearly all hospital services and the majority of our primary care and physician specialist services and LTSS costs are paid on a fee-for-service basis. Under fee-for-service arrangements, we retain the financial responsibility for medical care provided and incur costs based on actual utilization of services. Such expenses are recorded in the period in which the related services are dispensed. The costs of drugs administered in a physician or hospital setting that are not billed through our pharmacy benefit manager are included in fee-for-service costs.

Pharmacy expenses. All drug, injectibles, and immunization costs paid through our pharmacy benefit manager are classified as pharmacy expenses. As noted above, drugs and injectibles not paid through our pharmacy benefit manager are included in fee-for-service costs, except in those limited instances where we capitate drug and injectible costs.

Capitation expenses. Many of our primary care physicians and a small number of our specialists and hospitals are paid on a capitated basis. Under capitation arrangements, we pay a fixed amount PMPM to the provider without regard to the frequency, extent, or nature of the medical services actually furnished. Under capitated arrangements, we remain liable for the provision of certain health care services. Capitation payments are fixed in advance of the periods covered and are not subject to significant accounting estimates. These payments are expensed in the period the providers are obligated to provide services. The financial risk for pharmacy services for a small portion of our membership is delegated to capitated providers.

Direct delivery expenses. All costs associated with our direct delivery of medical care are separately identified.

Other medical expenses. All medically related administrative costs, certain provider incentive costs, and other health care expenses are classified as other medical expenses. Medically related administrative costs include, for example, expenses relating to health education, quality assurance, case management, care coordination, disease management, and 24-hour on-call nurses. Salary and benefit costs are a substantial portion of these expenses. For the years ended December 31, 2017, 2016, and 2015, medically related administrative costs were $554 million, $488 million, and $398 million, respectively.

The following table provides the details of our consolidated medical care costs for the periods indicated (dollars in millions, except PMPM amounts):



	Year Ended December 31,
	2017						2016						2015
	Amount		PMPM		% of Total		Amount		PMPM		% of Total		Amount		PMPM		% of Total
Fee-for-service	$	12,682	$	229.63	74.3	%	$	10,993	$	217.84	74.4	%	$	8,572	$	218.35	72.7	%
Pharmacy	2,563		46.40		15.0		2,213		43.84		15.0		1,610		41.01		13.7
Capitation	1,360		24.63		8.0		1,218		24.13		8.2		982		25.02		8.3
Direct delivery	73		1.33		0.4		78		1.55		0.5		128		3.26		1.1
Other	395		7.15		2.3		272		5.39		1.9		502		12.79		4.2
Total	$	17,073	$	309.14	100.0	%	$	14,774	$	292.75	100.0	%	$	11,794	$	300.43	100.0	%

Our medical care costs include amounts that have been paid by us through the reporting date, as well as estimated liabilities for medical care costs incurred but not paid by us as of the reporting date. Such medical care cost liabilities include, among other items, unpaid fee-for-service claims, capitation payments owed providers, unpaid pharmacy invoices, and various medically related administrative costs that have been incurred but not paid. We use judgment to determine the appropriate assumptions for determining the required estimates.

The most important element in estimating our medical care costs is our estimate for fee-for-service claims which have been incurred but not paid by us. These fee-for-service costs that have been incurred but have not been paid at the reporting date are collectively referred to as medical costs that are incurred but not paid (IBNP). Our IBNP claims reserve, as reported in our balance sheet, represents our best estimate of the total amount of claims we will ultimately pay with respect to claims that we have incurred as of the balance sheet date. We estimate our IBNP monthly using actuarial methods based on a number of factors. For further information, see Note 10, “Medical Claims and Benefits Payable.”

We report reinsurance premiums as a reduction to premium revenue, while related reinsurance recoveries are reported as a reduction to medical care costs. We limit our risk of catastrophic losses by maintaining high deductible reinsurance coverage. Such reinsurance coverage does not relieve us of our primary obligation to our policyholders. We do not consider this coverage to be material because the cost is not significant and the likelihood that coverage will apply is low.

Taxes Based on Premiums

Health Insurer Fee (HIF). The federal government under the ACA imposes an annual fee, or excise tax, on health insurers for each calendar year. The HIF is based on a company’s share of the industry’s net premiums written during the preceding calendar year, and is non-deductible for income tax purposes. We recognize expense for the HIF over the year on a straight-line basis. Within our Medicaid program, we must secure additional reimbursement from our state partners for this added cost. We recognize the related revenue when we have obtained a contractual commitment or payment from a state to reimburse us for the HIF; such HIF revenue is recognized ratably throughout the year. The Consolidated Appropriations Act of 2016 provided for a HIF moratorium in 2017. Therefore, there were no health insurer fees reimbursed, nor health insurer fees incurred, in 2017.

Premium and Use Tax. Certain of our health plans are assessed a tax based on premium revenue collected. The premium revenues we receive from these states include the premium tax assessment. We have reported these taxes on a gross basis, as premium tax revenue and as premium tax expenses in the consolidated statements of operations.

Premium Deficiency Reserves on Loss Contracts

We assess the profitability of our medical care policies to identify groups of contracts where current operating results or forecasts indicate probable future losses. If anticipated future variable costs exceed anticipated future premiums and investment income, a premium deficiency reserve is recognized. We recorded a premium deficiency reserve to “Medical claims and benefits payable” on our accompanying consolidated balance sheets relating to our Marketplace program of $30 million as of December 31, 2016. No premium deficiency reserves are recorded as of December 31, 2017.

Marketplace Cost Share Reduction (CSR) Update

In the fourth quarter of 2017, the federal government ceased payments of Marketplace CSR subsidies, which resulted in additional medical care costs of approximately $73 million in 2017.

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments, receivables, and restricted investments. Our investments and a portion of our cash equivalents are managed by professional portfolio managers operating under documented investment guidelines. Our portfolio managers must obtain our prior approval before selling investments where the loss position of those investments exceeds certain levels. Our investments consist primarily of investment-grade debt securities with a maximum maturity of 10 years and an average duration of three years or less. Restricted investments, non-current are invested principally in certificates of deposit and U.S. treasury securities. Concentration of credit risk with respect to accounts receivable is limited because our payors consist principally of the governments of each state in which our health plan subsidiaries operate.

Risks and Uncertainties

Our profitability depends in large part on our ability to accurately predict and effectively manage medical care costs. We continually review our medical costs in light of our underlying claims experience and revised actuarial data. However, several factors could adversely affect medical care costs. These factors, which include changes in health care practices, inflation, new technologies, major epidemics, natural disasters, and malpractice litigation, are beyond our control and may have an adverse effect on our ability to accurately predict and effectively control medical care costs. Costs in excess of those anticipated could have a material adverse effect on our financial condition, results of operations, or cash flows.

We operate health plans primarily as a direct contractor with the states (or Commonwealth), and in Los Angeles County, California, as a subcontractor to another health plan holding a direct contract with the state. We are therefore dependent upon a small number of contracts to support our revenue. The loss of any one of those contracts could have a material adverse effect on our financial position, results of operations, or cash flows. Our ability to arrange for the provision of medical services to our members is dependent upon our ability to develop and maintain adequate provider networks. Our inability to develop or maintain such networks might, in certain circumstances, have a material adverse effect on our financial position, results of operations, or cash flows.

Recent Accounting Pronouncements

Comprehensive Income. In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. ASU 2018-02 also requires certain disclosures about stranded tax effects. ASU 2018-02 is effective beginning January 1, 2019; we early adopted this ASU effective January 1, 2018, with no material impact to our financial condition, results of operations or cash flows. We are currently evaluating the required disclosures.

Goodwill Impairment. In January 2017, FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment loss. Instead, an impairment loss is measured as the excess of the carrying amount of the reporting unit, including goodwill, over the fair value of the reporting unit. ASU 2017-04 is effective beginning January 1, 2020; we early adopted ASU 2017-04 as of June 30, 2017, in connection with the interim assessment of our Pathways subsidiary. See further discussion at Note 8, “Goodwill and Intangible Assets, Net.”

Restricted Cash. In November 2016, the FASB issued ASU 2016-18, Restricted Cash, which will require us to include in our consolidated statements of cash flows the balances of cash, cash equivalents, restricted cash and restricted cash equivalents. When these items are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. Transfers between cash and cash equivalents and restricted cash and restricted cash equivalents will no longer be presented in the statement of cash flows. ASU 2016-18 is effective beginning January 1, 2018. We are currently evaluating the classification changes that will be required in our presentation of the consolidated statements of cash flows.

Stock Compensation. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation – Stock Compensation. ASU 2016-09 simplifies several aspects of accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax and classification in the statement of cash flows. We adopted ASU 2016-09 on January 1, 2017; such adoption did not significantly impact our consolidated financial statements. In addition, the prior period presentation in the statement of cash flows was not adjusted because such adjustments were insignificant.

Leases. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), as modified by ASU 2017-03, Transition and Open Effective Date Information. Under ASU 2016-02, an entity will be required to recognize assets and liabilities for the rights and obligations created by leases on the entity’s balance sheet for both finance and operating leases. For leases with a term of 12 months or less, an entity can elect to not recognize lease assets and lease liabilities and expense the lease over a straight-line basis for the term of the lease. ASU 2016-02 will require new disclosures that depict the amount, timing, and uncertainty of cash flows pertaining to an entity’s leases. ASU 2016-02 is effective beginning January 1, 2019, and must be adopted using a modified retrospective approach for annual and interim periods beginning after December 15, 2018. Under this guidance, we will record assets and liabilities relating primarily to our long-term office leases. We are in the early stages of evaluating the effect to our consolidated financial statements.

Financial Instruments. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which will require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. Also, entities will have to assess the realizability of a deferred tax asset related to an available-for-sale debt security in combination with the entity’s other deferred tax assets. Effective on January 1, 2018, ASU 2016-01 is applied prospectively with a cumulative-effect adjustment to beginning retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We have determined that there will be no impact to beginning retained earnings; we are in the process of determining the changes to required disclosures.

Revenue Recognition. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). We intend to adopt this standard and the related modifications on January 1, 2018, using the modified retrospective approach. Under this approach, the cumulative effect of initially applying the guidance will be reflected as an adjustment to beginning retained earnings.

We have determined that the insurance contracts of our Health Plans segment, which segment constitutes the vast majority of our operations, are excluded from the scope of Topic 606 because the recognition of revenue under these contracts is dictated by other accounting standards governing insurance contracts.

For our Molina Medicaid Solutions segment, we have determined that revenue for contracts that include design, development and implementation (DDI) of Medicaid management information systems shall be deferred until the system ‘go-live’ date, and then generally recognized on a straight-line basis over the hosting period. This approach is similar to our historical revenue recognition methodology, with two exceptions. First, revenues contingent upon a state’s acceptance of DDI and other services were previously deferred until the contingency was removed. Under Topic 606, we have determined that such revenues are appropriately recognized at the system ‘go-live’ date as noted above, resulting in a slight acceleration of revenue under Topic 606. Second, contract extensions were previously considered a single unit of account with the original contracts. Under Topic 606, contract extensions are considered to be standalone contracts, so revenues previously deferred over the original contract plus extension periods are now recognized over the original contract period, resulting in slightly accelerated revenue recognition. Cost of service revenue continues to be recognized in a manner consistent with the corresponding revenue recognition. As a result, the cumulative adjustment to retained earnings associated with the adoption of Topic 606 effective January 1, 2018, is insignificant for our Molina Medicaid Solutions segment.

For our Pathways behavioral health and social services provider, which is reported in the Other segment, there is no substantive change to revenue recognition under Topic 606, and therefore no impact to retained earnings effective January 1, 2018.

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the Securities and Exchange Commission (SEC) did not have, or are not believed by management to have, a significant impact on our present or future consolidated financial statements.

Net (Loss) Income per Share

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Net (Loss) Income per Share

The following table sets forth the calculation of basic and diluted net (loss) income per share:



	December 31,
	2017			2016		2015
	(In millions, except net (loss) income per share)
Numerator:
Net (loss) income	$	(512	)	$	52	$	143
Denominator:
Shares outstanding at the beginning of the period	56			55		49
Weighted-average number of shares issued:
Common stock offering	—			—		3
Denominator for basic net (loss) income per share	56			55		52
Effect of dilutive securities:
Share-based compensation	—			—		1
Convertible senior notes ⁽¹⁾	—			—		1
1.125% Warrants ⁽¹⁾	—			1		2
Denominator for diluted net (loss) income per share	56			56		56

Net (loss) income per share: ⁽²⁾
Basic	$	(9.07	)	$	0.93	$	2.75
Diluted	$	(9.07	)	$	0.92	$	2.58

Potentially dilutive common shares excluded from calculations: ⁽¹⁾
1.125% Warrants	2			—		—
1.625% Notes	1			—		—

_______________________________

(1)

For more information regarding the convertible senior notes, refer to Note 11, “Debt.” For more information regarding the 1.125% Warrants, refer to Note 14, “Stockholders' Equity.” The dilutive effect of all potentially dilutive common shares is calculated using the treasury stock method. Potentially dilutive common shares were not included in the computation of diluted net loss per share for the year ended December 31, 2017, because to do so would have been anti-dilutive.


(2)	Source data for calculations in thousands.

Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

We consider the carrying amounts of cash and cash equivalents and other current assets and current liabilities (not including derivatives and the current portion of long-term debt) to approximate their fair values because of the relatively short period of time between the origination of these instruments and their expected realization or payment. For our financial instruments measured at fair value on a recurring basis, we prioritize the inputs used in measuring fair value according to a three-tier fair value hierarchy as follows:

Level 1 — Observable Inputs. Level 1 financial instruments are actively traded and therefore the fair value for these securities is based on quoted market prices on one or more securities exchanges.

Level 2 — Directly or Indirectly Observable Inputs. Level 2 financial instruments are traded frequently though not necessarily daily. Fair value for these investments is determined using a market approach based on quoted prices for similar securities in active markets or quoted prices for identical securities in inactive markets.

Level 3 — Unobservable Inputs. Level 3 financial instruments are valued using unobservable inputs that represent management’s best estimate of what market participants would use in pricing the financial instrument at the measurement date. Our Level 3 financial instruments include derivative financial instruments.

Derivative financial instruments include the 1.125% Call Option derivative asset and the 1.125% Conversion Option derivative liability. These derivatives are not actively traded and are valued based on an option pricing model that uses observable and unobservable market data for inputs. Significant market data inputs used to determine fair value as of December 31, 2017, included the price of our common stock, the time to maturity of the derivative instruments, the risk-free interest rate, and the implied volatility of our common stock. As described further in Note 12, “Derivatives,” the 1.125% Call Option asset and the 1.125% Conversion Option liability were designed such that changes in their fair values offset, with minimal impact to the consolidated statements of operations. Therefore, the sensitivity of changes in the unobservable inputs to the option pricing model for such instruments is mitigated.

The net changes in fair value of Level 3 financial instruments were insignificant to our results of operations for the years ended December 31, 2017, and 2016.

Our financial instruments measured at fair value on a recurring basis at December 31, 2017, were as follows:



	Total		Level 1		Level 2		Level 3
	(In millions)
Corporate debt securities	$	1,588	$	—	$	1,588	$	—
U.S. treasury notes	388		388		—		—
Government-sponsored enterprise securities (GSEs)	253		253		—		—
Municipal securities	141		—		141		—
Asset-backed securities	117		—		117		—
Certificates of deposit	37		—		37		—
Subtotal - current investments	2,524		641		1,883		—
Corporate debt securities	101		—		101		—
U.S. treasury notes	68		68		—		—
Subtotal - current restricted investments	169		68		101		—
1.125% Call Option derivative asset	522		—		—		522
Total assets measured at fair value on a recurring basis	$	3,215	$	709	$	1,984	$	522

1.125% Conversion Option derivative liability	$	522	$	—	$	—	$	522
Total liabilities measured at fair value on a recurring basis	$	522	$	—	$	—	$	522

Our financial instruments measured at fair value on a recurring basis at December 31, 2016, were as follows:



	Total		Level 1		Level 2		Level 3
	(In millions)
Corporate debt securities	$	1,179	$	—	$	1,179	$	—
U.S. treasury notes	84		84		—		—
GSEs	231		231		—		—
Municipal securities	142		—		142		—
Asset-backed securities	69		—		69		—
Certificates of deposit	53		—		53		—
Subtotal - current investments	1,758		315		1,443		—
1.125% Call Option derivative asset	267		—		—		267
Total assets measured at fair value on a recurring basis	$	2,025	$	315	$	1,443	$	267

1.125% Conversion Option derivative liability	$	267	$	—	$	—	$	267
Total liabilities measured at fair value on a recurring basis	$	267	$	—	$	—	$	267

There were no current restricted investments as of December 31, 2016.

Fair Value Measurements – Disclosure Only

The carrying amounts and estimated fair values of our senior notes are classified as Level 2 financial instruments. Fair value for these securities is determined using a market approach based on quoted market prices for similar securities in active markets or quoted prices for identical securities in inactive markets. The carrying amount and estimated fair value of the amount due under our Credit Facility is classified as a Level 3 financial instrument, because certain inputs used to determine its fair value are not observable. As of December 31, 2017, the carrying value of the amount due under the Credit Facility approximates it fair value because of the recency of this borrowing during the third quarter of 2017.



	December 31, 2017				December 31, 2016
	Carrying		Fair Value		Carrying		Fair Value
	Value		Fair Value		Value		Fair Value
	(In millions)
5.375% Notes	$	692	$	730	$	691	$	714
1.125% Convertible Notes	496		1,052		471		792
4.875% Notes	325		329		—		—
Credit Facility	300		300		—		—
1.625% Convertible Notes	157		220		284		344
	$	1,970	$	2,631	$	1,446	$	1,850

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Investments

12 Months Ended

Dec. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Investments

We consider all of our investments, and our restricted investments that are classified as current assets, to be available-for-sale. As described further in Note 11, “Debt,” we maintain certain funds from the issuance of our 4.875% Notes in a segregated deposit account, a current asset reported as “Restricted investments” in the accompanying consolidated balance sheets. Such investments, while restricted as to their use and held in a segregated deposit account, are classified as available-for-sale based upon our contractual liquidity requirements.

The following tables summarize our investments as of the dates indicated:



	December 31, 2017
	Amortized		Gross Unrealized				Estimated
	Cost		Gains		Losses		Fair Value
	(In millions)
Corporate debt securities	$	1,591	$	1	$	4	$	1,588
U.S. Treasury notes	389		—		1		388
GSEs	255		—		2		253
Municipal securities	142		—		1		141
Asset-backed securities	117		—		—		117
Certificates of deposit	37		—		—		37
Subtotal - current investments	2,531		1		8		2,524
Corporate debt securities	101		—		—		101
U.S. treasury notes	68		—		—		68
Subtotal - restricted investments, current	169		—		—		169
	$	2,700	$	1	$	8	$	2,693



	December 31, 2016
	Amortized Cost		Gross Unrealized				Estimated Fair Value
	Amortized Cost		Gains		Losses		Estimated Fair Value
	(In millions)
Corporate debt securities	$	1,180	$	1	$	2	$	1,179
U.S. treasury notes	84		—		—		84
GSEs	232		—		1		231
Municipal securities	143		—		1		142
Asset-backed securities	69		—		—		69
Certificates of deposit	53		—		—		53
	$	1,761	$	1	$	4	$	1,758

There were no current restricted investments as of December 31, 2016.

The contractual maturities of our available-for-sale investments as of December 31, 2017 are summarized below:



	Amortized Cost		Estimated Fair Value
	(In millions)
Due in one year or less	$	1,722	$	1,721
Due after one year through five years	972		966
Due after five years through ten years	6		6
	$	2,700	$	2,693

Gross realized gains and losses from sales of available-for-sale securities are calculated under the specific identification method and are included in investment income. Gross realized investment gains and losses for the years ended December 31, 2017, 2016 and 2015 were insignificant.

We have determined that unrealized losses at December 31, 2017 and 2016 are temporary in nature, because the change in market value for these securities resulted from fluctuating interest rates, rather than a deterioration of the creditworthiness of the issuers. So long as we maintain the intent and ability to hold these securities to maturity, we are unlikely to experience losses. In the event that we dispose of these securities before maturity, we expect that realized losses, if any, will be insignificant.

The following table segregates those available-for-sale investments that have been in a continuous loss position for less than 12 months, and those that have been in a continuous loss position for 12 months or more as of December 31, 2017.



	In a Continuous Loss Position for Less than 12 Months					In a Continuous Loss Position for 12 Months or More
	Estimated Fair Value		Unrealized Losses		Total Number of Positions	Estimated Fair Value		Unrealized Losses		Total Number of Positions
	(Dollars in millions)
Corporate debt securities	$	1,297	$	3	561	$	94	$	1	69
U.S. Treasury notes	470		1		89	—		—		—
GSEs	173		1		69	95		1		47
Municipal securities	—		—		—	38		1		48
	$	1,940	$	5	719	$	227	$	3	164



	In a Continuous Loss Position for Less than 12 Months					In a Continuous Loss Position for 12 Months or More
	Estimated Fair Value		Unrealized Losses		Total Number of Positions	Estimated Fair Value		Unrealized Losses		Total Number of Positions
	(Dollars in millions)
Corporate debt securities	$	542	$	2	378	$	—	$	—	—
GSEs	198		1		73	—		—		—
Municipal securities	101		1		129	—		—		—
	$	841	$	4	580	$	—	$	—	—

Receivables

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Receivables

Receivables consist primarily of amounts due from government Medicaid agencies, which may be subject to potential retroactive adjustments. Because all of our receivable amounts are readily determinable and substantially all of our creditors are governmental authorities, our allowance for doubtful accounts is insignificant. Any amounts determined to be uncollectible are charged to expense when such determination is made. The information below is presented by segment.



	December 31,
	2017		2016
	(In millions)
California	$	208	$	180
Florida	42		97
Illinois	91		134
Michigan	56		60
New Mexico	71		57
New York	21		26
Ohio	94		82
Puerto Rico	32		37
South Carolina	13		11
Texas	61		79
Utah	18		19
Washington	69		71
Wisconsin	19		33
Other	2		1
Total Health Plans segment	797		887
Molina Medicaid Solutions segment	30		34
Other segment	44		53
	$	871	$	974

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Property, Equipment, and Capitalized Software, Net

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Property, Equipment, and Capitalized Software, Net

Property and equipment are stated at historical cost. Replacements and major improvements are capitalized, and repairs and maintenance are charged to expense as incurred. Furniture and equipment are generally depreciated using the straight-line method over estimated useful lives ranging from three to seven years. Software developed for internal use is capitalized. Software is generally amortized over its estimated useful life of three years. Leasehold improvements are amortized over the term of the lease, or over their useful lives from five to 10 years, whichever is shorter. Buildings are depreciated over their estimated useful lives of 31.5 to 40 years.

The costs associated with certain of our Molina Medicaid Solutions segment equipment and software are capitalized and recorded as deferred contract costs. Such costs are amortized on a straight-line basis over the shorter of the useful life or the contract period, and the amortization is recorded within the heading “Cost of service revenue.”

A summary of property, equipment, and capitalized software is as follows:



	December 31,
	2017			2016
	(In millions)
Capitalized software	$	417		$	443
Furniture and equipment	289			301
Building and improvements	161			159
Land	16			16
	883			919
Less: accumulated amortization - capitalized software	(308		)	(259		)
Less: accumulated depreciation and amortization - building and improvements, furniture and equipment	(233		)	(206		)
	(541		)	(465		)
Property, equipment, and capitalized software, net	$	342		$	454

The following table presents all depreciation and amortization recorded in our consolidated statements of operations, whether the item appears as depreciation and amortization, or as cost of service revenue.



	Year Ended December 31,
	2017		2016		2015
	(In millions)
Recorded in depreciation and amortization:
Amortization of capitalized software	$	64	$	62	$	37
Depreciation of property and equipment	42		45		50
Amortization of intangible assets	31		32		17
	137		139		104
Recorded in cost of service revenue:
Amortization of capitalized software	28		22		15
Amortization of deferred contract costs	13		21		6
	41		43		21
Other	—		—		1
	$	178	$	182	$	126

Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Goodwill

Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations. Goodwill is not amortized, but is tested for impairment on an annual basis and more frequently if impairment indicators are present. When testing goodwill for impairment, we may first assess qualitative factors, such as industry and market factors, cost factors, and changes in overall performance, to determine if it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value. If our qualitative assessment indicates that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, we perform the quantitative assessment. We may also elect to bypass the qualitative assessment and proceed directly to the quantitative assessment.

We estimated the fair values of our reporting units using the higher of the income approach using discounted cash flows, or the asset liquidation method. For the annual impairment test, the base year in the reporting units’ discounted cash flows is derived from the most recent annual financial budgeting cycle, for which the planning process commences in the fourth quarter of the year. When computing discounted cash flows, we make assumptions about a wide variety of internal and external factors, and consider what the reporting unit’s selling price would be in an orderly transaction between market participants at the measurement date. Significant assumptions include financial projections of free cash flow (including significant assumptions about operations, capital requirements and income taxes), long-term growth rates for determining terminal value beyond the discretely forecasted periods, and discount rates. When determining the discount rate, we consider the overall level of inherent risk of the reporting unit, and the expected rate an outside investor would expect to earn. The asset liquidation method is computed as total assets minus total liabilities, excluding intangible assets and liabilities.

We apply the market approach for certain reporting units to reconcile the value of all of our reporting units to our consolidated market value. Under the market approach, we consider publicly traded comparable company information to determine revenue and earnings multiples which are used to estimate our reporting units’ fair values.

Goodwill is impaired if the carrying amount of the reporting unit exceeds its estimated fair value. This excess is recorded as an impairment loss, and adjusted if necessary for the impact of tax deductible goodwill. The loss recognized may not exceed the total goodwill allocated to the reporting unit.

The following table presents the changes in the carrying amounts of goodwill for the year ended December 31, 2017. The 2017 goodwill impairment losses are recorded to the segments as indicated in following table, and reported as “Impairment losses” in the accompanying consolidated statements of operations.



	Health Plans			Molina Medicaid Solutions			Other			Total
	(In millions)
Historical goodwill	$	445		$	71		$	162		$	678
Accumulated impairment losses at December 31, 2016	(58		)	—			—			(58		)
Balance, December 31, 2016	387			71			162			620
Impairment losses, year ended December 31, 2017	(244		)	(28		)	(162		)	(434		)
Balance, December 31, 2017	$	143		$	43		$	—		$	186
Accumulated impairment losses at December 31, 2017	$	302		$	28		$	162		$	492

2017 Impairment Analysis

Health Plans Segment

On February 1, 2018, we were selected by the Florida Agency for Health Care Administration (AHCA) to negotiate for the award of a managed care contract in only one region of Florida. That region—Region 11—comprises Miami-Dade and Monroe counties, where we currently serve 59,000 Medicaid members. As of December 31, 2017, we served approximately 360,000 Medicaid members in Florida, which represented approximately $1,486 million premium revenue for the year ended December 31, 2017. Because we expect the Florida health plan to have significantly reduced cash flows following the contract termination currently expected on December 31, 2018, its entire goodwill balance was impaired, amounting to $124 million, in the fourth quarter of 2017.

In January 2018, our New Mexico health plan was notified by the New Mexico Human Services Department (HSD) that the health plan had not been selected for the tentative award of a Medicaid contract effective January 1, 2019. As of December 31, 2017, we served approximately 224,000 Medicaid members in New Mexico, which represented approximately $1,205 million premium revenue for the year ended December 31, 2017. Because we do not expect the New Mexico health plan to have cash flows following the contract termination currently expected on December 31, 2018, its entire goodwill balance was impaired, amounting to $74 million, in the fourth quarter of 2017.

When we conducted the annual impairment evaluation of the goodwill of our Illinois health plan, the plan’s future cash flow projections were insufficient to produce an estimated fair value in excess of its carrying amount. This was primarily due to the Illinois health plan’s current profit profile, which does not support the purchase prices paid for certain membership acquired years ago. As a result, we recorded a goodwill impairment loss of approximately $45 million in the fourth quarter of 2017. When we conducted the annual impairment evaluation of the goodwill of our New York health plan, the plan’s future cash flow projections were insufficient to produce an estimated fair value in excess of its carrying amount. As a result, we recorded goodwill impairment losses amounting to $1 million in the fourth quarter of 2017.

Molina Medicaid Solutions Segment

As described in Note 15, “Restructuring and Separation Costs,” in the third quarter of 2017 we wrote off certain costs capitalized at our Molina Medicaid Solutions segment that supported our Health Plans segment provider information management processes. Although the intercompany revenues recorded by Molina Medicaid Solutions under this arrangement were insignificant on a consolidated basis, the termination of such revenue resulted in a triggering event for an interim goodwill impairment analysis of this reporting unit in the third quarter of 2017. In the Molina Medicaid Solutions’ discounted cash flow model, we incorporated significant estimates and assumptions related to future periods, such as intercompany business support opportunities and prospects for new Medicaid management information systems contracts. Because management has determined that Molina Medicaid Solutions will provide fewer future benefits for its support of the Health Plans segment, the test resulted in a fair value less than Molina Medicaid Solutions’ carrying amount; therefore, we recorded a goodwill impairment loss for the difference, or $28 million, in the third quarter of 2017.

Other Segment

In the course of developing the 2017 Restructuring Plan in the second quarter of 2017, we determined that future benefits to be derived from our Pathways subsidiary, including the integration of its operations with our Health Plans segment, would be less than previously anticipated. In addition, poorer than expected year-to-date operating results, as well as lower projections of operating results for periods in the near term at our Pathways subsidiary, led us to conclude that a triggering event for an interim impairment analysis had occurred in the second quarter of 2017. Further, in the third quarter of 2017, management determined that Pathways will not provide future benefits relating to the integration of its operations with the Health Plans segment to the extent previously expected. Therefore, we conducted an additional interim impairment analysis.

We estimated Pathways’ fair value using discounted cash flows, incorporating significant estimates and assumptions related to future periods. Such estimates included anticipated client census which drives service revenue; the likelihood of future benefits to be derived from Pathways (including integration with our health plans); current prospects relating to the behavioral services labor market which drives cost of service revenue; and anticipated capital expenditures. The tests in each of the quarters ended June 30, 2017, and September 30, 2017, resulted in a fair value less than Pathways’ carrying amount; therefore, we recorded impairment losses for the difference. The Pathways goodwill impairment losses amounted to $101 million in the third quarter of 2017, and $59 million in the second quarter of 2017. In the second quarter of 2017, we also recorded a goodwill impairment loss of $2 million for a separate subsidiary in the Other segment.

2016 and 2015 Impairment Analysis

No impairment charges relating to goodwill were recorded in the years ended December 31, 2016, and 2015.

Intangible Assets, Net

Finite-lived, separately-identified intangible assets acquired in business combinations are assets that represent future expected benefits but lack physical substance (such as purchased contract rights and provider contracts). Intangible assets are initially recorded at fair value and are then amortized on a straight-line basis over their expected useful lives, generally between five and 15 years.

Our intangible assets are subject to impairment tests when events or circumstances indicate that a finite-lived intangible asset’s (or asset group’s) carrying value may not be recoverable. Consideration is given to a number of potential impairment indicators, including the ability of our health plan subsidiaries to obtain the renewal by amendment of their contracts in each state prior to the actual expiration of their contracts. However, there can be no assurance that these contracts will continue to be renewed.

Following the identification of any potential impairment indicators, to determine whether an impairment exists, we would compare the carrying amount of a finite-lived intangible asset with the greater of the undiscounted cash flows that are expected to result from the use of the asset or related group of assets, or its value under the asset liquidation method. If it is determined that the carrying amount of the asset is not recoverable, the amount by which the carrying value exceeds the estimated fair value is recorded as an impairment.

Based on the balances of our identifiable intangible assets as of December 31, 2017, we estimate that our intangible asset amortization will be $21 million in 2018, $18 million in 2019, $14 million in 2020, $5 million in 2021, and $3 million in 2022. For a presentation of our goodwill and intangible assets by reportable segment, refer to Note 20, “Segment Information.”

The following table provides the details of identified intangible assets, by major class, for the periods indicated:



	Cost		Accumulated Amortization		Carrying Amount
	(In millions)
Intangible assets:
Contract rights and licenses	$	201	$	141	$	60
Provider networks	20		11		9
Balance at December 31, 2017	$	221	$	152	$	69
Intangible assets:
Contract rights and licenses	$	267	$	148	$	119
Customer relationships	25		24		1
Provider networks	34		14		20
Balance at December 31, 2016	$	326	$	186	$	140

2017 Impairment Analysis

During 2017, we noted the impairment indicators described above for the Florida health plan, New Mexico health plan, and Pathways.

Health Plans Segment

In the fourth quarter of 2017, prior to the goodwill impairment test noted above, we assessed the Florida health plan’s primary definite-lived intangible assets (contract rights and provider networks) for impairment, using undiscounted cash flows expected over the asset’s remaining useful life. Such undiscounted cash flows indicated impairment; therefore, the plan’s estimated fair value, determined as noted above, indicated that its carrying amount exceeded its fair value. This resulted in impairment losses of $15 million in the fourth quarter of 2017.

In the fourth quarter of 2017, prior to the goodwill impairment test noted above, we assessed the New Mexico health plan’s primary definite-lived intangible asset (contract rights) for impairment, using undiscounted cash flows expected over the asset’s remaining useful life. Such undiscounted cash flows indicated impairment; therefore, the plan’s estimated fair value, determined as noted above, indicated that its carrying amount exceeded its fair value. This resulted in impairment losses of $10 million in the fourth quarter of 2017.

Other Segment

In the second quarter of 2017, prior to the goodwill impairment tests noted above, we assessed Pathways’ definite-lived intangible assets (customer relationships and contract licenses) for impairment, using undiscounted cash flows expected over the longest remaining useful life of the assets tested. Such undiscounted cash flows indicated impairment; therefore, Pathways’ estimated fair value, determined as noted above, indicated that its carrying amount exceeded its fair value. This resulted in impairment losses of $11 million in the second quarter of 2017.

2016 and 2015 Impairment Analysis

No significant impairment charges relating to long-lived assets, including intangible assets, were recorded in the years ended December 31, 2016, and 2015.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Restricted Investments, Non-current

12 Months Ended

Dec. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Restricted Investments, Non-current

Pursuant to the regulations governing our Health Plans segment subsidiaries, we maintain statutory deposits and deposits required by government authorities primarily in certificates of deposit and U.S. treasury securities. We also maintain restricted investments as protection against the insolvency of certain capitated providers. The use of these funds is limited as required by regulation in the various states in which we operate, or as needed in the event of insolvency of capitated providers. Therefore, such investments are reported as non-current “Restricted investments” in the accompanying consolidated balance sheets. We have the ability to hold these restricted investments until maturity, and as a result, we would not expect the value of these investments to decline significantly due to a sudden change in market interest rates. The following table presents the balances of restricted investments:



	December 31,
	2017		2016
	(In millions)
Florida	$	31	$	22
New Mexico	43		43
Ohio	12		12
Puerto Rico	10		10
Other	23		23
Total Health Plans segment	$	119	$	110

The contractual maturities of our held-to-maturity restricted investments, which are carried at amortized cost, which approximates fair value, as of December 31, 2017 are summarized below.



	Amortized Cost		Estimated Fair Value
	(In millions)
Due in one year or less	$	115	$	115
Due after one year through five years	4		4
	$	119	$	119

Medical Claims and Benefits Payable

12 Months Ended

Dec. 31, 2017

Insurance [Abstract]

Medical Claims and Benefits Payable

The following table provides the details of our medical claims and benefits payable (including amounts payable for the provision of long-term services and supports, or LTSS) as of the dates indicated.



	December 31,
	2017		2016		2015
	(In millions)
Fee-for-service claims incurred but not paid (IBNP)	$	1,717	$	1,352	$	1,191
Pharmacy payable	112		112		88
Capitation payable	67		37		140
Other	296		428		266
	$	2,192	$	1,929	$	1,685

“Other” medical claims and benefits payable include amounts payable to certain providers for which we act as an intermediary on behalf of various government agencies without assuming financial risk. Such receipts and payments do not impact our consolidated statements of operations. Non-risk provider payables amounted to $122 million, $225 million and $167 million, as of December 31, 2017, 2016 and 2015, respectively.

The following table presents the components of the change in our medical claims and benefits payable for the periods indicated. The amounts presented for “Components of medical care costs related to: Prior periods” represent the amount by which our original estimate of medical claims and benefits payable at the beginning of the period were less (more) than the actual amount of the liability based on information (principally the payment of claims) developed since that liability was first reported.



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Medical claims and benefits payable, beginning balance	$	1,929		$	1,685		$	1,201
Components of medical care costs related to:
Current period	17,037			14,966			11,935
Prior periods	36			(192		)	(141		)
Total medical care costs	17,073			14,774			11,794

Change in non-risk provider payables	(106		)	58			48

Payments for medical care costs related to:
Current period	15,130			13,304			10,448
Prior periods	1,574			1,284			910
Total paid	16,704			14,588			11,358
Medical claims and benefits payable, ending balance	$	2,192		$	1,929		$	1,685

Reinsurance recoverables of $16 million, $61 million, and $46 million, as of December 31, 2017, 2016, and 2015, respectively, are included in “Receivables” in the accompanying consolidated balance sheets.

The following tables provide information about incurred and paid claims development as of December 31, 2017, as well as cumulative claims frequency and the total of incurred but not paid claims liabilities. The cumulative claim frequency is measured by claim event, and includes claims covered under capitated arrangements.



Incurred Claims and Allocated Claims Adjustment Expenses							Total IBNP		Cumulative number of reported claims
Benefit Year	2015 ⁽¹⁾		2016		2017		Total IBNP		Cumulative number of reported claims

	(In millions)
2015	$	12,113	$	11,928	$	11,939	$	6	84
2016			15,064		15,093		46		109
2017					17,037		1,665		114
					$	44,069	$	1,717



Cumulative Paid Claims and Allocated Claims Adjustment Expenses
Benefit Year	2015 ⁽¹⁾		2016		2017

	(In millions)
2015	$	10,615	$	11,906	$	11,932
2016			13,403		14,952
2017					15,130
					$	42,014

The following table represents a reconciliation of claims development to the aggregate carrying amount of the liability for medical claims and benefits payable.



	2017
	(In millions)
Incurred claims and allocated claims adjustment expenses	$	44,069
Less: cumulative paid clams and allocated claims adjustment expenses	(42,014		)
Non-risk provider payables and other	137
Medical claims and benefits payable	$	2,192

_______________________________


(1)	Data presented for this calendar year is required supplementary information, which is unaudited.

That portion of our total medical claims and benefits payable liability that is most subject to variability in the estimate is IBNP. Our IBNP, as included in medical claims and benefits payable, represents our best estimate of the total amount of claims we will ultimately pay with respect to claims that we have incurred as of the balance sheet date. We estimate our IBNP monthly using actuarial methods based on a number of factors.

Assuming that our initial estimate of IBNP is accurate, we believe that amounts ultimately paid would generally be between 8% and 10% less than the IBNP liability recorded at the end of the period as a result of the inclusion in that liability of the provision for adverse claims development and the accrued cost of settling those claims. Because the amount of our initial liability is an estimate (and therefore not perfectly accurate), we will always experience variability in that estimate as new information becomes available with the passage of time. Therefore, there can be no assurance that amounts ultimately paid out will fall within the range of 8% to 10% lower than the liability that was initially recorded. Indeed, the amount we paid out during 2017 in satisfaction of our liability for medical claims and benefits payable at December 31, 2016, was in excess of the amount originally accrued. Furthermore, because our initial estimate of IBNP is derived from many factors, some of which are qualitative in nature rather than quantitative, we are seldom able to assign specific values to the reasons for a change in estimate—we only know when the circumstances for any one or more factors are out of the ordinary.

The use of a consistent methodology (including a consistent provision for adverse claims development) in estimating our liability for medical claims and benefits payable minimizes the degree to which the overestimation of that liability at the close of one period may affect consolidated results of operations in subsequent periods. In particular, the use of a consistent methodology should result in the replenishment of reserves during any given period in a manner that generally offsets the benefit of favorable prior period development in that period.

Facts and circumstances unique to the estimation process at any single date, however, may still lead to a material impact on consolidated results of operations in subsequent periods. For example, any absence of adverse claims development (as well as the expensing through general and administrative expense of the costs to settle claims held at the start of the period) will lead to the recognition of a benefit from prior period claims development in the period subsequent to the date of the original estimate, to the extent that replenishment of reserves is not equal to the benefit recognized due to the absence of adverse development.

Conversely, in the presence of adverse claims development, the financial impact of recording claims expense in the current period that is related to dates of service in the prior period will be compounded by the need to replenish the provision for adverse development.

As noted above, the amounts ultimately paid out in 2017 for dates of service in 2016 and prior were in excess of the liability we had established for medical and claims and benefits payable at December 31, 2016. In contrast, the amounts we paid out for prior period dates of service in 2016 and 2015 were less than the liabilities we had established at the end of the previous years. In all three years, the differences between our original estimates and the amounts ultimately paid out for the most part related to IBNP. While many related factors working in conjunction with one another serve to determine the accuracy of our estimates, we are seldom able to quantify the impact that any single factor has on a change in estimate. In addition, given the variability inherent in the reserving process, we will only be able to identify specific factors if they represent a significant departure from expectations. As a result, we do not expect to be able to fully quantify the impact of individual factors on changes in estimates.

2017

We recognized unfavorable prior period claims development in the amount of $36 million for the year ended December 31, 2017. This amount represented the extent to which our initial estimate of medical claims and benefits payable at December 31, 2016, was less than the amount that was ultimately paid out in satisfaction of that liability; but does not include additional amounts expensed to re-establish the margin for adverse development. We believe this underestimation was due primarily to the following:


•	Inaccurate adjudication of provider claims at our Florida, Illinois, New Mexico and Puerto Rico health plans that created substantial payment backlogs which we were unable to adequately measure when we estimated our liability at December 31, 2016.

We believe that the most significant uncertainties relating to our estimated IBNP liability at December 31, 2017, are as follows:


•	At our Florida health plan, the inventory of unpaid claims increased significantly during the first two quarters of 2017, then dropped in the third quarter and fourth quarters of 2017. Changes in claim inventories impact the timing between dates of service and the dates claims are paid, making our liability estimates subject to more than the usual amount of uncertainty.


•	At our Illinois health plan, in 2017 we paid a large number of claims that had previously been denied and were subsequently disputed by providers. We have also established a liability for additional expected claims resulting from provider disputes. This has created some distortion in the claims payment patterns, making our liability estimates subject to more than the usual amount of uncertainty.


•	At our California health plan, adjustments to our inpatient authorization process have improved the timeliness of paying inpatient claims, making our liability estimates subject to more than the usual amount of uncertainty.

•

In 2017 we implemented a new process for increased quality review of claims payments in six of our health plans. While we do not anticipate this new process will impact the percentage of claims paid within the timely turnaround requirements, we believe it will have a minor impact on the timing of some paid claims. For this reason, our liability estimates in the six health plans are subject to more than the usual amount of uncertainty.


•	At our Puerto Rico health plan, Hurricane Maria had a significant impact on both utilization of services and our ability to process claims payments in Puerto Rico. For these reasons, we believe our liability estimates are subject to more than the usual amount of uncertainty.


•	December 2017 data from the Centers for Disease Control and Prevention have indicated widespread influenza activity in several states in which we operate health plans. Although we have established liabilities for additional expected claims related to influenza, our liability estimates are subject to more than the usual amount of uncertainty.

2016

We recognized favorable prior period claims development in the amount of $192 million for the year ended December 31, 2016. This amount represented the extent to which our initial estimate of medical claims and benefits payable at December 31, 2015, was more than the amount that was ultimately paid out in satisfaction of that liability. We believe this overestimation was due primarily to the following:

•

A new version of diagnostic codes was required for all claims with dates of service on October 1, 2015, and later. As a result, payment was delayed or denied for a significant number of claims due to provider submission of claims with diagnostic codes that were no longer valid. Once providers were able to submit claims with the correct diagnostic codes, our actual costs were ultimately less than expected.


•	At our New Mexico health plan, we overestimated the impact of several pending high-dollar claims, and our actual costs were ultimately less than expected.


•	At our Washington health plan, we overpaid certain outpatient facility claims in 2015 when the state converted to a new payment methodology. We did not include an estimate in our December 31, 2015, reserves for this potential recovery.


•	At our California health plan, we enrolled approximately 55,000 new Medicaid Expansion members in 2015. For these new members, our actual costs were ultimately less than expected.

2015

We recognized favorable prior period claims development in the amount of $141 million for the year ended December 31, 2015. This amount represented the extent to which our initial estimate of medical claims and benefits payable at December 31, 2014 was more than the amount that was ultimately paid out in satisfaction of that liability. We believe this overestimation was due primarily to the following:

•

At our Ohio and California health plans, approximately 61,000 and 100,000 members, respectively, were enrolled in the new Medicaid expansion program during 2014. Also in Ohio, approximately 17,000 members were enrolled in the new MMP program in 2014. Because we lacked sufficient historical claims data, we initially estimated the reserves for these new members based upon a number of factors that included pricing assumptions provided by the state; our expectations regarding pent up demand; our beliefs about the speed at which new members would utilize health care services; and other factors. Our actual costs were ultimately less than expected.

•

At our New Mexico health plan, the state implemented a retroactive increase to the provider fee schedules in mid-2014. As a result, many claims that were previously settled were reopened, and subject to, additional payment. Because our reserving methodology is most accurate when claims payment patterns are consistent and predictable, the payment of additional amounts on claims that in some cases had been settled more than six months before added a substantial degree of complexity to our liability estimation process. Due to the difficulties in addressing that added complexity, liabilities recorded as of December 31, 2014 were in excess of amounts ultimately paid.


•	At our Washington health plan, we collected amounts in 2015 related to certain claims paid in 2013. Such collections were not anticipated in our reserves as of December 31, 2014.

Debt

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Debt

As of December 31, 2017, contractual maturities of debt for the years ending December 31 were as follows. All amounts represent the principal amounts of the debt instruments outstanding.



	Total		2018		2019		2020		2021		2022		Thereafter

	(In millions)
5.375% Notes	$	700	$	—	$	—	$	—	$	—	$	700	$	—
1.125% Convertible Notes	550		—		—		550		—		—		—
4.875% Notes	330		—		—		—		—		—		330
Credit Facility	300		—		—		—		—		300		—
1.625% Convertible Notes⁽¹⁾	161		—		—		—		—		—		161
	$	2,041	$	—	$	—	$	550	$	—	$	1,000	$	491


(1)	The 1.625% Convertible Notes have a contractual maturity date in 2044. However, on contractually specified dates beginning in 2018, holders may convert, or may require us to repurchase some or all of the 1.625% Convertible Notes.

Substantially all of our debt is held at the parent, which is reported in the Other segment. The following table summarizes our outstanding debt obligations and their classification in the accompanying consolidated balance sheets (in millions):



	December 31,
	2017			2016
Current portion of long-term debt:
1.125% Convertible Notes, net of unamortized discount	$	499		$	477
1.625% Convertible Notes, net of unamortized premium and discount	157			—
Lease financing obligations	1			1
Debt issuance costs	(4		)	(6		)
	653			472
Non-current portion of long-term debt:
5.375% Notes	700			700
4.875% Notes	330			—
Credit Facility	300			—
1.625% Convertible Notes, net of unamortized premium and discount	—			286
Debt issuance costs	(12		)	(11		)
	1,318			975
Lease financing obligations	198			198
	$	2,169		$	1,645

Interest cost recognized relating to our convertible senior notes for the periods presented was as follows:



	Years Ended December 31,
	2017		2016		2015
	(In millions)
Contractual interest at coupon rate	$	11	$	11	$	11
Amortization of the discount	32		30		29
	$	43	$	41	$	40

Bridge Credit Agreement

In January 2018, we entered into a bridge credit agreement (Bridge Credit Agreement) with several banks. Under the Bridge Credit Agreement, the banks agreed to lend us up to $550 million to be used to: (i) satisfy conversions of our 1.125% Convertible Notes; (ii) satisfy and/or refinance indebtedness incurred to satisfy conversion of the 1.125% Convertible Notes; (iii) repay or refinance our Credit Facility; (iv) pay fees and expenses in connection with the foregoing; and, subject to the satisfaction of specified conditions, for general corporate purposes.

Borrowings under the Bridge Credit Agreement are reduced by the following:


•	Any future debt and/or equity transactions:


◦	Including term loans, but excluding any Credit Facility drawing; and


◦	Excluding transactions with proceeds used for working capital purposes and acquisition financings up to $300 million.


•	On August 1, 2018 (the put date for the 1.625% Convertible Notes), the Bridge Credit Agreement shall permanently be reduced by the greater of:


◦	$150 million; and


◦	The principal amount of the 1.625% Convertible Notes that are exchanged into equity prior to that date.

The Bridge Credit Agreement matures on January 1, 2019 and, subject to the satisfaction of certain conditions, we may elect to extend twice the initial maturity date by a period of six months each.

Borrowings under the Bridge Credit Agreement will bear interest based, at our election, at a base rate or an adjusted LIBOR rate, plus in each case the applicable margin. Our wholly owned subsidiaries that guarantee our obligations under the indenture governing the 4.875% Notes, the 5.375% Notes, and the Credit Facility have jointly and severally guaranteed our obligations under the Bridge Credit Agreement.

The Bridge Credit Agreement contains usual and customary (a) affirmative covenants for credit facilities of this type and substantially similar to those contained in the Credit Facility, (b) negative covenants consistent with those contained in the 4.875% Notes and (c) events of default for credit facilities of this type and substantially similar to those contained in the 4.875% Notes.

4.875% Notes due 2025

On June 6, 2017, we completed the private offering of $330 million aggregate principal amount of senior notes (4.875% Notes) due June 15, 2025, unless earlier redeemed. Interest on the 4.875% Notes is payable semiannually in arrears on June 15 and December 15. Certain of our wholly owned subsidiaries guarantee our obligations under the 4.875% Notes; subsidiary guarantors are defined under the Credit Facility, as described below. See Note 23, “Supplemental Condensed Consolidating Financial Information,” for more information on the guarantors. The 4.875% Notes contain customary non-financial covenants and change of control provisions. At December 31, 2017, we were in compliance with all covenants under the 4.875% Notes.

The 4.875% Notes and the guarantees described above are senior unsecured obligations of Molina and the guarantors, respectively, and rank equally in right of payment with all existing and future senior debt, and senior to all existing and future subordinated debt of Molina and the guarantors.

A portion of the proceeds from the issuance of the 4.875% Notes are required to be maintained in a segregated deposit account, which may be used as follows:


•	On or prior to August 20, 2018, to:


◦	Redeem, repurchase, repay, tender for, or acquire for value all or any portion of our 1.625% Convertible Notes, defined and discussed further below, or to satisfy the cash portion of any consideration due upon any conversion of the 1.625% Convertible Notes; and/or


◦	Pay any interest due on all or any portion of the 4.875% Notes.


•	On or after August 20, 2018, to repurchase all or any portion of the 1.625% Convertible Notes that we are obligated to repurchase; and


•	Subsequent to August 20, 2018 (or such earlier date in the event that there are no longer any 1.625% Convertible Notes outstanding), in any other manner not otherwise prohibited in the indenture governing the 4.875% Notes.

The investments that constitute the segregated funds are current assets reported as “Restricted investments” in the accompanying consolidated balance sheets. As a result of the 1.625% Exchange transaction described below, approximately $157 million of such investments were transferred to unrestricted current investments in the fourth quarter of 2017. As of December 31, 2017, the balance of current restricted investments was $169 million.

5.375% Notes due 2022

We have outstanding $700 million aggregate principal amount of senior notes (5.375% Notes) due November 15, 2022, unless earlier redeemed. Interest on the 5.375% Notes is payable semiannually in arrears on May 15 and November 15. Certain of our wholly owned subsidiaries guarantee our obligations under the 5.375% Notes; subsidiary guarantors are defined under the Credit Facility, as described below. The 5.375% Notes contain customary non-financial covenants and change in control provisions. At December 31, 2017, we were in compliance with all covenants under the 5.375% Notes.

The 5.375% Notes and the guarantees described above are senior unsecured obligations of Molina and the guarantors, respectively, and rank equally in right of payment with all existing and future senior debt, and senior to all existing and future subordinated debt of Molina and the guarantors.

Credit Facility

In January 2017, we entered into an amended unsecured $500 million revolving credit facility (Credit Facility), referred to as the First Amendment. The Credit Facility has a term of five years and all amounts outstanding will be due and payable on January 31, 2022. As of December 31, 2017, $300 million was outstanding under the Credit Facility. Also as of December 31, 2017, outstanding letters of credit amounting to $6 million reduced our remaining borrowing capacity under the Credit Facility to $194 million.

Borrowings under our Credit Facility bear interest based, at our election, on a base rate or an adjusted London Interbank Offered Rate (LIBOR), plus in each case the applicable margin. In addition to interest payable on the principal amount of indebtedness outstanding from time to time under the Credit Facility, we are required to pay a quarterly commitment fee. The Credit Facility contains customary non-financial and financial covenants, including a net leverage ratio and an interest coverage ratio. As of December 31, 2017, we were in compliance with all financial and non-financial covenants under the Credit Facility.

During 2017, we entered into several amendments to the Credit Facility which provided for, or modified the following:


•	Automatic and unconditional release of all subsidiaries that were guarantors immediately prior to January 3, 2017, from their obligations as guarantors, other than Molina Information Systems, LLC, d/b/a Molina Medicaid Solutions, Molina Pathways, LLC, and Pathways Health and Community Support LLC;


•	The definition of the earnings measure used in the financial covenant computations;


•	The definition of specified cash, to permit cash that is either subject to customary escrow arrangements or held in a segregated account to be netted from the Credit Facility’s consolidated net leverage ratio if the use of the cash is limited to the repayment of other indebtedness;


•	The definition of consolidated adjusted EBITDA, to permit the add-back of certain restructuring charges and cost savings subject to certain limitations, and the definition of the consolidated interest coverage ratio to include, when calculating such ratio, consolidated interest expense “paid in cash” only; and


•	The list of indebtedness exceptions to include the new Bridge Credit Agreement discussed above.

1.125% Cash Convertible Senior Notes due 2020

We have outstanding $550 million aggregate principal amount of 1.125% cash convertible senior notes due January 15, 2020 (1.125% Convertible Notes), unless earlier repurchased or converted. Interest is payable semiannually in arrears on January 15 and July 15. The 1.125% Convertible Notes are senior unsecured obligations and rank senior in right of payment to any of our indebtedness that is expressly subordinated in right of payment to the 1.125% Convertible Notes; equal in right of payment to any of our unsecured indebtedness that is not subordinated; effectively junior in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities of our subsidiaries.

The 1.125% Convertible Notes are convertible only into cash, and not into shares of our common stock or any other securities. The initial conversion rate for the 1.125% Convertible Notes is 24.5277 shares of our common stock per $1,000 principal amount, or approximately $40.77 per share of our common stock. Upon conversion, in lieu of receiving shares of our common stock, a holder will receive an amount in cash, per $1,000 principal amount of 1.125% Convertible Notes, equal to the settlement amount, determined in the manner set forth in the indenture. We may not redeem the 1.125% Convertible Notes prior to the maturity date. Holders may convert their 1.125% Convertible Notes only under the following circumstances:

•

during any calendar quarter commencing after the calendar quarter ending on June 30, 2013 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;


•	during the five business day period immediately after any five consecutive trading day period (the measurement period) in which the trading price per $1,000 principal amount of 1.125% Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day;


•	upon the occurrence of specified corporate events; or


•	at any time on or after July 15, 2019 until the close of business on the second scheduled trading day immediately preceding the maturity date.

The stock price trigger for the 1.125% Convertible Notes is $53.00 per share. The 1.125% Convertible Notes met this trigger in the quarter ended December 31, 2017; therefore, they are convertible into cash and are reported in current portion of long-term debt as of December 31, 2017.

The 1.125% Convertible Notes contain an embedded cash conversion option (the 1.125% Conversion Option), which was separated from the 1.125% Convertible Notes and accounted for separately as a derivative liability, with changes in fair value reported in our consolidated statements of operations until the 1.125% Conversion Option settles or expires. The initial fair value liability of the 1.125% Conversion Option simultaneously reduced the carrying value of the 1.125% Convertible Notes (effectively an original issuance discount). This discount is amortized to the 1.125% Convertible Notes’ principal amount through the recognition of non-cash interest expense over the expected life of the debt. This has resulted in our recognition of interest expense on the 1.125% Convertible Notes at an effective rate of approximately 6%. As of December 31, 2017, the 1.125% Convertible Notes have a remaining amortization period of 2.0 years. The 1.125% Convertible Notes’ if-converted value exceeded their principal amount by approximately $406 million and $182 million as of December 31, 2017 and December 31, 2016, respectively.

1.625% Convertible Senior Notes due 2044

In December 2017, we entered into separate, privately negotiated, synthetic exchange agreements (1.625% Exchange) with certain holders of our outstanding 1.625% convertible senior notes due 2044 (1.625% Convertible Notes). In this transaction, we exchanged $141 million aggregate principal amount and accrued interest for 2.6 million shares of our common stock. We recorded a loss on debt extinguishment, including transaction fees, of $14 million, for the transaction, primarily relating to the inducement premium paid to the bondholders, which is recorded in “Other expenses, net,” in the accompanying consolidated statement of operations. We did not receive any proceeds under the 1.625% Exchange.

Following the 1.625% Exchange, we have outstanding $161 million aggregate principal amount of the 1.625% Convertible Notes. Interest is payable semiannually in arrears on February 15 and August 15. In addition, beginning with the semiannual interest period commencing immediately following the interest payment date on August 15, 2018, contingent interest will accrue on the 1.625% Convertible Notes during any semiannual interest period in which certain conditions or events occur, or under certain events of default. For example, additional interest of 0.25% per year will be payable on the 1.625% Notes for any semiannual interest period for which the principal amount of 1.625% Convertible Notes outstanding is less than $100 million.

The 1.625% Convertible Notes are senior unsecured obligations and rank senior in right of payment to any of our indebtedness that is expressly subordinated in right of payment to the 1.625% Notes; equal in right of payment to any of our unsecured indebtedness that is not subordinated; effectively junior in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities of our subsidiaries.

The initial conversion rate for the 1.625% Convertible Notes is 17.2157 shares of our common stock per $1,000 principal amount, or approximately $58.09 per share of our common stock. Upon conversion, we will pay cash and, if applicable, deliver shares of our common stock to the converting holder in an amount per $1,000 principal amount of 1.625% Notes equal to the settlement amount (as defined in the related indenture).

Holders may convert their 1.625% Convertible Notes only under the following circumstances:

•

during any calendar quarter commencing after the calendar quarter ended on September 30, 2014 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;


•	during the five business day period after any five consecutive trading day period (the measurement period) in which the trading price per $1,000 principal amount of 1.625% Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day;


•	upon the occurrence of specified corporate events;


•	if we call any 1.625% Notes for redemption, at any time until the close of business on the business day immediately preceding the redemption date;


•	during the period from, and including, May 15, 2018 to the close of business on the business day immediately preceding August 19, 2018; or


•	at any time on or after February 15, 2044 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 1.625% Notes, in integral multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances.

The stock price trigger for the 1.625% Convertible Notes is $75.51 per share. The 1.625% Convertible Notes did not meet this stock price trigger in the quarter ended December 31, 2017. However, on contractually specified dates beginning in 2018, holders of the 1.625% Convertible Notes may require us to repurchase some or all of such notes. In addition, beginning May 15, 2018 until August 19, 2018, holders may convert some or all of the 1.625% Convertible Notes. Because of these put and conversion features, the 1.625% Convertible Notes are reported in current portion of long-term debt as of December 31, 2017. As noted above, because the proceeds from the 4.875% Notes are initially restricted to payments upon conversion or redemption of the 1.625% Convertible Notes, such restricted investments are also classified as current in the accompanying consolidated balance sheets.

We may not redeem the 1.625% Convertible Notes prior to August 19, 2018. On or after August 19, 2018, we may redeem for cash all or part of the 1.625% Convertible Notes, except for the 1.625% Convertible Notes we are required to repurchase in connection with a fundamental change or on any specified repurchase date. The redemption price for the 1.625% Convertible Notes will equal 100% of the principal amount of the 1.625% Convertible Notes being redeemed, plus accrued and unpaid interest. In addition, holders of the 1.625% Convertible Notes may require us to repurchase some or all of the 1.625% Convertible Notes for cash on August 19, 2018, August 19, 2024, August 19, 2029, August 19, 2034 and August 19, 2039, in each case, at a specified price equal to 100% of the principal amount of the 1.625% Convertible Notes to be repurchased, plus accrued and unpaid interest.

Because the 1.625% Convertible Notes are net share settled and have cash settlement features, we have allocated the principal amount between a liability component and an equity component. The reduced carrying value on the 1.625% Convertible Notes resulted in a debt discount that is amortized back to the 1.625% Convertible Notes’ principal amount through the recognition of non-cash interest expense over the expected life of the debt. The expected life of the debt is approximately four years, beginning on the issuance date and ending on the first date we may redeem the 1.625% Convertible Notes in August 2018. As of December 31, 2017, the 1.625% Convertible Notes have a remaining amortization period of 0.6 years. This has resulted in our recognition of interest expense on the 1.625% Convertible Notes at an effective rate approximating what we would have incurred had nonconvertible debt with otherwise similar terms been issued, or approximately 5%. The outstanding 1.625% Convertible Notes’ if-converted value exceeded their principal amount at December 31, 2017 by approximately $50 million, and did not exceed their principal amount at December 31, 2016. At December 31, 2017 and 2016, the equity component of the 1.625% Convertible Notes, including the impact of deferred taxes, was $12 million and $23 million, respectively.

Cross-Default Provisions

The terms of our 4.875% Notes, 5.375% Notes and each of the 1.125% and 1.625% Convertible Notes contain cross-default provisions with the Credit Facility that are triggered upon an event of default under the Credit Facility, and when borrowings under the Credit Facility equal or exceed certain amounts as defined in the related indentures.

Lease Financing Obligations

As a result of our continuing involvement in the leasing transactions described below, we are the “accounting owner” of the properties under the leases. The assets are therefore included in our consolidated balance sheets, and are depreciated over their remaining useful lives. The lease financing obligations are amortized over the initial lease terms, such that there will be no gain or loss recorded if the leases are not extended beyond their expiration dates. Payments under the leases adjust the lease financing obligations, and the imputed interest is recorded to interest expense in our consolidated statements of operations. Aggregate interest expense under these leases amounted to $17 million in each of the years ended December 31, 2017, 2016 and 2015. For information regarding the future minimum lease obligations, refer to Note 19, “Commitments and Contingencies.”

Molina Center and Ohio Exchange. In 2013, we entered into a sale-leaseback transaction for the Molina Center and our Ohio health plan office building located in Columbus, Ohio, also known as the Ohio Exchange. The sale of these properties did not qualify for sales recognition, because certain lease terms resulted in our continuing involvement with these leased properties. Rent increases 3% per year through the initial term, which expires in 2038. The lease provides for six five-year renewal options, with renewal rent to be the higher of the 3% annual escalator or the then-fair market value.

6th and Pine. Also in 2013, we entered into a construction and lease transaction for two office buildings in Long Beach, California (6th and Pine). Due to our participation in the construction project, we retained continuing involvement in the properties. Rent increases 3.4% per year through the initial term, which expires in 2029. The lease provides for two five-year renewal options, with renewal rent to be determined based on the then-fair market value.

Debt Commitment Letter

In connection with the terminated Medicare acquisition described in Note 1, “Basis of Presentation,” we entered into a debt commitment letter with Barclays Bank PLC (Barclays) in August 2016. Under this debt commitment letter, Barclays agreed to lend us up to $400 million, subject to satisfaction of certain conditions, including consummation of the terminated Medicare acquisition. The debt commitment letter automatically terminated in February 2017 upon termination of the Medicare acquisition.

Derivatives

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

The following table summarizes the fair values and the presentation of our derivative financial instruments (defined and discussed individually below) in the consolidated balance sheets:



		December 31,
	Balance Sheet Location	2017		2016
		(In millions)
Derivative asset:
1.125% Call Option	Current assets: Derivative asset	$	522	$	267

Derivative liability:
1.125% Conversion Option	Current liabilities: Derivative liability	$	522	$	267

Our derivative financial instruments do not qualify for hedge treatment; therefore the change in fair value of these instruments is recognized immediately in our consolidated statements of operations, and reported in other income, net. Gains and losses from our derivative financial instruments are presented individually in the accompanying consolidated statements of cash flows, “Supplemental cash flow information.”

1.125% Notes Call Spread Overlay. Concurrent with the issuance of the 1.125% Convertible Notes in 2013, we entered into privately negotiated hedge transactions (collectively, the 1.125% Call Option) and warrant transactions (collectively, the 1.125% Warrants), with certain of the initial purchasers of the 1.125% Convertible Notes (the Counterparties). We refer to these transactions collectively as the Call Spread Overlay. Under the Call Spread Overlay, the cost of the 1.125% Call Option we purchased to cover the cash outlay upon conversion of the 1.125% Convertible Notes was reduced by proceeds from the sale of the 1.125% Warrants. Assuming full performance by the Counterparties (and 1.125% Warrants strike prices in excess of the conversion price of the 1.125% Convertible Notes), these transactions are intended to offset cash payments in excess of the principal amount of the 1.125% Convertible Notes due upon any conversion of such notes.

1.125% Call Option. The 1.125% Call Option, which is indexed to our common stock, is a derivative asset that requires mark-to-market accounting treatment due to cash settlement features until the 1.125% Call Option settles or expires. For further discussion of the inputs used to determine the fair value of the 1.125% Call Option, refer to Note 4, “Fair Value Measurements.”

1.125% Conversion Option. The embedded cash conversion option within the 1.125% Convertible Notes is accounted for separately as a derivative liability, with changes in fair value reported in our consolidated statements of operations until the cash conversion option settles or expires. For further discussion of the inputs used to determine the fair value of the 1.125% Conversion Option, refer to Note 4, “Fair Value Measurements.”

As of December 31, 2017, the 1.125% Call Option and the 1.125% Conversion Option were classified as a current asset and current liability, respectively, because the 1.125% Convertible Notes may be converted within twelve months of December 31, 2017, as described in Note 11, “Debt.”

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

The (benefit) provision for income taxes is determined using an estimated annual effective tax rate, which generally differs from the U.S. federal statutory rate primarily because of state taxes, nondeductible expenses such as the HIF, goodwill impairment, certain compensation, and other general and administrative expenses. The effective tax rate was not impacted by the HIF in 2017, given the 2017 HIF moratorium. The effective tax rate may be subject to fluctuations during the year, particularly as a result of the level of pretax earnings, and also as new information is obtained. Such information may affect the assumptions used to estimate the annual effective tax rate, including factors such as the mix of pretax earnings in the various tax jurisdictions in which we operate, valuation allowances against deferred tax assets, the recognition or the reversal of the recognition of tax benefits related to uncertain tax positions, and changes in or the interpretation of tax laws in jurisdictions where we conduct business. We recognize deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities, along with net operating loss and tax credit carryovers.

The Tax Cuts and Jobs Act (TCJA) was enacted on December 22, 2017. The TCJA, in part, reduces the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018. TCJA’s change in the federal rate requires that we revalue deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally the new 21% federal corporate tax rate plus applicable state tax rate. At December 31, 2017, we have not completed our accounting for the tax effects of enactment of the TCJA; however, we have made a reasonable estimate of the effects on our existing deferred tax balances and we recognized a provisional deferred federal income tax expense of $54 million, which is included as a reduction of income tax benefit for the year ended December 31, 2017. We will continue to make and refine our calculations as additional analysis is completed. In addition, our estimates may also be affected as we gain a more thorough understanding of the tax law based on expected future guidance from the Internal Revenue Service and U.S. Treasury.

The (benefit) provision for income taxes consisted of the following:



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Current:
Federal	$	(9	)	$	134		$	172
State	3			3			8
Foreign	—			(6		)	6
Total current	(6		)	131			186
Deferred:
Federal	(85		)	19			(10		)
State	(9		)	2			4
Foreign	—			1			(1		)
Total deferred	(94		)	22			(7		)
	$	(100	)	$	153		$	179

In 2017, the income tax benefit of $100 million is net of $54 million in deferred income tax expense as a result of the revaluation of net deferred tax assets in connection with the TCJA.

A reconciliation of the U.S. federal statutory income tax rate to the combined effective income tax rate is as follows:



	Year Ended December 31,
	2017		2016		2015
Statutory federal tax (benefit) rate	(35.0	)%	35.0	%	35.0	%
State income provision (benefit), net of federal	(0.7	)	1.6		2.4
Nondeductible health insurer fee (HIF)	—		37.0		17.0
Nondeductible compensation	2.8		3.1		0.6
Nondeductible goodwill impairment	6.6		—		—
Revaluation of net deferred tax assets	8.8		—		—
Change in purchase agreement that increased tax basis in assets	—		(2.2	)	—
Other	1.1		0.3		0.5
Effective tax (benefit) rate	(16.4	)%	74.8	%	55.5	%

Our effective tax rate is based on expected (loss) income, statutory tax rates, and tax planning opportunities available to us in the various jurisdictions in which we operate. Significant management estimates and judgments are required in determining our effective tax rate. We are routinely under audit by federal, state, or local authorities regarding the timing and amount of deductions, nexus of income among various tax jurisdictions, and compliance with federal, state, foreign, and local tax laws.

During 2016, and 2015, excess tax benefits from share-based compensation amounted to $2 million and $8 million, respectively. These amounts were recorded as a decrease to income taxes payable and an increase to additional paid-in capital. Effective 2017, excess tax benefits are no longer recorded through additional paid-in capital but rather through the income statement as an income tax benefit pursuant to ASU 2016-09.

Deferred tax assets and liabilities are classified as non-current. Significant components of our deferred tax assets and liabilities as of December 31, 2017 and 2016 were as follows:



	December 31,
	2017			2016
	(In millions)
Accrued expenses	$	15		$	22
Reserve liabilities	11			28
Other accrued medical costs	16			5
Net operating losses	27			13
Fixed assets and intangibles	23			—
Unrealized losses	2			1
Unearned premiums	19			27
Lease financing obligation	30			38
Deferred compensation	1			6
Tax credit carryover	15			7
Valuation allowance	(41		)	(16		)
Total deferred income tax assets, net of valuation allowance	118			131
Prepaid expenses	(6		)	(9		)
Fixed assets and intangibles	—			(104		)
Basis in debt	(9		)	(23		)
Total deferred income tax liabilities	(15		)	(136		)
Net deferred income tax asset (liability)	$	103		$	(5	)

At December 31, 2017, we had state net operating loss carryforwards of $578 million, which begin expiring in 2018.

At December 31, 2017, we had California research and development and enterprise zone tax credit carryovers of $14 million, which will begin to expire in 2024. In 2017, we generated federal research and development and other tax credit carryovers of $4 million, which will expire in 2038.

We evaluate the need for a valuation allowance taking into consideration the ability to carry back and carry forward tax credits and losses, available tax planning strategies and future income, including reversal of temporary differences. We have determined that as of December 31, 2017, $41 million of deferred tax assets did not satisfy the recognition criteria due to uncertainty regarding the realization of some of our state net operating loss and credit carryforwards. Therefore, we increased our valuation allowance by $25 million, from $16 million at December 31, 2016, to $41 million as of December 31, 2017.

We recognize tax benefits only if the tax position is more likely than not to be sustained. We are subject to income taxes in the United States, Puerto Rico, and numerous state jurisdictions. Significant judgment is required in evaluating our tax positions and determining our provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. We establish reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when we believe that certain positions might be challenged despite our belief that our tax return positions are fully supportable. We adjust these reserves in light of changing facts and circumstances, such as the outcome of tax audits. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate.

The roll forward of our unrecognized tax benefits is as follows:



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Gross unrecognized tax benefits at beginning of period	$	(11	)	$	(9	)	$	(3	)
Increases in tax positions for current year	(1		)	(1		)	(1		)
Increases in tax positions for prior years	(4		)	(1		)	(5		)
Decreases in tax positions for prior years	3			—			—
Gross unrecognized tax benefits at end of period	$	(13	)	$	(11	)	$	(9	)

The total amount of unrecognized tax benefits at December 31, 2017, 2016 and 2015 that, if recognized, would affect the effective tax rates is $12 million, $9 million, and $7 million, respectively. We expect that during the next 12 months it is reasonably possible that unrecognized tax benefit liabilities may decrease by as much as $2 million due to the expiration of statutes of limitation.

Our continuing practice is to recognize interest and/or penalties related to unrecognized tax benefits in income tax expense. Amounts accrued for the payment of interest and penalties as of December 31, 2017, 2016 and 2015 were insignificant.

We may be subject to federal examination for calendar years 2014 through 2016. We are under examination, or may be subject to examination, in Puerto Rico and certain state and local jurisdictions, with the major state jurisdictions being California, Michigan, and Illinois for the years 2009 through 2016.

Stockholders' Equity

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Stockholders' Equity

1.625% Exchange

As described in Note 11, “Debt,” we issued 2.6 million shares of our common stock in connection with the 1.625% Exchange in December 2017.

1.125% Warrants

In connection with the Call Spread Overlay transaction described in Note 12, “Derivatives,” in 2013, we issued 13,490,236 warrants with a strike price of $53.8475 per share. The number of warrants and the strike price are subject to adjustment under certain circumstances. If the market value per share of our common stock exceeds the strike price of the 1.125% Warrants on any trading day during the 160 trading day measurement period (beginning on April 15, 2020) under the 1.125% Warrants, we will be obligated to issue to the Counterparties a number of shares equal in value to the product of the amount by which such market value exceeds such strike price and 1/160th of the aggregate number of shares of our common stock underlying the 1.125% Warrants, subject to a share delivery cap. The 1.125% Warrants could separately have a dilutive effect to the extent that the market value per share of our common stock exceeds the applicable strike price of the 1.125% Warrants. Refer to Note 3, “Net (Loss) Income per Share,” for dilution information for the periods presented. We will not receive any additional proceeds if the 1.125% Warrants are exercised.

Share-Based Compensation

At December 31, 2017, we had employee equity incentives outstanding under our 2011 Equity Incentive Plan (2011 Plan). The 2011 Plan provides for the award of restricted shares and units, performance shares and units, stock options and stock bonuses to the company’s officers, employees, directors, consultants, advisers, and other service providers. The 2011 Plan provides for the issuance of up to 4.5 million shares of common stock.

In connection with the 2011 Plan and employee stock purchase plan, approximately 857,000 shares of common stock were purchased or vested, net of shares used to settle employees’ income tax obligations, during the year ended December 31, 2017.

Except as noted below, we record share-based compensation as “General and administrative expenses” in the accompanying consolidated statements of operations. Total share-based compensation expense was as follows:



	Year Ended December 31,
	2017				2016				2015
	(In millions)
	Pretax Charges		Net-of-Tax Amount		Pretax Charges		Net-of-Tax Amount		Pretax Charges		Net-of-Tax Amount
Restricted stock and performance awards	$	39	$	35	$	20	$	17	$	19	$	13
Employee stock purchase plan and stock options	7		5		6		5		4		3
	$	46	$	40	$	26	$	22	$	23	$	16

Restricted stock awards. Restricted stock awards are granted with a fair value equal to the market price of our common stock on the date of grant, and generally vest in equal annual installments over periods up to four years from the date of grant. We recognize expense for these awards on a straight-line basis. Stock option awards generally have an exercise price equal to the fair market value of our common stock on the date of grant, vest in equal annual installments over periods up to four years from the date of grant, and have a maximum term of ten years from the date of grant.

RSAs, PSAs and PSUs activity for the year ended December 31, 2017 is summarized below:



	Restricted Stock Awards		Performance Stock Awards		Performance Stock Units		Total Shares		Weighted Average Grant Date Fair Value
Unvested balance as of December 31, 2016	577,244		345,656		—		922,900		$	58.15
Granted	395,946		—		231,100		627,046		57.34
Vested	(424,556	)	(260,894	)	(139,272	)	(824,722	)	57.78
Forfeited	(146,830	)	—		—		(146,830	)	53.89
Unvested balance as of December 31, 2017	401,804		84,762		91,828		578,394		$	58.35

As of December 31, 2017, there was $19 million of total unrecognized compensation expense related to unvested restricted stock awards (RSAs), performance stock awards (PSAs) and performance stock units (PSUs), which we expect to recognize over a remaining weighted-average period of 2.2 years, 0.4 years and 1.6 years, respectively. This unrecognized compensation cost assumes an estimated forfeiture rate of 11.8% for non-executive employees as of December 31, 2017, which is based on actual forfeitures over the last 4 years. Also as of December 31, 2017, there was $15 million of total unrecognized compensation expense related to unvested stock options, which we expect to recognize over a weighted-average period of 2.8 years.

The total fair value of awards granted and vested is presented in the following table:



	Year Ended December 31,
	2017		2016		2015
	(In millions)
Granted:
Restricted stock awards	$	20	$	19	$	17
Performance stock awards	—		15		11
Performance stock units	16		—		—
	$	36	$	34	$	28
Vested:
Restricted stock awards	$	23	$	22	$	23
Performance stock awards	15		—		16
Performance stock units	9		—		—
	$	47	$	22	$	39

During the year ended December 31, 2017, the vesting of 133,957 RSAs, 153,574 PSAs and 139,272 PSUs was accelerated in connection with the termination of our former Chief Executive Officer (CEO) and former Chief Financial Officer (CFO) in May 2017. The incremental charge relating to this acceleration, or $23 million, is reported in “Restructuring and separation costs” in the accompanying consolidated statements of operations. This amount is included in the 2017 “Pretax Charges” in the table above. See Note 15, “Restructuring and Separation Costs” for further discussion.

Stock Options. Stock option activity for the year ended December 31, 2017 is summarized below:



	Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual term
					(In millions)		(Years)
Stock options outstanding as of December 31, 2016	90,000		$	24.93
Granted	375,000		67.33
Exercised	(60,000	)	20.88
Stock options outstanding as of December 31, 2017	405,000		64.79		$	5	9.5
Stock options exercisable and expected to vest as of December 31, 2017	405,000		64.79		$	5	9.5
Exercisable as of December 31, 2017	30,000		33.02		$	1	5.2

The weighted-average grant date fair value per share of stock options awarded in 2017 was $41.43. We estimate the fair value of each stock option award on the grant date using the Black-Scholes option pricing model. To determine the fair value of the stock options awarded in 2017 we applied a risk-free interest rate of 2.3%, expected volatility of 38.4%, dividend yield of 0% and expected life of 8.4 years. No stock options were granted in 2016 and 2015.

The total intrinsic value of options exercised during the years ended December 31, 2017, 2016, and 2015 was $2 million, $1 million, and $6 million, respectively. The following is a summary of information about stock options outstanding and exercisable at December 31, 2017:



	Options Outstanding				Options Exercisable
	Number Outstanding	Weighted Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		Number Exercisable	Weighted-Average Exercise Price
Range of Exercise Prices
$33.02	30,000	5.2	$	33.02	30,000	$	33.02
$67.33	375,000	9.9	67.33		—	—
	405,000				30,000

Employee Stock Purchase Plan. Under our employee stock purchase plan (ESPP), eligible employees may purchase common shares at 85% of the lower of the fair market value of our common stock on either the first or last trading day of each six-month offering period. Each participant is limited to a maximum purchase of $25,000 (as measured by the fair value of the stock acquired) per year through payroll deductions. We estimate the fair value of the stock issued using the Black-Scholes option pricing model. For the years ended December 31, 2017, 2016, and 2015, the inputs to this model were as follows: risk-free interest rates of approximately 0.1% to 1.1%; expected volatilities ranging from approximately 30% to 40%, dividend yields of 0%, and an average expected life of 0.5 years. We issued approximately 351,000, 410,000 and 302,000 shares of our common stock under the ESPP during the years ended December 31, 2017, 2016, and 2015, respectively. The 2011 ESPP provides for the issuance of up to three million shares of common stock.

Restructuring and Separation Costs

12 Months Ended

Dec. 31, 2017

Restructuring and Related Activities [Abstract]

Restructuring and Separation Costs

Following a management-initiated, broad operational assessment in early 2017, designed to improve our profitability and expand our core Medicaid business, in June 2017, we accelerated the implementation of a comprehensive restructuring and profitability improvement plan (the 2017 Restructuring Plan). Under the 2017 Restructuring Plan, we have taken the following actions:


1.	We have streamlined our organizational structure, including the elimination of redundant layers of management, the consolidation of regional support services, and other reductions to our workforce, to improve efficiency as well as the speed and quality of our decision-making.


2.	We re-designed core operating processes such as provider payment, utilization management, quality monitoring and improvement, and information technology to achieve more effective and cost efficient outcomes.


3.	We are remediating high cost provider contracts and building around high quality, cost-effective networks.


4.	We restructured our existing direct delivery operations.


5.	We reviewed our vendor base to ensure that we are partnering with the lowest-cost, most-effective vendors.

In addition to costs incurred under the 2017 Restructuring Plan, we have recorded costs associated with the separation of our former CEO and former CFO, described in further detail below.

Costs Incurred

2017 Restructuring Plan

Restructuring costs in 2017 consisted primarily of one-time termination benefits, write-offs of long-lived assets (primarily capitalized software, and leasehold improvements and other assets relating to restructured direct delivery operations), consulting fees, and contract termination costs (including office leases and other contracts).

We previously anticipated that we would incur costs under the 2017 Restructuring Plan in 2018. However, we incurred substantially all costs relating to this plan in 2017, or approximately $234 million. Such costs are presented, by type and reportable segment, below. Since the initiation of our 2017 Restructuring Plan in the second quarter of 2017, the range of total estimated costs increased by approximately $50 million due primarily to non-cash write-offs of certain capitalized software in connection with the re-design of core processes. Such write-offs were not included in our initial total cost estimates, but as our evaluation of core operating processes proceeded in the third quarter, we determined that certain projects were inconsistent with our future operating goals and were therefore written off.

In addition, in the second quarter of 2017, we reported that we expected restructuring costs to relate only to the Health Plans and Other segments. In the third quarter of 2017, however, we wrote off certain costs capitalized at our Molina Medicaid Solutions segment that supported our Health Plans segment provider information management processes. These processes are now subject to re-design under the 2017 Restructuring Plan.

Separation Costs

On May 2, 2017, we terminated the employment of our former CEO and CFO without cause. Under their amended and restated employment agreements, they were each entitled to receive 400% of their base salary, a prorated termination bonus (150% of base salary for the former CEO and 125% of base salary for the former CFO), full vesting of equity compensation, and a cash payment for health and welfare benefits. We recorded separation costs of $36 million primarily related to these former executives under FASB ASC Topic 712, Nonretirement and Postemployment Benefits. Of this total, $23 million related to the acceleration of their share-based compensation, as further discussed in Note 14, “Stockholders' Equity.” Employee separation costs were insignificant in 2016 and 2015.

Restructuring and separation costs are reported in “Restructuring and separation costs” in the accompanying consolidated statements of operations. The following tables present the major types of such costs by segment. Long-lived assets include capitalized software, intangible assets and furniture, fixtures and equipment.



	Year Ended December 31, 2017
	Separation Costs - Former Executives		One-Time Termination Benefits		Other Restructuring Costs						Total
	Separation Costs - Former Executives		One-Time Termination Benefits		Write-offs of Long-lived Assets		Consulting Fees		Contract Termination Costs		Total
	(In millions)
Health Plans	$	—	$	33	$	16	$	—	$	24	$	73
Molina Medicaid Solutions	—		—		8		—		—		8
Other	36		34		37		44		2		153
	$	36	$	67	$	61	$	44	$	26	$	234

Reconciliation of Liability

For those restructuring and separation costs that require cash settlement (primarily separation costs not including equity incentives, termination benefits, consulting fees and contract termination costs), the following table presents a roll-forward of the accrued liability, which is reported primarily in “Accounts payable and accrued liabilities” in the accompanying consolidated balance sheets. Certain contract termination cost accruals are non-current, recorded in “Other long-term liabilities.”



	Separation Costs - Former Executives			One-Time Termination Benefits			Other Restructuring Costs			Total
	(In millions)
Accrued as of December 31, 2016	$	—		$	—		$	—		$	—
Charges	13			66			71			150
Cash payments	(11		)	(55		)	(36		)	(102		)
Accrued as of December 31, 2017	$	2		$	11		$	35		$	48

Employee Benefits	12 Months Ended
Employee Benefits	Dec. 31, 2017
Postemployment Benefits [Abstract]
Employee Benefits	Employee Benefits We sponsor defined contribution 401(k) plans that cover substantially all full-time salaried and hourly employees of our company and its subsidiaries. Eligible employees are permitted to contribute up to the maximum amount allowed by law. We generally match up to the first 4% of compensation contributed by employees. Expense recognized in connection with our contributions to the 401(k) plans totaled $43 million, $36 million, and $27 million in the years ended December 31, 2017, 2016, and 2015, respectively. We also have a nonqualified deferred compensation plan for certain key employees. Under this plan, eligible participants may defer up to 100% of their base salary and 100% of their bonus to provide tax-deferred growth for retirement. The funds deferred are invested in corporate-owned life insurance, under a rabbi trust.

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions As described in Note 15, “Restructuring and Separation Costs,” we terminated the employment of Dr. J. Mario Molina and John C. Molina without cause in May 2017. In addition, Dr. Molina resigned his board directorship in December 2017, and John C. Molina resigned his board directorship on February 23, 2018. As of December 31, 2017, we held a receivable of $5 million in connection with the termination of the provider and other services agreements with Dr. Molina’s professional corporation in Michigan. Such agreements are described in further detail in Note 18, “Variable Interest Entities (VIEs).” Our California health plan has entered into a provider agreement with Pacific Healthcare IPA (Pacific), which is 50% owned by the brother-in-law of Dr. Molina and Mr. Molina. Under the terms of this provider agreement, the California health plan pays Pacific for medical care services that Pacific provides to health plan members. For the years ended December 31, 2017 and 2016, the amounts the California health plan paid to Pacific Healthcare were insignificant. For 2015, the California health plan paid Pacific approximately $1 million.

Variable Interest Entities (VIEs)	12 Months Ended
Variable Interest Entities (VIEs)	Dec. 31, 2017
Variable Interest Entities [Abstract]
Variable Interest Entities (VIEs)	Variable Interest Entities (VIEs) Joseph M. Molina M.D., Professional Corporations The Joseph M. Molina, M.D. Professional Corporations (JMMPC) constitute medical provider groups originally created to advance our direct delivery business. JMMPC’s primary shareholder is Dr. J. Mario Molina, who was formerly both Molina’s CEO, and a member of our board of directors. When JMMPC was created, we concluded that we were the primary beneficiary of the JMMPC VIE because we had the power to direct the activities (excluding clinical decisions) that most significantly affected JMMPC’s economic performance, and the obligation to absorb losses or right to receive benefits that were potentially significant to the VIE, under the agreements described below. Because we were its primary beneficiary, we consolidated JMMPC as of December 31, 2017 and 2016. In 2017, we made the strategic decision to restructure our direct delivery business. Effective September 30, 2017, we terminated our relationship with JMMPC in Florida, Michigan, New Mexico, Washington, and Utah. Therefore, the agreements among JMMPC, our wholly owned subsidiary Molina Medical Management, Inc. (MMM), and the Florida, Michigan, New Mexico, Washington and Utah health plans were terminated effective September 30, 2017. In early January 2018, the agreements among JMMPC, MMM, and our California health plan terminated. In connection with the termination of the agreements in California, MMM entered into an asset purchase agreement with JMMPC, under which MMM sold various clinic and other assets to JMMPC for approximately $2 million. In addition, our California health plan entered into a new provider agreement with JMMPC. Following the termination of the agreements noted above, we will no longer have a) the power to direct the activities that most significantly affect JMMPC’s economic performance, or b) the obligation to absorb losses or right to receive benefits that are potentially significant to JMMPC. JMMPC’s assets were available to settle only JMMPC’s obligations, and JMMPC’s creditors had no recourse to the general credit of Molina Healthcare, Inc. As of December 31, 2017, JMMPC had total assets of $8 million, and total liabilities of $8 million. As of December 31, 2016, JMMPC had total assets of $18 million, and total liabilities of $18 million. The health plans were parties to primary care services agreements with JMMPC, under which the health plans paid $119 million, $122 million, and $117 million to JMMPC for such services in the years ended December 31, 2017, 2016, and 2015, respectively. These agreements directed our health plans to either fund JMMPC’s operating deficits, or be reimbursed for JMMPC’s operating surpluses, such that JMMPC would derive no profits or losses. MMM was a party to services agreements with JMMPC to provide clinic facilities, clinic administrative support staff, patient scheduling services, and medical supplies to JMMPC. In the years ended December 31, 2017, 2016, and 2015, JMMPC paid $50 million, $55 million and $69 million, respectively, to MMM for such services. The administrative services charged under these agreements were reviewed annually to assure that JMMPC would operate at break-even. New Markets Tax Credit In 2011, our New Mexico data center subsidiary entered into a financing transaction with Wells Fargo Community Investment Holdings, LLC (Wells Fargo), its wholly owned subsidiary New Mexico Healthcare Data Center Investment Fund, LLC (Investment Fund), and certain of Wells Fargo’s affiliated Community Development Entities (CDEs), in connection with our participation in the federal government’s New Markets Tax Credit Program (NMTC). The credit amounts to 39% of the original investment amount and is claimed over a period of seven years (five percent for each of the first three years, and six percent for each of the remaining four years). The investment in the CDE cannot be redeemed before the end of the seven-year period, which ends in the fourth quarter of 2018. As a result of a series of simultaneous financing transactions, Wells Fargo contributed capital of $6 million to the Investment Fund, and Molina Healthcare, Inc. loaned the principal amount of $16 million to the Investment Fund. The Investment Fund then contributed the proceeds to certain CDEs, which, in turn, loaned the proceeds of $21 million to our New Mexico data center subsidiary. We have determined that the financing arrangement with Investment Fund and CDEs is a VIE, that we are the primary beneficiary of the VIE, and we have included it in our consolidated financial statements.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Regulatory Capital Requirements and Dividend Restrictions

Our health plans, which are operated by our respective wholly owned subsidiaries in those states, are subject to state laws and regulations that, among other things, require the maintenance of minimum levels of statutory capital, as defined by each state. Regulators in some states may also enforce capital requirements that require the retention of net worth in excess of amounts formally required by statute or regulation. Such statutes, regulations and informal capital requirements also restrict the timing, payment, and amount of dividends and other distributions that may be paid to us as the sole stockholder. To the extent our subsidiaries must comply with these regulations, they may not have the financial flexibility to transfer funds to us. Based on current statutes and regulations, the net assets in these subsidiaries (after intercompany eliminations) which may not be transferable to us in the form of loans, advances, or cash dividends was approximately $1,691 million at December 31, 2017, and $1,492 million at December 31, 2016. Because of the statutory restrictions that inhibit the ability of our health plans to transfer net assets to us, the amount of retained earnings readily available to pay dividends to our stockholders is generally limited to cash, cash equivalents and investments held by the parent company – Molina Healthcare, Inc. Such cash, cash equivalents and investments amounted to $696 million and $264 million as of December 31, 2017 and 2016, respectively.

The National Association of Insurance Commissioners (NAIC), adopted rules effective December 31, 1998, which, if implemented by the states, set minimum capitalization requirements for insurance companies, HMOs, and other entities bearing risk for health care coverage. The requirements take the form of risk-based capital (RBC) rules which may vary from state to state. All of the states in which our health plans operate, except California, Florida and New York, have adopted these rules. Such requirements, if adopted by California, Florida and New York, may increase the minimum capital required for those states.

As of December 31, 2017, our health plans had aggregate statutory capital and surplus of approximately $1,777 million compared with the required minimum aggregate statutory capital and surplus of approximately $1,186 million. All of our health plans were in compliance with the minimum capital requirements at December 31, 2017. We have the ability and commitment to provide additional capital to each of our health plans when necessary to ensure that statutory capital and surplus continue to meet regulatory requirements.

Legal Proceedings

The health care and Medicaid-related business process outsourcing industries are subject to numerous laws and regulations of federal, state, and local governments. Compliance with these laws and regulations can be subject to government review and interpretation, as well as regulatory actions unknown and unasserted at this time. Penalties associated with violations of these laws and regulations include significant fines and penalties, exclusion from participating in publicly funded programs, and the repayment of previously billed and collected revenues.

We are involved in legal actions in the ordinary course of business, some of which seek monetary damages, including claims for punitive damages, which are not covered by insurance. We have accrued liabilities for certain matters for which we deem the loss to be both probable and estimable. Although we believe that our estimates of such losses are reasonable, these estimates could change as a result of further developments of these matters. The outcome of legal actions is inherently uncertain and such pending matters for which accruals have not been established have not progressed sufficiently through discovery and/or development of important factual information and legal issues to enable us to estimate a range of possible loss, if any. While it is not possible to accurately predict or determine the eventual outcomes of these items, an adverse determination in one or more of these pending matters could have a material adverse effect on our consolidated financial position, results of operations, or cash flows.

States’ Budgets

Nearly all of our premium revenues come from the joint federal and state funding of the Medicaid and CHIP programs. The states in which we operate our health plans regularly face significant budgetary pressures. For example, the government of Puerto Rico continues to struggle with major fiscal and liquidity challenges. The extreme financial difficulties faced by the Commonwealth may make it very difficult for ASES, the Puerto Rico Medicaid agency, to pay our Puerto Rico health plan under the terms of the parties’ Medicaid contract. As of December 31, 2017, our Puerto Rico health plan served approximately 314,000 members and recorded premium revenue of approximately $732 million for the year ended December 31, 2017. As of February 23, 2018, the Commonwealth is current with its premium payments.

Operating Leases

We lease administrative and clinic facilities and certain equipment under non-cancelable operating leases expiring at various dates through 2027. Facility lease terms generally range from five to 10 years with one to two renewal options for extended terms. In most cases, we are required to make additional payments under facility operating leases for taxes, insurance and other operating expenses incurred during the lease period. Certain of our leases contain rent escalation clauses or lease incentives, including rent abatements and tenant improvement allowances. Rent escalation clauses and lease incentives are taken into account in determining total rent expense to be recognized during the lease term.

Future minimum lease payments by year and in the aggregate under operating leases and lease financing obligations consist of the following amounts:



	Lease Financing Obligations		Operating Leases		Total
	(In millions)
2018	$	17	$	67	$	84
2019	18		65		83
2020	19		44		63
2021	19		30		49
2022	20		22		42
Thereafter	317		34		351
	$	410	$	262	$	672

Rental expense related to operating leases amounted to $75 million, $64 million, and $44 million for the years ended December 31, 2017, 2016, and 2015, respectively. The amounts reported in “Lease Financing Obligations” above represent our contractual lease commitments for the properties described in Note 11, “Debt” under the subheading “Lease Financing Obligations.”

Professional Liability Insurance

We carry medical professional liability insurance for health care services rendered in the primary care institutions that we manage. In addition, we also carry errors and omissions insurance for all Molina entities.

Provider Claims

Many of our medical contracts are complex in nature and may be subject to differing interpretations regarding amounts due for the provision of various services. Such differing interpretations have led certain medical providers to pursue us for additional compensation. The claims made by providers in such circumstances often involve issues of contract compliance, interpretation, payment methodology, and intent. These claims often extend to services provided by the providers over a number of years.

Various providers have contacted us seeking additional compensation for claims that we believe to have been settled. These matters, when finally concluded and determined, will not, in our opinion, have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows.

Segment Information

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment Information

We have three reportable segments. These segments consist of our Health Plans segment, which constitutes the vast majority of our operations; our Molina Medicaid Solutions segment; and our Other segment.

Our reportable segments are consistent with how we currently manage our business and view the markets we serve. The Health Plans segment consists of our health plans. Our health plans are operating segments that have been aggregated for reporting purposes because they share similar economic characteristics. The Molina Medicaid Solutions segment provides support to state government agencies in the administration of their Medicaid programs including business processing, information technology development, and administrative services. The Other segment includes primarily our Pathways behavioral health and social services provider, and corporate amounts not allocated to other reportable segments.

Gross margin is the appropriate earnings measure for our reportable segments, based on how our chief operating decision maker currently reviews results, assesses performance, and allocates resources.

Gross margin for our Health Plans segment is referred to as “Medical margin,” and for our Molina Medicaid Solutions and Other segments, as “Service margin.” Medical margin represents the amount earned by the Health Plans segment after medical costs are deducted from premium revenue. The medical care ratio represents the amount of medical care costs as a percentage of premium revenue, and is one of the key metrics used to assess the performance of the Health Plans segment. Therefore, the underlying medical margin is the most important measure of earnings reviewed by the chief operating decision maker. The service margin is equal to service revenue minus cost of service revenue.



	Health Plans		Molina Medicaid Solutions		Other		Consolidated
	(In millions)
2017
Total revenue	$	19,352	$	187	$	344	$	19,883
Gross margin ⁽¹⁾	1,781		16		13		1,810
Depreciation and amortization ⁽²⁾	126		43		9		178
Goodwill, and intangible assets, net	212		43		—		255
Total assets	6,347		219		1,905		8,471
2016
Total revenue	17,234		195		353		17,782
Gross margin ⁽¹⁾	1,671		21		33		1,725
Depreciation and amortization ⁽²⁾	122		45		15		182
Goodwill, and intangible assets, net	513		72		175		760
Total assets	5,897		267		1,285		7,449
2015
Total revenue	13,917		195		66		14,178
Gross margin ⁽¹⁾	1,467		55		5		1,527
Depreciation and amortization ⁽²⁾	95		25		6		126
Goodwill, and intangible assets, net	393		73		175		641
Total assets	4,707		213		1,656		6,576

______________________

(1)

In connection with the reclassification of Medicare and Marketplace health insurer fees to premium revenue, from health insurer fees reimbursed, amounts differ from amounts previously reported as follows: the Health Plans segment gross margin for the years ended December 31, 2016 and 2015 increased $53 million, and $20 million, respectively. The Consolidated gross margin increased by the same amounts.


(2)	Depreciation and amortization reported in accompanying consolidated statements of cash flows.

The following table reconciles gross margin by segment to consolidated (loss) income before income tax (benefit) expense:



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Gross margin:
Health Plans	$	1,781		$	1,671		$	1,467
Molina Medicaid Solutions	16			21			55
Other	13			33			5
Total gross margin	1,810			1,725			1,527
Add: other operating revenues ⁽¹⁾	508			798			664
Less: other operating expenses ⁽²⁾	(2,873		)	(2,217		)	(1,804		)
Operating (loss) income	(555		)	306			387
Other expenses, net	57			101			65
(Loss) income before income tax (benefit) expense	$	(612	)	$	205		$	322

______________________


(1)	Other operating revenues include premium tax revenue, health insurer fees reimbursed, investment income and other revenue.


(2)	Other operating expenses include general and administrative expenses, premium tax expenses, health insurer fees, depreciation and amortization, impairment losses, and restructuring and separation costs.

Quarterly Results of Operations (Unaudited)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (Unaudited)

The following table summarizes quarterly unaudited results of operations for the years ended December 31, 2017 and 2016.



	For The Quarter Ended
	March 31, 2017		June 30, 2017			Sept. 30, 2017			December 31, 2017
	(In millions, except per-share data)
Total revenue	$	4,904	$	4,999		$	5,031		$	4,949
Gross margin	546		254			564			446
Impairment losses	—		72			129			269
Restructuring and separation costs	—		43			118			73
Net income (loss)	77		(230		)	(97		)	(262		)

Net income (loss) per share ⁽¹⁾:
Basic	$	1.38	$	(4.10	)	$	(1.70	)	$	(4.59	)
Diluted	$	1.37	$	(4.10	)	$	(1.70	)	$	(4.59	)



	For The Quarter Ended
	March 31, 2016		June 30, 2016		Sept. 30, 2016		December 31, 2016
	(In millions, except per-share data)
Total revenue	$	4,343	$	4,359	$	4,546	$	4,534
Gross margin ⁽²⁾	434		466		471		354
Net income (loss)	24		33		42		(47		)

Net income (loss) per share ⁽¹⁾:
Basic	$	0.44	$	0.58	$	0.77	$	(0.85	)
Diluted	$	0.43	$	0.58	$	0.76	$	(0.85	)

_______________________________


(1)	The dilutive effect of all potentially dilutive common shares is calculated using the treasury stock method. Certain potentially dilutive common shares issuable are not included in the computation of diluted net income (loss) per share because to do so would be anti-dilutive.

(2)

The Centers for Medicare and Medicaid Services (CMS) incorporates the Health Insurer Fee (HIF) in our Medicare and Marketplace premium rates. We have therefore reclassified such amounts in our consolidated statements of operations to premium revenue, from health insurer fees reimbursed, for all applicable periods presented. As a result, gross margin amounts differ from amounts previously reported as follows: for the quarters ended March 31, June 30, September 30, and December 31, 2016, gross margin increased $14 million, $12 million, $14 million, and $13 million, respectively.

Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Registrant

The condensed balance sheets as of December 31, 2017 and 2016, and the related condensed statements of operations, comprehensive (loss) income and cash flows for each of the three years in the period ended December 31, 2017 for our parent company Molina Healthcare, Inc. (the Registrant), are presented below.

Condensed Balance Sheets



	December 31,
	2017			2016
	(In millions, except per-share data)
ASSETS
Current assets:
Cash and cash equivalents	$	504		$	86
Investments	192			178
Restricted investments	169			—
Receivables	2			2
Income taxes refundable	16			17
Due from affiliates	148			104
Prepaid expenses and other current assets	87			58
Derivative asset	522			267
Total current assets	1,640			712
Property, equipment, and capitalized software, net	223			301
Goodwill and intangible assets, net	15			58
Investments in subsidiaries	2,306			2,609
Deferred income taxes	17			10
Advances to related parties and other assets	32			48
	$	4,233		$	3,738
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable	$	3		$	1
Accounts payable and accrued liabilities	178			146
Current portion of long-term debt	653			472
Derivative liability	522			267
Total current liabilities	1,356			886
Senior notes	1,318			975
Lease financing obligations	198			198
Deferred income taxes	—			11
Other long-term liabilities	24			19
Total liabilities	2,896			2,089
Stockholders’ equity:
Common stock, $0.001 par value; 150 shares authorized; outstanding:
60 shares at December 31, 2017 and 57 shares at December 31, 2016	—			—
Preferred stock, $0.001 par value; 20 shares authorized, no shares issued and outstanding	—			—
Additional paid-in capital	1,044			841
Accumulated other comprehensive loss	(5		)	(2		)
Retained earnings	298			810
Total stockholders’ equity	1,337			1,649
	$	4,233		$	3,738

See accompanying notes.

Condensed Statements of Operations



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Revenue:
Management fees	$	1,317		$	1,062		$	914
Investment income and other revenue	16			16			17
Total revenue	1,333			1,078			931
Expenses:
Medical care costs	16			73			55
General and administrative expenses	1,082			899			797
Depreciation and amortization	93			95			82
Impairment losses	39			—			—
Restructuring and separation costs	153			—			—
Total operating expenses	1,383			1,067			934
Operating (loss) income	(50		)	11			(3		)
Interest expense	117			101			66
Other income	(61		)	—			—
Loss before income taxes and equity in net income of subsidiaries	(106		)	(90		)	(69		)
Income tax expense (benefit)	8			(24		)	(21		)
Net loss before equity in net income of subsidiaries	(114		)	(66		)	(48		)
Equity in net (loss) income of subsidiaries	(398		)	118			191
Net (loss) income	$	(512	)	$	52		$	143

Condensed Statements of Comprehensive (Loss) Income



	Year Ended December 31,
	2017			2016		2015
	(In millions)
Net (loss) income	$	(512	)	$	52	$	143
Other comprehensive (loss) income:
Unrealized investment (loss) gain	(5		)	3		(5		)
Less: effect of income taxes	(2		)	1		(2		)
Other comprehensive (loss) income, net of tax	(3		)	2		(3		)
Comprehensive (loss) income	$	(515	)	$	54	$	140

See accompanying notes.

Condensed Statements of Cash Flows



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Operating activities:
Net cash provided by operating activities	$	166		$	55		$	113
Investing activities:
Capital contributions to subsidiaries	(370		)	(386		)	(770		)
Dividends received from subsidiaries	286			101			142
Purchases of investments	(352		)	(115		)	(244		)
Proceeds from sales and maturities of investments	168			188			118
Purchases of property, equipment and capitalized software	(67		)	(125		)	(91		)
Change in amounts due to/from affiliates	(49		)	(18		)	(68		)
Other, net	—			6			—
Net cash used in investing activities	(384		)	(349		)	(913		)
Financing activities:
Proceeds from senior notes offerings, net of issuance costs	325			—			689
Proceeds from borrowings under credit facility	300			—			—
Proceeds from common stock offering, net of issuance costs	—			—			373
Proceeds from employee stock plans	19			18			18
Cash paid for financing transaction fees	(7		)	—			—
Other, net	(1		)	2			5
Net cash provided by financing activities	636			20			1,085
Net increase (decrease) in cash and cash equivalents	418			(274		)	285
Cash and cash equivalents at beginning of year	86			360			75
Cash and cash equivalents at end of year	$	504		$	86		$	360

See accompanying notes.

Notes to Condensed Financial Information of Registrant

Note A - Basis of Presentation

The Registrant was incorporated in 2002. Prior to that date, Molina Healthcare of California (formerly known as Molina Medical Centers) operated as a California health plan and as the parent company for three other state health plans. In June 2003, the employees and operations of the corporate entity were transferred from Molina Healthcare of California to the Registrant.

The Registrant’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. The accompanying condensed financial information of the Registrant should be read in conjunction with the consolidated financial statements and accompanying notes.

Note B - Transactions with Subsidiaries

The Registrant provides certain centralized medical and administrative services to its subsidiaries pursuant to administrative services agreements, including medical affairs and quality management, health education, credentialing, management, financial, legal, information systems and human resources services. Fees are based on the fair market value of services rendered and are recorded as operating revenue. Payment is subordinated to the subsidiaries’ ability to comply with minimum capital and other restrictive financial requirements of the states in which they operate. Charges in 2017, 2016, and 2015 for these services amounted to $1,317 million, $1,062 million, and $914 million, respectively, and are included in operating revenue.

The Registrant and its subsidiaries are included in the consolidated federal and state income tax returns filed by the Registrant. Income taxes are allocated to each subsidiary in accordance with an intercompany tax allocation agreement. The agreement allocates income taxes in an amount generally equivalent to the amount which would be expensed by the subsidiary if it filed a separate tax return. Net operating loss benefits are paid to the subsidiary by the Registrant to the extent such losses are utilized in the consolidated tax returns.

Note C - Dividends and Capital Contributions

When the Registrant receives dividends from its subsidiaries, such amounts are recorded as a reduction to the investments in the respective subsidiaries.

For all periods presented, the Registrant made capital contributions to certain subsidiaries primarily to comply with minimum net worth requirements and to fund business combinations. Such amounts have been recorded as an increase in investment in the respective subsidiaries, net of insignificant returns of capital.

Note D - Related Party Transactions

The Registrant’s related party transactions are described in Note 17, “Related Party Transactions.”

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References + Details

Supplemental Condensed Consolidating Financial Information

12 Months Ended

Dec. 31, 2017

Condensed Financial Information [Abstract]

Supplemental Condensed Consolidating Financial Information

As discussed in Note 11, “Debt,” we have outstanding $700 million aggregate principal amount of 5.375% Notes due November 15, 2022, unless earlier redeemed. The 5.375% Notes were registered in September 2016, and are fully and unconditionally guaranteed by certain of our wholly owned subsidiaries on a joint and several basis, with exceptions considered customary for such guarantees.

All guarantors immediately prior to January 3, 2017, other than Molina Information Systems, LLC, d/b/a Molina Medicaid Solutions, Molina Pathways, LLC and Pathways Health and Community Support LLC, were automatically and unconditionally released as guarantors of our amended Credit Facility, the 5.375% Notes, and the 4.875% Notes.

For all periods presented, the following condensed consolidating financial statements present Molina Healthcare, Inc. (as “Parent Guarantor”), the subsidiary guarantors (as “Other Guarantors”), the subsidiary non-guarantors (as “Non-Guarantors”) and “Eliminations,” according to the guarantor structure as assessed as of and for the year ended December 31, 2017.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



	Year Ended December 31, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	1,333		$	194		$	19,712		$	(1,356	)	$	19,883
Expenses:
Medical care costs	16			—			17,058			(1		)	17,073
Cost of service revenue	—			171			321			—			492
General and administrative expenses	1,082			17			1,850			(1,355		)	1,594
Premium tax expenses	—			—			438			—			438
Depreciation and amortization	93			1			43			—			137
Impairment losses	39			28			403			—			470
Restructuring and separation costs	153			8			73			—			234
Total operating expenses	1,383			225			20,186			(1,356		)	20,438
Operating loss	(50		)	(31		)	(474		)	—			(555		)
Interest expense	117			—			1			—			118
Other income	(61		)	—			—			—			(61		)
Loss before income taxes	(106		)	(31		)	(475		)	—			(612		)
Income tax expense (benefit)	8			(21		)	(87		)	—			(100		)
Net loss before equity in earnings of subsidiaries	(114		)	(10		)	(388		)	—			(512		)
Equity in net earnings of subsidiaries	(398		)	(156		)	—			554			—
Net loss	$	(512	)	$	(166	)	$	(388	)	$	554		$	(512	)



	Year Ended December 31, 2016
	Parent Guarantor			Other Guarantors		Non-Guarantors		Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	1,078		$	202	$	17,584	$	(1,082	)	$	17,782
Expenses:
Medical care costs	73			—		14,702		(1		)	14,774
Cost of service revenue	—			174		311		—			485
General and administrative expenses	899			16		1,559		(1,081		)	1,393
Premium tax expenses	—			—		468		—			468
Health insurer fees	—			—		217		—			217
Depreciation and amortization	95			1		43		—			139
Total operating expenses	1,067			191		17,300		(1,082		)	17,476
Operating income	11			11		284		—			306
Total other expenses, net	101			—		—		—			101
(Loss) income before income taxes	(90		)	11		284		—			205
Income tax (benefit) expense	(24		)	3		174		—			153
Net (loss) income before equity in earnings of subsidiaries	(66		)	8		110		—			52
Equity in net earnings of subsidiaries	118			1		—		(119		)	—
Net income	$	52		$	9	$	110	$	(119	)	$	52



	Year Ended December 31, 2015
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	931		$	195		$	13,980		$	(928	)	$	14,178
Expenses:
Medical care costs	55			—			11,740			(1		)	11,794
Cost of service revenue	—			140			53			—			193
General and administrative expenses	797			31			1,245			(927		)	1,146
Premium tax expenses	—			—			397			—			397
Health insurer fees	—			—			157			—			157
Depreciation and amortization	82			1			21			—			104
Total operating expenses	934			172			13,613			(928		)	13,791
Operating (loss) income	(3		)	23			367			—			387
Total other expenses, net	66			—			(1		)	—			65
(Loss) income before income taxes	(69		)	23			368			—			322
Income tax (benefit) expense	(21		)	7			193			—			179
Net (loss) income before equity in earnings of subsidiaries	(48		)	16			175			—			143
Equity in net earnings of subsidiaries	191			(1		)	—			(190		)	—
Net income	$	143		$	15		$	175		$	(190	)	$	143

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME



	Year Ended December 31, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated

	(In millions)
Net loss	$	(512	)	$	(166	)	$	(388	)	$	554	$	(512	)
Other comprehensive loss, net of tax	(3		)	—			(2		)	2		(3		)
Comprehensive loss	$	(515	)	$	(166	)	$	(390	)	$	556	$	(515	)



	Year Ended December 31, 2016
	Parent Guarantor		Other Guarantors		Non-Guarantors		Eliminations			Consolidated

	(In millions)
Net income	$	52	$	9	$	110	$	(119	)	$	52
Other comprehensive income, net of tax	2		—		1		(1		)	2
Comprehensive income	$	54	$	9	$	111	$	(120	)	$	54



	Year Ended December 31, 2015
	Parent Guarantor			Other Guarantors		Non-Guarantors			Eliminations			Consolidated

	(In millions)
Net income	$	143		$	15	$	175		$	(190	)	$	143
Other comprehensive loss, net of tax	(3		)	—		(3		)	3			(3		)
Comprehensive income	$	140		$	15	$	172		$	(187	)	$	140

MOLINA HEALTHCARE, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS



	December 31, 2017
	Parent Guarantor		Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	504	$	28		$	2,654		$	—		$	3,186
Investments	192		—			2,332			—			2,524
Restricted investments	169		—			—			—			169
Receivables	2		30			839			—			871
Income tax refundable	16		(8		)	46			—			54
Due from (to) affiliates	148		(6		)	(142		)	—			—
Prepaid expenses and other current assets	87		22			92			(16		)	185
Derivative asset	522		—			—			—			522
Total current assets	1,640		66			5,821			(16		)	7,511
Property, equipment, and capitalized software, net	223		33			86			—			342
Deferred contract costs	—		101			—			—			101
Goodwill and intangible assets, net	15		43			197			—			255
Restricted investments	—		—			119			—			119
Investment in subsidiaries, net	2,306		82			—			(2,388		)	—
Deferred income taxes	17		—			101			(15		)	103
Other assets	32		2			7			(1		)	40
	$	4,233	$	327		$	6,331		$	(2,420	)	$	8,471
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable	$	3	$	—		$	2,189		$	—		$	2,192
Amounts due government agencies	—		1			1,541			—			1,542
Accounts payable and accrued liabilities	178		40			148			—			366
Deferred revenue	—		49			233			—			282
Current portion of long-term debt	653		—			16			(16		)	653
Derivative liability	522		—			—			—			522
Total current liabilities	1,356		90			4,127			(16		)	5,557
Long-term debt	1,516		—			—			—			1,516
Deferred income taxes	—		15			—			(15		)	—
Other long-term liabilities	24		2			36			(1		)	61
Total liabilities	2,896		107			4,163			(32		)	7,134
Total stockholders’ equity	1,337		220			2,168			(2,388		)	1,337
	$	4,233	$	327		$	6,331		$	(2,420	)	$	8,471

MOLINA HEALTHCARE, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS



	December 31, 2016
	Parent Guarantor		Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	86	$	6		$	2,727		$	—		$	2,819
Investments	178		—			1,580			—			1,758
Receivables	2		34			938			—			974
Income tax refundable	17		4			18			—			39
Due from (to) affiliates	104		(5		)	(99		)	—			—
Prepaid expenses and other current assets	58		30			43			—			131
Derivative asset	267		—			—			—			267
Total current assets	712		69			5,207			—			5,988
Property, equipment, and capitalized software, net	301		46			107			—			454
Deferred contract costs	—		86			—			—			86
Goodwill and intangible assets, net	58		73			629			—			760
Restricted investments	—		—			110			—			110
Investment in subsidiaries, net	2,609		246			—			(2,855		)	—
Deferred income taxes	10		—			—			—			10
Other assets	48		3			6			(16		)	41
	$	3,738	$	523		$	6,059		$	(2,871	)	$	7,449
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable	$	1	$	—		$	1,928		$	—		$	1,929
Amounts due government agencies	—		—			1,202			—			1,202
Accounts payable and accrued liabilities	146		34			205			—			385
Deferred revenue	—		40			275			—			315
Current portion of long-term debt	472		—			—			—			472
Derivative liability	267		—			—			—			267
Total current liabilities	886		74			3,610			—			4,570
Long-term debt	1,173		—			16			(16		)	1,173
Deferred income taxes	11		39			(35		)	—			15
Other long-term liabilities	19		1			22			—			42
Total liabilities	2,089		114			3,613			(16		)	5,800
Total stockholders’ equity	1,649		409			2,446			(2,855		)	1,649
	$	3,738	$	523		$	6,059		$	(2,871	)	$	7,449

MOLINA HEALTHCARE, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



	Year Ended December 31, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated
	(In millions)
Operating activities:
Net cash provided by operating activities	$	166		83			555			—		$	804
Investing activities:
Purchases of investments	(352		)	—			(2,366		)	—		(2,718		)
Proceeds from sales and maturities of investments	168			—			1,603			—		1,771
Purchases of property, equipment and capitalized software	(67		)	(11		)	(8		)	—		(86		)
Increase in restricted investments	—			—			(12		)	—		(12		)
Capital contributions to subsidiaries	(370		)	2			368			—		—
Dividends received from subsidiaries	286			(25		)	(261		)	—		—
Change in amounts due to/from affiliates	(49		)	1			48			—		—
Other, net	—			(28		)	—			—		(28		)
Net cash used in by investing activities	(384		)	(61		)	(628		)	—		(1,073		)
Financing activities:
Proceeds from senior notes offering, net of issuance costs	325			—			—			—		325
Proceeds from borrowings under credit facility	300			—			—			—		300
Proceeds from employee stock plans	19			—			—			—		19
Cash paid for financing transaction fees	(7		)	—			—			—		(7		)
Other, net	(1		)	—			—			—		(1		)
Net cash provided by financing activities	636			—			—			—		636
Net increase (decrease) in cash and cash equivalents	418			22			(73		)	—		367
Cash and cash equivalents at beginning of period	86			6			2,727			—		2,819
Cash and cash equivalents at end of period	$	504		$	28		$	2,654		$	—	$	3,186



	Year Ended December 31, 2016
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated
	(In millions)
Operating activities:
Net cash provided by operating activities	$	55		48			570			—		$	673
Investing activities:
Purchases of investments	(115		)	—			(1,814		)	—		(1,929		)
Proceeds from sales and maturities of investments	188			—			1,778			—		1,966
Purchases of property, equipment and capitalized software	(125		)	(29		)	(22		)	—		(176		)
Decrease in restricted investments	—			—			4			—		4
Net cash paid in business combinations	—			(5		)	(43		)	—		(48		)
Capital contributions to subsidiaries	(386		)	7			379			—		—
Dividends received from subsidiaries	101			—			(101		)	—		—
Change in amounts due to/from affiliates	(18		)	(2		)	20			—		—
Other, net	6			(26		)	1			—		(19		)
Net cash (used in) provided by investing activities	(349		)	(55		)	202			—		(202		)
Financing activities:
Proceeds from employee stock plans	18			—			—			—		18
Other, net	2			—			(1		)	—		1
Net cash provided by financing activities	20			—			(1		)	—		19
Net (decrease) increase in cash and cash equivalents	(274		)	(7		)	771			—		490
Cash and cash equivalents at beginning of period	360			13			1,956			—		2,329
Cash and cash equivalents at end of period	$	86		$	6		$	2,727		$	—	$	2,819



	Year Ended December 31, 2015
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated
	(In millions)
Operating activities:
Net cash provided by operating activities	$	113		51			961			—		$	1,125
Investing activities:
Purchases of investments	(244		)	—			(1,679		)	—		(1,923		)
Proceeds from sales and maturities of investments	118			—			1,008			—		1,126
Purchases of property, equipment and capitalized software	(91		)	(20		)	(21		)	—		(132		)
Decrease in restricted investments	—			5			(11		)	—		(6		)
Net cash paid in business combinations	—			(174		)	(276		)	—		(450		)
Capital contributions to subsidiaries	(770		)	236			534			—		—
Dividends received from subsidiaries	142			—			(142		)	—		—
Change in amounts due to/from affiliates	(68		)	(63		)	131			—		—
Other, net	—			(35		)	—			—		(35		)
Net cash used in investing activities	(913		)	(51		)	(456		)	—		(1,420		)
Financing activities:
Proceeds from senior notes offerings, net of issuance costs	689			—			—			—		689
Proceeds from common stock offering, net of issuance costs	373			—			—			—		373
Proceeds from employee stock plans	18			—			—			—		18
Other, net	5			—			—			—		5
Net cash provided by financing activities	1,085			—			—			—		1,085
Net increase in cash and cash equivalents	285			—			505			—		790
Cash and cash equivalents at beginning of period	75			13			1,451			—		1,539
Cash and cash equivalents at end of period	$	360		$	13		$	1,956		$	—	$	2,329

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Consolidation and Presentation

Consolidation

Presentation and Reclassification

Use of Estimates


•	The determination of medical claims and benefits payable of our Health Plans segment;


•	Health plan contractual provisions that may limit revenue recognition based upon the costs incurred or the profits realized under a specific contract;


•	Health plan quality incentives that allow us to recognize incremental revenue if certain quality standards are met;


•	Molina Medicaid Solutions segment revenue and cost recognition;


•	Settlements under risk or savings sharing programs;


•	The assessment of deferred contract costs, deferred revenue, long-lived and intangible assets, and goodwill for impairment;


•	The determination of reserves for potential absorption of claims unpaid by insolvent providers;


•	The determination of reserves for the outcome of litigation;


•	The determination of valuation allowances for deferred tax assets; and


•	The determination of unrecognized tax benefits.

Cash and Cash Equivalents

Investments

Long-Lived Assets, Including Intangible Assets

Long-Lived Assets, including Intangible Assets

Deferred Contract Costs

Business Combinations

Premium Revenue - Health Plans

The following table summarizes premium revenue for the periods indicated:



	Year Ended December 31,
	2017				2016				2015
	Amount		% of Total		Amount		% of Total		Amount		% of Total
	(Dollars in millions)
California	$	2,701	14.3	%	$	2,378	14.4	%	$	2,200	16.6	%
Florida	2,568		13.6		1,938		11.8		1,199		9.1
Illinois	593		3.1		603		3.7		398		3.0
Michigan	1,596		8.5		1,527		9.3		1,072		8.1
New Mexico	1,368		7.3		1,305		7.9		1,237		9.3
New York	181		1.0		82		0.5		—		—
Ohio	2,216		11.8		1,967		12.0		2,035		15.3
Puerto Rico	732		3.9		726		4.4		567		4.3
South Carolina	445		2.4		378		2.3		348		2.6
Texas	2,813		14.9		2,461		15.0		1,963		14.8
Utah	535		2.8		447		2.7		334		2.5
Washington	2,608		13.8		2,222		13.5		1,605		12.1
Wisconsin	491		2.6		398		2.4		262		2.0
Other	7		—		13		0.1		41		0.3
	$	18,854	100.0	%	$	16,445	100.0	%	$	13,261	100.0	%

Certain components of premium revenue are subject to accounting estimates and fall into the following categories:

Contractual Provisions That May Adjust or Limit Revenue or Profit

Medicaid

Medicare

Marketplace



	December 31, 2017								December 31, 2016
	Current Benefit Year			Prior Benefit Years		Total			December 31, 2016
	(In millions)
Risk adjustment	$	(912	)	$	—	$	(912	)	$	(522	)
Reinsurance	—			10		10			55
Risk corridor	—			—		—			(1		)
Minimum MLR	(2		)	—		(2		)	(1		)

•


•	Reinsurance: This program was designed to provide reimbursement to insurers for high cost members and ended December 31, 2016; we expect to settle the outstanding receivable balance in the first quarter of 2018.


•	Risk corridor: This program was intended to limit gains and losses of insurers by comparing allowable costs to a target amount as defined by CMS, and ended December 31, 2016; all outstanding payable balances were settled in the third quarter of 2017. We are owed, but have not recorded $128 million in risk corridor payments from CMS related to benefit year 2016 and 2015.

Quality Incentives

At several of our health plans, revenue ranging from approximately 1% to 3% of certain health plan premiums is earned only if certain performance measures are met.

Medical Care Costs - Health Plans

Expenses related to medical care services are captured in the following categories:

Direct delivery expenses. All costs associated with our direct delivery of medical care are separately identified.

The following table provides the details of our consolidated medical care costs for the periods indicated (dollars in millions, except PMPM amounts):



	Year Ended December 31,
	2017						2016						2015
	Amount		PMPM		% of Total		Amount		PMPM		% of Total		Amount		PMPM		% of Total
Fee-for-service	$	12,682	$	229.63	74.3	%	$	10,993	$	217.84	74.4	%	$	8,572	$	218.35	72.7	%
Pharmacy	2,563		46.40		15.0		2,213		43.84		15.0		1,610		41.01		13.7
Capitation	1,360		24.63		8.0		1,218		24.13		8.2		982		25.02		8.3
Direct delivery	73		1.33		0.4		78		1.55		0.5		128		3.26		1.1
Other	395		7.15		2.3		272		5.39		1.9		502		12.79		4.2
Total	$	17,073	$	309.14	100.0	%	$	14,774	$	292.75	100.0	%	$	11,794	$	300.43	100.0	%

Taxes Based on Premiums

Premium Deficiency Reserves on Loss Contracts

Concentrations of Credit Risk

Risks and Uncertainties

Recent Accounting Pronouncements Not Yet Adopted and Recent Accounting Pronouncements Adopted

Recent Accounting Pronouncements

Receivables

Goodwill

Income Taxes

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summarized premium revenue

The following table summarizes premium revenue for the periods indicated:



	Year Ended December 31,
	2017				2016				2015
	Amount		% of Total		Amount		% of Total		Amount		% of Total
	(Dollars in millions)
California	$	2,701	14.3	%	$	2,378	14.4	%	$	2,200	16.6	%
Florida	2,568		13.6		1,938		11.8		1,199		9.1
Illinois	593		3.1		603		3.7		398		3.0
Michigan	1,596		8.5		1,527		9.3		1,072		8.1
New Mexico	1,368		7.3		1,305		7.9		1,237		9.3
New York	181		1.0		82		0.5		—		—
Ohio	2,216		11.8		1,967		12.0		2,035		15.3
Puerto Rico	732		3.9		726		4.4		567		4.3
South Carolina	445		2.4		378		2.3		348		2.6
Texas	2,813		14.9		2,461		15.0		1,963		14.8
Utah	535		2.8		447		2.7		334		2.5
Washington	2,608		13.8		2,222		13.5		1,605		12.1
Wisconsin	491		2.6		398		2.4		262		2.0
Other	7		—		13		0.1		41		0.3
	$	18,854	100.0	%	$	16,445	100.0	%	$	13,261	100.0	%

Receivables (payables) for 3R programs



	December 31, 2017								December 31, 2016
	Current Benefit Year			Prior Benefit Years		Total			December 31, 2016
	(In millions)
Risk adjustment	$	(912	)	$	—	$	(912	)	$	(522	)
Reinsurance	—			10		10			55
Risk corridor	—			—		—			(1		)
Minimum MLR	(2		)	—		(2		)	(1		)

Quality incentive premium revenue recognized



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Maximum available quality incentive premium - current period	$	150		$	147		$	118

Amount of quality incentive premium revenue recognized in current period:
Earned current period	$	97		$	104		$	66
Earned prior periods	10			47			13
Total	$	107		$	151		$	79

Quality incentive premium revenue recognized as a percentage of total premium revenue	0.6		%	0.9		%	0.6		%

Consolidated medical care costs

The following table provides the details of our consolidated medical care costs for the periods indicated (dollars in millions, except PMPM amounts):



	Year Ended December 31,
	2017						2016						2015
	Amount		PMPM		% of Total		Amount		PMPM		% of Total		Amount		PMPM		% of Total
Fee-for-service	$	12,682	$	229.63	74.3	%	$	10,993	$	217.84	74.4	%	$	8,572	$	218.35	72.7	%
Pharmacy	2,563		46.40		15.0		2,213		43.84		15.0		1,610		41.01		13.7
Capitation	1,360		24.63		8.0		1,218		24.13		8.2		982		25.02		8.3
Direct delivery	73		1.33		0.4		78		1.55		0.5		128		3.26		1.1
Other	395		7.15		2.3		272		5.39		1.9		502		12.79		4.2
Total	$	17,073	$	309.14	100.0	%	$	14,774	$	292.75	100.0	%	$	11,794	$	300.43	100.0	%

Net (Loss) Income per Share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Summary of denominators for the computation of basic and diluted earnings per share

The following table sets forth the calculation of basic and diluted net (loss) income per share:



	December 31,
	2017			2016		2015
	(In millions, except net (loss) income per share)
Numerator:
Net (loss) income	$	(512	)	$	52	$	143
Denominator:
Shares outstanding at the beginning of the period	56			55		49
Weighted-average number of shares issued:
Common stock offering	—			—		3
Denominator for basic net (loss) income per share	56			55		52
Effect of dilutive securities:
Share-based compensation	—			—		1
Convertible senior notes ⁽¹⁾	—			—		1
1.125% Warrants ⁽¹⁾	—			1		2
Denominator for diluted net (loss) income per share	56			56		56

Net (loss) income per share: ⁽²⁾
Basic	$	(9.07	)	$	0.93	$	2.75
Diluted	$	(9.07	)	$	0.92	$	2.58

Potentially dilutive common shares excluded from calculations: ⁽¹⁾
1.125% Warrants	2			—		—
1.625% Notes	1			—		—

_______________________________

(1)


(2)	Source data for calculations in thousands.

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair value of assets measured on recurring basis

Our financial instruments measured at fair value on a recurring basis at December 31, 2017, were as follows:



	Total		Level 1		Level 2		Level 3
	(In millions)
Corporate debt securities	$	1,588	$	—	$	1,588	$	—
U.S. treasury notes	388		388		—		—
Government-sponsored enterprise securities (GSEs)	253		253		—		—
Municipal securities	141		—		141		—
Asset-backed securities	117		—		117		—
Certificates of deposit	37		—		37		—
Subtotal - current investments	2,524		641		1,883		—
Corporate debt securities	101		—		101		—
U.S. treasury notes	68		68		—		—
Subtotal - current restricted investments	169		68		101		—
1.125% Call Option derivative asset	522		—		—		522
Total assets measured at fair value on a recurring basis	$	3,215	$	709	$	1,984	$	522

1.125% Conversion Option derivative liability	$	522	$	—	$	—	$	522
Total liabilities measured at fair value on a recurring basis	$	522	$	—	$	—	$	522

Our financial instruments measured at fair value on a recurring basis at December 31, 2016, were as follows:



	Total		Level 1		Level 2		Level 3
	(In millions)
Corporate debt securities	$	1,179	$	—	$	1,179	$	—
U.S. treasury notes	84		84		—		—
GSEs	231		231		—		—
Municipal securities	142		—		142		—
Asset-backed securities	69		—		69		—
Certificates of deposit	53		—		53		—
Subtotal - current investments	1,758		315		1,443		—
1.125% Call Option derivative asset	267		—		—		267
Total assets measured at fair value on a recurring basis	$	2,025	$	315	$	1,443	$	267

1.125% Conversion Option derivative liability	$	267	$	—	$	—	$	267
Total liabilities measured at fair value on a recurring basis	$	267	$	—	$	—	$	267

Fair value measurements of senior notes



	December 31, 2017				December 31, 2016
	Carrying		Fair Value		Carrying		Fair Value
	Value		Fair Value		Value		Fair Value
	(In millions)
5.375% Notes	$	692	$	730	$	691	$	714
1.125% Convertible Notes	496		1,052		471		792
4.875% Notes	325		329		—		—
Credit Facility	300		300		—		—
1.625% Convertible Notes	157		220		284		344
	$	1,970	$	2,631	$	1,446	$	1,850

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Investments (Tables)

12 Months Ended

Dec. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Investments

The following tables summarize our investments as of the dates indicated:



	December 31, 2017
	Amortized		Gross Unrealized				Estimated
	Cost		Gains		Losses		Fair Value
	(In millions)
Corporate debt securities	$	1,591	$	1	$	4	$	1,588
U.S. Treasury notes	389		—		1		388
GSEs	255		—		2		253
Municipal securities	142		—		1		141
Asset-backed securities	117		—		—		117
Certificates of deposit	37		—		—		37
Subtotal - current investments	2,531		1		8		2,524
Corporate debt securities	101		—		—		101
U.S. treasury notes	68		—		—		68
Subtotal - restricted investments, current	169		—		—		169
	$	2,700	$	1	$	8	$	2,693



	December 31, 2016
	Amortized Cost		Gross Unrealized				Estimated Fair Value
	Amortized Cost		Gains		Losses		Estimated Fair Value
	(In millions)
Corporate debt securities	$	1,180	$	1	$	2	$	1,179
U.S. treasury notes	84		—		—		84
GSEs	232		—		1		231
Municipal securities	143		—		1		142
Asset-backed securities	69		—		—		69
Certificates of deposit	53		—		—		53
	$	1,761	$	1	$	4	$	1,758

Contractual maturities of investments

The contractual maturities of our available-for-sale investments as of December 31, 2017 are summarized below:



	Amortized Cost		Estimated Fair Value
	(In millions)
Due in one year or less	$	1,722	$	1,721
Due after one year through five years	972		966
Due after five years through ten years	6		6
	$	2,700	$	2,693

Available-for-sale investments



	In a Continuous Loss Position for Less than 12 Months					In a Continuous Loss Position for 12 Months or More
	Estimated Fair Value		Unrealized Losses		Total Number of Positions	Estimated Fair Value		Unrealized Losses		Total Number of Positions
	(Dollars in millions)
Corporate debt securities	$	1,297	$	3	561	$	94	$	1	69
U.S. Treasury notes	470		1		89	—		—		—
GSEs	173		1		69	95		1		47
Municipal securities	—		—		—	38		1		48
	$	1,940	$	5	719	$	227	$	3	164



	In a Continuous Loss Position for Less than 12 Months					In a Continuous Loss Position for 12 Months or More
	Estimated Fair Value		Unrealized Losses		Total Number of Positions	Estimated Fair Value		Unrealized Losses		Total Number of Positions
	(Dollars in millions)
Corporate debt securities	$	542	$	2	378	$	—	$	—	—
GSEs	198		1		73	—		—		—
Municipal securities	101		1		129	—		—		—
	$	841	$	4	580	$	—	$	—	—

Receivables (Tables)

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Summary of accounts receivable

The information below is presented by segment.



	December 31,
	2017		2016
	(In millions)
California	$	208	$	180
Florida	42		97
Illinois	91		134
Michigan	56		60
New Mexico	71		57
New York	21		26
Ohio	94		82
Puerto Rico	32		37
South Carolina	13		11
Texas	61		79
Utah	18		19
Washington	69		71
Wisconsin	19		33
Other	2		1
Total Health Plans segment	797		887
Molina Medicaid Solutions segment	30		34
Other segment	44		53
	$	871	$	974

Property, Equipment, and Capitalized Software, Net (Tables)

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Summary of property and equipment

A summary of property, equipment, and capitalized software is as follows:



	December 31,
	2017			2016
	(In millions)
Capitalized software	$	417		$	443
Furniture and equipment	289			301
Building and improvements	161			159
Land	16			16
	883			919
Less: accumulated amortization - capitalized software	(308		)	(259		)
Less: accumulated depreciation and amortization - building and improvements, furniture and equipment	(233		)	(206		)
	(541		)	(465		)
Property, equipment, and capitalized software, net	$	342		$	454

Depreciation and amortization



	Year Ended December 31,
	2017		2016		2015
	(In millions)
Recorded in depreciation and amortization:
Amortization of capitalized software	$	64	$	62	$	37
Depreciation of property and equipment	42		45		50
Amortization of intangible assets	31		32		17
	137		139		104
Recorded in cost of service revenue:
Amortization of capitalized software	28		22		15
Amortization of deferred contract costs	13		21		6
	41		43		21
Other	—		—		1
	$	178	$	182	$	126

Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill



	Health Plans			Molina Medicaid Solutions			Other			Total
	(In millions)
Historical goodwill	$	445		$	71		$	162		$	678
Accumulated impairment losses at December 31, 2016	(58		)	—			—			(58		)
Balance, December 31, 2016	387			71			162			620
Impairment losses, year ended December 31, 2017	(244		)	(28		)	(162		)	(434		)
Balance, December 31, 2017	$	143		$	43		$	—		$	186
Accumulated impairment losses at December 31, 2017	$	302		$	28		$	162		$	492

Summary of identified intangible assets, by major class

The following table provides the details of identified intangible assets, by major class, for the periods indicated:



	Cost		Accumulated Amortization		Carrying Amount
	(In millions)
Intangible assets:
Contract rights and licenses	$	201	$	141	$	60
Provider networks	20		11		9
Balance at December 31, 2017	$	221	$	152	$	69
Intangible assets:
Contract rights and licenses	$	267	$	148	$	119
Customer relationships	25		24		1
Provider networks	34		14		20
Balance at December 31, 2016	$	326	$	186	$	140

Restricted Investments, Non-current (Tables)

12 Months Ended

Dec. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Summary of restricted investments by health plan

The following table presents the balances of restricted investments:



	December 31,
	2017		2016
	(In millions)
Florida	$	31	$	22
New Mexico	43		43
Ohio	12		12
Puerto Rico	10		10
Other	23		23
Total Health Plans segment	$	119	$	110

Contractual maturities of our held-to-maturity restricted investments

The contractual maturities of our held-to-maturity restricted investments, which are carried at amortized cost, which approximates fair value, as of December 31, 2017 are summarized below.



	Amortized Cost		Estimated Fair Value
	(In millions)
Due in one year or less	$	115	$	115
Due after one year through five years	4		4
	$	119	$	119

Medical Claims and Benefits Payable (Tables)

12 Months Ended

Dec. 31, 2017

Insurance [Abstract]

Schedule of liability for unpaid claims and claims adjustment expense



	December 31,
	2017		2016		2015
	(In millions)
Fee-for-service claims incurred but not paid (IBNP)	$	1,717	$	1,352	$	1,191
Pharmacy payable	112		112		88
Capitation payable	67		37		140
Other	296		428		266
	$	2,192	$	1,929	$	1,685

Components of the change in medical claims and benefits payable



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Medical claims and benefits payable, beginning balance	$	1,929		$	1,685		$	1,201
Components of medical care costs related to:
Current period	17,037			14,966			11,935
Prior periods	36			(192		)	(141		)
Total medical care costs	17,073			14,774			11,794

Change in non-risk provider payables	(106		)	58			48

Payments for medical care costs related to:
Current period	15,130			13,304			10,448
Prior periods	1,574			1,284			910
Total paid	16,704			14,588			11,358
Medical claims and benefits payable, ending balance	$	2,192		$	1,929		$	1,685

Incurred and paid claims development



Incurred Claims and Allocated Claims Adjustment Expenses							Total IBNP		Cumulative number of reported claims
Benefit Year	2015 ⁽¹⁾		2016		2017		Total IBNP		Cumulative number of reported claims

	(In millions)
2015	$	12,113	$	11,928	$	11,939	$	6	84
2016			15,064		15,093		46		109
2017					17,037		1,665		114
					$	44,069	$	1,717



Cumulative Paid Claims and Allocated Claims Adjustment Expenses
Benefit Year	2015 ⁽¹⁾		2016		2017

	(In millions)
2015	$	10,615	$	11,906	$	11,932
2016			13,403		14,952
2017					15,130
					$	42,014

Reconciliation of claims development to liability

The following table represents a reconciliation of claims development to the aggregate carrying amount of the liability for medical claims and benefits payable.



	2017
	(In millions)
Incurred claims and allocated claims adjustment expenses	$	44,069
Less: cumulative paid clams and allocated claims adjustment expenses	(42,014		)
Non-risk provider payables and other	137
Medical claims and benefits payable	$	2,192

_______________________________


(1)	Data presented for this calendar year is required supplementary information, which is unaudited.

Debt (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Maturities of long-term debt

As of December 31, 2017, contractual maturities of debt for the years ending December 31 were as follows. All amounts represent the principal amounts of the debt instruments outstanding.



	Total		2018		2019		2020		2021		2022		Thereafter

	(In millions)
5.375% Notes	$	700	$	—	$	—	$	—	$	—	$	700	$	—
1.125% Convertible Notes	550		—		—		550		—		—		—
4.875% Notes	330		—		—		—		—		—		330
Credit Facility	300		—		—		—		—		300		—
1.625% Convertible Notes⁽¹⁾	161		—		—		—		—		—		161
	$	2,041	$	—	$	—	$	550	$	—	$	1,000	$	491


(1)	The 1.625% Convertible Notes have a contractual maturity date in 2044. However, on contractually specified dates beginning in 2018, holders may convert, or may require us to repurchase some or all of the 1.625% Convertible Notes.

Long term debt

The following table summarizes our outstanding debt obligations and their classification in the accompanying consolidated balance sheets (in millions):



	December 31,
	2017			2016
Current portion of long-term debt:
1.125% Convertible Notes, net of unamortized discount	$	499		$	477
1.625% Convertible Notes, net of unamortized premium and discount	157			—
Lease financing obligations	1			1
Debt issuance costs	(4		)	(6		)
	653			472
Non-current portion of long-term debt:
5.375% Notes	700			700
4.875% Notes	330			—
Credit Facility	300			—
1.625% Convertible Notes, net of unamortized premium and discount	—			286
Debt issuance costs	(12		)	(11		)
	1,318			975
Lease financing obligations	198			198
	$	2,169		$	1,645

Debt instruments interest cost recognized

Interest cost recognized relating to our convertible senior notes for the periods presented was as follows:



	Years Ended December 31,
	2017		2016		2015
	(In millions)
Contractual interest at coupon rate	$	11	$	11	$	11
Amortization of the discount	32		30		29
	$	43	$	41	$	40

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Derivatives (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Values of Derivative Financial Instruments

The following table summarizes the fair values and the presentation of our derivative financial instruments (defined and discussed individually below) in the consolidated balance sheets:



		December 31,
	Balance Sheet Location	2017		2016
		(In millions)
Derivative asset:
1.125% Call Option	Current assets: Derivative asset	$	522	$	267

Derivative liability:
1.125% Conversion Option	Current liabilities: Derivative liability	$	522	$	267

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Provision for income taxes

The (benefit) provision for income taxes consisted of the following:



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Current:
Federal	$	(9	)	$	134		$	172
State	3			3			8
Foreign	—			(6		)	6
Total current	(6		)	131			186
Deferred:
Federal	(85		)	19			(10		)
State	(9		)	2			4
Foreign	—			1			(1		)
Total deferred	(94		)	22			(7		)
	$	(100	)	$	153		$	179

Effective income tax rate reconciliation to the statutory federal income tax rate

A reconciliation of the U.S. federal statutory income tax rate to the combined effective income tax rate is as follows:



	Year Ended December 31,
	2017		2016		2015
Statutory federal tax (benefit) rate	(35.0	)%	35.0	%	35.0	%
State income provision (benefit), net of federal	(0.7	)	1.6		2.4
Nondeductible health insurer fee (HIF)	—		37.0		17.0
Nondeductible compensation	2.8		3.1		0.6
Nondeductible goodwill impairment	6.6		—		—
Revaluation of net deferred tax assets	8.8		—		—
Change in purchase agreement that increased tax basis in assets	—		(2.2	)	—
Other	1.1		0.3		0.5
Effective tax (benefit) rate	(16.4	)%	74.8	%	55.5	%

Significant components of deferred tax assets and liabilities

Significant components of our deferred tax assets and liabilities as of December 31, 2017 and 2016 were as follows:



	December 31,
	2017			2016
	(In millions)
Accrued expenses	$	15		$	22
Reserve liabilities	11			28
Other accrued medical costs	16			5
Net operating losses	27			13
Fixed assets and intangibles	23			—
Unrealized losses	2			1
Unearned premiums	19			27
Lease financing obligation	30			38
Deferred compensation	1			6
Tax credit carryover	15			7
Valuation allowance	(41		)	(16		)
Total deferred income tax assets, net of valuation allowance	118			131
Prepaid expenses	(6		)	(9		)
Fixed assets and intangibles	—			(104		)
Basis in debt	(9		)	(23		)
Total deferred income tax liabilities	(15		)	(136		)
Net deferred income tax asset (liability)	$	103		$	(5	)

Unrecognized tax benefits roll forward

The roll forward of our unrecognized tax benefits is as follows:



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Gross unrecognized tax benefits at beginning of period	$	(11	)	$	(9	)	$	(3	)
Increases in tax positions for current year	(1		)	(1		)	(1		)
Increases in tax positions for prior years	(4		)	(1		)	(5		)
Decreases in tax positions for prior years	3			—			—
Gross unrecognized tax benefits at end of period	$	(13	)	$	(11	)	$	(9	)

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Stock based compensation expense

Total share-based compensation expense was as follows:



	Year Ended December 31,
	2017				2016				2015
	(In millions)
	Pretax Charges		Net-of-Tax Amount		Pretax Charges		Net-of-Tax Amount		Pretax Charges		Net-of-Tax Amount
Restricted stock and performance awards	$	39	$	35	$	20	$	17	$	19	$	13
Employee stock purchase plan and stock options	7		5		6		5		4		3
	$	46	$	40	$	26	$	22	$	23	$	16

Restricted and performance stock activity

RSAs, PSAs and PSUs activity for the year ended December 31, 2017 is summarized below:



	Restricted Stock Awards		Performance Stock Awards		Performance Stock Units		Total Shares		Weighted Average Grant Date Fair Value
Unvested balance as of December 31, 2016	577,244		345,656		—		922,900		$	58.15
Granted	395,946		—		231,100		627,046		57.34
Vested	(424,556	)	(260,894	)	(139,272	)	(824,722	)	57.78
Forfeited	(146,830	)	—		—		(146,830	)	53.89
Unvested balance as of December 31, 2017	401,804		84,762		91,828		578,394		$	58.35

Stock Options, Activity

Stock Options. Stock option activity for the year ended December 31, 2017 is summarized below:



	Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual term
					(In millions)		(Years)
Stock options outstanding as of December 31, 2016	90,000		$	24.93
Granted	375,000		67.33
Exercised	(60,000	)	20.88
Stock options outstanding as of December 31, 2017	405,000		64.79		$	5	9.5
Stock options exercisable and expected to vest as of December 31, 2017	405,000		64.79		$	5	9.5
Exercisable as of December 31, 2017	30,000		33.02		$	1	5.2

Stock Option Plans, by Exercise Price Range

The following is a summary of information about stock options outstanding and exercisable at December 31, 2017:



	Options Outstanding				Options Exercisable
	Number Outstanding	Weighted Average Remaining Contractual Life (Years)	Weighted-Average Exercise Price		Number Exercisable	Weighted-Average Exercise Price
Range of Exercise Prices
$33.02	30,000	5.2	$	33.02	30,000	$	33.02
$67.33	375,000	9.9	67.33		—	—
	405,000				30,000

Restructuring and Separation Costs (Tables)

12 Months Ended

Dec. 31, 2017

Restructuring and Related Activities [Abstract]

Restructuring Costs

The following tables present the major types of such costs by segment. Long-lived assets include capitalized software, intangible assets and furniture, fixtures and equipment.



	Year Ended December 31, 2017
	Separation Costs - Former Executives		One-Time Termination Benefits		Other Restructuring Costs						Total
	Separation Costs - Former Executives		One-Time Termination Benefits		Write-offs of Long-lived Assets		Consulting Fees		Contract Termination Costs		Total
	(In millions)
Health Plans	$	—	$	33	$	16	$	—	$	24	$	73
Molina Medicaid Solutions	—		—		8		—		—		8
Other	36		34		37		44		2		153
	$	36	$	67	$	61	$	44	$	26	$	234

Restructuring Reserve



	Separation Costs - Former Executives			One-Time Termination Benefits			Other Restructuring Costs			Total
	(In millions)
Accrued as of December 31, 2016	$	—		$	—		$	—		$	—
Charges	13			66			71			150
Cash payments	(11		)	(55		)	(36		)	(102		)
Accrued as of December 31, 2017	$	2		$	11		$	35		$	48

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Summary of future minimum lease payments

Future minimum lease payments by year and in the aggregate under operating leases and lease financing obligations consist of the following amounts:



	Lease Financing Obligations		Operating Leases		Total
	(In millions)
2018	$	17	$	67	$	84
2019	18		65		83
2020	19		44		63
2021	19		30		49
2022	20		22		42
Thereafter	317		34		351
	$	410	$	262	$	672

Segment Information (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Operating segment information



	Health Plans		Molina Medicaid Solutions		Other		Consolidated
	(In millions)
2017
Total revenue	$	19,352	$	187	$	344	$	19,883
Gross margin ⁽¹⁾	1,781		16		13		1,810
Depreciation and amortization ⁽²⁾	126		43		9		178
Goodwill, and intangible assets, net	212		43		—		255
Total assets	6,347		219		1,905		8,471
2016
Total revenue	17,234		195		353		17,782
Gross margin ⁽¹⁾	1,671		21		33		1,725
Depreciation and amortization ⁽²⁾	122		45		15		182
Goodwill, and intangible assets, net	513		72		175		760
Total assets	5,897		267		1,285		7,449
2015
Total revenue	13,917		195		66		14,178
Gross margin ⁽¹⁾	1,467		55		5		1,527
Depreciation and amortization ⁽²⁾	95		25		6		126
Goodwill, and intangible assets, net	393		73		175		641
Total assets	4,707		213		1,656		6,576

______________________

(1)


(2)	Depreciation and amortization reported in accompanying consolidated statements of cash flows.

The following table reconciles gross margin by segment to consolidated (loss) income before income tax (benefit) expense:



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Gross margin:
Health Plans	$	1,781		$	1,671		$	1,467
Molina Medicaid Solutions	16			21			55
Other	13			33			5
Total gross margin	1,810			1,725			1,527
Add: other operating revenues ⁽¹⁾	508			798			664
Less: other operating expenses ⁽²⁾	(2,873		)	(2,217		)	(1,804		)
Operating (loss) income	(555		)	306			387
Other expenses, net	57			101			65
(Loss) income before income tax (benefit) expense	$	(612	)	$	205		$	322

______________________


(1)	Other operating revenues include premium tax revenue, health insurer fees reimbursed, investment income and other revenue.


(2)	Other operating expenses include general and administrative expenses, premium tax expenses, health insurer fees, depreciation and amortization, impairment losses, and restructuring and separation costs.

Quarterly Results of Operations (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Summary of quarterly results of operations

The following table summarizes quarterly unaudited results of operations for the years ended December 31, 2017 and 2016.



	For The Quarter Ended
	March 31, 2017		June 30, 2017			Sept. 30, 2017			December 31, 2017
	(In millions, except per-share data)
Total revenue	$	4,904	$	4,999		$	5,031		$	4,949
Gross margin	546		254			564			446
Impairment losses	—		72			129			269
Restructuring and separation costs	—		43			118			73
Net income (loss)	77		(230		)	(97		)	(262		)

Net income (loss) per share ⁽¹⁾:
Basic	$	1.38	$	(4.10	)	$	(1.70	)	$	(4.59	)
Diluted	$	1.37	$	(4.10	)	$	(1.70	)	$	(4.59	)



	For The Quarter Ended
	March 31, 2016		June 30, 2016		Sept. 30, 2016		December 31, 2016
	(In millions, except per-share data)
Total revenue	$	4,343	$	4,359	$	4,546	$	4,534
Gross margin ⁽²⁾	434		466		471		354
Net income (loss)	24		33		42		(47		)

Net income (loss) per share ⁽¹⁾:
Basic	$	0.44	$	0.58	$	0.77	$	(0.85	)
Diluted	$	0.43	$	0.58	$	0.76	$	(0.85	)

_______________________________


(1)	The dilutive effect of all potentially dilutive common shares is calculated using the treasury stock method. Certain potentially dilutive common shares issuable are not included in the computation of diluted net income (loss) per share because to do so would be anti-dilutive.

(2)

The Centers for Medicare and Medicaid Services (CMS) incorporates the Health Insurer Fee (HIF) in our Medicare and Marketplace premium rates. We have therefore reclassified such amounts in our consolidated statements of operations to premium revenue, from health insurer fees reimbursed, for all applicable periods presented. As a result, gross margin amounts differ from amounts previously reported as follows: for the quarters ended March 31, June 30, September 30, and December 31, 2016, gross margin increased $14 million, $12 million, $14 million, and $13 million, respectively.

Condensed Financial Information of Registrant (Tables)

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Balance Sheets



	December 31,
	2017			2016
	(In millions, except per-share data)
ASSETS
Current assets:
Cash and cash equivalents	$	504		$	86
Investments	192			178
Restricted investments	169			—
Receivables	2			2
Income taxes refundable	16			17
Due from affiliates	148			104
Prepaid expenses and other current assets	87			58
Derivative asset	522			267
Total current assets	1,640			712
Property, equipment, and capitalized software, net	223			301
Goodwill and intangible assets, net	15			58
Investments in subsidiaries	2,306			2,609
Deferred income taxes	17			10
Advances to related parties and other assets	32			48
	$	4,233		$	3,738
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable	$	3		$	1
Accounts payable and accrued liabilities	178			146
Current portion of long-term debt	653			472
Derivative liability	522			267
Total current liabilities	1,356			886
Senior notes	1,318			975
Lease financing obligations	198			198
Deferred income taxes	—			11
Other long-term liabilities	24			19
Total liabilities	2,896			2,089
Stockholders’ equity:
Common stock, $0.001 par value; 150 shares authorized; outstanding:
60 shares at December 31, 2017 and 57 shares at December 31, 2016	—			—
Preferred stock, $0.001 par value; 20 shares authorized, no shares issued and outstanding	—			—
Additional paid-in capital	1,044			841
Accumulated other comprehensive loss	(5		)	(2		)
Retained earnings	298			810
Total stockholders’ equity	1,337			1,649
	$	4,233		$	3,738

MOLINA HEALTHCARE, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS



	December 31, 2017
	Parent Guarantor		Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	504	$	28		$	2,654		$	—		$	3,186
Investments	192		—			2,332			—			2,524
Restricted investments	169		—			—			—			169
Receivables	2		30			839			—			871
Income tax refundable	16		(8		)	46			—			54
Due from (to) affiliates	148		(6		)	(142		)	—			—
Prepaid expenses and other current assets	87		22			92			(16		)	185
Derivative asset	522		—			—			—			522
Total current assets	1,640		66			5,821			(16		)	7,511
Property, equipment, and capitalized software, net	223		33			86			—			342
Deferred contract costs	—		101			—			—			101
Goodwill and intangible assets, net	15		43			197			—			255
Restricted investments	—		—			119			—			119
Investment in subsidiaries, net	2,306		82			—			(2,388		)	—
Deferred income taxes	17		—			101			(15		)	103
Other assets	32		2			7			(1		)	40
	$	4,233	$	327		$	6,331		$	(2,420	)	$	8,471
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable	$	3	$	—		$	2,189		$	—		$	2,192
Amounts due government agencies	—		1			1,541			—			1,542
Accounts payable and accrued liabilities	178		40			148			—			366
Deferred revenue	—		49			233			—			282
Current portion of long-term debt	653		—			16			(16		)	653
Derivative liability	522		—			—			—			522
Total current liabilities	1,356		90			4,127			(16		)	5,557
Long-term debt	1,516		—			—			—			1,516
Deferred income taxes	—		15			—			(15		)	—
Other long-term liabilities	24		2			36			(1		)	61
Total liabilities	2,896		107			4,163			(32		)	7,134
Total stockholders’ equity	1,337		220			2,168			(2,388		)	1,337
	$	4,233	$	327		$	6,331		$	(2,420	)	$	8,471

MOLINA HEALTHCARE, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS



	December 31, 2016
	Parent Guarantor		Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	86	$	6		$	2,727		$	—		$	2,819
Investments	178		—			1,580			—			1,758
Receivables	2		34			938			—			974
Income tax refundable	17		4			18			—			39
Due from (to) affiliates	104		(5		)	(99		)	—			—
Prepaid expenses and other current assets	58		30			43			—			131
Derivative asset	267		—			—			—			267
Total current assets	712		69			5,207			—			5,988
Property, equipment, and capitalized software, net	301		46			107			—			454
Deferred contract costs	—		86			—			—			86
Goodwill and intangible assets, net	58		73			629			—			760
Restricted investments	—		—			110			—			110
Investment in subsidiaries, net	2,609		246			—			(2,855		)	—
Deferred income taxes	10		—			—			—			10
Other assets	48		3			6			(16		)	41
	$	3,738	$	523		$	6,059		$	(2,871	)	$	7,449
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable	$	1	$	—		$	1,928		$	—		$	1,929
Amounts due government agencies	—		—			1,202			—			1,202
Accounts payable and accrued liabilities	146		34			205			—			385
Deferred revenue	—		40			275			—			315
Current portion of long-term debt	472		—			—			—			472
Derivative liability	267		—			—			—			267
Total current liabilities	886		74			3,610			—			4,570
Long-term debt	1,173		—			16			(16		)	1,173
Deferred income taxes	11		39			(35		)	—			15
Other long-term liabilities	19		1			22			—			42
Total liabilities	2,089		114			3,613			(16		)	5,800
Total stockholders’ equity	1,649		409			2,446			(2,855		)	1,649
	$	3,738	$	523		$	6,059		$	(2,871	)	$	7,449

Condensed Statements of Income

Condensed Statements of Operations



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Revenue:
Management fees	$	1,317		$	1,062		$	914
Investment income and other revenue	16			16			17
Total revenue	1,333			1,078			931
Expenses:
Medical care costs	16			73			55
General and administrative expenses	1,082			899			797
Depreciation and amortization	93			95			82
Impairment losses	39			—			—
Restructuring and separation costs	153			—			—
Total operating expenses	1,383			1,067			934
Operating (loss) income	(50		)	11			(3		)
Interest expense	117			101			66
Other income	(61		)	—			—
Loss before income taxes and equity in net income of subsidiaries	(106		)	(90		)	(69		)
Income tax expense (benefit)	8			(24		)	(21		)
Net loss before equity in net income of subsidiaries	(114		)	(66		)	(48		)
Equity in net (loss) income of subsidiaries	(398		)	118			191
Net (loss) income	$	(512	)	$	52		$	143

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



	Year Ended December 31, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	1,333		$	194		$	19,712		$	(1,356	)	$	19,883
Expenses:
Medical care costs	16			—			17,058			(1		)	17,073
Cost of service revenue	—			171			321			—			492
General and administrative expenses	1,082			17			1,850			(1,355		)	1,594
Premium tax expenses	—			—			438			—			438
Depreciation and amortization	93			1			43			—			137
Impairment losses	39			28			403			—			470
Restructuring and separation costs	153			8			73			—			234
Total operating expenses	1,383			225			20,186			(1,356		)	20,438
Operating loss	(50		)	(31		)	(474		)	—			(555		)
Interest expense	117			—			1			—			118
Other income	(61		)	—			—			—			(61		)
Loss before income taxes	(106		)	(31		)	(475		)	—			(612		)
Income tax expense (benefit)	8			(21		)	(87		)	—			(100		)
Net loss before equity in earnings of subsidiaries	(114		)	(10		)	(388		)	—			(512		)
Equity in net earnings of subsidiaries	(398		)	(156		)	—			554			—
Net loss	$	(512	)	$	(166	)	$	(388	)	$	554		$	(512	)



	Year Ended December 31, 2016
	Parent Guarantor			Other Guarantors		Non-Guarantors		Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	1,078		$	202	$	17,584	$	(1,082	)	$	17,782
Expenses:
Medical care costs	73			—		14,702		(1		)	14,774
Cost of service revenue	—			174		311		—			485
General and administrative expenses	899			16		1,559		(1,081		)	1,393
Premium tax expenses	—			—		468		—			468
Health insurer fees	—			—		217		—			217
Depreciation and amortization	95			1		43		—			139
Total operating expenses	1,067			191		17,300		(1,082		)	17,476
Operating income	11			11		284		—			306
Total other expenses, net	101			—		—		—			101
(Loss) income before income taxes	(90		)	11		284		—			205
Income tax (benefit) expense	(24		)	3		174		—			153
Net (loss) income before equity in earnings of subsidiaries	(66		)	8		110		—			52
Equity in net earnings of subsidiaries	118			1		—		(119		)	—
Net income	$	52		$	9	$	110	$	(119	)	$	52



	Year Ended December 31, 2015
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	931		$	195		$	13,980		$	(928	)	$	14,178
Expenses:
Medical care costs	55			—			11,740			(1		)	11,794
Cost of service revenue	—			140			53			—			193
General and administrative expenses	797			31			1,245			(927		)	1,146
Premium tax expenses	—			—			397			—			397
Health insurer fees	—			—			157			—			157
Depreciation and amortization	82			1			21			—			104
Total operating expenses	934			172			13,613			(928		)	13,791
Operating (loss) income	(3		)	23			367			—			387
Total other expenses, net	66			—			(1		)	—			65
(Loss) income before income taxes	(69		)	23			368			—			322
Income tax (benefit) expense	(21		)	7			193			—			179
Net (loss) income before equity in earnings of subsidiaries	(48		)	16			175			—			143
Equity in net earnings of subsidiaries	191			(1		)	—			(190		)	—
Net income	$	143		$	15		$	175		$	(190	)	$	143

Condensed Statements of Comprehensive (Loss) Income



	Year Ended December 31,
	2017			2016		2015
	(In millions)
Net (loss) income	$	(512	)	$	52	$	143
Other comprehensive (loss) income:
Unrealized investment (loss) gain	(5		)	3		(5		)
Less: effect of income taxes	(2		)	1		(2		)
Other comprehensive (loss) income, net of tax	(3		)	2		(3		)
Comprehensive (loss) income	$	(515	)	$	54	$	140

Condensed Statements of Cash Flows



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Operating activities:
Net cash provided by operating activities	$	166		$	55		$	113
Investing activities:
Capital contributions to subsidiaries	(370		)	(386		)	(770		)
Dividends received from subsidiaries	286			101			142
Purchases of investments	(352		)	(115		)	(244		)
Proceeds from sales and maturities of investments	168			188			118
Purchases of property, equipment and capitalized software	(67		)	(125		)	(91		)
Change in amounts due to/from affiliates	(49		)	(18		)	(68		)
Other, net	—			6			—
Net cash used in investing activities	(384		)	(349		)	(913		)
Financing activities:
Proceeds from senior notes offerings, net of issuance costs	325			—			689
Proceeds from borrowings under credit facility	300			—			—
Proceeds from common stock offering, net of issuance costs	—			—			373
Proceeds from employee stock plans	19			18			18
Cash paid for financing transaction fees	(7		)	—			—
Other, net	(1		)	2			5
Net cash provided by financing activities	636			20			1,085
Net increase (decrease) in cash and cash equivalents	418			(274		)	285
Cash and cash equivalents at beginning of year	86			360			75
Cash and cash equivalents at end of year	$	504		$	86		$	360

MOLINA HEALTHCARE, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



	Year Ended December 31, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated
	(In millions)
Operating activities:
Net cash provided by operating activities	$	166		83			555			—		$	804
Investing activities:
Purchases of investments	(352		)	—			(2,366		)	—		(2,718		)
Proceeds from sales and maturities of investments	168			—			1,603			—		1,771
Purchases of property, equipment and capitalized software	(67		)	(11		)	(8		)	—		(86		)
Increase in restricted investments	—			—			(12		)	—		(12		)
Capital contributions to subsidiaries	(370		)	2			368			—		—
Dividends received from subsidiaries	286			(25		)	(261		)	—		—
Change in amounts due to/from affiliates	(49		)	1			48			—		—
Other, net	—			(28		)	—			—		(28		)
Net cash used in by investing activities	(384		)	(61		)	(628		)	—		(1,073		)
Financing activities:
Proceeds from senior notes offering, net of issuance costs	325			—			—			—		325
Proceeds from borrowings under credit facility	300			—			—			—		300
Proceeds from employee stock plans	19			—			—			—		19
Cash paid for financing transaction fees	(7		)	—			—			—		(7		)
Other, net	(1		)	—			—			—		(1		)
Net cash provided by financing activities	636			—			—			—		636
Net increase (decrease) in cash and cash equivalents	418			22			(73		)	—		367
Cash and cash equivalents at beginning of period	86			6			2,727			—		2,819
Cash and cash equivalents at end of period	$	504		$	28		$	2,654		$	—	$	3,186



	Year Ended December 31, 2016
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated
	(In millions)
Operating activities:
Net cash provided by operating activities	$	55		48			570			—		$	673
Investing activities:
Purchases of investments	(115		)	—			(1,814		)	—		(1,929		)
Proceeds from sales and maturities of investments	188			—			1,778			—		1,966
Purchases of property, equipment and capitalized software	(125		)	(29		)	(22		)	—		(176		)
Decrease in restricted investments	—			—			4			—		4
Net cash paid in business combinations	—			(5		)	(43		)	—		(48		)
Capital contributions to subsidiaries	(386		)	7			379			—		—
Dividends received from subsidiaries	101			—			(101		)	—		—
Change in amounts due to/from affiliates	(18		)	(2		)	20			—		—
Other, net	6			(26		)	1			—		(19		)
Net cash (used in) provided by investing activities	(349		)	(55		)	202			—		(202		)
Financing activities:
Proceeds from employee stock plans	18			—			—			—		18
Other, net	2			—			(1		)	—		1
Net cash provided by financing activities	20			—			(1		)	—		19
Net (decrease) increase in cash and cash equivalents	(274		)	(7		)	771			—		490
Cash and cash equivalents at beginning of period	360			13			1,956			—		2,329
Cash and cash equivalents at end of period	$	86		$	6		$	2,727		$	—	$	2,819



	Year Ended December 31, 2015
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated
	(In millions)
Operating activities:
Net cash provided by operating activities	$	113		51			961			—		$	1,125
Investing activities:
Purchases of investments	(244		)	—			(1,679		)	—		(1,923		)
Proceeds from sales and maturities of investments	118			—			1,008			—		1,126
Purchases of property, equipment and capitalized software	(91		)	(20		)	(21		)	—		(132		)
Decrease in restricted investments	—			5			(11		)	—		(6		)
Net cash paid in business combinations	—			(174		)	(276		)	—		(450		)
Capital contributions to subsidiaries	(770		)	236			534			—		—
Dividends received from subsidiaries	142			—			(142		)	—		—
Change in amounts due to/from affiliates	(68		)	(63		)	131			—		—
Other, net	—			(35		)	—			—		(35		)
Net cash used in investing activities	(913		)	(51		)	(456		)	—		(1,420		)
Financing activities:
Proceeds from senior notes offerings, net of issuance costs	689			—			—			—		689
Proceeds from common stock offering, net of issuance costs	373			—			—			—		373
Proceeds from employee stock plans	18			—			—			—		18
Other, net	5			—			—			—		5
Net cash provided by financing activities	1,085			—			—			—		1,085
Net increase in cash and cash equivalents	285			—			505			—		790
Cash and cash equivalents at beginning of period	75			13			1,451			—		1,539
Cash and cash equivalents at end of period	$	360		$	13		$	1,956		$	—	$	2,329

Supplemental Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2017

Condensed Financial Information [Abstract]

Condensed Consolidating Statements of Income

Condensed Statements of Operations



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Revenue:
Management fees	$	1,317		$	1,062		$	914
Investment income and other revenue	16			16			17
Total revenue	1,333			1,078			931
Expenses:
Medical care costs	16			73			55
General and administrative expenses	1,082			899			797
Depreciation and amortization	93			95			82
Impairment losses	39			—			—
Restructuring and separation costs	153			—			—
Total operating expenses	1,383			1,067			934
Operating (loss) income	(50		)	11			(3		)
Interest expense	117			101			66
Other income	(61		)	—			—
Loss before income taxes and equity in net income of subsidiaries	(106		)	(90		)	(69		)
Income tax expense (benefit)	8			(24		)	(21		)
Net loss before equity in net income of subsidiaries	(114		)	(66		)	(48		)
Equity in net (loss) income of subsidiaries	(398		)	118			191
Net (loss) income	$	(512	)	$	52		$	143

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



	Year Ended December 31, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	1,333		$	194		$	19,712		$	(1,356	)	$	19,883
Expenses:
Medical care costs	16			—			17,058			(1		)	17,073
Cost of service revenue	—			171			321			—			492
General and administrative expenses	1,082			17			1,850			(1,355		)	1,594
Premium tax expenses	—			—			438			—			438
Depreciation and amortization	93			1			43			—			137
Impairment losses	39			28			403			—			470
Restructuring and separation costs	153			8			73			—			234
Total operating expenses	1,383			225			20,186			(1,356		)	20,438
Operating loss	(50		)	(31		)	(474		)	—			(555		)
Interest expense	117			—			1			—			118
Other income	(61		)	—			—			—			(61		)
Loss before income taxes	(106		)	(31		)	(475		)	—			(612		)
Income tax expense (benefit)	8			(21		)	(87		)	—			(100		)
Net loss before equity in earnings of subsidiaries	(114		)	(10		)	(388		)	—			(512		)
Equity in net earnings of subsidiaries	(398		)	(156		)	—			554			—
Net loss	$	(512	)	$	(166	)	$	(388	)	$	554		$	(512	)



	Year Ended December 31, 2016
	Parent Guarantor			Other Guarantors		Non-Guarantors		Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	1,078		$	202	$	17,584	$	(1,082	)	$	17,782
Expenses:
Medical care costs	73			—		14,702		(1		)	14,774
Cost of service revenue	—			174		311		—			485
General and administrative expenses	899			16		1,559		(1,081		)	1,393
Premium tax expenses	—			—		468		—			468
Health insurer fees	—			—		217		—			217
Depreciation and amortization	95			1		43		—			139
Total operating expenses	1,067			191		17,300		(1,082		)	17,476
Operating income	11			11		284		—			306
Total other expenses, net	101			—		—		—			101
(Loss) income before income taxes	(90		)	11		284		—			205
Income tax (benefit) expense	(24		)	3		174		—			153
Net (loss) income before equity in earnings of subsidiaries	(66		)	8		110		—			52
Equity in net earnings of subsidiaries	118			1		—		(119		)	—
Net income	$	52		$	9	$	110	$	(119	)	$	52



	Year Ended December 31, 2015
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	931		$	195		$	13,980		$	(928	)	$	14,178
Expenses:
Medical care costs	55			—			11,740			(1		)	11,794
Cost of service revenue	—			140			53			—			193
General and administrative expenses	797			31			1,245			(927		)	1,146
Premium tax expenses	—			—			397			—			397
Health insurer fees	—			—			157			—			157
Depreciation and amortization	82			1			21			—			104
Total operating expenses	934			172			13,613			(928		)	13,791
Operating (loss) income	(3		)	23			367			—			387
Total other expenses, net	66			—			(1		)	—			65
(Loss) income before income taxes	(69		)	23			368			—			322
Income tax (benefit) expense	(21		)	7			193			—			179
Net (loss) income before equity in earnings of subsidiaries	(48		)	16			175			—			143
Equity in net earnings of subsidiaries	191			(1		)	—			(190		)	—
Net income	$	143		$	15		$	175		$	(190	)	$	143

Condensed Consolidating Statements of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME



	Year Ended December 31, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated

	(In millions)
Net loss	$	(512	)	$	(166	)	$	(388	)	$	554	$	(512	)
Other comprehensive loss, net of tax	(3		)	—			(2		)	2		(3		)
Comprehensive loss	$	(515	)	$	(166	)	$	(390	)	$	556	$	(515	)



	Year Ended December 31, 2016
	Parent Guarantor		Other Guarantors		Non-Guarantors		Eliminations			Consolidated

	(In millions)
Net income	$	52	$	9	$	110	$	(119	)	$	52
Other comprehensive income, net of tax	2		—		1		(1		)	2
Comprehensive income	$	54	$	9	$	111	$	(120	)	$	54



	Year Ended December 31, 2015
	Parent Guarantor			Other Guarantors		Non-Guarantors			Eliminations			Consolidated

	(In millions)
Net income	$	143		$	15	$	175		$	(190	)	$	143
Other comprehensive loss, net of tax	(3		)	—		(3		)	3			(3		)
Comprehensive income	$	140		$	15	$	172		$	(187	)	$	140

Condensed Consolidating Balance Sheet

Condensed Balance Sheets



	December 31,
	2017			2016
	(In millions, except per-share data)
ASSETS
Current assets:
Cash and cash equivalents	$	504		$	86
Investments	192			178
Restricted investments	169			—
Receivables	2			2
Income taxes refundable	16			17
Due from affiliates	148			104
Prepaid expenses and other current assets	87			58
Derivative asset	522			267
Total current assets	1,640			712
Property, equipment, and capitalized software, net	223			301
Goodwill and intangible assets, net	15			58
Investments in subsidiaries	2,306			2,609
Deferred income taxes	17			10
Advances to related parties and other assets	32			48
	$	4,233		$	3,738
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable	$	3		$	1
Accounts payable and accrued liabilities	178			146
Current portion of long-term debt	653			472
Derivative liability	522			267
Total current liabilities	1,356			886
Senior notes	1,318			975
Lease financing obligations	198			198
Deferred income taxes	—			11
Other long-term liabilities	24			19
Total liabilities	2,896			2,089
Stockholders’ equity:
Common stock, $0.001 par value; 150 shares authorized; outstanding:
60 shares at December 31, 2017 and 57 shares at December 31, 2016	—			—
Preferred stock, $0.001 par value; 20 shares authorized, no shares issued and outstanding	—			—
Additional paid-in capital	1,044			841
Accumulated other comprehensive loss	(5		)	(2		)
Retained earnings	298			810
Total stockholders’ equity	1,337			1,649
	$	4,233		$	3,738

MOLINA HEALTHCARE, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS



	December 31, 2017
	Parent Guarantor		Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	504	$	28		$	2,654		$	—		$	3,186
Investments	192		—			2,332			—			2,524
Restricted investments	169		—			—			—			169
Receivables	2		30			839			—			871
Income tax refundable	16		(8		)	46			—			54
Due from (to) affiliates	148		(6		)	(142		)	—			—
Prepaid expenses and other current assets	87		22			92			(16		)	185
Derivative asset	522		—			—			—			522
Total current assets	1,640		66			5,821			(16		)	7,511
Property, equipment, and capitalized software, net	223		33			86			—			342
Deferred contract costs	—		101			—			—			101
Goodwill and intangible assets, net	15		43			197			—			255
Restricted investments	—		—			119			—			119
Investment in subsidiaries, net	2,306		82			—			(2,388		)	—
Deferred income taxes	17		—			101			(15		)	103
Other assets	32		2			7			(1		)	40
	$	4,233	$	327		$	6,331		$	(2,420	)	$	8,471
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable	$	3	$	—		$	2,189		$	—		$	2,192
Amounts due government agencies	—		1			1,541			—			1,542
Accounts payable and accrued liabilities	178		40			148			—			366
Deferred revenue	—		49			233			—			282
Current portion of long-term debt	653		—			16			(16		)	653
Derivative liability	522		—			—			—			522
Total current liabilities	1,356		90			4,127			(16		)	5,557
Long-term debt	1,516		—			—			—			1,516
Deferred income taxes	—		15			—			(15		)	—
Other long-term liabilities	24		2			36			(1		)	61
Total liabilities	2,896		107			4,163			(32		)	7,134
Total stockholders’ equity	1,337		220			2,168			(2,388		)	1,337
	$	4,233	$	327		$	6,331		$	(2,420	)	$	8,471

MOLINA HEALTHCARE, INC.

CONDENSED CONSOLIDATING BALANCE SHEETS



	December 31, 2016
	Parent Guarantor		Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	86	$	6		$	2,727		$	—		$	2,819
Investments	178		—			1,580			—			1,758
Receivables	2		34			938			—			974
Income tax refundable	17		4			18			—			39
Due from (to) affiliates	104		(5		)	(99		)	—			—
Prepaid expenses and other current assets	58		30			43			—			131
Derivative asset	267		—			—			—			267
Total current assets	712		69			5,207			—			5,988
Property, equipment, and capitalized software, net	301		46			107			—			454
Deferred contract costs	—		86			—			—			86
Goodwill and intangible assets, net	58		73			629			—			760
Restricted investments	—		—			110			—			110
Investment in subsidiaries, net	2,609		246			—			(2,855		)	—
Deferred income taxes	10		—			—			—			10
Other assets	48		3			6			(16		)	41
	$	3,738	$	523		$	6,059		$	(2,871	)	$	7,449
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable	$	1	$	—		$	1,928		$	—		$	1,929
Amounts due government agencies	—		—			1,202			—			1,202
Accounts payable and accrued liabilities	146		34			205			—			385
Deferred revenue	—		40			275			—			315
Current portion of long-term debt	472		—			—			—			472
Derivative liability	267		—			—			—			267
Total current liabilities	886		74			3,610			—			4,570
Long-term debt	1,173		—			16			(16		)	1,173
Deferred income taxes	11		39			(35		)	—			15
Other long-term liabilities	19		1			22			—			42
Total liabilities	2,089		114			3,613			(16		)	5,800
Total stockholders’ equity	1,649		409			2,446			(2,855		)	1,649
	$	3,738	$	523		$	6,059		$	(2,871	)	$	7,449

Condensed Consolidating Statements of Cash Flow

Condensed Statements of Cash Flows



	Year Ended December 31,
	2017			2016			2015
	(In millions)
Operating activities:
Net cash provided by operating activities	$	166		$	55		$	113
Investing activities:
Capital contributions to subsidiaries	(370		)	(386		)	(770		)
Dividends received from subsidiaries	286			101			142
Purchases of investments	(352		)	(115		)	(244		)
Proceeds from sales and maturities of investments	168			188			118
Purchases of property, equipment and capitalized software	(67		)	(125		)	(91		)
Change in amounts due to/from affiliates	(49		)	(18		)	(68		)
Other, net	—			6			—
Net cash used in investing activities	(384		)	(349		)	(913		)
Financing activities:
Proceeds from senior notes offerings, net of issuance costs	325			—			689
Proceeds from borrowings under credit facility	300			—			—
Proceeds from common stock offering, net of issuance costs	—			—			373
Proceeds from employee stock plans	19			18			18
Cash paid for financing transaction fees	(7		)	—			—
Other, net	(1		)	2			5
Net cash provided by financing activities	636			20			1,085
Net increase (decrease) in cash and cash equivalents	418			(274		)	285
Cash and cash equivalents at beginning of year	86			360			75
Cash and cash equivalents at end of year	$	504		$	86		$	360

MOLINA HEALTHCARE, INC.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



	Year Ended December 31, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated
	(In millions)
Operating activities:
Net cash provided by operating activities	$	166		83			555			—		$	804
Investing activities:
Purchases of investments	(352		)	—			(2,366		)	—		(2,718		)
Proceeds from sales and maturities of investments	168			—			1,603			—		1,771
Purchases of property, equipment and capitalized software	(67		)	(11		)	(8		)	—		(86		)
Increase in restricted investments	—			—			(12		)	—		(12		)
Capital contributions to subsidiaries	(370		)	2			368			—		—
Dividends received from subsidiaries	286			(25		)	(261		)	—		—
Change in amounts due to/from affiliates	(49		)	1			48			—		—
Other, net	—			(28		)	—			—		(28		)
Net cash used in by investing activities	(384		)	(61		)	(628		)	—		(1,073		)
Financing activities:
Proceeds from senior notes offering, net of issuance costs	325			—			—			—		325
Proceeds from borrowings under credit facility	300			—			—			—		300
Proceeds from employee stock plans	19			—			—			—		19
Cash paid for financing transaction fees	(7		)	—			—			—		(7		)
Other, net	(1		)	—			—			—		(1		)
Net cash provided by financing activities	636			—			—			—		636
Net increase (decrease) in cash and cash equivalents	418			22			(73		)	—		367
Cash and cash equivalents at beginning of period	86			6			2,727			—		2,819
Cash and cash equivalents at end of period	$	504		$	28		$	2,654		$	—	$	3,186



	Year Ended December 31, 2016
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated
	(In millions)
Operating activities:
Net cash provided by operating activities	$	55		48			570			—		$	673
Investing activities:
Purchases of investments	(115		)	—			(1,814		)	—		(1,929		)
Proceeds from sales and maturities of investments	188			—			1,778			—		1,966
Purchases of property, equipment and capitalized software	(125		)	(29		)	(22		)	—		(176		)
Decrease in restricted investments	—			—			4			—		4
Net cash paid in business combinations	—			(5		)	(43		)	—		(48		)
Capital contributions to subsidiaries	(386		)	7			379			—		—
Dividends received from subsidiaries	101			—			(101		)	—		—
Change in amounts due to/from affiliates	(18		)	(2		)	20			—		—
Other, net	6			(26		)	1			—		(19		)
Net cash (used in) provided by investing activities	(349		)	(55		)	202			—		(202		)
Financing activities:
Proceeds from employee stock plans	18			—			—			—		18
Other, net	2			—			(1		)	—		1
Net cash provided by financing activities	20			—			(1		)	—		19
Net (decrease) increase in cash and cash equivalents	(274		)	(7		)	771			—		490
Cash and cash equivalents at beginning of period	360			13			1,956			—		2,329
Cash and cash equivalents at end of period	$	86		$	6		$	2,727		$	—	$	2,819



	Year Ended December 31, 2015
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated
	(In millions)
Operating activities:
Net cash provided by operating activities	$	113		51			961			—		$	1,125
Investing activities:
Purchases of investments	(244		)	—			(1,679		)	—		(1,923		)
Proceeds from sales and maturities of investments	118			—			1,008			—		1,126
Purchases of property, equipment and capitalized software	(91		)	(20		)	(21		)	—		(132		)
Decrease in restricted investments	—			5			(11		)	—		(6		)
Net cash paid in business combinations	—			(174		)	(276		)	—		(450		)
Capital contributions to subsidiaries	(770		)	236			534			—		—
Dividends received from subsidiaries	142			—			(142		)	—		—
Change in amounts due to/from affiliates	(68		)	(63		)	131			—		—
Other, net	—			(35		)	—			—		(35		)
Net cash used in investing activities	(913		)	(51		)	(456		)	—		(1,420		)
Financing activities:
Proceeds from senior notes offerings, net of issuance costs	689			—			—			—		689
Proceeds from common stock offering, net of issuance costs	373			—			—			—		373
Proceeds from employee stock plans	18			—			—			—		18
Other, net	5			—			—			—		5
Net cash provided by financing activities	1,085			—			—			—		1,085
Net increase in cash and cash equivalents	285			—			505			—		790
Cash and cash equivalents at beginning of period	75			13			1,451			—		1,539
Cash and cash equivalents at end of period	$	360		$	13		$	1,956		$	—	$	2,329

Basis of Presentation (Details) member in Millions, $ in Millions	1 Months Ended		12 Months Ended
	Aug. 31, 2017	Jun. 30, 2017	Dec. 31, 2017 USD ($) member State medical_member Segment	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Mar. 31, 2017 USD ($)
Basis Of Presentation [Line Items]
Number of reportable segments (in segment) \| Segment			3
Premium revenue			$ 18,854	$ 16,445	$ 13,261
Health insurer fees reimbursed			$ 0	292	244
Restatement Adjustment
Basis Of Presentation [Line Items]
Premium revenue				53	20
Health insurer fees reimbursed				(53)	(20)
Medicare Acquisition terminated
Basis Of Presentation [Line Items]
Termination fee receivable under asset purchase agreement						$ 75
Health Plans
Basis Of Presentation [Line Items]
Number of States in which company operates (in state) \| State			12
Number of members eligible for the health care programs \| member			4.5
Minimum contract terms			3 years
Maximum contract terms			4 years
Premium revenue			$ 18,854	16,445	13,261
Molina Healthcare of Illinois, Inc.
Basis Of Presentation [Line Items]
Services contract term	4 years
Services contract renewal term	4 years
Mississippi Coordinated Access Network
Basis Of Presentation [Line Items]
Services contract renewal term		2 years
Florida \| Health Plans
Basis Of Presentation [Line Items]
Premium revenue			$ 2,568	1,938	1,199
Miami Dade and Monroe Counties \| Health Plans
Basis Of Presentation [Line Items]
Number of members served, approximately (in member) \| medical_member			59,000
New Mexico \| Health Plans
Basis Of Presentation [Line Items]
Premium revenue			$ 1,368	$ 1,305	$ 1,237
Medicaid \| Florida \| Health Plans
Basis Of Presentation [Line Items]
Number of members served, approximately (in member) \| medical_member			360,000
Premium revenue			$ 1,486
Medicaid \| New Mexico \| Health Plans
Basis Of Presentation [Line Items]
Number of members served, approximately (in member) \| medical_member			224,000
Premium revenue			$ 1,205

Significant Accounting Policies - Additional Information (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Final maturities of investments									10 years
Average maturity of investments									3 years
Amounts due government agencies	$ 1,542,000,000				$ 1,202,000,000				$ 1,542,000,000	$ 1,202,000,000
Premium revenue									18,854,000,000	16,445,000,000	$ 13,261,000,000
Accounts payable	366,000,000				385,000,000				366,000,000	385,000,000
Revenues	4,949,000,000	$ 5,031,000,000	$ 4,999,000,000	$ 4,904,000,000	4,534,000,000	$ 4,546,000,000	$ 4,359,000,000	$ 4,343,000,000	19,883,000,000	17,782,000,000	14,178,000,000
Risk corridor payments not yet recorded	128,000,000								128,000,000
Medical administrative costs									554,000,000	488,000,000	398,000,000
Premium deficiency recorded	0				30,000,000				0	30,000,000
Additional medical care costs incurred, due to federal government ceasing payments	73,000,000
Health Plans
Property, Plant and Equipment [Line Items]
Premium revenue									18,854,000,000	16,445,000,000	13,261,000,000
Revenues									19,352,000,000	17,234,000,000	13,917,000,000
Medicaid Expansion
Property, Plant and Equipment [Line Items]
Amounts due government agencies	96,000,000				244,000,000				96,000,000	244,000,000
Florida \| Health Plans
Property, Plant and Equipment [Line Items]
Premium revenue									2,568,000,000	1,938,000,000	1,199,000,000
New Mexico \| Health Plans
Property, Plant and Equipment [Line Items]
Premium revenue									1,368,000,000	1,305,000,000	1,237,000,000
Texas \| Health Plans
Property, Plant and Equipment [Line Items]
Premium revenue									2,813,000,000	2,461,000,000	$ 1,963,000,000
Medical Premium Liability Due to Agency
Property, Plant and Equipment [Line Items]
Medical premium liability based on medical costs threshold	$ 135,000,000				$ 272,000,000				$ 135,000,000	$ 272,000,000
Minimum \| California, Illinois, New Mexico, Ohio, South Carolina, Texas, Washington, and Wisconsin
Property, Plant and Equipment [Line Items]
Percentage of additional incremental revenue earned									1.00%
Maximum \| California, Illinois, New Mexico, Ohio, South Carolina, Texas, Washington, and Wisconsin
Property, Plant and Equipment [Line Items]
Percentage of additional incremental revenue earned									3.00%

Significant Accounting Policies - Schedule of Premium Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summarized premium revenue
Premium revenue	$ 18,854	$ 16,445	$ 13,261
Health Plans
Summarized premium revenue
Premium revenue	$ 18,854	$ 16,445	$ 13,261
Premium revenue percentage	100.00%	100.00%	100.00%
Health Plans \| California
Summarized premium revenue
Premium revenue	$ 2,701	$ 2,378	$ 2,200
Premium revenue percentage	14.30%	14.40%	16.60%
Health Plans \| Florida
Summarized premium revenue
Premium revenue	$ 2,568	$ 1,938	$ 1,199
Premium revenue percentage	13.60%	11.80%	9.10%
Health Plans \| Illinois
Summarized premium revenue
Premium revenue	$ 593	$ 603	$ 398
Premium revenue percentage	3.10%	3.70%	3.00%
Health Plans \| Michigan
Summarized premium revenue
Premium revenue	$ 1,596	$ 1,527	$ 1,072
Premium revenue percentage	8.50%	9.30%	8.10%
Health Plans \| New Mexico
Summarized premium revenue
Premium revenue	$ 1,368	$ 1,305	$ 1,237
Premium revenue percentage	7.30%	7.90%	9.30%
Health Plans \| New York
Summarized premium revenue
Premium revenue	$ 181	$ 82	$ 0
Premium revenue percentage	1.00%	0.50%	0.00%
Health Plans \| Ohio
Summarized premium revenue
Premium revenue	$ 2,216	$ 1,967	$ 2,035
Premium revenue percentage	11.80%	12.00%	15.30%
Health Plans \| Puerto Rico
Summarized premium revenue
Premium revenue	$ 732	$ 726	$ 567
Premium revenue percentage	3.90%	4.40%	4.30%
Health Plans \| South Carolina
Summarized premium revenue
Premium revenue	$ 445	$ 378	$ 348
Premium revenue percentage	2.40%	2.30%	2.60%
Health Plans \| Texas
Summarized premium revenue
Premium revenue	$ 2,813	$ 2,461	$ 1,963
Premium revenue percentage	14.90%	15.00%	14.80%
Health Plans \| Utah
Summarized premium revenue
Premium revenue	$ 535	$ 447	$ 334
Premium revenue percentage	2.80%	2.70%	2.50%
Health Plans \| Washington
Summarized premium revenue
Premium revenue	$ 2,608	$ 2,222	$ 1,605
Premium revenue percentage	13.80%	13.50%	12.10%
Health Plans \| Wisconsin
Summarized premium revenue
Premium revenue	$ 491	$ 398	$ 262
Premium revenue percentage	2.60%	2.40%	2.00%
Health Plans \| Other
Summarized premium revenue
Premium revenue	$ 7	$ 13	$ 41
Premium revenue percentage	0.00%	0.10%	0.30%

Significant Accounting Policies - 3R Program Receivables (Payables) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Risk adjustment payable, Current Benefit Year	$ (912)
Risk adjustment payable, Prior Benefit Years	0
Risk adjustment payable, Total	(912)	$ (522)
Reinsurance receivable, Current Benefit Year	0
Reinsurance receivable, Prior Benefit Years	10
Reinsurance receivable, Total	10	55
Risk corridor payable, Current Benefit Year	0
Risk corridor payable, Prior Benefit Years	0
Risk corridor payable, Total	0	(1)
Minimum MLR payable, Current Benefit Year	(2)
Minimum MLR payable, Prior Benefit Years	0
Minimum MLR payable, Total	$ (2)	$ (1)

Significant Accounting Policies - Quality Incentive Premium Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Maximum available quality incentive premium - current period	$ 150	$ 147	$ 118
Amount of quality incentive premium revenue recognized in current period - Earned current period	97	104	66
Amount of quality incentive premium revenue recognized in current period - Earned prior periods	10	47	13
Total quality incentive premium revenue recognized	$ 107	$ 151	$ 79
Quality incentive premium revenue recognized as a percentage of total premium revenue	0.60%	0.90%	0.60%

Significant Accounting Policies - Consolidated Medical Care Costs (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Medical Care Costs
Fee-for-service	$ 12,682,000,000	$ 10,993,000,000	$ 8,572,000,000
Pharmacy	2,563,000,000	2,213,000,000	1,610,000,000
Capitation	1,360,000,000	1,218,000,000	982,000,000
Direct delivery	73,000,000	78,000,000	128,000,000
Other	395,000,000	272,000,000	502,000,000
Total	17,073,000,000	14,774,000,000	11,794,000,000
Medical Care Costs, PMPM
Fee-for-service (per member per month)	229.63	217.84	218.35
Pharmacy (per member per month)	46.40	43.84	41.01
Capitation (per member per month)	24.63	24.13	25.02
Direct delivery (per member per month)	1.33	1.55	3.26
Other (per member per month)	7.15	5.39	12.79
Total (per member per month)	$ 309.14	$ 292.75	$ 300.43
Medical Care Costs, Percentage
Percentage of total in Fee for service	74.30%	74.40%	72.70%
Percentage of total in pharmacy	15.00%	15.00%	13.70%
Percentage of total in capitation	8.00%	8.20%	8.30%
Percent of total in direct delivery	0.40%	0.50%	1.10%
Percentage of total in other	2.30%	1.90%	4.20%
Percentage of total	100.00%	100.00%	100.00%

Net (Loss) Income per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Numerator:
Net (loss) income	$ (262)	$ (97)	$ (230)	$ 77	$ (47)	$ 42	$ 33	$ 24	$ (512)	$ 52	$ 143
Shares outstanding at the beginning of the period (in shares)					56					56	55	49
Weighted-average number of shares issued:
Common stock offering (in shares)									0	0	3
Denominator for basic net (loss) income per share (in shares)									56	55	52
Effect of dilutive securities:
Share-based compensation (in shares)									0	0	1
Convertible senior notes (in shares)									0	0	1
1.125% Warrants (in shares)									0	1	2
Denominator for diluted net (loss) income per share (in shares)									56	56	56
Net (loss) income per share:
Basic (in dollars per share)	$ (4.59)	$ (1.70)	$ (4.10)	$ 1.38	$ (0.85)	$ 0.77	$ 0.58	$ 0.44	$ (9.07)	$ 0.93	$ 2.75
Diluted (in dollars per share)	$ (4.59)	$ (1.70)	$ (4.10)	$ 1.37	$ (0.85)	$ 0.76	$ 0.58	$ 0.43	$ (9.07)	$ 0.92	$ 2.58
1.125% Warrants
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Potentially dilutive common shares excluded from calculations									2	0	0
1.625% Notes
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Potentially dilutive common shares excluded from calculations									1	0	0
Cash Convertible Senior Notes Due 2020, Warrants [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Stated interest rate	1.125%								1.125%

Fair Value Measurements - Additional Information (Details)	Dec. 31, 2017
1.125% Convertible Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of contractual interest rate	1.125%

Fair Value Measurements - Long-term Debt (Details) - USD ($) $ in Millions	Dec. 31, 2017	Jun. 06, 2017	Dec. 31, 2016
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair values of long-term debt	$ 1,970		$ 1,446
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair values of long-term debt	$ 2,631		1,850
5.375% Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of contractual interest rate	5.375%
1.125% Convertible Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of contractual interest rate	1.125%
4.875% Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of contractual interest rate	4.875%
1.625% Convertible Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of contractual interest rate	1.625%
Senior Notes \| 5.375% Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of contractual interest rate	5.375%
Senior Notes \| 5.375% Notes \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair values of long-term debt	$ 692		691
Senior Notes \| 5.375% Notes \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair values of long-term debt	$ 730		714
Senior Notes \| 4.875% Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of contractual interest rate	4.875%	4.875%
Senior Notes \| 4.875% Notes \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair values of long-term debt	$ 325		0
Senior Notes \| 4.875% Notes \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair values of long-term debt	$ 329		0
Convertible Debt \| 1.125% Convertible Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of contractual interest rate	1.125%
Convertible Debt \| 1.125% Convertible Notes \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair values of long-term debt	$ 496		471
Convertible Debt \| 1.125% Convertible Notes \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair values of long-term debt	$ 1,052		792
Convertible Debt \| 1.625% Convertible Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of contractual interest rate	1.625%
Convertible Debt \| 1.625% Convertible Notes \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair values of long-term debt	$ 157		284
Convertible Debt \| 1.625% Convertible Notes \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair values of long-term debt	220		344
Credit Facility \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair values of long-term debt	300		0
Credit Facility \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair values of long-term debt	$ 300		$ 0

Investments - Schedule of Investments (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Investments
Amortized Cost	$ 2,700	$ 1,761
Gross Unrealized Gains	1	1
Gross Unrealized Losses	8	4
Estimated Fair Value	2,693	1,758
U.S. treasury notes
Investments
Amortized Cost	68
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Estimated Fair Value	68
Corporate debt securities
Investments
Amortized Cost	101
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Estimated Fair Value	101
Subtotal - current restricted investments
Investments
Amortized Cost	169
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Estimated Fair Value	169
Corporate debt securities
Investments
Amortized Cost	1,591	1,180
Gross Unrealized Gains	1	1
Gross Unrealized Losses	4	2
Estimated Fair Value	1,588	1,179
U.S. treasury notes
Investments
Amortized Cost	389	84
Gross Unrealized Gains	0	0
Gross Unrealized Losses	1	0
Estimated Fair Value	388	84
GSEs
Investments
Amortized Cost	255	232
Gross Unrealized Gains	0	0
Gross Unrealized Losses	2	1
Estimated Fair Value	253	231
Municipal securities
Investments
Amortized Cost	142	143
Gross Unrealized Gains	0	0
Gross Unrealized Losses	1	1
Estimated Fair Value	141	142
Asset-backed securities
Investments
Amortized Cost	117	69
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	117	69
Certificates of deposit
Investments
Amortized Cost	37	53
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	37	$ 53
Subtotal - current investments
Investments
Amortized Cost	2,531
Gross Unrealized Gains	1
Gross Unrealized Losses	8
Estimated Fair Value	$ 2,524

Investments - Contractual Maturities (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Amortized Cost
Due in one year or less	$ 1,722
Due after one year through five years	972
Due after five years through ten years	6
Amortized Cost	2,700	$ 1,761
Estimated Fair Value
Due in one year or less	1,721
Due after one year through five years	966
Due after five years through ten years	6
Estimated Fair Value	$ 2,693

Investments - Available-for-Sale (Details) $ in Millions	Dec. 31, 2017 USD ($) Security	Dec. 31, 2016 USD ($) Security
Available-for-sale investments
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value	$ 1,940	$ 841
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses	$ 5	$ 4
Number of Positions, 12 Months or Less (in security) \| Security	719	580
In a Continuous Loss Position for 12 Months or More, Estimated Fair value	$ 227	$ 0
In a Continuous Loss Position for 12 Months or More, Unrealized Losses	$ 3	$ 0
Number of Positions, 12 Months or More (in security) \| Security	164	0
Corporate debt securities
Available-for-sale investments
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value	$ 1,297	$ 542
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses	$ 3	$ 2
Number of Positions, 12 Months or Less (in security) \| Security	561	378
In a Continuous Loss Position for 12 Months or More, Estimated Fair value	$ 94	$ 0
In a Continuous Loss Position for 12 Months or More, Unrealized Losses	$ 1	$ 0
Number of Positions, 12 Months or More (in security) \| Security	69	0
U.S. treasury notes
Available-for-sale investments
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value	$ 470
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses	$ 1
Number of Positions, 12 Months or Less (in security) \| Security	89
In a Continuous Loss Position for 12 Months or More, Estimated Fair value	$ 0
In a Continuous Loss Position for 12 Months or More, Unrealized Losses	$ 0
Number of Positions, 12 Months or More (in security) \| Security	0
GSEs
Available-for-sale investments
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value	$ 173	$ 198
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses	$ 1	$ 1
Number of Positions, 12 Months or Less (in security) \| Security	69	73
In a Continuous Loss Position for 12 Months or More, Estimated Fair value	$ 95	$ 0
In a Continuous Loss Position for 12 Months or More, Unrealized Losses	$ 1	$ 0
Number of Positions, 12 Months or More (in security) \| Security	47	0
Municipal securities
Available-for-sale investments
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value	$ 0	$ 101
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses	$ 0	$ 1
Number of Positions, 12 Months or Less (in security) \| Security	0	129
In a Continuous Loss Position for 12 Months or More, Estimated Fair value	$ 38	$ 0
In a Continuous Loss Position for 12 Months or More, Unrealized Losses	$ 1	$ 0
Number of Positions, 12 Months or More (in security) \| Security	48	0

Receivables (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Summary of accounts receivable
Total receivables	$ 871	$ 974
Health Plans
Summary of accounts receivable
Total receivables	797	887
Molina Medicaid Solutions
Summary of accounts receivable
Total receivables	30	34
Other
Summary of accounts receivable
Total receivables	44	53
California \| Health Plans
Summary of accounts receivable
Total receivables	208	180
Florida \| Health Plans
Summary of accounts receivable
Total receivables	42	97
Illinois \| Health Plans
Summary of accounts receivable
Total receivables	91	134
Michigan \| Health Plans
Summary of accounts receivable
Total receivables	56	60
New Mexico \| Health Plans
Summary of accounts receivable
Total receivables	71	57
New York \| Health Plans
Summary of accounts receivable
Total receivables	21	26
Ohio \| Health Plans
Summary of accounts receivable
Total receivables	94	82
Puerto Rico \| Health Plans
Summary of accounts receivable
Total receivables	32	37
South Carolina \| Health Plans
Summary of accounts receivable
Total receivables	13	11
Texas \| Health Plans
Summary of accounts receivable
Total receivables	61	79
Utah \| Health Plans
Summary of accounts receivable
Total receivables	18	19
Washington \| Health Plans
Summary of accounts receivable
Total receivables	69	71
Wisconsin \| Health Plans
Summary of accounts receivable
Total receivables	19	33
Other \| Health Plans
Summary of accounts receivable
Total receivables	$ 2	$ 1

Property, Equipment, and Capitalized Software, Net - Additional Information (Details)	12 Months Ended
	Dec. 31, 2017
Furniture and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful life of property plant and equipment	3 years
Furniture and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful life of property plant and equipment	7 years
Software
Property, Plant and Equipment [Line Items]
Useful life of property plant and equipment	3 years
Leasehold improvements \| Minimum
Property, Plant and Equipment [Line Items]
Useful life of property plant and equipment	5 years
Leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Useful life of property plant and equipment	10 years
Building and improvements \| Minimum
Property, Plant and Equipment [Line Items]
Useful life of property plant and equipment	31 years 6 months
Building and improvements \| Maximum
Property, Plant and Equipment [Line Items]
Useful life of property plant and equipment	40 years

Property, Equipment, and Capitalized Software, Net - Summary of Property, Equipment, and Capitalized Software (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Summary of property and equipment
Property and equipment, gross	$ 883	$ 919
Less: accumulated amortization - capitalized software	(308)	(259)
Less: accumulated depreciation and amortization - building and improvements, furniture and equipment	(233)	(206)
Accumulated depreciation, Total	(541)	(465)
Property, equipment, and capitalized software, net	342	454
Capitalized software
Summary of property and equipment
Property and equipment, gross	417	443
Furniture and equipment
Summary of property and equipment
Property and equipment, gross	289	301
Building and improvements
Summary of property and equipment
Property and equipment, gross	161	159
Land
Summary of property and equipment
Property and equipment, gross	$ 16	$ 16

Property, Equipment, and Capitalized Software, Net - Depreciation and Amortization (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Amortization of capitalized software	$ 64	$ 62	$ 37
Depreciation of property and equipment	42	45	50
Amortization of intangible assets	31	32	17
Depreciation and amortization	137	139	104
Recorded in cost of service revenue:	41	43	21
Other	0	0	1
Depreciation and amortization reported in the statement of cash flows	178	182	126
Capitalized software
Property, Plant and Equipment [Line Items]
Recorded in cost of service revenue:	28	22	15
Deferred contract costs
Property, Plant and Equipment [Line Items]
Recorded in cost of service revenue:	$ 13	$ 21	$ 6

Goodwill and Intangible Assets, Net - Additional Information (Details)	3 Months Ended			12 Months Ended
	Dec. 31, 2017 USD ($) medical_member	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($) medical_member	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Finite-Lived Intangible Assets [Line Items]
Premium revenue				$ 18,854,000,000	$ 16,445,000,000	$ 13,261,000,000
Goodwill impairment charges				434,000,000	0
Future Amortization Expenses
Future amortization expense, 2018	$ 21,000,000			21,000,000
Future amortization expense, 2019	18,000,000			18,000,000
Future amortization expense, 2020	14,000,000			14,000,000
Future amortization expense, 2021	5,000,000			5,000,000
Future amortization expense, 2022	3,000,000			3,000,000
Health Plans
Finite-Lived Intangible Assets [Line Items]
Premium revenue				18,854,000,000	16,445,000,000	13,261,000,000
Goodwill impairment charges				244,000,000
Molina Medicaid Solutions
Finite-Lived Intangible Assets [Line Items]
Goodwill impairment charges				28,000,000
Other
Finite-Lived Intangible Assets [Line Items]
Goodwill impairment charges				$ 162,000,000
Impairment of intangible assets			$ 11,000,000
Minimum
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period				5 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period				15 years
Subsidiaries \| Molina Medicaid Solutions
Finite-Lived Intangible Assets [Line Items]
Goodwill impairment charges		$ 28,000,000
PCC \| Subsidiaries
Finite-Lived Intangible Assets [Line Items]
Goodwill impairment charges		$ 101,000,000	59,000,000
Other Subsidiary \| Subsidiaries
Finite-Lived Intangible Assets [Line Items]
Goodwill impairment charges			$ 2,000,000
Florida \| Health Plans
Finite-Lived Intangible Assets [Line Items]
Premium revenue				$ 2,568,000,000	1,938,000,000	1,199,000,000
Florida \| Contract rights and licenses \| Health Plans
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets	$ 15,000,000
Miami Dade and Monroe Counties \| Health Plans
Finite-Lived Intangible Assets [Line Items]
Number of members served, approximately (in member) \| medical_member	59,000			59,000
New Mexico \| Health Plans
Finite-Lived Intangible Assets [Line Items]
Premium revenue				$ 1,368,000,000	1,305,000,000	1,237,000,000
New Mexico \| Contract rights and licenses \| Health Plans
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets	$ 10,000,000
Illinois \| Health Plans
Finite-Lived Intangible Assets [Line Items]
Premium revenue				593,000,000	603,000,000	398,000,000
Goodwill impairment charges	45,000,000
New York \| Health Plans
Finite-Lived Intangible Assets [Line Items]
Premium revenue				$ 181,000,000	$ 82,000,000	$ 0
Goodwill impairment charges	$ 1,000,000
Medicaid \| Florida \| Health Plans
Finite-Lived Intangible Assets [Line Items]
Number of members served, approximately (in member) \| medical_member	360,000			360,000
Premium revenue				$ 1,486,000,000
Goodwill impairment charges	$ 124,000,000
Medicaid \| New Mexico \| Health Plans
Finite-Lived Intangible Assets [Line Items]
Number of members served, approximately (in member) \| medical_member	224,000			224,000
Premium revenue				$ 1,205,000,000
Goodwill impairment charges	$ 74,000,000

Goodwill and Intangible Assets, Net - Balances of Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Goodwill [Line Items]
Historical goodwill		$ 678,000,000
Accumulated impairment losses	$ (492,000,000)	(58,000,000)
Changes in the carrying amount of goodwill
Beginning balance	620,000,000
Impairment losses, year ended December 31, 2017	(434,000,000)	0
Ending balance	186,000,000	620,000,000
Health Plans
Goodwill [Line Items]
Historical goodwill		445,000,000
Accumulated impairment losses	(302,000,000)	(58,000,000)
Changes in the carrying amount of goodwill
Beginning balance	387,000,000
Impairment losses, year ended December 31, 2017	(244,000,000)
Ending balance	143,000,000	387,000,000
Molina Medicaid Solutions
Goodwill [Line Items]
Historical goodwill		71,000,000
Accumulated impairment losses	(28,000,000)	0
Changes in the carrying amount of goodwill
Beginning balance	71,000,000
Impairment losses, year ended December 31, 2017	(28,000,000)
Ending balance	43,000,000	71,000,000
Other
Goodwill [Line Items]
Historical goodwill		162,000,000
Accumulated impairment losses	(162,000,000)	0
Changes in the carrying amount of goodwill
Beginning balance	162,000,000
Impairment losses, year ended December 31, 2017	(162,000,000)
Ending balance	$ 0	$ 162,000,000

Goodwill and Intangible Assets, Net - Intangible Assets Balances (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Cost	$ 221	$ 326
Accumulated Amortization	152	186
Carrying Amount	69	140
Contract rights and licenses
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Cost	201	267
Accumulated Amortization	141	148
Carrying Amount	60	119
Customer relationships
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Cost		25
Accumulated Amortization		24
Carrying Amount		1
Provider network
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Cost	20	34
Accumulated Amortization	11	14
Carrying Amount	$ 9	$ 20

Restricted Investments, Non-current - Balances of Restricted Investments (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Summary of restricted investments by health plan
Restricted investments by health plan	$ 119	$ 110
Health Plans
Summary of restricted investments by health plan
Restricted investments by health plan	119	110
Health Plans \| Florida
Summary of restricted investments by health plan
Restricted investments by health plan	31	22
Health Plans \| New Mexico
Summary of restricted investments by health plan
Restricted investments by health plan	43	43
Health Plans \| Ohio
Summary of restricted investments by health plan
Restricted investments by health plan	12	12
Health Plans \| Puerto Rico
Summary of restricted investments by health plan
Restricted investments by health plan	10	10
Health Plans \| Other
Summary of restricted investments by health plan
Restricted investments by health plan	$ 23	$ 23

Restricted Investments, Non-current - Maturities of Held-to-Maturity (Details) $ in Millions	Dec. 31, 2017 USD ($)
Contractual maturities of our held-to-maturity restricted investments
Amortized Cost, Due in one year or less	$ 115
Amortized Cost, Due one year through five years	4
Amortized Cost, Total	119
Estimated Fair Value, Due in one year or less	115
Estimated Fair Value, Due one year through five years	4
Estimated Fair Value, Total	$ 119

Medical Claims and Benefits Payable - Additional Information (Details) member in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) member	Dec. 31, 2015 USD ($) member
Insurance Claims [Line Items]
Medical claims and benefits payable \| $	$ 122	$ 225	$ 167
Reinsurance recoverable for unpaid claims \| $	16	61	46
Prior period claims expense (benefit) recognized \| $	$ 36	$ (192)	$ (141)
Minimum
Insurance Claims [Line Items]
Estimated discount percentage of final payment on claims incurred but not paid	8.00%
Maximum
Insurance Claims [Line Items]
Estimated discount percentage of final payment on claims incurred but not paid	10.00%
Ohio \| Medicaid Expansion
Insurance Claims [Line Items]
Number of members added, approximately (in member) \| member			61
Ohio \| MMP Program
Insurance Claims [Line Items]
Number of members added, approximately (in member) \| member			17
California \| Medicaid Expansion
Insurance Claims [Line Items]
Number of members added, approximately (in member) \| member		55	100

Medical Claims and Benefits Payable - Medical Claims and Future Benefits (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Insurance [Abstract]
Fee-for-service claims incurred but not paid (IBNP)	$ 1,717	$ 1,352	$ 1,191
Pharmacy payable	112	112	88
Capitation payable	67	37	140
Other	296	428	266
Medical claims and benefits payable	$ 2,192	$ 1,929	$ 1,685	$ 1,201

Medical Claims and Benefits Payable - Components of the Change (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Medical claims and benefits payable, beginning balance	$ 1,929	$ 1,685	$ 1,201
Components of medical care costs related to:
Current period	17,037	14,966	11,935
Prior periods	36	(192)	(141)
Total medical care costs	17,073	14,774	11,794
Change in non-risk provider payables	(106)	58	48
Payments for medical care costs related to:
Current period	15,130	13,304	10,448
Prior periods	1,574	1,284	910
Total paid	16,704	14,588	11,358
Medical claims and benefits payable, ending balance	$ 2,192	$ 1,929	$ 1,685

Medical Claims and Benefits Payable - Incurred Claims and Allocated Adjustment Expense (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) claim	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Product Information [Line Items]
Incurred Claims and Allocated Claims Adjustment Expenses	$ 17,073	$ 14,774	$ 11,794
Incurred Claims and Allocated Claims Adjustment Expenses	44,069
Total IBNP	1,717	1,352	1,191
Benefit Year 2015
Product Information [Line Items]
Incurred Claims and Allocated Claims Adjustment Expenses	11,939	11,928	$ 12,113
Total IBNP	$ 6
Cumulative number of reported claims (in claim) \| claim	84,000,000
Benefit Year 2016
Product Information [Line Items]
Incurred Claims and Allocated Claims Adjustment Expenses	$ 15,093	$ 15,064
Total IBNP	$ 46
Cumulative number of reported claims (in claim) \| claim	109,000,000
Benefit Year 2017
Product Information [Line Items]
Incurred Claims and Allocated Claims Adjustment Expenses	$ 17,037
Total IBNP	$ 1,665
Cumulative number of reported claims (in claim) \| claim	114,000,000

Medical Claims and Benefits Payable - Cumulative Paid Claims and Allocated Claims Adjustment Expenses (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Product Information [Line Items]
Claims paid	$ 42,014
Benefit Year 2015
Product Information [Line Items]
Claims paid	11,932	$ 11,906	$ 10,615
Benefit Year 2016
Product Information [Line Items]
Claims paid	14,952	$ 13,403
Benefit Year 2017
Product Information [Line Items]
Claims paid	$ 15,130

Medical Claims and Benefits Payable - Reconciliation of Claims Development (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Insurance [Abstract]
Incurred claims and allocated claims adjustment expenses	$ 44,069
Less: cumulative paid clams and allocated claims adjustment expenses	(42,014)
Non-risk provider payables and other	137
Medical claims and benefits payable	$ 2,192	$ 1,929	$ 1,685	$ 1,201

Debt - Maturities (Details) - USD ($)	Dec. 31, 2017	Jun. 06, 2017
Maturities of Long-term Debt [Abstract]
Net carrying amount	$ 2,041,000,000
2018	0
2019	0
2020	550,000,000
2021	0
2022	1,000,000,000
Thereafter	$ 491,000,000
5.375% Notes
Maturities of Long-term Debt [Abstract]
Percentage of contractual interest rate	5.375%
1.125% Convertible Notes
Maturities of Long-term Debt [Abstract]
Percentage of contractual interest rate	1.125%
4.875% Notes
Maturities of Long-term Debt [Abstract]
Percentage of contractual interest rate	4.875%
1.625% Convertible Notes
Maturities of Long-term Debt [Abstract]
Percentage of contractual interest rate	1.625%
Senior Notes \| 5.375% Notes
Maturities of Long-term Debt [Abstract]
Net carrying amount	$ 700,000,000
2018	0
2019	0
2020	0
2021	0
2022	700,000,000
Thereafter	$ 0
Percentage of contractual interest rate	5.375%
Senior Notes \| 4.875% Notes
Maturities of Long-term Debt [Abstract]
Net carrying amount	$ 330,000,000
2018	0
2019	0
2020	0
2021	0
2022	0
Thereafter	$ 330,000,000
Percentage of contractual interest rate	4.875%	4.875%
Convertible Debt \| 1.125% Convertible Notes
Maturities of Long-term Debt [Abstract]
Net carrying amount	$ 550,000,000
2018	0
2019	0
2020	550,000,000
2021	0
2022	0
Thereafter	$ 0
Percentage of contractual interest rate	1.125%
Convertible Debt \| 1.625% Convertible Notes
Maturities of Long-term Debt [Abstract]
Net carrying amount	$ 161,000,000
2018	0
2019	0
2020	0
2021	0
2022	0
Thereafter	$ 161,000,000
Percentage of contractual interest rate	1.625%
Credit Facility
Maturities of Long-term Debt [Abstract]
Net carrying amount	$ 300,000,000
2018	0
2019	0
2020	0
2021	0
2022	300,000,000
Thereafter	$ 0

Debt - Details of the Liability Component (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Lease financing obligations	$ 1,000,000	$ 1,000,000
Debt issuance costs	(4,000,000)	(6,000,000)
Current portion of long-term debt	653,000,000	472,000,000
Debt issuance costs	(12,000,000)	(11,000,000)
Long-term debt	1,318,000,000	975,000,000
Lease financing obligations	198,000,000	198,000,000
Principal Balance	2,041,000,000
Long-term Debt and Capital Lease Obligations, Including Current Maturities	2,169,000,000	1,645,000,000
Convertible Debt \| 1.125% Convertible Notes
Debt Instrument [Line Items]
Current portion of long-term debt	499,000,000	477,000,000
Principal Balance	550,000,000
Convertible Debt \| 1.625% Convertible Notes
Debt Instrument [Line Items]
Current portion of long-term debt	157,000,000	0
Non-current portion of long-term debt	0	286,000,000
Principal Balance	161,000,000
Senior Notes \| 5.375% Notes
Debt Instrument [Line Items]
Non-current portion of long-term debt	700,000,000	700,000,000
Principal Balance	700,000,000
Senior Notes \| 4.875% Notes
Debt Instrument [Line Items]
Non-current portion of long-term debt	330,000,000	0
Principal Balance	330,000,000
Credit Facility
Debt Instrument [Line Items]
Non-current portion of long-term debt	300,000,000	$ 0
Principal Balance	$ 300,000,000

Debt - Interest Cost Recognized (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Interest cost recognized for the period relating to the:
Contractual interest coupon rate	$ 11	$ 11	$ 11
Amortization of the discount	32	30	29
Total interest cost recognized	$ 43	$ 41	$ 40

Debt - Bridge Credit Agreement (Details) - Subsequent Event - Bridge Credit Agreement	Jan. 31, 2018 USD ($)
Debt Instrument [Line Items]
Face amount of debt	$ 550,000,000
Proceeds used for working capital and acquisition financings	300,000,000
Future reduction to face amount	$ 150,000,000

Debt - Senior Notes (Details) - USD ($)	3 Months Ended	12 Months Ended
Debt - Senior Notes (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jun. 06, 2017
Debt Instrument [Line Items]
Increase (Decrease) of Restricted Investments	$ 157,000,000	$ (12,000,000)	$ 4,000,000	$ (6,000,000)
Available-for-sale securities	2,693,000,000	2,693,000,000	$ 1,758,000,000
Net carrying amount of debt	$ 2,041,000,000	$ 2,041,000,000
4.875% Notes
Debt Instrument [Line Items]
Percentage of contractual interest rate	4.875%	4.875%
5.375% Senior Notes due 2022
Debt Instrument [Line Items]
Percentage of contractual interest rate	5.375%	5.375%
Subtotal - current restricted investments
Debt Instrument [Line Items]
Available-for-sale securities	$ 169,000,000	$ 169,000,000
Senior Notes \| 4.875% Notes
Debt Instrument [Line Items]
Principal amount					$ 330,000,000
Net carrying amount of debt	$ 330,000,000	$ 330,000,000
Percentage of contractual interest rate	4.875%	4.875%			4.875%
Senior Notes \| 5.375% Senior Notes due 2022
Debt Instrument [Line Items]
Net carrying amount of debt	$ 700,000,000	$ 700,000,000
Percentage of contractual interest rate	5.375%	5.375%

Debt - Credit Facility (Details) - Credit Facility - USD ($)	12 Months Ended
	Dec. 31, 2017	Jan. 31, 2017
Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 500,000,000
Term of debt instrument	5 years
Line of credit, current	$ 300,000,000
Current borrowing capacity	194,000,000
Letter of Credit
Line of Credit Facility [Line Items]
Amount outstanding under Letter of Credit	$ 6,000,000

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

- Definition

The carrying value as of the balance sheet date of the current portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Debt - Convertible Notes (Details) $ / shares in Units, shares in Millions	1 Months Ended	12 Months Ended
	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) d $ / shares	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Debt Instrument [Line Items]
Net carrying amount of debt	$ 2,041,000,000	$ 2,041,000,000
Loss on debt extinguishment		$ 14,000,000	$ 0	$ 0
1.125% Convertible Notes
Debt Instrument [Line Items]
Percentage of contractual interest rate	1.125%	1.125%
1.625% Convertible Notes
Debt Instrument [Line Items]
Percentage of contractual interest rate	1.625%	1.625%
Convertible Debt \| 1.125% Convertible Notes
Debt Instrument [Line Items]
Net carrying amount of debt	$ 550,000,000	$ 550,000,000
Percentage of contractual interest rate	1.125%	1.125%
Debt instrument conversion price per share (usd per share) \| $ / shares	$ 40.77	$ 40.77
Debt instrument conversion price, trigger price (usd per share) \| $ / shares		$ 53.00
Senior note effective interest rate	6.00%	6.00%
Senior notes amortization period		2 years
If-converted value in excess of principal on convertible debt		$ 406,000,000	182,000,000
Debt instrument, conversion ratio		0.0245277
Convertible Debt \| 1.625% Convertible Notes
Debt Instrument [Line Items]
Net carrying amount of debt	$ 161,000,000	$ 161,000,000
Percentage of contractual interest rate	1.625%	1.625%
Debt instrument conversion price per share (usd per share) \| $ / shares	$ 58.09	$ 58.09
Debt instrument conversion price, trigger price (usd per share) \| $ / shares		$ 75.51
Senior note effective interest rate	5.00%	5.00%
If-converted value in excess of principal on convertible debt		$ 50,000,000
Debt instrument, conversion ratio		0.0172157
Convertible debt, converted amount of instrument	$ 141,000,000
Convertible debt, shares converted in transaction (in shares) \| shares	2.6
Loss on debt extinguishment	$ 14,000,000
Increase of interest rate contingent on principal amount outstanding		0.25%
Minimum principal amount outstanding threshold for interest rate increase	100,000,000	$ 100,000,000
Debt redemption price, percentage of principal amount		100.00%
Term of debt instrument		4 years
Convertible debt discount amortization period		7 months
Convertible debt, carrying amount of equity component	$ 12,000,000	$ 12,000,000	$ 23,000,000
Convertible Debt \| Redemption period, option one \| 1.125% Convertible Notes
Debt Instrument [Line Items]
Debt convertible threshold trading days \| d		20
Debt convertible threshold consecutive trading days \| d		30
Debt convertible threshold percentage of stock price trigger		130.00%
Convertible Debt \| Redemption period, option one \| 1.625% Convertible Notes
Debt Instrument [Line Items]
Debt convertible threshold trading days \| d		20
Debt convertible threshold consecutive trading days \| d		30
Debt convertible threshold percentage of stock price trigger		130.00%
Convertible Debt \| Redemption period, option two \| 1.125% Convertible Notes
Debt Instrument [Line Items]
Debt convertible threshold trading days \| d		5
Debt convertible threshold consecutive trading days \| d		5
Debt convertible maximum threshold percentage of stock price		98.00%
Convertible Debt \| Redemption period, option two \| 1.625% Convertible Notes
Debt Instrument [Line Items]
Debt convertible threshold trading days \| d		5
Debt convertible threshold consecutive trading days \| d		5
Debt convertible maximum threshold percentage of stock price		98.00%

Debt - Lease Financing Obligations and Debt Committment Letter (Details)	12 Months Ended
	Dec. 31, 2017 USD ($) Lease_Renewal_Option extension property	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Debt Instrument [Line Items]
Interest expense under leases	$ 17,000,000	$ 17,000,000	$ 17,000,000
Debt Commitment Letter \| Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 400,000,000
Molina Center And Ohio Exchange
Debt Instrument [Line Items]
Annual increase in rental payment	3.00%
Number of extensions available (in extension) \| extension	6
Lease renewal terms	5 years
Property Subject to Operating Lease \| 6th & Pine Development, LLC
Debt Instrument [Line Items]
Number of properties \| property	2
Annual increase in rental payment	3.40%
Operating lease renewal options \| Lease_Renewal_Option	2
Number of renewal term	5 years

Derivatives (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
1.125% Convertible Notes
Derivative [Line Items]
Percentage of contractual interest rate	1.125%
1.125% Call Option
Derivative [Line Items]
Fixed interest rate on derivative	1.125%
1.125% Call Option \| Current assets
Derivative [Line Items]
Derivative asset	$ 522	$ 267
1.125% Conversion Option
Derivative [Line Items]
Fixed interest rate on derivative	1.125%
1.125% Conversion Option \| Current liabilities
Derivative [Line Items]
Derivative liability	$ 522	$ 267

Income Taxes - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income tax expense (benefit) from change in tax rate	$ 54
Operating Loss Carryforwards [Line Items]
Income tax expense (benefit)	(100)	$ 153	$ 179
Excess tax benefits from share-based compensation		2	8
Deferred tax assets	41
Increase in deferred tax asset valuation allowance	25
Valuation allowance	41	16
Impact on effective tax rate if tax benefits are recognized	12	$ 9	$ 7
Liability for unrecognized tax benefits, potential decrease	2
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	578
Tax credit carryovers	14
Federal
Operating Loss Carryforwards [Line Items]
Tax credit carryovers	$ 4

Income Taxes - Provision for income taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current:
Federal	$ (9)	$ 134	$ 172
State	3	3	8
Foreign	0	(6)	6
Total current	(6)	131	186
Deferred:
Federal	(85)	19	(10)
State	(9)	2	4
Foreign	0	1	(1)
Total deferred	(94)	22	(7)
Total provision for income taxes	$ (100)	$ 153	$ 179

Income Taxes - Reconciliation of the U.S. Federal Statutory Income Tax Rate (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Effective income tax rate reconciliation to the statutory federal income tax rate
Statutory federal tax (benefit) rate	35.00%	35.00%	35.00%
State income provision (benefit), net of federal	0.70%	1.60%	2.40%
Nondeductible health insurer fee (HIF)	0.00%	37.00%	17.00%
Nondeductible compensation	(2.80%)	3.10%	0.60%
Nondeductible goodwill impairment	(6.60%)	0.00%	0.00%
Revaluation of net deferred tax assets	(8.80%)	0.00%	0.00%
Change in purchase agreement that increased tax basis in assets	(0.00%)	(2.20%)	(0.00%)
Other	(1.10%)	0.30%	0.50%
Effective tax (benefit) rate	16.40%	74.80%	55.50%

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Significant components of deferred tax assets and liabilities
Accrued expenses	$ 15	$ 22
Reserve liabilities	11	28
Other accrued medical costs	16	5
Net operating losses	27	13
Fixed assets and intangibles	23	0
Unrealized losses	2	1
Unearned premiums	19	27
Lease financing obligation	30	38
Deferred compensation	1	6
Tax credit carryover	15	7
Valuation allowance	(41)	(16)
Total deferred income tax assets, net of valuation allowance	118	131
Prepaid expenses	(6)	(9)
Fixed assets and intangibles	0	(104)
Basis in debt	(9)	(23)
Total deferred income tax liabilities	(15)	(136)
Net deferred income tax asset (liability)	$ 103
Net deferred income tax asset (liability)		$ (5)

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Unrecognized tax benefits roll forward
Gross unrecognized tax benefits at beginning of period	$ (11)	$ (9)	$ (3)
Increases in tax positions for current year	(1)	(1)	(1)
Increases in tax positions for prior years	(4)	(1)	(5)
Decreases in tax positions for prior years	3	0	0
Gross unrecognized tax benefits at end of period	$ (13)	$ (11)	$ (9)

Stockholders' Equity - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold percentage of stock price trigger	0.625%
Number of warrants issued (in shares)				13,490,236
Striking price of Warrants (USD per share)				$ 53.8475
Trading days measurement period (in days)	160 days
Stated interest rate for Warrants	1.125%
Unrecognized compensation expense	$ 19,000,000
Unrecognized compensation forfeited rate	11.80%
Weighted average grant date fair value of stock options granted (usd per share)	$ 41.43
Common stock issued during period (in shares)	351,000	410,000	302,000
Separation Costs - Former Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restructuring settled without cash	$ 23,000,000
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period of unrecognized compensation expense	2 years 2 months
Accelerating vesting awards (in shares)	133,957
Performance Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period of unrecognized compensation expense	5 months
Accelerating vesting awards (in shares)	153,574
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period of unrecognized compensation expense	1 year 7 months
Accelerating vesting awards (in shares)	139,272
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 15,000,000
Weighted average period of unrecognized compensation expense	2 years 9 months
Risk free interest rate	2.30%
Expected volatility rate	38.40%
Dividend yield	0.00%
Expected term of awards	8 years 5 months
Options exercised, intrinsic value	$ 2,000,000	$ 1,000,000	$ 6,000,000
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	3,000,000
Dividend yield	0.00%
Expected term of awards	6 months 4 days
Employee purchase price as a percentage of stock price	85.00%
Maximum annual contribution per employee	$ 25,000
Risk-free interest rate, minimum	0.10%
Risk-free interest rate, maximum	1.10%
Minimum expected volatility rate inputs for fair value measurement	30.00%
Maximum expected volatility rate inputs for fair value measurement	40.00%
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation (in shares)	857,000
2011 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	4,500,000.0
2011 Plan \| Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum award vesting period	4 years
2011 Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum award vesting period	4 years
Stock option expiration period	10 years

Stockholders' Equity - Components of Share-based Compensation Expenses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stock based compensation expense
Pretax Charges	$ 46	$ 26	$ 23
Net-of-Tax Amount	40	22	16
Restricted stock and performance awards
Stock based compensation expense
Pretax Charges	39	20	19
Net-of-Tax Amount	35	17	13
Employee stock purchase plan and stock options
Stock based compensation expense
Pretax Charges	7	6	4
Net-of-Tax Amount	$ 5	$ 5	$ 3

Stockholders' Equity - Restricted and Performance Stock Activity (Details)	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Shares
Unvested, shares beginning of period (in shares)	922,900
Granted (in shares)	627,046
Vested (in shares)	(824,722)
Forfeited (in shares)	(146,830)
Unvested, shares end of period (in shares)	578,394
Weighted Average Grant Date Fair Value
Unvested, weighted average grant date fair value beginning balance (USD per share) \| $ / shares	$ 58.15
Granted (USD per share) \| $ / shares	57.34
Vested (USD per share) \| $ / shares	57.78
Forfeited (USD per share) \| $ / shares	53.89
Unvested, weighted average grant date fair value ending balance (USD per share) \| $ / shares	$ 58.35
Restricted Stock Awards
Shares
Unvested, shares beginning of period (in shares)	577,244
Granted (in shares)	395,946
Vested (in shares)	(424,556)
Forfeited (in shares)	(146,830)
Unvested, shares end of period (in shares)	401,804
Performance Stock Awards
Shares
Unvested, shares beginning of period (in shares)	345,656
Granted (in shares)	0
Vested (in shares)	(260,894)
Forfeited (in shares)	0
Unvested, shares end of period (in shares)	84,762
Performance Stock Units
Shares
Unvested, shares beginning of period (in shares)	0
Granted (in shares)	231,100
Vested (in shares)	(139,272)
Forfeited (in shares)	0
Unvested, shares end of period (in shares)	91,828

Stockholders' Equity - Fair Value of Awards Granted and Vested (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted shares granted	$ 36	$ 34	$ 28
Fair value of restricted shares vested	47	22	39
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted shares granted	20	19	17
Fair value of restricted shares vested	23	22	23
Performance Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted shares granted	0	15	11
Fair value of restricted shares vested	15	0	16
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of restricted shares granted	16	0	0
Fair value of restricted shares vested	$ 9	$ 0	$ 0

Stockholders' Equity - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Shares
Beginning balance, outstanding (in shares)	90,000
Granted (in shares)	375,000	0	0
Exercised (in shares)	(60,000)
Ending balance, outstanding (in shares)	405,000	90,000
Weighted Average Exercise Price
Beginning balance, outstanding (usd per share)	$ 24.93
Granted (usd per share)	67.33
Exercised (usd per share)	20.88
Ending balance, outstanding (usd per share)	$ 64.79	$ 24.93
Outstanding, Aggregate Intrinsic Value	$ 5
Outstanding, Weighted Average Remaining Contractual term	9 years 6 months
Stock options exercisable and expected to vest (in shares)	405,000
Stock options exercisable and expected to vest (usd per share)	$ 64.79
Exercisable (in shares)	30,000
Exercisable (usd per share)	$ 33.02
Exercisable, Aggregate Intrinsic Value	$ 1
Exercisable, Weighted Average Remaining Contractual term	5 years 2 months

Stockholders' Equity - Stock Options by Exercise Price (Details)	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options	405,000
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	30,000
$33.02
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options	30,000
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term	5 years 2 months
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price \| $ / shares	$ 33.02
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	30,000
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price \| $ / shares	$ 33.02
$67.33
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options	375,000
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term	9 years 11 months
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price \| $ / shares	$ 67.33
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	0
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price \| $ / shares	$ 0.00

Restructuring and Separation Costs - Restructuring Plan (Details) - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Restructuring and Related Activities [Abstract]
Restructuring and separation costs	$ 73	$ 118	$ 43	$ 0	$ 234	$ 0	$ 0
Increase in expected restructuring costs			$ 50

Restructuring and Separation Costs - Separation Costs (Details) - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring and separation costs	$ 73	$ 118	$ 43	$ 0	$ 234	$ 0	$ 0
Charges					150
Separation Costs - Former Executives
Restructuring Cost and Reserve [Line Items]
Restructuring and separation costs					36
Charges					13
Acceleration of share-based compensation					$ 23
Deferred termination fee \| Executive Officers
Restructuring Cost and Reserve [Line Items]
Cash awards as a percentage of base salary					400.00%
Deferred bonus \| Chief Executive Officer
Restructuring Cost and Reserve [Line Items]
Cash awards as a percentage of base salary					150.00%
Deferred bonus \| Chief Financial Officer
Restructuring Cost and Reserve [Line Items]
Cash awards as a percentage of base salary					125.00%

Restructuring and Separation Costs - Other Restructuring Costs (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
Restructuring Reserve
Accrued, beginning of period	$ 0
Charges	150
Cash payments	(102)
Accrued, end of period	48
Separation Costs - Former Executives
Restructuring Reserve
Accrued, beginning of period	0
Charges	13
Cash payments	(11)
Accrued, end of period	2
One-Time Termination Benefits
Restructuring Reserve
Accrued, beginning of period	0
Charges	66
Cash payments	(55)
Accrued, end of period	11
Other Restructuring Costs
Restructuring Reserve
Accrued, beginning of period	0
Charges	71
Cash payments	(36)
Accrued, end of period	$ 35

Employee Benefits (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefits (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Postemployment Benefits [Abstract]
Maximum matching contribution by employer under defined contribution plan	4.00%
Expense recognized in connection with contributions	$ 43	$ 36	$ 27
Deferred compensation plan deferral percentage of basic salary	100.00%
Deferred compensation plan deferral percentage of bonus	100.00%

Related Party Transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2017
Related Party Transaction [Line Items]
Receivable from related party		$ 5
Pacific Healthcare IPA
Related Party Transaction [Line Items]
Ownership percentage		50.00%
Pacific Healthcare IPA \| Provider Agreement with Pacific Healthcare IPA
Related Party Transaction [Line Items]
Payments under provider agreement	$ 1

Variable Interest Entities (VIEs) (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Jan. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2011
Variable Interest Entity [Line Items]
Administrative fee revenue		$ 50	$ 55	$ 69
New Mexico Data Center
Variable Interest Entity [Line Items]
Tax credit claimed as a percentage of original investment amount					39.00%
Tax credit claimed, term					7 years
Percentage of credit claimed for first three years					5.00%
Percentage of credit claimed for remaining four years					6.00%
Capital contribution by related party					$ 6
Principal amount of loan by party					16
Proceeds from other debt			6		$ 21
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Amount paid for health care services		119	122	$ 117
Variable interest entity, total assets		8	18
Variable interest entity, total liabilities		$ 8	$ 18
Variable Interest Entity, Primary Beneficiary \| Subsequent Event
Variable Interest Entity [Line Items]
Payments for purchase of assets	$ 2

Commitments and Contingencies - Additional Information (Details) member in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) member Lease_Renewal_Option	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Sale Leaseback Transaction [Line Items]
Net assets of subsidiaries subject to restrictions	$ 1,691	$ 1,492
Aggregate statutory capital and surplus	1,777
Required minimum statutory capital surplus	1,186
Premium revenue	18,854	16,445	$ 13,261
Rental expense related to leases	$ 75	64	44
Minimum
Sale Leaseback Transaction [Line Items]
Operating lease terms	5 years
Operating lease renewal options \| Lease_Renewal_Option	1
Maximum
Sale Leaseback Transaction [Line Items]
Operating lease terms	10 years
Operating lease renewal options \| Lease_Renewal_Option	2
Health Plans
Sale Leaseback Transaction [Line Items]
Premium revenue	$ 18,854	16,445	13,261
Puerto Rico
Sale Leaseback Transaction [Line Items]
Number of members served, approximately (in member) \| member	314
Puerto Rico \| Health Plans
Sale Leaseback Transaction [Line Items]
Premium revenue	$ 732	726	$ 567
Parent Company
Sale Leaseback Transaction [Line Items]
Cash and investments	$ 696	$ 264

Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Millions	Dec. 31, 2017 USD ($)
Summary of future minimum lease payments
2018	$ 84
2019	83
2020	63
2021	49
2022	42
Thereafter	351
Total minimum lease payments	672
Lease Financing Obligations
Summary of future minimum lease payments
2018	17
2019	18
2020	19
2021	19
2022	20
Thereafter	317
Total minimum lease payments	410
Operating Leases
Summary of future minimum lease payments
2018	67
2019	65
2020	44
2021	30
2022	22
Thereafter	34
Total minimum lease payments	$ 262

Segment Information - Schedule of Operating Segment Information (Details) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2017 USD ($) Segment	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments (in segment) \| Segment									3
Revenues	$ 4,949	$ 5,031	$ 4,999	$ 4,904	$ 4,534	$ 4,546	$ 4,359	$ 4,343	$ 19,883	$ 17,782	$ 14,178
Gross margin	446	$ 564	$ 254	$ 546	354	$ 471	$ 466	$ 434	1,810	1,725	1,527
Depreciation and amortization									178	182	126
Goodwill and intangible assets, net	255				760				255	760	641
Total assets	8,471				7,449				8,471	7,449	6,576
Health Plans
Segment Reporting Information [Line Items]
Revenues									19,352	17,234	13,917
Gross margin									1,781	1,671	1,467
Depreciation and amortization									126	122	95
Goodwill and intangible assets, net	212				513				212	513	393
Total assets	6,347				5,897				6,347	5,897	4,707
Increase to gross profit										53	20
Molina Medicaid Solutions
Segment Reporting Information [Line Items]
Revenues									187	195	195
Gross margin									16	21	55
Depreciation and amortization									43	45	25
Goodwill and intangible assets, net	43				72				43	72	73
Total assets	219				267				219	267	213
Other
Segment Reporting Information [Line Items]
Revenues									344	353	66
Gross margin									13	33	5
Depreciation and amortization									9	15	6
Goodwill and intangible assets, net	0				175				0	175	175
Total assets	$ 1,905				$ 1,285				$ 1,905	$ 1,285	$ 1,656

Segment Information - Reconciliation of Gross Margin to Consolidated Income (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Total gross margin	$ 446	$ 564	$ 254	$ 546	$ 354	$ 471	$ 466	$ 434	$ 1,810	$ 1,725	$ 1,527
Other operating revenues	$ 4,949	$ 5,031	$ 4,999	$ 4,904	$ 4,534	$ 4,546	$ 4,359	$ 4,343	19,883	17,782	14,178
Other operating expenses									(20,438)	(17,476)	(13,791)
Operating income									(555)	306	387
Other expenses, net									57	101	65
(Loss) income before income tax (benefit) expense									(612)	205	322
Health Plans
Segment Reporting Information [Line Items]
Total gross margin									1,781	1,671	1,467
Other operating revenues									19,352	17,234	13,917
Molina Medicaid Solutions
Segment Reporting Information [Line Items]
Total gross margin									16	21	55
Other operating revenues									187	195	195
Other
Segment Reporting Information [Line Items]
Total gross margin									13	33	5
Other operating revenues									344	353	66
Operating Segments
Segment Reporting Information [Line Items]
Total gross margin									1,810	1,725	1,527
Operating Segments \| Health Plans
Segment Reporting Information [Line Items]
Total gross margin									1,781	1,671	1,467
Operating Segments \| Molina Medicaid Solutions
Segment Reporting Information [Line Items]
Total gross margin									16	21	55
Operating Segments \| Other
Segment Reporting Information [Line Items]
Total gross margin									13	33	5
Other Operating
Segment Reporting Information [Line Items]
Other operating revenues									508	798	664
Other operating expenses									$ (2,873)	$ (2,217)	$ (1,804)

Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summary of quarterly results of operations
Revenues	$ 4,949	$ 5,031	$ 4,999	$ 4,904	$ 4,534	$ 4,546	$ 4,359	$ 4,343	$ 19,883	$ 17,782	$ 14,178
Gross margin	446	564	254	546	354	471	466	434	1,810	1,725	1,527
Impairment losses	269	129	72	0					470	0	0
Restructuring and separation costs	73	118	43	0					234	0	0
Net (loss) income	$ (262)	$ (97)	$ (230)	$ 77	$ (47)	$ 42	$ 33	$ 24	$ (512)	$ 52	$ 143
Net income per share:
Basic (in dollars per share)	$ (4.59)	$ (1.70)	$ (4.10)	$ 1.38	$ (0.85)	$ 0.77	$ 0.58	$ 0.44	$ (9.07)	$ 0.93	$ 2.75
Diluted (in dollars per share)	$ (4.59)	$ (1.70)	$ (4.10)	$ 1.37	$ (0.85)	$ 0.76	$ 0.58	$ 0.43	$ (9.07)	$ 0.92	$ 2.58
Restatement Adjustment
Net income per share:
Increase to gross profit					$ 13	$ 14	$ 12	$ 14

Condensed Financial Information of Registrant - Condensed Balance Sheets (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 3,186	$ 2,819	$ 2,329	$ 1,539
Investments	2,524	1,758
Restricted investments	169	0
Receivables	871	974
Income taxes refundable	54	39
Due from affiliates	0	0
Prepaid expenses and other current assets	185	131
Derivative asset	522	267
Total current assets	7,511	5,988
Property, equipment, and capitalized software, net	342	454
Goodwill and intangible assets, net	255	760	641
Investments in subsidiaries	0	0
Deferred income taxes	103	10
Total assets	8,471	7,449	6,576
Current liabilities:
Medical claims and benefits payable	2,192	1,929	1,685	1,201
Accounts payable and accrued liabilities	366	385
Current portion of long-term debt	653	472
Derivative liability	522	267
Total current liabilities	5,557	4,570
Deferred income taxes	0	15
Other long-term liabilities	61	42
Total liabilities	7,134	5,800
Stockholders’ equity:
Common stock, $0.001 par value; 150 shares authorized; outstanding: 60 shares at December 31, 2017 and 57 shares at December 31, 2016	0	0
Preferred stock, $0.001 par value; 20 shares authorized, no shares issued and outstanding	0	0
Additional paid-in capital	1,044	841
Accumulated other comprehensive loss	(5)	(2)
Retained earnings	298	810
Total stockholders’ equity	1,337	1,649
Total liabilities and stockholders' equity	8,471	7,449
Parent Company
Current assets:
Cash and cash equivalents	504	86	$ 360	$ 75
Investments	192	178
Restricted investments	169	0
Receivables	2	2
Income taxes refundable	16	17
Due from affiliates	148	104
Prepaid expenses and other current assets	87	58
Derivative asset	522	267
Total current assets	1,640	712
Property, equipment, and capitalized software, net	223	301
Goodwill and intangible assets, net	15	58
Investments in subsidiaries	2,306	2,609
Deferred income taxes	17	10
Advances to related parties and other assets	32	48
Total assets	4,233	3,738
Current liabilities:
Medical claims and benefits payable	3	1
Accounts payable and accrued liabilities	178	146
Current portion of long-term debt	653	472
Derivative liability	522	267
Total current liabilities	1,356	886
Senior notes	1,318	975
Lease financing obligations	198	198
Deferred income taxes	0	11
Other long-term liabilities	24	19
Total liabilities	2,896	2,089
Stockholders’ equity:
Common stock, $0.001 par value; 150 shares authorized; outstanding: 60 shares at December 31, 2017 and 57 shares at December 31, 2016	0	0
Preferred stock, $0.001 par value; 20 shares authorized, no shares issued and outstanding	0	0
Additional paid-in capital	1,044	841
Accumulated other comprehensive loss	(5)	(2)
Retained earnings	298	810
Total stockholders’ equity	1,337	1,649
Total liabilities and stockholders' equity	$ 4,233	$ 3,738

Condensed Financial Information of Registrant - Condensed Balance Sheets - Additional Information (Details) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Common stock, par value (dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares outstanding	60,000,000	57,000,000
Preferred stock, par value (dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Parent Company
Common stock, par value (dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares outstanding	60,000,000	57,000,000
Preferred stock, par value (dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Condensed Financial Information of Registrant - Condensed Statements of Income (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenue:
Total revenue	$ 4,949	$ 5,031	$ 4,999	$ 4,904	$ 4,534	$ 4,546	$ 4,359	$ 4,343	$ 19,883	$ 17,782	$ 14,178
Expenses:
Medical care costs									17,073	14,774	11,794
General and administrative expenses									1,594	1,393	1,146
Depreciation and amortization									137	139	104
Impairment losses	269	129	72	0					470	0	0
Restructuring and separation costs	73	118	43	0					234	0	0
Total operating expenses									20,438	17,476	13,791
Operating (loss) income									(555)	306	387
Interest expense									118	101	66
Other income									(61)	0	(1)
Income tax expense (benefit)									(100)	153	179
Net loss before equity in net income of subsidiaries									(512)	52	143
Equity in net (loss) income of subsidiaries									0	0	0
Net (loss) income	$ (262)	$ (97)	$ (230)	$ 77	$ (47)	$ 42	$ 33	$ 24	(512)	52	143
Parent Company
Revenue:
Management fees									1,317	1,062	914
Investment income and other revenue									16	16	17
Total revenue									1,333	1,078	931
Expenses:
Medical care costs									16	73	55
General and administrative expenses									1,082	899	797
Depreciation and amortization									93	95	82
Impairment losses									39	0	0
Restructuring and separation costs									153	0	0
Total operating expenses									1,383	1,067	934
Operating (loss) income									(50)	11	(3)
Interest expense									117	101	66
Other income									(61)	0	0
Loss before income taxes and equity in net income of subsidiaries									(106)	(90)	(69)
Income tax expense (benefit)									8	(24)	(21)
Net loss before equity in net income of subsidiaries									(114)	(66)	(48)
Equity in net (loss) income of subsidiaries									(398)	118	191
Net (loss) income									$ (512)	$ 52	$ 143

Condensed Financial Information of Registrant - Condensed Statements of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Financial Statements, Captions [Line Items]
Net (loss) income	$ (262)	$ (97)	$ (230)	$ 77	$ (47)	$ 42	$ 33	$ 24	$ (512)	$ 52	$ 143
Unrealized investment (loss) gain									(5)	3	(5)
Less: effect of income taxes									(2)	1	(2)
Other comprehensive (loss) income, net of tax									(3)	2	(3)
Comprehensive (loss) income									(515)	54	140
Parent Company
Condensed Financial Statements, Captions [Line Items]
Net (loss) income									(512)	52	143
Unrealized investment (loss) gain									(5)	3	(5)
Less: effect of income taxes									(2)	1	(2)
Other comprehensive (loss) income, net of tax									(3)	2	(3)
Comprehensive (loss) income									$ (515)	$ 54	$ 140

Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating activities:
Net cash provided by operating activities	$ 804	$ 673	$ 1,125
Investing activities:
Capital contributions to subsidiaries	0	0	0
Dividends received from subsidiaries	0	0	0
Purchases of investments	(2,718)	(1,929)	(1,923)
Proceeds from sales and maturities of investments	1,771	1,966	1,126
Purchases of property, equipment and capitalized software	(86)	(176)	(132)
Change in amounts due to/from affiliates	0	0	0
Other, net	(28)	(19)	(35)
Net cash used in investing activities	(1,073)	(202)	(1,420)
Financing activities:
Proceeds from senior notes offerings, net of issuance costs	325	0	689
Proceeds from borrowings under credit facility	300	0	0
Proceeds from common stock offering, net of issuance costs	0	0	373
Proceeds from employee stock plans	19	18	18
Cash paid for financing transaction fees	(7)	0	0
Other, net	(1)	1	5
Net cash provided by financing activities	636	19	1,085
Net increase in cash and cash equivalents	367	490	790
Cash and cash equivalents at beginning of period	2,819	2,329	1,539
Cash and cash equivalents at end of period	3,186	2,819	2,329
Parent Company
Operating activities:
Net cash provided by operating activities	166	55	113
Investing activities:
Capital contributions to subsidiaries	(370)	(386)	(770)
Dividends received from subsidiaries	286	101	142
Purchases of investments	(352)	(115)	(244)
Proceeds from sales and maturities of investments	168	188	118
Purchases of property, equipment and capitalized software	(67)	(125)	(91)
Change in amounts due to/from affiliates	(49)	(18)	(68)
Other, net	0	6	0
Net cash used in investing activities	(384)	(349)	(913)
Financing activities:
Proceeds from senior notes offerings, net of issuance costs	325	0	689
Proceeds from borrowings under credit facility	300	0	0
Proceeds from common stock offering, net of issuance costs	0	0	373
Proceeds from employee stock plans	19	18	18
Cash paid for financing transaction fees	(7)	0	0
Other, net	(1)	2	5
Net cash provided by financing activities	636	20	1,085
Net increase in cash and cash equivalents	418	(274)	285
Cash and cash equivalents at beginning of period	86	360	75
Cash and cash equivalents at end of period	$ 504	$ 86	$ 360

Condensed Financial Information of Registrant - Notes to Condensed Financial Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Parent Company
Related Party Transaction [Line Items]
Services revenue from subsidiaries	$ 1,317	$ 1,062	$ 914

Supplemental Condensed Consolidating Financial Information - Additional Information (Details) - USD ($)	Dec. 31, 2017	Jun. 06, 2017
5.375% Notes
Condensed Financial Statements, Captions [Line Items]
Percentage of contractual interest rate on Notes	5.375%
4.875% Notes
Condensed Financial Statements, Captions [Line Items]
Percentage of contractual interest rate on Notes	4.875%
Senior Notes \| 5.375% Notes
Condensed Financial Statements, Captions [Line Items]
Percentage of contractual interest rate on Notes	5.375%
Senior Notes \| 4.875% Notes
Condensed Financial Statements, Captions [Line Items]
Face amount of debt		$ 330,000,000
Percentage of contractual interest rate on Notes	4.875%	4.875%

Supplemental Condensed Consolidating Financial Information - Condensed Consolidating Statements of (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenue:
Revenues	$ 4,949	$ 5,031	$ 4,999	$ 4,904	$ 4,534	$ 4,546	$ 4,359	$ 4,343	$ 19,883	$ 17,782	$ 14,178
Operating expenses:
Medical care costs									17,073	14,774	11,794
Cost of service revenue									492	485	193
General and administrative expenses									1,594	1,393	1,146
Premium tax expenses									438	468	397
Health insurer fees									0	217	157
Depreciation and amortization									137	139	104
Impairment losses	269	129	72	0					470	0	0
Restructuring and separation costs	73	118	43	0					234	0	0
Total operating expenses									20,438	17,476	13,791
Operating (loss) income									(555)	306	387
Interest expense									118	101	66
Other income, net									57	101	65
Other income, net									(61)	0	(1)
(Loss) income before income tax (benefit) expense									(612)	205	322
Income tax expense (benefit)									(100)	153	179
Net loss before equity in net income of subsidiaries									(512)	52	143
Equity in net (loss) income of subsidiaries									0	0	0
Net (loss) income	$ (262)	$ (97)	$ (230)	$ 77	$ (47)	$ 42	$ 33	$ 24	(512)	52	143
Parent Guarantor
Revenue:
Revenues									1,333	1,078	931
Operating expenses:
Medical care costs									16	73	55
General and administrative expenses									1,082	899	797
Depreciation and amortization									93	95	82
Impairment losses									39	0	0
Restructuring and separation costs									153	0	0
Total operating expenses									1,383	1,067	934
Operating (loss) income									(50)	11	(3)
Interest expense									117	101	66
Other income, net									(61)	0	0
Income tax expense (benefit)									8	(24)	(21)
Net loss before equity in net income of subsidiaries									(114)	(66)	(48)
Equity in net (loss) income of subsidiaries									(398)	118	191
Net (loss) income									(512)	52	143
Reportable Legal Entities \| Parent Guarantor
Revenue:
Revenues									1,333	1,078	931
Operating expenses:
Medical care costs									16	73	55
Cost of service revenue									0	0	0
General and administrative expenses									1,082	899	797
Premium tax expenses									0	0	0
Health insurer fees										0	0
Depreciation and amortization									93	95	82
Impairment losses									39
Restructuring and separation costs									153
Total operating expenses									1,383	1,067	934
Operating (loss) income									(50)	11	(3)
Interest expense									117
Other income, net										101	66
Other income, net									(61)
(Loss) income before income tax (benefit) expense									(106)	(90)	(69)
Income tax expense (benefit)									8	(24)	(21)
Net loss before equity in net income of subsidiaries									(114)	(66)	(48)
Equity in net (loss) income of subsidiaries									(398)	118	191
Net (loss) income									(512)	52	143
Reportable Legal Entities \| Other Guarantors
Revenue:
Revenues									194	202	195
Operating expenses:
Medical care costs									0	0	0
Cost of service revenue									171	174	140
General and administrative expenses									17	16	31
Premium tax expenses									0	0	0
Health insurer fees										0	0
Depreciation and amortization									1	1	1
Impairment losses									28
Restructuring and separation costs									8
Total operating expenses									225	191	172
Operating (loss) income									(31)	11	23
Interest expense									0
Other income, net										0	0
Other income, net									0
(Loss) income before income tax (benefit) expense									(31)	11	23
Income tax expense (benefit)									(21)	3	7
Net loss before equity in net income of subsidiaries									(10)	8	16
Equity in net (loss) income of subsidiaries									(156)	1	(1)
Net (loss) income									(166)	9	15
Reportable Legal Entities \| Non-Guarantors
Revenue:
Revenues									19,712	17,584	13,980
Operating expenses:
Medical care costs									17,058	14,702	11,740
Cost of service revenue									321	311	53
General and administrative expenses									1,850	1,559	1,245
Premium tax expenses									438	468	397
Health insurer fees										217	157
Depreciation and amortization									43	43	21
Impairment losses									403
Restructuring and separation costs									73
Total operating expenses									20,186	17,300	13,613
Operating (loss) income									(474)	284	367
Interest expense									1
Other income, net										0	(1)
Other income, net									0
(Loss) income before income tax (benefit) expense									(475)	284	368
Income tax expense (benefit)									(87)	174	193
Net loss before equity in net income of subsidiaries									(388)	110	175
Equity in net (loss) income of subsidiaries									0	0	0
Net (loss) income									(388)	110	175
Eliminations
Revenue:
Revenues									(1,356)	(1,082)	(928)
Operating expenses:
Medical care costs									(1)	(1)	(1)
Cost of service revenue									0	0	0
General and administrative expenses									(1,355)	(1,081)	(927)
Premium tax expenses									0	0	0
Health insurer fees										0	0
Depreciation and amortization									0	0	0
Impairment losses									0
Restructuring and separation costs									0
Total operating expenses									(1,356)	(1,082)	(928)
Operating (loss) income									0	0	0
Interest expense									0
Other income, net										0	0
Other income, net									0
(Loss) income before income tax (benefit) expense									0	0	0
Income tax expense (benefit)									0	0	0
Net loss before equity in net income of subsidiaries									0	0	0
Equity in net (loss) income of subsidiaries									554	(119)	(190)
Net (loss) income									$ 554	$ (119)	$ (190)

Supplemental Condensed Consolidating Financial Information - Condensed Consolidating Statements of Comprehensive (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Statement of Income Captions [Line Items]
Net (loss) income	$ (262)	$ (97)	$ (230)	$ 77	$ (47)	$ 42	$ 33	$ 24	$ (512)	$ 52	$ 143
Other comprehensive income (loss), net of tax									(3)	2	(3)
Comprehensive (loss) income									(515)	54	140
Parent Guarantor
Condensed Statement of Income Captions [Line Items]
Net (loss) income									(512)	52	143
Other comprehensive income (loss), net of tax									(3)	2	(3)
Comprehensive (loss) income									(515)	54	140
Reportable Legal Entities \| Parent Guarantor
Condensed Statement of Income Captions [Line Items]
Net (loss) income									(512)	52	143
Other comprehensive income (loss), net of tax									(3)	2	(3)
Comprehensive (loss) income									(515)	54	140
Reportable Legal Entities \| Other Guarantors
Condensed Statement of Income Captions [Line Items]
Net (loss) income									(166)	9	15
Other comprehensive income (loss), net of tax									0	0	0
Comprehensive (loss) income									(166)	9	15
Reportable Legal Entities \| Non-Guarantors
Condensed Statement of Income Captions [Line Items]
Net (loss) income									(388)	110	175
Other comprehensive income (loss), net of tax									(2)	1	(3)
Comprehensive (loss) income									(390)	111	172
Eliminations
Condensed Statement of Income Captions [Line Items]
Net (loss) income									554	(119)	(190)
Other comprehensive income (loss), net of tax									2	(1)	3
Comprehensive (loss) income									$ 556	$ (120)	$ (187)

Supplemental Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 3,186	$ 2,819	$ 2,329	$ 1,539
Investments	2,524	1,758
Restricted investments	169	0
Receivables	871	974
Income taxes refundable	54	39
Due from affiliates	0	0
Prepaid expenses and other current assets	185	131
Derivative asset	522	267
Total current assets	7,511	5,988
Property, equipment, and capitalized software, net	342	454
Deferred contract costs	101	86
Goodwill and intangible assets, net	255	760	641
Restricted investments	119	110
Investments in subsidiaries	0	0
Deferred income taxes	103	10
Other assets	40	41
Total assets	8,471	7,449	6,576
Current liabilities:
Medical claims and benefits payable	2,192	1,929	1,685	1,201
Amounts due government agencies	1,542	1,202
Accounts payable and accrued liabilities	366	385
Deferred revenue	282	315
Current portion of long-term debt	653	472
Derivative liability	522	267
Total current liabilities	5,557	4,570
Long-term debt	1,516	1,173
Deferred income taxes	0	15
Other long-term liabilities	61	42
Total liabilities	7,134	5,800
Total stockholders' equity	1,337	1,649
Total liabilities and stockholders' equity	8,471	7,449
Parent Guarantor
Current assets:
Cash and cash equivalents	504	86	360	75
Investments	192	178
Restricted investments	169	0
Receivables	2	2
Income taxes refundable	16	17
Due from affiliates	148	104
Prepaid expenses and other current assets	87	58
Derivative asset	522	267
Total current assets	1,640	712
Property, equipment, and capitalized software, net	223	301
Goodwill and intangible assets, net	15	58
Investments in subsidiaries	2,306	2,609
Deferred income taxes	17	10
Total assets	4,233	3,738
Current liabilities:
Medical claims and benefits payable	3	1
Accounts payable and accrued liabilities	178	146
Current portion of long-term debt	653	472
Derivative liability	522	267
Total current liabilities	1,356	886
Deferred income taxes	0	11
Other long-term liabilities	24	19
Total liabilities	2,896	2,089
Total stockholders' equity	1,337	1,649
Total liabilities and stockholders' equity	4,233	3,738
Reportable Legal Entities \| Parent Guarantor
Current assets:
Cash and cash equivalents	504	86	360	75
Investments	192	178
Restricted investments	169
Receivables	2	2
Income taxes refundable	16	17
Due from affiliates	148	104
Prepaid expenses and other current assets	87	58
Derivative asset	522	267
Total current assets	1,640	712
Property, equipment, and capitalized software, net	223	301
Deferred contract costs	0	0
Goodwill and intangible assets, net	15	58
Restricted investments	0	0
Investments in subsidiaries	2,306	2,609
Deferred income taxes	17	10
Other assets	32	48
Total assets	4,233	3,738
Current liabilities:
Medical claims and benefits payable	3	1
Amounts due government agencies	0	0
Accounts payable and accrued liabilities	178	146
Deferred revenue	0	0
Current portion of long-term debt	653	472
Derivative liability	522	267
Total current liabilities	1,356	886
Long-term debt	1,516	1,173
Deferred income taxes	0	11
Other long-term liabilities	24	19
Total liabilities	2,896	2,089
Total stockholders' equity	1,337	1,649
Total liabilities and stockholders' equity	4,233	3,738
Reportable Legal Entities \| Other Guarantors
Current assets:
Cash and cash equivalents	28	6	13	13
Investments	0	0
Restricted investments	0
Receivables	30	34
Income taxes refundable	(8)	4
Due from affiliates	(6)	(5)
Prepaid expenses and other current assets	22	30
Derivative asset	0	0
Total current assets	66	69
Property, equipment, and capitalized software, net	33	46
Deferred contract costs	101	86
Goodwill and intangible assets, net	43	73
Restricted investments	0	0
Investments in subsidiaries	82	246
Deferred income taxes	0	0
Other assets	2	3
Total assets	327	523
Current liabilities:
Medical claims and benefits payable	0	0
Amounts due government agencies	1	0
Accounts payable and accrued liabilities	40	34
Deferred revenue	49	40
Current portion of long-term debt	0	0
Derivative liability	0	0
Total current liabilities	90	74
Long-term debt	0	0
Deferred income taxes	15	39
Other long-term liabilities	2	1
Total liabilities	107	114
Total stockholders' equity	220	409
Total liabilities and stockholders' equity	327	523
Reportable Legal Entities \| Non-Guarantors
Current assets:
Cash and cash equivalents	2,654	2,727	1,956	1,451
Investments	2,332	1,580
Restricted investments	0
Receivables	839	938
Income taxes refundable	46	18
Due from affiliates	(142)	(99)
Prepaid expenses and other current assets	92	43
Derivative asset	0	0
Total current assets	5,821	5,207
Property, equipment, and capitalized software, net	86	107
Deferred contract costs	0	0
Goodwill and intangible assets, net	197	629
Restricted investments	119	110
Investments in subsidiaries	0	0
Deferred income taxes	101	0
Other assets	7	6
Total assets	6,331	6,059
Current liabilities:
Medical claims and benefits payable	2,189	1,928
Amounts due government agencies	1,541	1,202
Accounts payable and accrued liabilities	148	205
Deferred revenue	233	275
Current portion of long-term debt	16	0
Derivative liability	0	0
Total current liabilities	4,127	3,610
Long-term debt	0	16
Deferred income taxes	0	(35)
Other long-term liabilities	36	22
Total liabilities	4,163	3,613
Total stockholders' equity	2,168	2,446
Total liabilities and stockholders' equity	6,331	6,059
Eliminations
Current assets:
Cash and cash equivalents	0	0	$ 0	$ 0
Investments	0	0
Restricted investments	0
Receivables	0	0
Income taxes refundable	0	0
Due from affiliates	0	0
Prepaid expenses and other current assets	(16)	0
Derivative asset	0	0
Total current assets	(16)	0
Property, equipment, and capitalized software, net	0	0
Deferred contract costs	0	0
Goodwill and intangible assets, net	0	0
Restricted investments	0	0
Investments in subsidiaries	(2,388)	(2,855)
Deferred income taxes	(15)	0
Other assets	(1)	(16)
Total assets	(2,420)	(2,871)
Current liabilities:
Medical claims and benefits payable	0	0
Amounts due government agencies	0	0
Accounts payable and accrued liabilities	0	0
Deferred revenue	0	0
Current portion of long-term debt	(16)	0
Derivative liability	0	0
Total current liabilities	(16)	0
Long-term debt	0	(16)
Deferred income taxes	(15)	0
Other long-term liabilities	(1)	0
Total liabilities	(32)	(16)
Total stockholders' equity	(2,388)	(2,855)
Total liabilities and stockholders' equity	$ (2,420)	$ (2,871)

Supplemental Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flow (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating activities:
Net cash provided by operating activities		$ 804	$ 673	$ 1,125
Investing activities:
Purchases of investments		(2,718)	(1,929)	(1,923)
Proceeds from sales and maturities of investments		1,771	1,966	1,126
Purchases of property, equipment and capitalized software		(86)	(176)	(132)
(Increase) decrease in restricted investments held-to-maturity	$ 157	(12)	4	(6)
Net cash paid in business combinations		0	(48)	(450)
Capital contributions to subsidiaries		0	0	0
Dividends received from subsidiaries		0	0	0
Change in amounts due to/from affiliates		0	0	0
Other, net		(28)	(19)	(35)
Net cash used in investing activities		(1,073)	(202)	(1,420)
Financing activities:
Proceeds from senior notes offerings, net of issuance costs		325	0	689
Proceeds from borrowings under credit facility		300	0	0
Proceeds from common stock offering, net of issuance costs		0	0	373
Proceeds from employee stock plans		19	18	18
Cash paid for financing transaction fees		(7)	0	0
Other, net		(1)	1	5
Net cash provided by financing activities		636	19	1,085
Net increase in cash and cash equivalents		367	490	790
Cash and cash equivalents at beginning of period		2,819	2,329	1,539
Cash and cash equivalents at end of period	3,186	3,186	2,819	2,329
Eliminations
Operating activities:
Net cash provided by operating activities		0	0	0
Investing activities:
Purchases of investments		0	0	0
Proceeds from sales and maturities of investments		0	0	0
Purchases of property, equipment and capitalized software		0	0	0
(Increase) decrease in restricted investments held-to-maturity		0	0	0
Net cash paid in business combinations			0	0
Capital contributions to subsidiaries		0	0	0
Dividends received from subsidiaries		0	0	0
Change in amounts due to/from affiliates		0	0	0
Other, net		0	0	0
Net cash used in investing activities		0	0	0
Financing activities:
Proceeds from senior notes offerings, net of issuance costs		0		0
Proceeds from borrowings under credit facility		0
Proceeds from common stock offering, net of issuance costs				0
Proceeds from employee stock plans		0	0	0
Cash paid for financing transaction fees		0
Other, net		0	0	0
Net cash provided by financing activities		0	0	0
Net increase in cash and cash equivalents		0	0	0
Cash and cash equivalents at beginning of period		0	0	0
Cash and cash equivalents at end of period	0	0	0	0
Parent Guarantor
Operating activities:
Net cash provided by operating activities		166	55	113
Investing activities:
Purchases of investments		(352)	(115)	(244)
Proceeds from sales and maturities of investments		168	188	118
Purchases of property, equipment and capitalized software		(67)	(125)	(91)
Capital contributions to subsidiaries		(370)	(386)	(770)
Dividends received from subsidiaries		286	101	142
Change in amounts due to/from affiliates		(49)	(18)	(68)
Other, net		0	6	0
Net cash used in investing activities		(384)	(349)	(913)
Financing activities:
Proceeds from senior notes offerings, net of issuance costs		325	0	689
Proceeds from borrowings under credit facility		300	0	0
Proceeds from common stock offering, net of issuance costs		0	0	373
Proceeds from employee stock plans		19	18	18
Cash paid for financing transaction fees		(7)	0	0
Other, net		(1)	2	5
Net cash provided by financing activities		636	20	1,085
Net increase in cash and cash equivalents		418	(274)	285
Cash and cash equivalents at beginning of period		86	360	75
Cash and cash equivalents at end of period	504	504	86	360
Parent Guarantor \| Reportable Legal Entities
Operating activities:
Net cash provided by operating activities		166	55	113
Investing activities:
Purchases of investments		(352)	(115)	(244)
Proceeds from sales and maturities of investments		168	188	118
Purchases of property, equipment and capitalized software		(67)	(125)	(91)
(Increase) decrease in restricted investments held-to-maturity		0	0	0
Net cash paid in business combinations			0	0
Capital contributions to subsidiaries		(370)	(386)	(770)
Dividends received from subsidiaries		286	101	142
Change in amounts due to/from affiliates		(49)	(18)	(68)
Other, net		0	6	0
Net cash used in investing activities		(384)	(349)	(913)
Financing activities:
Proceeds from senior notes offerings, net of issuance costs		325		689
Proceeds from borrowings under credit facility		300
Proceeds from common stock offering, net of issuance costs				373
Proceeds from employee stock plans		19	18	18
Cash paid for financing transaction fees		(7)
Other, net		(1)	2	5
Net cash provided by financing activities		636	20	1,085
Net increase in cash and cash equivalents		418	(274)	285
Cash and cash equivalents at beginning of period		86	360	75
Cash and cash equivalents at end of period	504	504	86	360
Other Guarantors \| Reportable Legal Entities
Operating activities:
Net cash provided by operating activities		83	48	51
Investing activities:
Purchases of investments		0	0	0
Proceeds from sales and maturities of investments		0	0	0
Purchases of property, equipment and capitalized software		(11)	(29)	(20)
(Increase) decrease in restricted investments held-to-maturity		0	0	5
Net cash paid in business combinations			(5)	(174)
Capital contributions to subsidiaries		2	7	236
Dividends received from subsidiaries		(25)	0	0
Change in amounts due to/from affiliates		1	(2)	(63)
Other, net		(28)	(26)	(35)
Net cash used in investing activities		(61)	(55)	(51)
Financing activities:
Proceeds from senior notes offerings, net of issuance costs		0		0
Proceeds from borrowings under credit facility		0
Proceeds from common stock offering, net of issuance costs				0
Proceeds from employee stock plans		0	0	0
Cash paid for financing transaction fees		0
Other, net		0	0	0
Net cash provided by financing activities		0	0	0
Net increase in cash and cash equivalents		22	(7)	0
Cash and cash equivalents at beginning of period		6	13	13
Cash and cash equivalents at end of period	28	28	6	13
Non-Guarantors \| Reportable Legal Entities
Operating activities:
Net cash provided by operating activities		555	570	961
Investing activities:
Purchases of investments		(2,366)	(1,814)	(1,679)
Proceeds from sales and maturities of investments		1,603	1,778	1,008
Purchases of property, equipment and capitalized software		(8)	(22)	(21)
(Increase) decrease in restricted investments held-to-maturity		(12)	4	(11)
Net cash paid in business combinations			(43)	(276)
Capital contributions to subsidiaries		368	379	534
Dividends received from subsidiaries		(261)	(101)	(142)
Change in amounts due to/from affiliates		48	20	131
Other, net		0	1	0
Net cash used in investing activities		(628)	202	(456)
Financing activities:
Proceeds from senior notes offerings, net of issuance costs		0		0
Proceeds from borrowings under credit facility		0
Proceeds from common stock offering, net of issuance costs				0
Proceeds from employee stock plans		0	0	0
Cash paid for financing transaction fees		0
Other, net		0	(1)	0
Net cash provided by financing activities		0	(1)	0
Net increase in cash and cash equivalents		(73)	771	505
Cash and cash equivalents at beginning of period		2,727	1,956	1,451
Cash and cash equivalents at end of period	$ 2,654	$ 2,654	$ 2,727	$ 1,956

Fair Value Measurements - Financial Instruments on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	$ 3,215	$ 2,025
Total liabilities measured at fair value on a recurring basis	522	267
Corporate debt securities
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	101
U.S. treasury notes
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	68
Subtotal - current restricted investments
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	169
Corporate debt securities
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	1,588	1,179
U.S. treasury notes
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	388	84
Government-sponsored enterprise securities (GSEs)
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	253	231
Municipal securities
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	141	142
Asset-backed securities
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	117	69
Certificates of deposit
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	37	53
Subtotal - current investments
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	2,524	1,758
1.125% Call Option derivative asset
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	522	267
1.125% Conversion Option
Fair value of assets measured on recurring basis
1.125% Conversion Option derivative liability	522	267
Level 1
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	709	315
Total liabilities measured at fair value on a recurring basis	0	0
Level 1 \| Corporate debt securities
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0
Level 1 \| U.S. treasury notes
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	68
Level 1 \| Subtotal - current restricted investments
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	68
Level 1 \| Corporate debt securities
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0	0
Level 1 \| U.S. treasury notes
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	388	84
Level 1 \| Government-sponsored enterprise securities (GSEs)
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	253	231
Level 1 \| Municipal securities
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0	0
Level 1 \| Asset-backed securities
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0	0
Level 1 \| Certificates of deposit
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0	0
Level 1 \| Subtotal - current investments
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	641	315
Level 1 \| 1.125% Call Option derivative asset
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0	0
Level 1 \| 1.125% Conversion Option
Fair value of assets measured on recurring basis
1.125% Conversion Option derivative liability	0	0
Level 2
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	1,984	1,443
Total liabilities measured at fair value on a recurring basis	0	0
Level 2 \| Corporate debt securities
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	101
Level 2 \| U.S. treasury notes
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0
Level 2 \| Subtotal - current restricted investments
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	101
Level 2 \| Corporate debt securities
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	1,588	1,179
Level 2 \| U.S. treasury notes
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0	0
Level 2 \| Government-sponsored enterprise securities (GSEs)
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0	0
Level 2 \| Municipal securities
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	141	142
Level 2 \| Asset-backed securities
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	117	69
Level 2 \| Certificates of deposit
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	37	53
Level 2 \| Subtotal - current investments
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	1,883	1,443
Level 2 \| 1.125% Call Option derivative asset
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0	0
Level 2 \| 1.125% Conversion Option
Fair value of assets measured on recurring basis
1.125% Conversion Option derivative liability	0	0
Level 3
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	522	267
Total liabilities measured at fair value on a recurring basis	522	267
Level 3 \| Corporate debt securities
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0
Level 3 \| U.S. treasury notes
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0
Level 3 \| Subtotal - current restricted investments
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0
Level 3 \| Corporate debt securities
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0	0
Level 3 \| U.S. treasury notes
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0	0
Level 3 \| Government-sponsored enterprise securities (GSEs)
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0	0
Level 3 \| Municipal securities
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0	0
Level 3 \| Asset-backed securities
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0	0
Level 3 \| Certificates of deposit
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0	0
Level 3 \| Subtotal - current investments
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	0	0
Level 3 \| 1.125% Call Option derivative asset
Fair value of assets measured on recurring basis
Total assets measured at fair value on a recurring basis	522	267
Level 3 \| 1.125% Conversion Option
Fair value of assets measured on recurring basis
1.125% Conversion Option derivative liability	$ 522	$ 267