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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Jul. 27, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	MOLINA HEALTHCARE INC
Entity Central Index Key	0001179929
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Trading Symbol	moh
Entity Common Stock, Shares Outstanding		61,762,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue:
Premium tax revenue	$ 106	$ 114	$ 210	$ 225
Health insurer fees reimbursed	104	0	165	0
Investment income and other revenue	32	16	56	30
Total revenue	4,883	4,999	9,529	9,903
Operating expenses:
General and administrative expenses	335	405	687	844
Premium tax expenses	106	114	210	225
Health insurer fees	99	0	174	0
Depreciation and amortization	25	37	51	76
Impairment losses	0	72	0	72
Restructuring and separation costs	8	43	33	43
Total operating expenses	4,541	5,286	8,965	10,108
Operating income (loss)	342	(287)	564	(205)
Other expenses (income), net:
Interest expense	32	27	65	53
Other expense (income), net	5	0	15	(75)
Total other expenses (income), net	37	27	80	(22)
Income (loss) before income tax expense (benefit)	305	(314)	484	(183)
Income tax expense (benefit)	103	(84)	175	(30)
Net income (loss)	$ 202	$ (230)	$ 309	$ (153)
Net income (loss) per share:
Basic (in dollars per share)	$ 3.29	$ (4.10)	$ 5.10	$ (2.74)
Diluted (in dollars per share)	$ 3.02	$ (4.10)	$ 4.68	$ (2.74)
Health Care, Premium
Revenue:
Revenue	$ 4,514	$ 4,740	$ 8,837	$ 9,388
Operating expenses:
Cost of revenue	3,850	4,491	7,572	8,602
Technology Service
Revenue:
Revenue	127	129	261	260
Operating expenses:
Cost of revenue	$ 118	$ 124	$ 238	$ 246

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 202	$ (230)	$ 309	$ (153)
Other comprehensive income (loss):
Unrealized investment gain (loss)	1	0	(6)	1
Less: effect of income taxes	(1)	0	(1)	0
Other comprehensive income (loss), net of tax	2	0	(5)	1
Comprehensive income (loss)	$ 204	$ (230)	$ 304	$ (152)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 3,392	$ 3,186
Investments	2,176	2,524
Restricted investments	80	169
Receivables	1,148	871
Prepaid expenses and other current assets	344	239
Derivative asset	657	522
Assets held for sale	230	0
Total current assets	8,027	7,511
Property, equipment, and capitalized software, net	276	342
Goodwill and intangible assets, net	201	255
Restricted investments	117	119
Deferred income taxes	114	103
Other assets	28	141
Total assets held for sale	8,763	8,471
Current liabilities:
Medical claims and benefits payable	1,920	2,192
Amounts due government agencies	1,746	1,542
Accounts payable and accrued liabilities	754	366
Deferred revenue	193	282
Current portion of long-term debt	484	653
Derivative liability	657	522
Liabilities held for sale	66	0
Total current liabilities	5,820	5,557
Long-term debt	1,019	1,318
Lease financing obligations	198	198
Other long-term liabilities	68	61
Total liabilities	7,105	7,134
Stockholders’ equity:
Common stock, $0.001 par value, 150 shares authorized; outstanding: 62 shares at June 30, 2018 and 60 shares at December 31, 2017	0	0
Preferred stock, $0.001 par value; 20 shares authorized, no shares issued and outstanding	0	0
Additional paid-in capital	1,055	1,044
Accumulated other comprehensive loss	(11)	(5)
Retained earnings	614	298
Total stockholders’ equity	1,658	1,337
Total liabilities and stockholders' equity	$ 8,763	$ 8,471

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value (usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares outstanding (in shares)	62,000,000	60,000,000
Preferred stock, par value (usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of ASU \| Topic 606	$ 6				$ 6
Adoption of ASU \| ASU 2018-02	$ 0			$ (1)	1
Beginning Balance (in shares) at Dec. 31, 2017	59	60
Beginning Balance at Dec. 31, 2017	$ 1,337	$ 0	$ 1,044	(5)	298
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	309				309
Partial termination of 1.125% Warrants	(113)		(113)
1.625% Convertible Notes exchange transaction (in shares)		2
1.625% Convertible Notes exchange transaction	108		108
Other comprehensive loss, net	(5)			(5)
Share-based compensation	16		16
Ending Balance (in shares) at Jun. 30, 2018		62
Ending Balance at Jun. 30, 2018	$ 1,658	$ 0	1,055	(11)	614
Beginning Balance (in shares) at Mar. 31, 2018	61
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 202
Other comprehensive loss, net	2
Ending Balance (in shares) at Jun. 30, 2018		62
Ending Balance at Jun. 30, 2018	$ 1,658	$ 0	$ 1,055	$ (11)	$ 614

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (Parenthetical)	Jun. 30, 2018
Convertible Notes \| 1.625% Convertible Notes
Debt Instrument [Line Items]
Percentage of contractual interest rate	1.625%
Cash Convertible Senior Notes Due 2020, Warrants
Debt Instrument [Line Items]
Stated percentage of warrants	1.125%

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities:
Net income (loss)	$ 309	$ (153)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	73	96
Impairment losses	0	72
Deferred income taxes	(6)	(41)
Share-based compensation	13	35
Non-cash restructuring costs	17	0
Amortization of convertible senior notes and lease financing obligations	13	16
Loss on debt extinguishment	15	0
Other, net	4	7
Changes in operating assets and liabilities:
Receivables	(315)	(32)
Prepaid expenses and other current assets	(181)	(38)
Medical claims and benefits payable	(267)	148
Amounts due government agencies	205	642
Accounts payable and accrued liabilities	349	(18)
Deferred revenue	(42)	(32)
Income taxes	127	(30)
Net cash provided by operating activities	314	672
Investing activities:
Purchases of investments	(914)	(1,636)
Proceeds from sales and maturities of investments	1,335	874
Purchases of property, equipment and capitalized software	(14)	(60)
Other, net	(9)	(24)
Net cash provided by (used in) investing activities	398	(846)
Financing activities:
Repayment of credit facility	(300)	0
Repayment of 1.125% Convertible Notes	(89)	0
Cash paid for partial settlement of 1.125% Conversion Option	(134)	0
Cash received for partial termination of 1.125% Call Option	134	0
Cash paid for partial termination of 1.125% Warrants	(113)	0
Proceeds from senior notes offerings, net of issuance costs	0	325
Other, net	(1)	8
Net cash (used in) provided by financing activities	(503)	333
Net increase in cash, cash equivalents, and restricted cash and cash equivalents	209	159
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period	3,290	2,912
Cash, cash equivalents, and restricted cash and cash equivalents at end of period	3,499	3,071
Schedule of non-cash investing and financing activities:
Common stock used for share-based compensation	(6)	(21)
Details of change in fair value of derivatives, net:
Change in fair value of derivatives, net	0	0
1.625% Convertible Notes exchange transaction:
Common stock issued in exchange for 1.625% Convertible Notes	131	0
Component of 1.625% Convertible Notes allocated to additional paid-in capital, net of income taxes	(23)	0
Net increase to additional paid-in capital	108	0
1.125% Call Option
Details of change in fair value of derivatives, net:
Change in fair value of derivatives, net	135	173
1.125% Conversion Option
Financing activities:
Cash received for partial termination of 1.125% Call Option	134
Details of change in fair value of derivatives, net:
Change in fair value of derivatives, net	$ (135)	$ (173)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)	Jun. 30, 2018
1.125% Call Option
Percentage of contractual interest rate on derivative	1.125%
1.125% Conversion Option
Percentage of contractual interest rate on derivative	1.125%
Convertible Notes \| 1.625% Convertible Notes
Percentage of contractual interest rate	1.625%

Basis of Presentation

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Organization and Operations

Molina Healthcare, Inc. provides quality managed health care 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.

The Health Plans segment consists of health plans operating in 13 states and the Commonwealth of Puerto Rico. As of June 30, 2018, these health plans served approximately 4.1 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 five 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. Such contracts are subject to risk of loss in states that issue requests 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 not be renewed.

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’ 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.

Recent Developments – Health Plans Segment

Puerto Rico Health Plan. In July 2018, our Puerto Rico health plan was selected by the Puerto Rico Health Insurance Administration to be one of the organizations to administer the Commonwealth’s new Medicaid Managed Care contract. Services under the new contract, currently expected to begin on November 1, 2018, would cover the entire island. The base contract runs for a period of three years with an optional one year extension. As of June 30, 2018, we served approximately 326,000 Medicaid members in the East and Southwest regions of Puerto Rico, which represented premium revenue of $370 million for the six months ended June 30, 2018.

Florida Health Plan. In June 2018, our Florida health plan was awarded comprehensive Medicaid Managed Care contracts by the Florida Agency for Health Care Administration (AHCA) in Regions 8 and 11 of the Florida Statewide Medicaid Managed Care Invitation to Negotiate. As of June 30, 2018, we served approximately 96,000 Medicaid members in those regions, which represented premium revenue of approximately $232 million for the six months ended June 30, 2018. Services under the new contract are expected to begin on January 1, 2019. We will be serving both the Medicaid and long-term care populations in the two regions.

Washington Health Plan. In May 2018, our Washington health plan was selected by the Washington State Health Care Authority (HCA) to enter into a managed care contract for the eight remaining regions of the state’s Apple Health Integrated Managed Care program, in addition to the two regions previously awarded to us. We were selected by HCA for the following regions: Greater Columbia, King, North Sound, Pierce, and Spokane beginning January 1, 2019; and Salish, Thurston-Mason, and Great Rivers beginning January 1, 2020. As of June 30, 2018, we served approximately 742,000 Medicaid members in Washington, which represented premium revenue of $1,083 million for the six months ended June 30, 2018.

Recent Developments – Molina Medicaid Solutions Segment

In June 2018, we entered into a definitive agreement to sell Molina Medicaid Solutions (MMS) to DXC Technology Company. The divestiture, expected to close in the third quarter of 2018, is subject to the satisfaction of customary closing conditions and the receipt of certain third party consents and regulatory approvals. Refer to Note 11, “Segments,” for further information.

Presentation and Reclassification

We have reclassified certain amounts in the 2017 consolidated statement of cash flows to conform to the 2018 presentation, relating to the presentation of restricted cash and cash equivalents. The reclassification is a result of our adoption of Accounting Standards Update (ASU) 2016-18, Restricted Cash effective January 1, 2018. See Note 2, “Significant Accounting Policies,” for further information, including the amount reclassified.

We have combined certain line items in the accompanying consolidated balance sheets. For all periods presented, we have combined the presentation of:


•	Income taxes refundable with “Prepaid expenses and other current assets;”


•	Income taxes payable with “Accounts payable and accrued liabilities;”


•	Goodwill, and intangible assets, net to a single line; and


•	Deferred contract costs with “Other assets.”

Consolidation and Interim Financial Information

The consolidated financial statements include the accounts of Molina Healthcare, Inc., its subsidiaries, and variable interest entities (VIEs) in which Molina Healthcare, Inc. is considered to be the primary beneficiary. Such VIEs are insignificant to our consolidated financial position and results of operations. In the opinion of management, all adjustments considered necessary for a fair presentation of the results as of the date and for the interim periods presented have been included; such adjustments consist of normal recurring adjustments. All significant intercompany balances and transactions have been eliminated. The consolidated results of operations for the six months ended June 30, 2018 are not necessarily indicative of the results for the entire year ending December 31, 2018.

The unaudited consolidated interim financial statements have been prepared under the assumption that users of the interim financial data have either read or have access to our audited consolidated financial statements for the fiscal year ended December 31, 2017. Accordingly, certain disclosures that would substantially duplicate the disclosures contained in our December 31, 2017 audited consolidated financial statements have been omitted. These unaudited consolidated interim financial statements should be read in conjunction with our audited consolidated financial statements for the fiscal year ended December 31, 2017.

Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Significant Accounting Policies

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. The following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents reported within the accompanying consolidated balance sheets that sum to the total of the same such amounts presented in the accompanying consolidated statements of cash flows. The restricted cash and cash equivalents presented below are included in non-current “Restricted investments” in the accompanying consolidated balance sheets.



	Six Months Ended June 30,
	2018		2017
	(In millions)
Cash and cash equivalents	$	3,392	$	2,979
Restricted cash and cash equivalents	98		92
Cash and cash equivalents reported in assets held for sale	9		—
Total cash, cash equivalents, and restricted cash and cash equivalents presented in the statements of cash flows	$	3,499	$	3,071

Revenue Recognition

We adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) effective January 1, 2018, using the modified retrospective approach. 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. The cumulative effect of initially applying the guidance, relating entirely to our Molina Medicaid Solutions segment contracts, resulted in an immaterial impact to beginning retained earnings, as presented in the accompanying consolidated statement of stockholders’ equity. Topic 606 was only applied to service contracts that were not completed as of December 31, 2017. Refer to “Molina Medicaid Solutions segment” and “Other segment” below for further information.

Health Plans segment

Premium revenue is fixed in advance of the periods covered and, except as described below, is not generally subject to significant accounting estimates. Premium revenues are recognized in the month that members are entitled to receive health care services, and premiums collected in advance are deferred. Certain components of premium revenue are subject to accounting estimates and fall into two broad categories discussed in further detail below: 1) “Contractual Provisions That May Adjust or Limit Revenue or Profit;” and 2) “Quality Incentives.” Liabilities recorded for such provisions are included in “Amounts due government agencies” in the accompanying consolidated balance sheets.


1)	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 $144 million and $135 million at June 30, 2018 and December 31, 2017, respectively. Approximately $97 million and $96 million of the liability accrued at June 30, 2018 and December 31, 2017, respectively, relates to our participation in Medicaid Expansion programs. Refer to Note 12, “Commitments and Contingencies,” for further information regarding the California Medicaid Expansion program.


•	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

•

Minimum MLR: 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

•

Risk adjustment: Under this 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 adjustment payment into the pool if their composite risk scores are below the average risk score, and will receive a risk adjustment 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. As of June 30, 2018, and December 31, 2017, the Marketplace risk adjustment payable amounted to $1,159 million and $912 million, respectively. Refer to Note 12, “Commitments and Contingencies,” for further information regarding recent developments in the Marketplace risk adjustment program.

•

Minimum MLR: The Affordable Care Act (ACA) has established a Minimum MLR of 80% for the Marketplace. If the Minimum MLR is not met, we may be required to pay rebates to our Marketplace policyholders. The Marketplace risk adjustment program 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.


2)	Quality Incentives:

At many 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 June 30, 2018 are not known, we have no reason to believe that the adjustments to prior years noted below are not indicative of the potential future changes in our estimates as of June 30, 2018.



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(Dollars in millions)
Maximum available quality incentive premium - current period	$	47		$	39		$	87		$	77
Quality incentive premium revenue recognized in current period:
Earned current period	$	34		$	29		$	58		$	48
Earned prior periods	12			1			23			6
Total	$	46		$	30		$	81		54

Quality incentive premium revenue recognized as a percentage of total premium revenue	1.0		%	0.6		%	0.9		%	0.6		%

Molina Medicaid Solutions segment

MMS is under contract with Medicaid agencies in six states and the U.S. Virgin Islands. Our existing contracts have terms that currently extend to 2018 through 2025, before renewal options. As of June 30, 2018, the aggregate amount of service revenue relating to unsatisfied performance obligations amounted to approximately $638 million.

Business process outsourcing services are billed immediately following the end of the month in which such services are performed, with payment received soon thereafter. Payments for the design, development and implementation (DDI) of Medicaid management information systems milestones are received following our performance, and the customer’s acceptance, of the milestone deliverable. However, recognition of DDI revenue is deferred until the system ‘go-live’ date, and is amortized over the initial contract hosting period.

Other segment

Our Pathways behavioral health subsidiary’s revenue is all variable, and generally invoiced after services are rendered; customer payment follows invoicing. We have concluded that there is no change to revenue recognition under Topic 606 for our Pathways behavioral health subsidiary, and therefore no impact to retained earnings effective January 1, 2018.

The following table presents the opening and closing balances of receivables, deferred contract costs (contract assets), and deferred revenue (contract liabilities) from contracts with customers, by segment.



	June 30, 2018		December 31, 2017
	(In millions)
Receivables:
Molina Medicaid Solutions	$	34	$	30
Other	40		44
Deferred contract costs (contract assets) – Molina Medicaid Solutions	109		101
Deferred revenue (contract liabilities) – Molina Medicaid Solutions	39		49

Medical Care Costs - Marketplace Cost Share Reduction (CSR) Update

During the first half of 2018, we recognized a benefit of approximately $76 million in reduced medical expense related to 2017 dates of service as a result of the federal government’s confirmation that the reconciliation of 2017 Marketplace CSR subsidies would be performed on an annual basis. In the fourth quarter of 2017, we had assumed a nine-month reconciliation of this item pending confirmation of the time period to which the 2017 reconciliation would be applied.

Income Taxes

The 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 Health Insurer Fee (HIF), certain compensation, and other general and administrative expenses. The effective tax rate was not impacted by HIF in 2017 given the 2017 HIF moratorium.

The effective tax rate may be subject to fluctuations during the year as new information is obtained. Such information may affect the assumptions used to estimate the annual effective tax rate, including projected pretax earnings, 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, reduced the U.S. federal statutory corporate income tax rate from 35% to 21% effective January 1, 2018. Accounting guidance allows filers one year subsequent to the end of the tax year to finalize the valuation of deferred tax assets and liabilities. At June 30, 2018, we had not completed our accounting for the tax effects resulting from enactment of TCJA with respect to valuation of our deferred tax assets and liabilities. 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.

Recent Accounting Pronouncements Adopted

Revenue Recognition (Topic 606). See discussion above, in “Revenue Recognition.”

Comprehensive Income. In February 2018, the Financial Accounting Standards Board (FASB) issued 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 TCJA. ASU 2018-02 is effective beginning January 1, 2019; we early adopted this ASU effective January 1, 2018. The effect of applying the guidance resulted in an immaterial impact to beginning retained earnings, as presented in the accompanying consolidated statement of stockholders’ equity.

Restricted Cash. In November 2016, the FASB issued ASU 2016-18, Restricted Cash, which requires us to include in our consolidated statements of cash flows the changes in the balances of cash, cash equivalents, restricted cash and restricted cash equivalents. We adopted ASU 2016-18 on January 1, 2018. We have applied the guidance retrospectively to all periods presented. Such retrospective adoption resulted in a $92 million reclassification of restricted cash and cash equivalents from “Investing activities” to the beginning and ending balances of cash and cash equivalents in our consolidated statements of cash flows for the six months ended June 30, 2017. There was no impact to our consolidated statements of operations, balance sheets, or stockholders’ equity. The reconciliation of cash and cash equivalents to cash, cash equivalents and restricted cash and cash equivalents is presented at the beginning of this note.

Recent Accounting Pronouncements Not Yet Adopted

Credit Losses. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. Rather than generally recognizing credit losses when it is probable that the loss has been incurred, the revised guidance requires companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument’s contractual life. ASU 2016-13 is effective beginning January 1, 2020, and must be adopted as a cumulative effect adjustment to retained earnings; early adoption is permitted. We are evaluating the effect of this guidance.

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 and ASU 2018-10, Codification Improvements to Topic 842, Leases. 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 financing and operating leases. For leases with a term of 12 months or less, an entity may 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 must be adopted using a modified retrospective approach for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. Under this guidance, we will record right of use assets and liabilities relating primarily to our long-term office leases. We are currently updating the configuration of our lease database management system for the adoption of Topic 842; we do not currently expect the adoption of this guidance to have a material effect on our consolidated results of operations, financial condition or cash flows.

Net Income (Loss) per Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Net Income (Loss) per Share

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



	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
	(In millions, except net income per share)
Numerator:
Net income (loss)	$	202	$	(230	)	$	309	$	(153	)
Denominator:
Shares outstanding at the beginning of the period	61		56			59		56
Weighted-average number of shares issued:
1.625% Exchange ⁽¹⁾	—		—			2		—
Denominator for basic net income per share	61		56			61		56
Effect of dilutive securities:
1.625% Convertible Notes ⁽¹⁾	1		—			—		—
1.125% Warrants ⁽¹⁾	5		—			5		—
Denominator for diluted net income per share	67		56			66		56

Net income (loss) per share: ⁽²⁾
Basic	$	3.29	$	(4.10	)	$	5.10	$	(2.74	)
Diluted	$	3.02	$	(4.10	)	$	4.68	$	(2.74	)

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

______________________________

(1)

For more information and definitions regarding the 1.625% Exchange and the 1.625% Convertible Notes, refer to Note 7, “Debt.” For more information regarding the 1.125% Warrants, refer to Note 9, “Stockholders' Equity.” 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. For the three and six months ended June 30, 2017, the 1.125% Warrants were not included in diluted shares outstanding because to do so would have been anti-dilutive.


(2)	Source data for calculations in thousands.

Fair Value Measurements

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

We consider the carrying amounts of cash, cash equivalents and other current assets and current liabilities (not including derivatives, the current portion of long-term debt, and certain accounts reported in assets and liabilities held for sale) 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 the three-tier fair value hierarchy. For a description of the methods and assumptions that we use to a) estimate the fair value; and b) determine the classification according to the fair value hierarchy for each financial instrument, see Note 4, “Fair Value Measurements,” in our 2017 Annual Report on Form 10-K.

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 June 30, 2018, 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 8, “Derivatives,” the 1.125% Call Option derivative asset and the 1.125% Conversion Option derivative liability were designed such that changes in their fair values would 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 derivative instruments is mitigated.

The net changes in fair value of Level 3 financial instruments were insignificant to our results of operations for the six months ended June 30, 2018.

Our financial instruments measured at fair value on a recurring basis at June 30, 2018, were as follows:



	Total		Quoted Market Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Corporate debt securities	$	1,382	$	—	$	1,382	$	—
U.S. treasury notes	330		330		—		—
Government-sponsored enterprise securities (GSEs)	207		207		—		—
Municipal securities	136		—		136		—
Asset-backed securities	99		—		99		—
Certificate of deposit	19		—		19		—
Other	3		—		3		—
Subtotal - current investments	2,176		537		1,639		—
Corporate debt securities	55		—		55		—
U.S. treasury notes	25		25		—		—
Subtotal - current restricted investments	80		25		55		—
1.125% Call Option derivative asset	657		—		—		657
Total assets	$	2,913	$	562	$	1,694	$	657

1.125% Conversion Option derivative liability	$	657	$	—	$	—	$	657
Total liabilities	$	657	$	—	$	—	$	657

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



	Total		Quoted Market Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Corporate debt securities	$	1,588	$	—	$	1,588	$	—
U.S. treasury notes	388		388		—		—
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	$	3,215	$	709	$	1,984	$	522

1.125% Conversion Option derivative liability	$	522	$	—	$	—	$	522
Total liabilities	$	522	$	—	$	—	$	522

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 was classified as a Level 3 financial instrument, because certain inputs used to determine its fair value were not observable. The carrying amount of the amount due under the Credit Facility as of December 31, 2017, approximated its fair value because the Credit Facility’s interest rate is a variable rate that approximates rates currently available to us.



	June 30, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In millions)
5.375% Notes	$	693	$	706	$	692	$	730
1.125% Convertible Notes ⁽¹⁾	420		1,099		496		1,052
4.875% Notes	326		320		325		329
1.625% Convertible Notes	63		107		157		220
Credit Facility	—		—		300		300
	$	1,502	$	2,232	$	1,970	$	2,631

______________________


(1)	The fair value of the 1.125% Conversion Option (the embedded cash conversion option) amounted to $657 million and $522 million as of June 30, 2018, and December 31, 2017, respectively. See further discussion at Note 7, “Debt,” and Note 8, “Derivatives.”

- 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

6 Months Ended

Jun. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Investments

Available-for-Sale Investments

We consider all of our investments classified as current assets (including restricted investments) to be available-for-sale. Our 4.875% Notes, as further discussed in Note 7, “Debt,” contain a limitation on the use of proceeds which required us to deposit the net proceeds from their issuance into a segregated deposit account, a current asset reported as “Restricted investments” in the accompanying consolidated balance sheets. Such proceeds, while restricted as to their use and held in a segregated deposit account, are available-for-sale based upon our contractual liquidity requirements.

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



	June 30, 2018
	Amortized		Gross Unrealized				Estimated Fair
	Cost		Gains		Losses		Value
	(In millions)
Corporate debt securities	$	1,390	$	—	$	8	$	1,382
U.S. treasury notes	331		—		1		330
GSEs	209		—		2		207
Municipal securities	138		—		2		136
Asset backed securities	100		—		1		99
Certificates of deposit	19		—		—		19
Other	3		—		—		3
Subtotal - current investments	2,190		—		14		2,176
Corporate debt securities	55		—		—		55
U.S. treasury notes	25		—		—		25
Subtotal - current restricted investments	80		—		—		80
	$	2,270	$	—	$	14	$	2,256



	December 31, 2017
	Amortized		Gross Unrealized				Estimated Fair
	Cost		Gains		Losses		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 - current restricted investments	169		—		—		169
	$	2,700	$	1	$	8	$	2,693

The contractual maturities of our available-for-sale investments as of June 30, 2018 are summarized below:



	Amortized Cost		Estimated Fair Value
	(In millions)
Due in one year or less	$	1,356	$	1,354
Due after one year through five years	914		902
	$	2,270	$	2,256

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 three and six months ended June 30, 2018 and 2017 were insignificant.

We have determined that unrealized losses at June 30, 2018 and December 31, 2017, are temporary in nature, because the change in market value for these securities has 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 June 30, 2018:



	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	$	959	$	7	535	$	116	$	1	72
U.S. Treasury notes	224		1		52	—		—		—
GSEs	—		—		—	113		2		56
Municipal securities	81		1		79	40		1		52
Asset backed securities	90		1		59	—		—		—
	$	1,354	$	10	725	$	269	$	4	180



	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

Held-to-Maturity Investments

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 regulations 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.

Our held-to-maturity restricted investments are carried at amortized cost, which approximates fair value. Such investments amounted to $117 million at June 30, 2018, and mature in one year or less.

Medical Claims and Benefits Payable

6 Months Ended

Jun. 30, 2018

Other Liabilities Disclosure [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:



	June 30, 2018		December 31, 2017
	(In millions)
Fee-for-service claims incurred but not paid (IBNP)	$	1,510	$	1,717
Pharmacy payable	116		112
Capitation payable	49		67
Other	245		296
	$	1,920	$	2,192

“Other” medical claims and benefits payable includes 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 $158 million and $122 million as of June 30, 2018 and December 31, 2017, 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 amounts by which our original estimate of medical claims and benefits payable at the beginning of the period were more than the actual amount of the liability based on information (principally the payment of claims) developed since that liability was first reported.



	Six Months Ended June 30,
	2018			2017
	(Dollars in millions)
Medical claims and benefits payable, beginning balance	$	2,192		$	1,929
Components of medical care costs related to:
Current period	7,794			8,633
Prior periods	(222		)	(31		)
Total medical care costs	7,572			8,602

Change in non-risk provider payables	56			(114		)

Payments for medical care costs related to:
Current period	6,248			6,883
Prior periods	1,652			1,457
Total paid	7,900			8,340
Medical claims and benefits payable, ending balance	$	1,920		$	2,077

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 deviation and the accrued cost of settling those claims. Because we establish the provision for adverse claims deviation and the accrued cost of settling claims on a consistent basis every quarter, the lower cost recognized in a subsequent period if such a provision proved unnecessary would be offset by the establishment of a similar provision during that subsequent period.

Because the amount of our initial liability is an estimate, 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. 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 differences between our original estimates and the amounts ultimately paid out for the most part relate 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.

We believe that the most significant uncertainties surrounding our IBNP estimates at June 30, 2018 are as follows:


•	Across all of our health plans, the inventory of unpaid claims increased significantly during the first half of 2017, then decreased in the last half of 2017 and into 2018. Changes in claims inventories impact the timing between date of service and the date of claim payment, increasing the volatility of our liability estimates.

•

In June 2018, our Puerto Rico health plan implemented state prescribed claim billing requirements to ensure more accurate claims submissions. The billing requirements were more stringent and caused a significant number of claim denials. Although we expect providers to ultimately submit updated claims with the required information, the impact of the new billing requirements create more uncertainty in our liability estimates.


•	At our Florida health plan, a new clinical service system was implemented in the first quarter of 2018. This system impacted the reporting of inpatient authorizations used in our development of claims liabilities, which makes our liability estimates subject to more than the usual amount of uncertainty.

•

We recently implemented a new process for increased quality review of claims payments in nine 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 nine health plans are subject to more than the usual amount of uncertainty.

We recognized favorable prior period claims development in the amount of $222 million for the six months ended June 30, 2018. This amount represents our estimate as of June 30, 2018, of the extent to which our initial estimate of medical claims and benefits payable at December 31, 2017, was more than the amount that will ultimately be paid out in satisfaction of that liability. We believe the overestimation was due primarily to the following factors:


•	The impact of the provision for adverse claims deviation and the accrued cost of settling claims as discussed above. Because we re-establish the provision for adverse claims deviation and the accrued cost of settling claims on a consistent basis every quarter, the impact of this item on the first half of 2018 results was minimal.


•	Across all of our health plans, the inventory of unpaid claims increased significantly during the first half of 2017, then decreased in the last half of 2017. In hindsight, the impact of the changes in claims processing timing reduced our liabilities more than we had anticipated.


•	December 2017 data from The Centers for Disease Control and Prevention indicated widespread influenza activity in several states in which we operate health plans. The additional liabilities established in consideration of increased claims related to a more severe influenza season turned out to be higher than our actual experience.


•	In establishing our liability at December 31, 2017, we anticipated an increase in the utilization of medical services by Marketplace members concerned about the future of their healthcare coverage as a result of uncertainties related to high premium increases and issuer exits. This induced demand did not materialize to the degree we expected.

Debt

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Debt

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:



	June 30, 2018			December 31, 2017
	(In millions)
Current portion of long-term debt:
1.125% Convertible Notes, net of unamortized discount	$	422		$	499
1.625% Convertible Notes, net of unamortized discount	63			157
Lease financing obligations	1			1
Debt issuance costs	(2		)	(4		)
	484			653
Non-current portion of long-term debt:
5.375% Notes	700			700
4.875% Notes	330			330
Credit Facility	—			300
Debt issuance costs	(11		)	(12		)
	1,019			1,318
Lease financing obligations	198			198
	$	1,701		$	2,169

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(In millions)
Contractual interest at coupon rate	$	2	$	3	$	4	$	6
Amortization of the discount	6		8		13		16
	$	8	$	11	$	17	$	22

Credit Facility

In January 2017, we entered into an amended unsecured $500 million revolving credit facility (Credit Facility). The Credit Facility has a term of five years and all amounts outstanding will be due and payable on January 31, 2022. In May 2018, we repaid all outstanding borrowings under the Credit Facility. As of June 30, 2018, no amounts were outstanding under the Credit Facility, and outstanding letters of credit amounting to $6 million reduced our borrowing capacity under the Credit Facility to $494 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 June 30, 2018, we were in compliance with all financial and non-financial covenants under the Credit Facility and other long-term debt.

Bridge Credit Agreement

In January 2018, we entered into a bridge credit agreement (Bridge Credit Agreement) with several banks. Under the Bridge Credit Agreement, we may borrow up to $550 million 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; and (iv) pay fees and expenses in connection with the foregoing. Subject to the satisfaction of certain conditions, the remaining amount of any borrowing may be used 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 (excluding transactions with proceeds used for working capital purposes and acquisition financings up to $300 million); and


•	On August 20, 2018 (the first 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 or otherwise defeased on or 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. The amount available for borrowing under the Bridge Credit Agreement at June 30, 2018, was $550 million.

Borrowings under the Bridge Credit Agreement 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 which are 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 which are substantially similar to those contained in the 4.875% Notes.

4.875% Notes due 2025

We have outstanding $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. Guarantees under the 4.875% Notes mirror those of the Credit Facility. See Note 13, “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.

The 4.875% Notes contain a limitation on the use of proceeds which required us to deposit a portion of the net proceeds from their issuance into a segregated deposit account. These funds may be used by us 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 described below, approximately $94 million of such investments were transferred to unrestricted current investments in the first quarter of 2018. As of June 30, 2018, the balance of current restricted investments was $80 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. Such guarantees mirror those of the Credit Facility. See Note 13, “Supplemental Condensed Consolidating Financial Information,” for more information on the guarantors. The 5.375% Notes contain customary non-financial covenants and change in control provisions.

1.125% Cash Convertible Senior Notes due 2020

In June 2018, we entered into two separate, privately negotiated note purchase agreements with certain holders of our outstanding 1.125% cash convertible senior notes due January 15, 2020 (1.125% Convertible Notes). In these transactions, we repaid $96 million aggregate principal amount of the 1.125% Convertible Notes, plus accrued interest, for an aggregate cash payment of $228 million. The $132 million difference between the principal amount extinguished and our cash payment represents primarily the settlement of the fair value of the 1.125% Convertible Notes’ embedded cash conversion option feature (which is a derivative liability we refer to as the 1.125% Conversion Option). In addition, we recorded a loss on debt extinguishment of $5 million, primarily relating to the acceleration of the debt discount, which is recorded in “Other expenses (income), net” in the accompanying consolidated statements of operations. No common shares were issued in connection with these transactions.

Also in June 2018, in connection with the 1.125% Notes purchases, we entered into privately negotiated termination agreements with each of the counterparties to partially terminate the Call Spread Overlay, defined and further discussed in Notes 8, “Derivatives,” and 9, “Stockholders' Equity.”

Following the transactions described above, we have outstanding $454 million aggregate principal amount of 1.125% Convertible Notes. Interest is payable semiannually in arrears on January 15 and July 15.

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.

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 June 30, 2018; therefore, they are convertible into cash and are reported in current portion of long-term debt as of June 30, 2018.

The 1.125% Conversion Option 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 effective interest rate approximating what we would have incurred had nonconvertible debt with otherwise similar terms been issued is approximately 6%. As of June 30, 2018, the 1.125% Convertible Notes had a remaining amortization period of 1.5 years. The 1.125% Convertible Notes’ if-converted value exceeded their principal amount by approximately $503 million and $406 million as of June 30, 2018 and December 31, 2017, respectively.

1.625% Convertible Senior Notes due 2044

In March 2018, 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 $97 million aggregate principal amount and accrued interest for 1.8 million shares of our common stock. We recorded a loss on debt extinguishment, including transaction fees, of $10 million for the transaction, primarily relating to the inducement premium paid to the bondholders, which is recorded in “Other expenses (income), net” in the accompanying consolidated statements of operations. We did not receive any proceeds from the 1.625% Exchange.

On July 11, 2018, we announced notice of our election to redeem the remaining $64 million aggregate principal amount of the 1.625% Convertible Notes on August 20, 2018 (the Redemption Date). Pursuant to the terms of the indenture, the 1.625% Convertible Notes will be redeemed for cash equal to 100% of the principal amount plus accrued and unpaid interest to, but excluding the Redemption Date (the Redemption Price).

Also pursuant to the indenture, the 1.625% Convertible Notes may be converted until August 17, 2018, at a conversion rate of 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 for the principal and, if applicable, deliver shares of our common stock to the converting holders in an amount per $1,000 principal amount equal to the settlement amount (as defined in the related indenture). After August 17, 2018, holders will be entitled only to the Redemption Price.

Because the 1.625% Convertible Notes are convertible within 12 months, they are reported in current portion of long-term debt as of June 30, 2018.

From the issuance date in 2014, the expected life of the 1.625% Convertible Notes has been approximately four years, ending on the first date we may redeem the 1.625% Convertible Notes in August 2018. As of June 30, 2018, the 1.625% Convertible Notes had a remaining amortization period of 0.1 years. The effective interest rate approximating what we would have incurred had nonconvertible debt with otherwise similar terms been issued is approximately 5%. The outstanding 1.625% Convertible Notes’ if-converted value exceeded their principal amount at June 30, 2018 and December 31, 2017 by approximately $39 million and $50 million, respectively. At June 30, 2018 and December 31, 2017, the equity component of the 1.625% Convertible Notes, including the impact of deferred taxes, was $5 million and $12 million, respectively.

Cross-Default Provisions

The indentures governing the 4.875% Notes, the 5.375% Notes, the 1.125% Convertible Notes and the 1.625% Convertible Notes contain cross-default provisions that are triggered upon default by us or any of our subsidiaries on any indebtedness in excess of the amount specified in the applicable indenture.

Derivatives

6 Months Ended

Jun. 30, 2018

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 accompanying consolidated balance sheets:



	Balance Sheet Location	June 30, 2018		December 31, 2017
		(In millions)
Derivative asset:
1.125% Call Option	Current assets: Derivative asset	$	657	$	522
Derivative liability:
1.125% Conversion Option	Current liabilities: Derivative liability	$	657	$	522

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 expenses (income), net.” Gains and losses for 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.

In June 2018, in connection with the 1.125% Convertible Notes purchases (described in Note 7, “Debt”), we entered into privately negotiated termination agreements with each of the Counterparties to partially terminate the Call Spread Overlay, in notional amounts corresponding to the aggregate principal amount of the 1.125% Convertible Notes purchased. This resulted in our receipt of $134 million for the settlement of the 1.125% Call Option (which is a derivative asset), and the payment of $113 million for the partial termination of the 1.125% Warrants, for an aggregate net cash receipt of $21 million from the Counterparties.

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 June 30, 2018, 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 June 30, 2018, as described in Note 7, “Debt.”

Stockholders' Equity

6 Months Ended

Jun. 30, 2018

Stockholders' Equity Note [Abstract]

Stockholders' Equity

1.625% Exchange

As described in Note 7, “Debt,” we issued 1.8 million shares of our common stock in connection with the 1.625% Exchange in March 2018.

1.125% Warrants

In connection with the Call Spread Overlay transaction described in Note 8, “Derivatives,” in 2013, we issued 13.5 million warrants with a strike price of $53.8475 per share. Under certain circumstances, beginning in April 2020, if the price of our common stock exceeds the strike price of the 1.125% Warrants, we will be obligated to issue shares of our common stock 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 Income (Loss) per Share,” for dilution information for the periods presented. We will not receive any additional proceeds if the 1.125% Warrants are exercised.

As described in Note 8, “Derivatives,” in June 2018, we entered into privately negotiated termination agreements with each of the Counterparties to partially terminate the Call Spread Overlay, in notional amounts corresponding to the aggregate principal amount of the 1.125% Convertible Notes purchased. We paid $113 million to the Counterparties for the termination of 2.4 million of the 1.125% Warrants outstanding, which resulted in a reduction of additional paid-in capital for the same amount. Following this transaction, 11.1 million of the 1.125% Warrants remain outstanding.

Share-Based Compensation

In connection with our equity incentive plans and employee stock purchase plan, approximately 276,000 shares of common stock vested or were purchased, net of shares used to settle employees’ income tax obligations, during the six months ended June 30, 2018.

We record share-based compensation as “General and administrative expenses” in the accompanying consolidated statements of operations. As of June 30, 2018, there was $46 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 3.1 years, 0.7 years and 2.6 years, respectively. This unrecognized compensation cost assumes an estimated forfeiture rate of 10.8% for non-executive employees as of June 30, 2018.

Also as of June 30, 2018, there was $12 million of total unrecognized compensation expense related to unvested stock options, which we expect to recognize over a weighted-average period of 2.3 years. No stock options were granted or exercised in the six months ended June 30, 2018.

Activity for RSAs, PSAs and PSUs, for the six months ended June 30, 2018, is summarized below:



	Restricted Stock Awards		Performance Stock Awards		Performance Stock Units		Total		Weighted Average Grant Date Fair Value
Unvested balance, December 31, 2017	401,804		84,762		91,828		578,394		$	58.35
Granted	346,491		—		211,969		558,460		73.43
Vested	(183,595	)	(32,929	)	—		(216,524	)	57.04
Forfeited	(124,690	)	(48,701	)	(101,320	)	(274,711	)	63.38
Unvested balance, June 30, 2018	440,010		3,132		202,477		645,619		69.69

The aggregate fair values of RSAs, PSAs and PSUs granted and vested are presented in the following table:



	Six Months Ended June 30,
	2018		2017
	(In millions)
Granted:
Restricted stock awards	$	25	$	19
Performance stock units	16		16
	$	41	$	35
Vested:
Restricted stock awards	$	14	$	20
Performance stock awards	3		15
Performance stock units	—		9
	$	17	$	44

Restructuring and Separation Costs

6 Months Ended

Jun. 30, 2018

Restructuring and Related Activities [Abstract]

Restructuring and Separation Costs

Following a management-initiated, broad operational assessment in early 2017, our board of directors approved, and we committed to, a comprehensive restructuring and profitability improvement plan in June 2017 (the 2017 Restructuring Plan). Key activities under this plan to date have included:


•	Streamlining of our organizational structure to eliminate redundant layers of management, consolidate regional support services, and other staff reductions to improve efficiency and the speed and quality of decision making;


•	Re-design of core operating processes such as provider payment, utilization management, quality monitoring and improvement, and information technology, to achieve more effective and cost-efficient outcomes;


•	Remediation of high-cost provider contracts and enhancement of high quality, cost-effective networks;


•	Restructuring, including selective exits, of direct delivery operations; and


•	Partnering with the lowest-cost, most effective vendors.

Costs Incurred

In our 2017 Annual Report on Form 10-K, we reported that we had incurred substantially all of the costs associated with the 2017 Restructuring Plan in 2017, amounting to $234 million. In the first half of 2018, we incurred an additional $33 million in such costs, primarily as a result of our further evaluation and write-off of a utilization and care management project terminated because of its inconsistency with the goals of the 2017 Restructuring Plan. We also recorded nominal amounts for one-time termination benefits, true-ups of certain lease contract termination costs, and consulting fees recorded in 2017. As of June 30, 2018, we had incurred $267 million in total costs under the 2017 Restructuring Plan; we expect to complete all activities under the 2017 Restructuring Plan in 2018, with the exception of the cash settlement of lease termination liabilities. We expect to continue to settle those liabilities through 2025, unless the leases are terminated sooner.

Restructuring and separation costs are reported by the same name in the accompanying consolidated statements of operations. The following tables present the major types of such costs by segment. Current and long-lived assets include current and non-current capitalized project costs, and capitalized software determined to be unrecoverable.



	Three Months Ended June 30, 2018
	One-Time Termination Benefits			Other Restructuring Costs						Total
	One-Time Termination Benefits			Write-offs of Current and Long-lived Assets		Consulting Fees		Contract Termination Costs		Total
	(In millions)
Health Plans	$	(1	)	$	—	$	—	$	9	$	8
	$	(1	)	$	—	$	—	$	9	$	8



	Six Months Ended June 30, 2018
	One-Time Termination Benefits		Other Restructuring Costs							Total
	One-Time Termination Benefits		Write-offs of Current and Long-lived Assets			Consulting Fees		Contract Termination Costs		Total
	(In millions)
Health Plans	$	—	$	(1	)	$	—	$	8	$	7
Other	5		20			1		—		26
	$	5	$	19		$	1	$	8	$	33



	Three Months and Six Months Ended June 30, 2017
	Separation Costs - Former Executives		One-Time Termination Benefits		Other Restructuring Costs						Total
	Separation Costs - Former Executives		One-Time Termination Benefits		Write-offs of Current and Long-lived Assets		Consulting Fees		Contract Termination Costs		Total
	(In millions)
Other	$	35	$	—	$	—	$	8	$	—	$	43
	$	35	$	—	$	—	$	8	$	—	$	43

As of June 30, 2018, we had incurred cumulative restructuring costs under the 2017 Restructuring Plan as follows:



	Separation Costs - Former Executives		One-Time Termination Benefits		Other Restructuring Costs						Total
	Separation Costs - Former Executives		One-Time Termination Benefits		Write-offs of Current and Long-lived Assets		Consulting Fees		Contract Termination Costs		Total
	(In millions)
Health Plans	$	—	$	33	$	15	$	—	$	32	$	80
Molina Medicaid Solutions	—		—		8		—		—		8
Other	36		39		57		45		2		179
	$	36	$	72	$	80	$	45	$	34	$	267

Reconciliation of Liability

For those restructuring and separation costs that require cash settlement (primarily separation costs, one-time termination benefits, consulting fees and contract termination costs), the following table presents a roll-forward of the accrued liability, which is reported in “Accounts payable and accrued liabilities” in the accompanying consolidated balance sheets. The adjustments are due to true-ups of costs recorded in 2017.



	Separation Costs - Former Executives			One-Time Termination Benefits			Other Restructuring Costs			Total
	(In millions)
Accrued as of December 31, 2017	$	2		$	11		$	35		$	48
Adjustments	—			(1		)	8			7
Charges	—			6			2			8
Cash payments	(2		)	(15		)	(13		)	(30		)
Accrued as of June 30, 2018	$	—		$	1		$	32		$	33

Segments

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Segments

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 the business and view the markets we serve.

Recent Developments – Molina Medicaid Solutions Segment

In late 2017, as part of the 2017 Restructuring Plan, management decided to pursue the divestiture of MMS.

In June 2018, we entered into a definitive agreement to sell Molina Medicaid Solutions (MMS) to DXC Technology Company. The divestiture, expected to close in the third quarter of 2018, is subject to the satisfaction of customary closing conditions and the receipt of certain third party consents and regulatory approvals. We expect the net cash selling price for the equity interests of MMS to approximate $220 million after certain adjustments.

As of June 30, 2018, Molina Medicaid Solutions’ major classes of assets and liabilities were as follows:



	(In millions)
Cash and cash equivalents	$	9
Receivables and prepaid expenses	41
Goodwill and property, equipment, and capitalized software, net	70
Deferred contract costs and other assets	110
Total assets held for sale	$	230

Accounts payable and accrued and other liabilities	$	27
Deferred revenue	39
Total liabilities held for sale	$	66

Description of Earnings Measures for 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 care costs are deducted from premium revenue. The medical care ratio represents 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.

The following table presents total revenue by segment. Inter-segment revenue was insignificant for all periods presented.



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(In millions)
Total revenue:
Health Plans	$	4,752	$	4,868	$	9,261	$	9,639
Molina Medicaid Solutions	48		47		99		93
Other	83		84		169		171
Consolidated	$	4,883	$	4,999	$	9,529	$	9,903

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(In millions)
Gross margin:
Health Plans	$	664		$	249		$	1,265		$	786
Molina Medicaid Solutions	4			4			12			8
Other	5			1			11			6
Total gross margin	673			254			1,288			800
Add: other operating revenues ⁽¹⁾	242			130			431			255
Less: other operating expenses ⁽²⁾	(573		)	(671		)	(1,155		)	(1,260		)
Operating income (loss)	342			(287		)	564			(205		)
Other expenses (income), net	37			27			80			(22		)
Income (loss) before income taxes	$	305		$	(314	)	$	484		$	(183	)

______________________


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

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Marketplace Risk Adjustment Program On July 7, 2018, the Centers for Medicare and Medicaid Services (CMS) announced that a February 28, 2018 ruling in the U.S. District Court for the District of New Mexico prevents CMS from making further collections or payments under the risk adjustment program, including amounts for the 2017 benefit year, until the litigation is resolved. In light of a contrary decision by the U.S. District Court for the District of Massachusetts, the government moved the New Mexico district court to reconsider its decision, and CMS is currently awaiting the court’s ruling. On July 30, 2018, CMS published in the Federal Register the final rule that reissues, with additional policy explanation, the risk adjustment methodology that CMS had previously established. Due to the reissuance of the rule, the risk adjustment program for the 2017 benefit year will proceed, with solely a one-month delay — from August 2018 to September 2018 — in collection settlement. As reported in Note 2, “Significant Accounting Policies,” our Marketplace risk adjustment payable amounted to $1,159 million as of June 30, 2018, and is reported in “Amounts due government agencies” in the accompanying consolidated balance sheets. California Medicaid Expansion Risk Corridor In the second quarter of 2018, California health plans participating in the Medicaid Expansion program received unofficial and unverified information that CMS did not approve premium rates for the state fiscal year ended June 30, 2017. It is our understanding that, as a condition of approving the rates, CMS may require the application of a risk corridor similar to the risk corridor that was in effect for periods prior to July 2016. The risk corridor for that prior period applied a minimum medical loss ratio (MLR) of 85% and a maximum MLR of 95%. It is our understanding that the state of California is currently evaluating what actions it will take, if any, with respect to the 2016-2017 rates and risk corridor issue. The potential impact of retroactively reinstating a minimum MLR requirement, if effected, would be a reduction to premium revenue relating to 2016 and 2017. Such an adjustment for these prior periods, if effected, could have a material adverse effect on our consolidated financial position, results of operations, or cash flows. Regulatory Capital Requirements and Dividend Restrictions Our health plans 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 attempt to 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 $2,008 million at June 30, 2018, and $1,691 million at December 31, 2017. 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 approximately $350 million and $696 million as of June 30, 2018 and December 31, 2017, respectively. As of June 30, 2018, our health plans had aggregate statutory capital and surplus of approximately $2,152 million compared with the required minimum aggregate statutory capital and surplus of approximately $1,180 million. All of our health plans were in compliance with the minimum capital requirements at June 30, 2018. We have the ability, and have committed to provide, additional capital to each of our health plans as necessary to ensure compliance with statutory capital and surplus requirements. Legal Proceedings The health care industry is subject to numerous laws and regulations of federal, state, and local governments. Penalties associated with violations of these laws and regulations include significant fines, exclusion from participating in publicly funded programs, and the repayment of previously collected revenues. In the ordinary course of business we are involved in legal actions, 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 reasonably estimable, but the outcome of legal actions is inherently uncertain and our estimates of such losses could change as a result of further developments of these matters. For certain pending matters, accruals have not been established because such matters have not progressed sufficiently through discovery or factual development to enable us to reasonably estimate a range of possible loss. 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. Steamfitters Local 449 Pension Plan v. Molina Healthcare, Inc, et al. On April 27, 2018, the Steamfitters Local 449 Pension Plan filed a class action securities complaint in the Central District Court of California against the Company and its former executive officers, J. Mario Molina, John C. Molina, Terry P. Bayer, and Rick Hopfer, Case 2:18-cv-03579. The complaint purports to seek recovery on behalf of all persons or entities who purchased Molina common stock between October 31, 2014, and August 2, 2017, for alleged violations under Sections 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder. The plaintiff alleges the defendants misled investors regarding the scalability of the Company’s administrative infrastructure during the identified class period. The Company believes it has meritorious defenses to the alleged claims and intends to defend the matter vigorously. States’ Budgets Nearly all of our premium revenues come from the joint federal and state funding of the Medicaid and Children’s Health Insurance Program (CHIP) programs. The states and Commonwealth in which we operate our health plans regularly face significant budgetary pressures.

Supplemental Condensed Consolidating Financial Information

6 Months Ended

Jun. 30, 2018

Condensed Financial Information [Abstract]

Supplemental Condensed Consolidating Financial Information

As discussed in Note 7, “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.

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 six months ended June 30, 2018.

CONDENSED CONSOLIDATING STATEMENTS OF INCOME



	Three Months Ended June 30, 2018
	Parent Guarantor			Other Guarantors			Non-Guarantors		Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	261		$	49		$	4,834	$	(261	)	$	4,883
Expenses:
Medical care costs	3			—			3,847		—			3,850
Cost of service revenue	—			44			74		—			118
General and administrative expenses	252			3			341		(261		)	335
Premium tax expenses	—			—			106		—			106
Health insurer fees	—			—			99		—			99
Depreciation and amortization	18			—			7		—			25
Restructuring and separation costs	(1		)	—			9		—			8
Total operating expenses	272			47			4,483		(261		)	4,541
Operating (loss) income	(11		)	2			351		—			342
Interest expense	31			—			1		—			32
Other expenses, net	5			—			—		—			5
(Loss) income before income taxes	(47		)	2			350		—			305
Income tax expense	1			1			101		—			103
Net (loss) income before equity in net earnings (losses) of subsidiaries	(48		)	1			249		—			202
Equity in net earnings (losses) of subsidiaries	250			(1		)	—		(249		)	—
Net income	$	202		$	—		$	249	$	(249	)	$	202

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME



	Three Months Ended June 30, 2018
	Parent Guarantor		Other Guarantors		Non-Guarantors		Eliminations			Consolidated
	(In millions)
Net income	$	202	$	—	$	249	$	(249	)	$	202
Other comprehensive gain, net of tax	2		—		2		(2		)	2
Comprehensive income	$	204	$	—	$	251	$	(251	)	$	204

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



	Three Months Ended June 30, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	289		$	51		$	4,952		$	(293	)	$	4,999
Expenses:
Medical care costs	3			—			4,488			—			4,491
Cost of service revenue	—			43			81			—			124
General and administrative expenses	258			7			433			(293		)	405
Premium tax expenses	—			—			114			—			114
Depreciation and amortization	25			—			12			—			37
Impairment losses	—			—			72			—			72
Restructuring and separation costs	43			—			—			—			43
Total operating expenses	329			50			5,200			(293		)	5,286
Operating (loss) income	(40		)	1			(248		)	—			(287		)
Interest expense	27			—			—			—			27
(Loss) income before income taxes	(67		)	1			(248		)	—			(314		)
Income tax benefit	(14		)	—			(70		)	—			(84		)
Net (loss) income before equity in net losses of subsidiaries	(53		)	1			(178		)	—			(230		)
Equity in net losses of subsidiaries	(177		)	(64		)	—			241			—
Net loss	$	(230	)	$	(63	)	$	(178	)	$	241		$	(230	)

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)



	Three Months Ended June 30, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated
	(In millions)
Net loss	$	(230	)	$	(63	)	$	(178	)	$	241	$	(230	)
Other comprehensive income, net of tax	—			—			—			—		—
Comprehensive loss	$	(230	)	$	(63	)	$	(178	)	$	241	$	(230	)

CONDENSED CONSOLIDATING STATEMENTS OF INCOME



	Six Months Ended June 30, 2018
	Parent Guarantor			Other Guarantors			Non-Guarantors		Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	594		$	101		$	9,426	$	(592	)	$	9,529
Expenses:
Medical care costs	7			—			7,565		—			7,572
Cost of service revenue	—			87			151		—			238
General and administrative expenses	519			7			753		(592		)	687
Premium tax expenses	—			—			210		—			210
Health insurer fees	—			—			174		—			174
Depreciation and amortization	36			—			15		—			51
Restructuring and separation costs	25			—			8		—			33
Total operating expenses	587			94			8,876		(592		)	8,965
Operating income	7			7			550		—			564
Interest expense	64			—			1		—			65
Other expenses, net	15			—			—		—			15
(Loss) income before income taxes	(72		)	7			549		—			484
Income tax expense	10			2			163		—			175
Net (loss) income before equity in net earnings (losses of subsidiaries	(82		)	5			386		—			309
Equity in net earnings (losses) of subsidiaries	391			(4		)	—		(387		)	—
Net income	$	309		$	1		$	386	$	(387	)	$	309

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME



	Six Months Ended June 30, 2018
	Parent Guarantor			Other Guarantors		Non-Guarantors			Eliminations			Consolidated
	(In millions)
Net income	$	309		$	1	$	386		$	(387	)	$	309
Other comprehensive loss, net of tax	(5		)	—		(5		)	5			(5		)
Comprehensive income	$	304		$	1	$	381		$	(382	)	$	304

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



	Six Months Ended June 30, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	630		$	99		$	9,809		$	(635	)	$	9,903
Expenses:
Medical care costs	7			—			8,595			—			8,602
Cost of service revenue	—			85			161			—			246
General and administrative expenses	555			14			910			(635		)	844
Premium tax expenses	—			—			225			—			225
Depreciation and amortization	52			—			24			—			76
Impairment losses	—			—			72			—			72
Restructuring and separation costs	43			—			—			—			43
Total operating expenses	657			99			9,987			(635		)	10,108
Operating loss	(27		)	—			(178		)	—			(205		)
Interest expense	53			—			—			—			53
Other income, net	(75		)	—			—			—			(75		)
Loss before income taxes	(5		)	—			(178		)	—			(183		)
Income tax expense (benefit)	17			—			(47		)	—			(30		)
Net loss before equity in net losses of subsidiaries	(22		)	—			(131		)	—			(153		)
Equity in net losses of subsidiaries	(131		)	(66		)	—			197			—
Net loss	$	(153	)	$	(66	)	$	(131	)	$	197		$	(153	)

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS



	Six Months Ended June 30, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
Net loss	$	(153	)	$	(66	)	$	(131	)	$	197		$	(153	)
Other comprehensive income, net of tax	1			—			1			(1		)	1
Comprehensive loss	$	(152	)	$	(66	)	$	(130	)	$	196		$	(152	)

CONDENSED CONSOLIDATING BALANCE SHEETS



	June 30, 2018
	Parent Guarantor		Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	235	$	2		$	3,155		$	—		$	3,392
Investments	105		—			2,071			—			2,176
Restricted investments	80		—			—			—			80
Receivables	2		—			1,146			—			1,148
Due from (to) affiliates	68		(6		)	(62		)	—			—
Prepaid expenses and other current assets	62		—			282			—			344
Derivative asset	657		—			—			—			657
Assets held for sale	—		230			—			—			230
Total current assets	1,209		226			6,592			—			8,027
Property, equipment, and capitalized software, net	196		—			80			—			276
Goodwill and intangible assets, net	14		—			187			—			201
Restricted investments	—		—			117			—			117
Investment in subsidiaries, net	2,761		76			—			(2,837		)	—
Deferred income taxes	33		—			99			(18		)	114
Other assets	39		—			5			(16		)	28
	$	4,252	$	302		$	7,080		$	(2,871	)	$	8,763

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable	$	2	$	—		$	1,918		$	—		$	1,920
Amounts due government agencies	—		—			1,746			—			1,746
Accounts payable and accrued liabilities	211		—			543			—			754
Deferred revenue	—		—			193			—			193
Current portion of long-term debt	484		—			—			—			484
Derivative liability	657		—			—			—			657
Liabilities held for sale	—		66			—			—			66
Total current liabilities	1,354		66			4,400			—			5,820
Long-term debt	1,217		—			16			(16		)	1,217
Deferred income taxes	—		18			—			(18		)	—
Other long-term liabilities	23		1			44			—			68
Total liabilities	2,594		85			4,460			(34		)	7,105
Total stockholders’ equity	1,658		217			2,620			(2,837		)	1,658
	$	4,252	$	302		$	7,080		$	(2,871	)	$	8,763

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
Due from (to) affiliates	148		(6		)	(142		)	—			—
Prepaid expenses and other current assets	103		14			138			(16		)	239
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
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		103			7			(1		)	141
	$	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

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



	Six Months Ended June 30, 2018
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated
	(In millions)
Operating activities:
Net cash provided by operating activities	$	49		$	9		$	256		$	—	$	314
Investing activities:
Purchases of investments	(136		)	—			(778		)	—		(914		)
Proceeds from sales and maturities of investments	303			—			1,032			—		1,335
Purchases of property, equipment and capitalized software	(9		)	(3		)	(2		)	—		(14		)
Capital contributions to subsidiaries	(117		)	—			117			—		—
Dividends from subsidiaries	60			(10		)	(50		)	—		—
Change in amounts due to/from affiliates	75			1			(76		)	—		—
Other, net	—			(14		)	5			—		(9		)
Net cash provided (used in) by investing activities	176			(26		)	248			—		398
Financing activities:
Repayment of credit facility	(300		)	—			—			—		(300		)
Repayment of 1.125% Convertible Notes	(89		)	—			—			—		(89		)
Cash paid for partial settlement of 1.125% Conversion Option	(134		)	—			—			—		(134		)
Cash received for partial termination of 1.125% Call Option	134			—			—			—		134
Cash paid for partial termination of 1.125% Warrants	(113		)	—			—			—		(113		)
Other, net	(1		)	—			—			—		(1		)
Net cash used in financing activities	(503		)	—			—			—		(503		)
Net (decrease) increase in cash, cash equivalents, and restricted cash and cash equivalents	(278		)	(17		)	504			—		209
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period	513			28			2,749			—		3,290
Cash, cash equivalents, and restricted cash and cash equivalents at end of period	$	235		$	11		$	3,253		$	—	$	3,499



	Six Months Ended June 30, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated
	(In millions)
Operating activities:
Net cash provided by operating activities	$	90		$	44		$	538		$	—	$	672
Investing activities:
Purchases of investments	(330		)	—			(1,306		)	—		(1,636		)
Proceeds from sales and maturities of investments	127			—			747			—		874
Purchases of property, equipment and capitalized software	(45		)	(9		)	(6		)	—		(60		)
Capital contributions to subsidiaries	(238		)	2			236			—		—
Dividends from subsidiaries	120			—			(120		)	—		—
Change in amounts due to/from affiliates	(34		)	2			32			—		—
Other, net	—			(13		)	(11		)	—		(24		)
Net cash used in investing activities	(400		)	(18		)	(428		)	—		(846		)
Financing activities:
Proceeds from senior notes offerings, net of issuance costs	325			—			—			—		325
Other, net	8			—			—			—		8
Net cash provided by financing activities	333			—			—			—		333
Net increase in cash, cash equivalents, and restricted cash and cash equivalents	23			26			110			—		159
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period	86			6			2,820			—		2,912
Cash, cash equivalents, and restricted cash and cash equivalents at end of period	$	109		$	32		$	2,930		$	—	$	3,071

Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Presentation and Reclassification

We have combined certain line items in the accompanying consolidated balance sheets. For all periods presented, we have combined the presentation of:


•	Income taxes refundable with “Prepaid expenses and other current assets;”


•	Income taxes payable with “Accounts payable and accrued liabilities;”


•	Goodwill, and intangible assets, net to a single line; and


•	Deferred contract costs with “Other assets.”

Consolidation And Interim Financial Information

Consolidation and Interim Financial Information

Cash and Cash Equivalents

Revenue Recognition

Health Plans segment


1)	Contractual Provisions That May Adjust or Limit Revenue or Profit:

Medicaid

•


•	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

•

Marketplace

•


2)	Quality Incentives:

At many 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.



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(Dollars in millions)
Maximum available quality incentive premium - current period	$	47		$	39		$	87		$	77
Quality incentive premium revenue recognized in current period:
Earned current period	$	34		$	29		$	58		$	48
Earned prior periods	12			1			23			6
Total	$	46		$	30		$	81		54

Quality incentive premium revenue recognized as a percentage of total premium revenue	1.0		%	0.6		%	0.9		%	0.6		%

Molina Medicaid Solutions segment

Other segment



	June 30, 2018		December 31, 2017
	(In millions)
Receivables:
Molina Medicaid Solutions	$	34	$	30
Other	40		44
Deferred contract costs (contract assets) – Molina Medicaid Solutions	109		101
Deferred revenue (contract liabilities) – Molina Medicaid Solutions	39		49

Income Taxes

Recent Accounting Pronouncements

Recent Accounting Pronouncements Adopted

Revenue Recognition (Topic 606). See discussion above, in “Revenue Recognition.”

Recent Accounting Pronouncements Not Yet Adopted

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

+ References + Details

Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Restricted Cash and Cash Equivalents

The following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents reported within the accompanying consolidated balance sheets that sum to the total of the same such amounts presented in the accompanying consolidated statements of cash flows. The restricted cash and cash equivalents presented below are included in non-current “Restricted investments” in the accompanying consolidated balance sheets.



	Six Months Ended June 30,
	2018		2017
	(In millions)
Cash and cash equivalents	$	3,392	$	2,979
Restricted cash and cash equivalents	98		92
Cash and cash equivalents reported in assets held for sale	9		—
Total cash, cash equivalents, and restricted cash and cash equivalents presented in the statements of cash flows	$	3,499	$	3,071

Schedule of Cash and Cash Equivalents



	Six Months Ended June 30,
	2018		2017
	(In millions)
Cash and cash equivalents	$	3,392	$	2,979
Restricted cash and cash equivalents	98		92
Cash and cash equivalents reported in assets held for sale	9		—
Total cash, cash equivalents, and restricted cash and cash equivalents presented in the statements of cash flows	$	3,499	$	3,071

Quality incentive premium revenue recognized



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(Dollars in millions)
Maximum available quality incentive premium - current period	$	47		$	39		$	87		$	77
Quality incentive premium revenue recognized in current period:
Earned current period	$	34		$	29		$	58		$	48
Earned prior periods	12			1			23			6
Total	$	46		$	30		$	81		54

Quality incentive premium revenue recognized as a percentage of total premium revenue	1.0		%	0.6		%	0.9		%	0.6		%

Segment reporting



	June 30, 2018		December 31, 2017
	(In millions)
Receivables:
Molina Medicaid Solutions	$	34	$	30
Other	40		44
Deferred contract costs (contract assets) – Molina Medicaid Solutions	109		101
Deferred revenue (contract liabilities) – Molina Medicaid Solutions	39		49

The following table presents total revenue by segment. Inter-segment revenue was insignificant for all periods presented.



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(In millions)
Total revenue:
Health Plans	$	4,752	$	4,868	$	9,261	$	9,639
Molina Medicaid Solutions	48		47		99		93
Other	83		84		169		171
Consolidated	$	4,883	$	4,999	$	9,529	$	9,903

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(In millions)
Gross margin:
Health Plans	$	664		$	249		$	1,265		$	786
Molina Medicaid Solutions	4			4			12			8
Other	5			1			11			6
Total gross margin	673			254			1,288			800
Add: other operating revenues ⁽¹⁾	242			130			431			255
Less: other operating expenses ⁽²⁾	(573		)	(671		)	(1,155		)	(1,260		)
Operating income (loss)	342			(287		)	564			(205		)
Other expenses (income), net	37			27			80			(22		)
Income (loss) before income taxes	$	305		$	(314	)	$	484		$	(183	)

______________________


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

As of June 30, 2018, Molina Medicaid Solutions’ major classes of assets and liabilities were as follows:



	(In millions)
Cash and cash equivalents	$	9
Receivables and prepaid expenses	41
Goodwill and property, equipment, and capitalized software, net	70
Deferred contract costs and other assets	110
Total assets held for sale	$	230

Accounts payable and accrued and other liabilities	$	27
Deferred revenue	39
Total liabilities held for sale	$	66

Net Income (Loss) per Share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Summary of denominators for the computation of basic and diluted net income (loss) per share

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



	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
	(In millions, except net income per share)
Numerator:
Net income (loss)	$	202	$	(230	)	$	309	$	(153	)
Denominator:
Shares outstanding at the beginning of the period	61		56			59		56
Weighted-average number of shares issued:
1.625% Exchange ⁽¹⁾	—		—			2		—
Denominator for basic net income per share	61		56			61		56
Effect of dilutive securities:
1.625% Convertible Notes ⁽¹⁾	1		—			—		—
1.125% Warrants ⁽¹⁾	5		—			5		—
Denominator for diluted net income per share	67		56			66		56

Net income (loss) per share: ⁽²⁾
Basic	$	3.29	$	(4.10	)	$	5.10	$	(2.74	)
Diluted	$	3.02	$	(4.10	)	$	4.68	$	(2.74	)

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

______________________________

(1)


(2)	Source data for calculations in thousands.

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair value of assets measured on recurring basis

Our financial instruments measured at fair value on a recurring basis at June 30, 2018, were as follows:



	Total		Quoted Market Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Corporate debt securities	$	1,382	$	—	$	1,382	$	—
U.S. treasury notes	330		330		—		—
Government-sponsored enterprise securities (GSEs)	207		207		—		—
Municipal securities	136		—		136		—
Asset-backed securities	99		—		99		—
Certificate of deposit	19		—		19		—
Other	3		—		3		—
Subtotal - current investments	2,176		537		1,639		—
Corporate debt securities	55		—		55		—
U.S. treasury notes	25		25		—		—
Subtotal - current restricted investments	80		25		55		—
1.125% Call Option derivative asset	657		—		—		657
Total assets	$	2,913	$	562	$	1,694	$	657

1.125% Conversion Option derivative liability	$	657	$	—	$	—	$	657
Total liabilities	$	657	$	—	$	—	$	657

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



	Total		Quoted Market Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Corporate debt securities	$	1,588	$	—	$	1,588	$	—
U.S. treasury notes	388		388		—		—
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	$	3,215	$	709	$	1,984	$	522

1.125% Conversion Option derivative liability	$	522	$	—	$	—	$	522
Total liabilities	$	522	$	—	$	—	$	522

Schedule of fair value, asset and liabilities measured on recurring basis - disclosure only



	June 30, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In millions)
5.375% Notes	$	693	$	706	$	692	$	730
1.125% Convertible Notes ⁽¹⁾	420		1,099		496		1,052
4.875% Notes	326		320		325		329
1.625% Convertible Notes	63		107		157		220
Credit Facility	—		—		300		300
	$	1,502	$	2,232	$	1,970	$	2,631

______________________


(1)	The fair value of the 1.125% Conversion Option (the embedded cash conversion option) amounted to $657 million and $522 million as of June 30, 2018, and December 31, 2017, respectively. See further discussion at Note 7, “Debt,” and Note 8, “Derivatives.”

Investments (Tables)

6 Months Ended

Jun. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Investments

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



	June 30, 2018
	Amortized		Gross Unrealized				Estimated Fair
	Cost		Gains		Losses		Value
	(In millions)
Corporate debt securities	$	1,390	$	—	$	8	$	1,382
U.S. treasury notes	331		—		1		330
GSEs	209		—		2		207
Municipal securities	138		—		2		136
Asset backed securities	100		—		1		99
Certificates of deposit	19		—		—		19
Other	3		—		—		3
Subtotal - current investments	2,190		—		14		2,176
Corporate debt securities	55		—		—		55
U.S. treasury notes	25		—		—		25
Subtotal - current restricted investments	80		—		—		80
	$	2,270	$	—	$	14	$	2,256



	December 31, 2017
	Amortized		Gross Unrealized				Estimated Fair
	Cost		Gains		Losses		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 - current restricted investments	169		—		—		169
	$	2,700	$	1	$	8	$	2,693

Contractual maturities of investments

June 30, 2018, and mature in one year or less.

The contractual maturities of our available-for-sale investments as of June 30, 2018 are summarized below:



	Amortized Cost		Estimated Fair Value
	(In millions)
Due in one year or less	$	1,356	$	1,354
Due after one year through five years	914		902
	$	2,270	$	2,256

Schedule of available for sale securities continuous unrealized loss position



	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	$	959	$	7	535	$	116	$	1	72
U.S. Treasury notes	224		1		52	—		—		—
GSEs	—		—		—	113		2		56
Municipal securities	81		1		79	40		1		52
Asset backed securities	90		1		59	—		—		—
	$	1,354	$	10	725	$	269	$	4	180



	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

Medical Claims and Benefits Payable (Tables)

6 Months Ended

Jun. 30, 2018

Other Liabilities Disclosure [Abstract]

Schedule of liability for unpaid claims and claims adjustment expense



	June 30, 2018		December 31, 2017
	(In millions)
Fee-for-service claims incurred but not paid (IBNP)	$	1,510	$	1,717
Pharmacy payable	116		112
Capitation payable	49		67
Other	245		296
	$	1,920	$	2,192

Components of change in medical claims and benefits payable



	Six Months Ended June 30,
	2018			2017
	(Dollars in millions)
Medical claims and benefits payable, beginning balance	$	2,192		$	1,929
Components of medical care costs related to:
Current period	7,794			8,633
Prior periods	(222		)	(31		)
Total medical care costs	7,572			8,602

Change in non-risk provider payables	56			(114		)

Payments for medical care costs related to:
Current period	6,248			6,883
Prior periods	1,652			1,457
Total paid	7,900			8,340
Medical claims and benefits payable, ending balance	$	1,920		$	2,077

Debt (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Long term debt

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



	June 30, 2018			December 31, 2017
	(In millions)
Current portion of long-term debt:
1.125% Convertible Notes, net of unamortized discount	$	422		$	499
1.625% Convertible Notes, net of unamortized discount	63			157
Lease financing obligations	1			1
Debt issuance costs	(2		)	(4		)
	484			653
Non-current portion of long-term debt:
5.375% Notes	700			700
4.875% Notes	330			330
Credit Facility	—			300
Debt issuance costs	(11		)	(12		)
	1,019			1,318
Lease financing obligations	198			198
	$	1,701		$	2,169

Interest Costs

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(In millions)
Contractual interest at coupon rate	$	2	$	3	$	4	$	6
Amortization of the discount	6		8		13		16
	$	8	$	11	$	17	$	22

- 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://fasb.org/us-gaap/role/ref/legacyRef
-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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-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 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Derivatives (Tables)

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

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



	Balance Sheet Location	June 30, 2018		December 31, 2017
		(In millions)
Derivative asset:
1.125% Call Option	Current assets: Derivative asset	$	657	$	522
Derivative liability:
1.125% Conversion Option	Current liabilities: Derivative liability	$	657	$	522

Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2018

Stockholders' Equity Note [Abstract]

Restricted share activity

Activity for RSAs, PSAs and PSUs, for the six months ended June 30, 2018, is summarized below:



	Restricted Stock Awards		Performance Stock Awards		Performance Stock Units		Total		Weighted Average Grant Date Fair Value
Unvested balance, December 31, 2017	401,804		84,762		91,828		578,394		$	58.35
Granted	346,491		—		211,969		558,460		73.43
Vested	(183,595	)	(32,929	)	—		(216,524	)	57.04
Forfeited	(124,690	)	(48,701	)	(101,320	)	(274,711	)	63.38
Unvested balance, June 30, 2018	440,010		3,132		202,477		645,619		69.69

The aggregate fair values of RSAs, PSAs and PSUs granted and vested are presented in the following table:



	Six Months Ended June 30,
	2018		2017
	(In millions)
Granted:
Restricted stock awards	$	25	$	19
Performance stock units	16		16
	$	41	$	35
Vested:
Restricted stock awards	$	14	$	20
Performance stock awards	3		15
Performance stock units	—		9
	$	17	$	44

Restructuring and Separation Costs (Tables)

6 Months Ended

Jun. 30, 2018

Restructuring and Related Activities [Abstract]

Restructuring Costs



	Three Months Ended June 30, 2018
	One-Time Termination Benefits			Other Restructuring Costs						Total
	One-Time Termination Benefits			Write-offs of Current and Long-lived Assets		Consulting Fees		Contract Termination Costs		Total
	(In millions)
Health Plans	$	(1	)	$	—	$	—	$	9	$	8
	$	(1	)	$	—	$	—	$	9	$	8



	Six Months Ended June 30, 2018
	One-Time Termination Benefits		Other Restructuring Costs							Total
	One-Time Termination Benefits		Write-offs of Current and Long-lived Assets			Consulting Fees		Contract Termination Costs		Total
	(In millions)
Health Plans	$	—	$	(1	)	$	—	$	8	$	7
Other	5		20			1		—		26
	$	5	$	19		$	1	$	8	$	33



	Three Months and Six Months Ended June 30, 2017
	Separation Costs - Former Executives		One-Time Termination Benefits		Other Restructuring Costs						Total
	Separation Costs - Former Executives		One-Time Termination Benefits		Write-offs of Current and Long-lived Assets		Consulting Fees		Contract Termination Costs		Total
	(In millions)
Other	$	35	$	—	$	—	$	8	$	—	$	43
	$	35	$	—	$	—	$	8	$	—	$	43

As of June 30, 2018, we had incurred cumulative restructuring costs under the 2017 Restructuring Plan as follows:



	Separation Costs - Former Executives		One-Time Termination Benefits		Other Restructuring Costs						Total
	Separation Costs - Former Executives		One-Time Termination Benefits		Write-offs of Current and Long-lived Assets		Consulting Fees		Contract Termination Costs		Total
	(In millions)
Health Plans	$	—	$	33	$	15	$	—	$	32	$	80
Molina Medicaid Solutions	—		—		8		—		—		8
Other	36		39		57		45		2		179
	$	36	$	72	$	80	$	45	$	34	$	267

Restructuring Reserve



	Separation Costs - Former Executives			One-Time Termination Benefits			Other Restructuring Costs			Total
	(In millions)
Accrued as of December 31, 2017	$	2		$	11		$	35		$	48
Adjustments	—			(1		)	8			7
Charges	—			6			2			8
Cash payments	(2		)	(15		)	(13		)	(30		)
Accrued as of June 30, 2018	$	—		$	1		$	32		$	33

Segments (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Operating segment information



	June 30, 2018		December 31, 2017
	(In millions)
Receivables:
Molina Medicaid Solutions	$	34	$	30
Other	40		44
Deferred contract costs (contract assets) – Molina Medicaid Solutions	109		101
Deferred revenue (contract liabilities) – Molina Medicaid Solutions	39		49

The following table presents total revenue by segment. Inter-segment revenue was insignificant for all periods presented.



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(In millions)
Total revenue:
Health Plans	$	4,752	$	4,868	$	9,261	$	9,639
Molina Medicaid Solutions	48		47		99		93
Other	83		84		169		171
Consolidated	$	4,883	$	4,999	$	9,529	$	9,903

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(In millions)
Gross margin:
Health Plans	$	664		$	249		$	1,265		$	786
Molina Medicaid Solutions	4			4			12			8
Other	5			1			11			6
Total gross margin	673			254			1,288			800
Add: other operating revenues ⁽¹⁾	242			130			431			255
Less: other operating expenses ⁽²⁾	(573		)	(671		)	(1,155		)	(1,260		)
Operating income (loss)	342			(287		)	564			(205		)
Other expenses (income), net	37			27			80			(22		)
Income (loss) before income taxes	$	305		$	(314	)	$	484		$	(183	)

______________________


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

As of June 30, 2018, Molina Medicaid Solutions’ major classes of assets and liabilities were as follows:



	(In millions)
Cash and cash equivalents	$	9
Receivables and prepaid expenses	41
Goodwill and property, equipment, and capitalized software, net	70
Deferred contract costs and other assets	110
Total assets held for sale	$	230

Accounts payable and accrued and other liabilities	$	27
Deferred revenue	39
Total liabilities held for sale	$	66

Supplemental Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2018

Condensed Financial Information [Abstract]

Condensed Consolidating Statements of Income

CONDENSED CONSOLIDATING STATEMENTS OF INCOME



	Three Months Ended June 30, 2018
	Parent Guarantor			Other Guarantors			Non-Guarantors		Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	261		$	49		$	4,834	$	(261	)	$	4,883
Expenses:
Medical care costs	3			—			3,847		—			3,850
Cost of service revenue	—			44			74		—			118
General and administrative expenses	252			3			341		(261		)	335
Premium tax expenses	—			—			106		—			106
Health insurer fees	—			—			99		—			99
Depreciation and amortization	18			—			7		—			25
Restructuring and separation costs	(1		)	—			9		—			8
Total operating expenses	272			47			4,483		(261		)	4,541
Operating (loss) income	(11		)	2			351		—			342
Interest expense	31			—			1		—			32
Other expenses, net	5			—			—		—			5
(Loss) income before income taxes	(47		)	2			350		—			305
Income tax expense	1			1			101		—			103
Net (loss) income before equity in net earnings (losses) of subsidiaries	(48		)	1			249		—			202
Equity in net earnings (losses) of subsidiaries	250			(1		)	—		(249		)	—
Net income	$	202		$	—		$	249	$	(249	)	$	202

CONDENSED CONSOLIDATING STATEMENTS OF INCOME



	Six Months Ended June 30, 2018
	Parent Guarantor			Other Guarantors			Non-Guarantors		Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	594		$	101		$	9,426	$	(592	)	$	9,529
Expenses:
Medical care costs	7			—			7,565		—			7,572
Cost of service revenue	—			87			151		—			238
General and administrative expenses	519			7			753		(592		)	687
Premium tax expenses	—			—			210		—			210
Health insurer fees	—			—			174		—			174
Depreciation and amortization	36			—			15		—			51
Restructuring and separation costs	25			—			8		—			33
Total operating expenses	587			94			8,876		(592		)	8,965
Operating income	7			7			550		—			564
Interest expense	64			—			1		—			65
Other expenses, net	15			—			—		—			15
(Loss) income before income taxes	(72		)	7			549		—			484
Income tax expense	10			2			163		—			175
Net (loss) income before equity in net earnings (losses of subsidiaries	(82		)	5			386		—			309
Equity in net earnings (losses) of subsidiaries	391			(4		)	—		(387		)	—
Net income	$	309		$	1		$	386	$	(387	)	$	309

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



	Six Months Ended June 30, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	630		$	99		$	9,809		$	(635	)	$	9,903
Expenses:
Medical care costs	7			—			8,595			—			8,602
Cost of service revenue	—			85			161			—			246
General and administrative expenses	555			14			910			(635		)	844
Premium tax expenses	—			—			225			—			225
Depreciation and amortization	52			—			24			—			76
Impairment losses	—			—			72			—			72
Restructuring and separation costs	43			—			—			—			43
Total operating expenses	657			99			9,987			(635		)	10,108
Operating loss	(27		)	—			(178		)	—			(205		)
Interest expense	53			—			—			—			53
Other income, net	(75		)	—			—			—			(75		)
Loss before income taxes	(5		)	—			(178		)	—			(183		)
Income tax expense (benefit)	17			—			(47		)	—			(30		)
Net loss before equity in net losses of subsidiaries	(22		)	—			(131		)	—			(153		)
Equity in net losses of subsidiaries	(131		)	(66		)	—			197			—
Net loss	$	(153	)	$	(66	)	$	(131	)	$	197		$	(153	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS



	Three Months Ended June 30, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
Revenue:
Total revenue	$	289		$	51		$	4,952		$	(293	)	$	4,999
Expenses:
Medical care costs	3			—			4,488			—			4,491
Cost of service revenue	—			43			81			—			124
General and administrative expenses	258			7			433			(293		)	405
Premium tax expenses	—			—			114			—			114
Depreciation and amortization	25			—			12			—			37
Impairment losses	—			—			72			—			72
Restructuring and separation costs	43			—			—			—			43
Total operating expenses	329			50			5,200			(293		)	5,286
Operating (loss) income	(40		)	1			(248		)	—			(287		)
Interest expense	27			—			—			—			27
(Loss) income before income taxes	(67		)	1			(248		)	—			(314		)
Income tax benefit	(14		)	—			(70		)	—			(84		)
Net (loss) income before equity in net losses of subsidiaries	(53		)	1			(178		)	—			(230		)
Equity in net losses of subsidiaries	(177		)	(64		)	—			241			—
Net loss	$	(230	)	$	(63	)	$	(178	)	$	241		$	(230	)

Condensed Consolidating Statements of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME



	Six Months Ended June 30, 2018
	Parent Guarantor			Other Guarantors		Non-Guarantors			Eliminations			Consolidated
	(In millions)
Net income	$	309		$	1	$	386		$	(387	)	$	309
Other comprehensive loss, net of tax	(5		)	—		(5		)	5			(5		)
Comprehensive income	$	304		$	1	$	381		$	(382	)	$	304

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS



	Six Months Ended June 30, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
Net loss	$	(153	)	$	(66	)	$	(131	)	$	197		$	(153	)
Other comprehensive income, net of tax	1			—			1			(1		)	1
Comprehensive loss	$	(152	)	$	(66	)	$	(130	)	$	196		$	(152	)

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME



	Three Months Ended June 30, 2018
	Parent Guarantor		Other Guarantors		Non-Guarantors		Eliminations			Consolidated
	(In millions)
Net income	$	202	$	—	$	249	$	(249	)	$	202
Other comprehensive gain, net of tax	2		—		2		(2		)	2
Comprehensive income	$	204	$	—	$	251	$	(251	)	$	204

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)



	Three Months Ended June 30, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated
	(In millions)
Net loss	$	(230	)	$	(63	)	$	(178	)	$	241	$	(230	)
Other comprehensive income, net of tax	—			—			—			—		—
Comprehensive loss	$	(230	)	$	(63	)	$	(178	)	$	241	$	(230	)

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS



	June 30, 2018
	Parent Guarantor		Other Guarantors			Non-Guarantors			Eliminations			Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	235	$	2		$	3,155		$	—		$	3,392
Investments	105		—			2,071			—			2,176
Restricted investments	80		—			—			—			80
Receivables	2		—			1,146			—			1,148
Due from (to) affiliates	68		(6		)	(62		)	—			—
Prepaid expenses and other current assets	62		—			282			—			344
Derivative asset	657		—			—			—			657
Assets held for sale	—		230			—			—			230
Total current assets	1,209		226			6,592			—			8,027
Property, equipment, and capitalized software, net	196		—			80			—			276
Goodwill and intangible assets, net	14		—			187			—			201
Restricted investments	—		—			117			—			117
Investment in subsidiaries, net	2,761		76			—			(2,837		)	—
Deferred income taxes	33		—			99			(18		)	114
Other assets	39		—			5			(16		)	28
	$	4,252	$	302		$	7,080		$	(2,871	)	$	8,763

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable	$	2	$	—		$	1,918		$	—		$	1,920
Amounts due government agencies	—		—			1,746			—			1,746
Accounts payable and accrued liabilities	211		—			543			—			754
Deferred revenue	—		—			193			—			193
Current portion of long-term debt	484		—			—			—			484
Derivative liability	657		—			—			—			657
Liabilities held for sale	—		66			—			—			66
Total current liabilities	1,354		66			4,400			—			5,820
Long-term debt	1,217		—			16			(16		)	1,217
Deferred income taxes	—		18			—			(18		)	—
Other long-term liabilities	23		1			44			—			68
Total liabilities	2,594		85			4,460			(34		)	7,105
Total stockholders’ equity	1,658		217			2,620			(2,837		)	1,658
	$	4,252	$	302		$	7,080		$	(2,871	)	$	8,763

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
Due from (to) affiliates	148		(6		)	(142		)	—			—
Prepaid expenses and other current assets	103		14			138			(16		)	239
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
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		103			7			(1		)	141
	$	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

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



	Six Months Ended June 30, 2018
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated
	(In millions)
Operating activities:
Net cash provided by operating activities	$	49		$	9		$	256		$	—	$	314
Investing activities:
Purchases of investments	(136		)	—			(778		)	—		(914		)
Proceeds from sales and maturities of investments	303			—			1,032			—		1,335
Purchases of property, equipment and capitalized software	(9		)	(3		)	(2		)	—		(14		)
Capital contributions to subsidiaries	(117		)	—			117			—		—
Dividends from subsidiaries	60			(10		)	(50		)	—		—
Change in amounts due to/from affiliates	75			1			(76		)	—		—
Other, net	—			(14		)	5			—		(9		)
Net cash provided (used in) by investing activities	176			(26		)	248			—		398
Financing activities:
Repayment of credit facility	(300		)	—			—			—		(300		)
Repayment of 1.125% Convertible Notes	(89		)	—			—			—		(89		)
Cash paid for partial settlement of 1.125% Conversion Option	(134		)	—			—			—		(134		)
Cash received for partial termination of 1.125% Call Option	134			—			—			—		134
Cash paid for partial termination of 1.125% Warrants	(113		)	—			—			—		(113		)
Other, net	(1		)	—			—			—		(1		)
Net cash used in financing activities	(503		)	—			—			—		(503		)
Net (decrease) increase in cash, cash equivalents, and restricted cash and cash equivalents	(278		)	(17		)	504			—		209
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period	513			28			2,749			—		3,290
Cash, cash equivalents, and restricted cash and cash equivalents at end of period	$	235		$	11		$	3,253		$	—	$	3,499



	Six Months Ended June 30, 2017
	Parent Guarantor			Other Guarantors			Non-Guarantors			Eliminations		Consolidated
	(In millions)
Operating activities:
Net cash provided by operating activities	$	90		$	44		$	538		$	—	$	672
Investing activities:
Purchases of investments	(330		)	—			(1,306		)	—		(1,636		)
Proceeds from sales and maturities of investments	127			—			747			—		874
Purchases of property, equipment and capitalized software	(45		)	(9		)	(6		)	—		(60		)
Capital contributions to subsidiaries	(238		)	2			236			—		—
Dividends from subsidiaries	120			—			(120		)	—		—
Change in amounts due to/from affiliates	(34		)	2			32			—		—
Other, net	—			(13		)	(11		)	—		(24		)
Net cash used in investing activities	(400		)	(18		)	(428		)	—		(846		)
Financing activities:
Proceeds from senior notes offerings, net of issuance costs	325			—			—			—		325
Other, net	8			—			—			—		8
Net cash provided by financing activities	333			—			—			—		333
Net increase in cash, cash equivalents, and restricted cash and cash equivalents	23			26			110			—		159
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period	86			6			2,820			—		2,912
Cash, cash equivalents, and restricted cash and cash equivalents at end of period	$	109		$	32		$	2,930		$	—	$	3,071

Basis of Presentation (Details) $ in Millions	3 Months Ended		6 Months Ended
Basis of Presentation (Details) $ in Millions	Jun. 30, 2018 USD ($) member State	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) member State Segment	Jun. 30, 2017 USD ($)
Basis Of Presentation [Line Items]
Number of reportable segments (in segment) \| Segment			3
Health Plans
Basis Of Presentation [Line Items]
Number of states in which entity operates (in state) \| State	13		13
Number of members eligible for the health care programs, approximately (in member) \| member	4,100,000		4,100,000
Minimum contract terms			3 years
Maximum contract terms			5 years
Puerto Rico
Basis Of Presentation [Line Items]
Number of members served, approximately (in member) \| member	326,000		326,000
Florida
Basis Of Presentation [Line Items]
Number of members served, approximately (in member) \| member	96,000		96,000
Washington
Basis Of Presentation [Line Items]
Number of members served, approximately (in member) \| member	742,000		742,000
Health Care, Premium
Basis Of Presentation [Line Items]
Revenue \| $	$ 4,514	$ 4,740	$ 8,837	$ 9,388
Health Care, Premium \| Puerto Rico \| Health Plans
Basis Of Presentation [Line Items]
Revenue \| $			370
Health Care, Premium \| Florida \| Health Plans
Basis Of Presentation [Line Items]
Revenue \| $			232
Health Care, Premium \| Washington \| Health Plans
Basis Of Presentation [Line Items]
Revenue \| $			$ 1,083

Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Cash and cash equivalents	$ 3,392	$ 3,186	$ 2,979
Restricted cash and cash equivalents	98		92
Cash and cash equivalents reported in assets held for sale	9		0
Total cash, cash equivalents, and restricted cash and cash equivalents presented in the statements of cash flows	$ 3,499	$ 3,290	$ 3,071	$ 2,912

Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Schedule of Premium Revenue by Health Plan Type [Line Items]
Amounts due government agencies	$ 1,746	$ 1,542
Risk adjustment receivable (payable)	1,159	912
Service revenue relating to unsatisfied performance obligations	638
Restricted cash and cash equivalents	98		$ 92
Medicaid Expansion
Schedule of Premium Revenue by Health Plan Type [Line Items]
Amounts due government agencies	97	96
Medical Premium Liability Due to Agency
Schedule of Premium Revenue by Health Plan Type [Line Items]
Medical premiums liability based on medical cost thresholds	144	$ 135
CMS Subsidies
Schedule of Premium Revenue by Health Plan Type [Line Items]
Operating expense	$ 76

Significant Accounting Policies - Quality Incentive Premium Revenue Recognized (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Schedule of Premium Revenue by Health Plan Type [Line Items]
Maximum available quality incentive premium - current period	$ 47	$ 39	$ 87	$ 77
Quality incentive premium revenue recognized in current period:
Earned current period	34	29	58	48
Earned prior periods	12	1	23	6
Total	$ 46	$ 30	$ 81	$ 54
Quality incentive premium revenue recognized as a percentage of total premium revenue	1.00%	0.60%	0.90%	0.60%
Minimum \| Select Health Plans
Schedule of Premium Revenue by Health Plan Type [Line Items]
Percentage of additional incremental revenue earned			1.00%
Maximum \| Select Health Plans
Schedule of Premium Revenue by Health Plan Type [Line Items]
Percentage of additional incremental revenue earned			3.00%

Significant Accounting Policies - Segment reporting (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Molina Medicaid Solutions
Segment Reporting Information [Line Items]
Receivables:	$ 34	$ 30
Deferred contract costs (contract assets) – Molina Medicaid Solutions	109	101
Deferred revenue (contract liabilities) – Molina Medicaid Solutions	39	49
Other segment
Segment Reporting Information [Line Items]
Receivables:	$ 40	$ 44

Net Income (Loss) per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Numerator:
Net income (loss)	$ 202	$ (230)	$ 309	$ (153)
Denominator:
Shares outstanding at the beginning of the period (in shares)					61	59	56	56
1.625% Exchange (in shares)	0	0	2	0
Denominator for basic net income per share (in shares)	61	56	61	56
Effect of dilutive securities:
1.625% Convertible Notes (in shares)	1	0	0	0
1.125% Warrants (in shares)	5	0	5	0
Denominator for diluted net income per share (in shares)	67	56	66	56
Net income (loss) per share:
Basic (in dollars per share)	$ 3.29	$ (4.10)	$ 5.10	$ (2.74)
Diluted (in dollars per share)	$ 3.02	$ (4.10)	$ 4.68	$ (2.74)
Cash Convertible Senior Notes Due 2020, Warrants
Potentially dilutive common shares excluded from calculations:
Stated percentage of warrants	1.125%		1.125%
1.125% Warrants
Potentially dilutive common shares excluded from calculations:
1.125% Warrants (in shares)	0	2	0	1
Convertible Notes \| 1.625% Convertible Notes
Potentially dilutive common shares excluded from calculations:
Percentage of contractual interest rate	1.625%		1.625%

Fair Value Measurements - Details of Long-Term Debt (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Jun. 06, 2017
1.125% Convertible Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of contractual interest rate on Notes	1.125%
Senior Notes \| 5.375% Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of contractual interest rate on Notes	5.375%
Senior Notes \| 4.875% Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of contractual interest rate on Notes	4.875%		4.875%
Convertible Notes \| 1.125% Convertible Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of contractual interest rate on Notes	1.125%	1.125%
Convertible Notes \| 1.625% Convertible Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of contractual interest rate on Notes	1.625%
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of debt	$ 1,502	$ 1,970
Carrying Amount \| Senior Notes \| 5.375% Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of debt	693	692
Carrying Amount \| Senior Notes \| 4.875% Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of debt	326	325
Carrying Amount \| Convertible Notes \| 1.125% Convertible Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of debt	420	496
Carrying Amount \| Convertible Notes \| 1.625% Convertible Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of debt	63	157
Carrying Amount \| Credit Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of debt	0	300
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of debt	2,232	2,631
Fair Value \| Senior Notes \| 5.375% Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of debt	706	730
Fair Value \| Senior Notes \| 4.875% Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of debt	320	329
Fair Value \| Convertible Notes \| 1.125% Convertible Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of debt	1,099	1,052
Fair Value \| Convertible Notes \| 1.625% Convertible Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of debt	107	220
Fair Value \| Credit Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of debt	0	300
Current liabilities: Derivative liability \| 1.125% Conversion Option
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities	$ 657	$ 522

Investments - Summary of Investments (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Jun. 06, 2017
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 2,270	$ 2,700
Gross Unrealized Gains	0	1
Gross Unrealized Losses	14	8
Estimated Fair Value	2,256	2,693
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	55	101
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	55	101
U.S. treasury notes
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	25	68
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	25	68
Subtotal - current restricted investments
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	80	169
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	80	169
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,390	1,591
Gross Unrealized Gains	0	1
Gross Unrealized Losses	8	4
Estimated Fair Value	1,382	1,588
U.S. treasury notes
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	331	389
Gross Unrealized Gains	0	0
Gross Unrealized Losses	1	1
Estimated Fair Value	330	388
GSEs
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	209	255
Gross Unrealized Gains	0	0
Gross Unrealized Losses	2	2
Estimated Fair Value	207	253
Municipal securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	138	142
Gross Unrealized Gains	0	0
Gross Unrealized Losses	2	1
Estimated Fair Value	136	141
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	100	117
Gross Unrealized Gains	0	0
Gross Unrealized Losses	1	0
Estimated Fair Value	99	117
Certificate of deposit
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	19	37
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	19	37
Other
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Estimated Fair Value	3
Subtotal - current investments
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,190	2,531
Gross Unrealized Gains	0	1
Gross Unrealized Losses	14	8
Estimated Fair Value	$ 2,176	$ 2,524
Senior Notes \| 4.875% Notes
Debt Securities, Available-for-sale [Line Items]
Percentage of contractual interest rate	4.875%		4.875%

Investments - Contractual Maturities of Investments (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Amortized Cost
Due in one year or less	$ 1,356
Due after one year through five years	914
Amortized Cost	2,270	$ 2,700
Estimated Fair Value
Due in one year or less	1,354
Due after one year through five years	902
Estimated Fair Value	$ 2,256

Investments - Available-for-Sale Investments (Details) $ in Millions	Jun. 30, 2018 USD ($) Security	Dec. 31, 2017 USD ($) Security
Debt Securities, Available-for-sale [Line Items]
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value	$ 1,354	$ 1,940
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses	$ 10	$ 5
In a Continuous Loss Position for Less than 12 Months, Number of Positions (in security) \| Security	725	719
In a Continuous Loss Position for 12 Months or More, Estimated Fair value	$ 269	$ 227
In a Continuous Loss Position for 12 Months or More, Unrealized Losses	$ 4	$ 3
In a Continuous Loss Position for 12 Months or More, Number of Positions (in security) \| Security	180	164
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value	$ 959	$ 1,297
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses	$ 7	$ 3
In a Continuous Loss Position for Less than 12 Months, Number of Positions (in security) \| Security	535	561
In a Continuous Loss Position for 12 Months or More, Estimated Fair value	$ 116	$ 94
In a Continuous Loss Position for 12 Months or More, Unrealized Losses	$ 1	$ 1
In a Continuous Loss Position for 12 Months or More, Number of Positions (in security) \| Security	72	69
U.S. treasury notes
Debt Securities, Available-for-sale [Line Items]
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value	$ 224	$ 470
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses	$ 1	$ 1
In a Continuous Loss Position for Less than 12 Months, Number of Positions (in security) \| Security	52	89
In a Continuous Loss Position for 12 Months or More, Estimated Fair value	$ 0	$ 0
In a Continuous Loss Position for 12 Months or More, Unrealized Losses	$ 0	$ 0
In a Continuous Loss Position for 12 Months or More, Number of Positions (in security) \| Security	0	0
GSEs
Debt Securities, Available-for-sale [Line Items]
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value	$ 0	$ 173
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses	$ 0	$ 1
In a Continuous Loss Position for Less than 12 Months, Number of Positions (in security) \| Security	0	69
In a Continuous Loss Position for 12 Months or More, Estimated Fair value	$ 113	$ 95
In a Continuous Loss Position for 12 Months or More, Unrealized Losses	$ 2	$ 1
In a Continuous Loss Position for 12 Months or More, Number of Positions (in security) \| Security	56	47
Municipal securities
Debt Securities, Available-for-sale [Line Items]
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value		$ 0
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses	$ 1	$ 0
In a Continuous Loss Position for Less than 12 Months, Number of Positions (in security) \| Security	79	0
In a Continuous Loss Position for 12 Months or More, Estimated Fair value	$ 40	$ 38
In a Continuous Loss Position for 12 Months or More, Unrealized Losses	$ 1	$ 1
In a Continuous Loss Position for 12 Months or More, Number of Positions (in security) \| Security	52	48
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value	$ 90
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses	$ 1
In a Continuous Loss Position for Less than 12 Months, Number of Positions (in security) \| Security	59
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
In a Continuous Loss Position for 12 Months or More, Number of Positions (in security) \| Security	0

Investments - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Restricted investments	$ 117	$ 119

Medical Claims and Benefits Payable - Medical Claims and Future Benefits (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Fee-for-service claims incurred but not paid (IBNP)	$ 1,510	$ 1,717
Pharmacy payable	116	112
Capitation payable	49	67
Other	245	296
Medical claims and benefits payable	$ 1,920	$ 2,192	$ 2,077	$ 1,929

Medical Claims and Benefits Payable - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Other Liabilities Disclosure [Abstract]
Non-risk provider payables	$ 158		$ 122
Liability for Claims and Claims Adjustment Expense [Line Items]
Expense (recovery) for prior period claims development	$ 222	$ 31
Minimum
Liability for Claims and Claims Adjustment Expense [Line Items]
Percentage of IBNP not expected to be paid	8.00%
Maximum
Liability for Claims and Claims Adjustment Expense [Line Items]
Percentage of IBNP not expected to be paid	10.00%

Medical Claims and Benefits Payable - Components of Change in Medical Claims and Benefits Payable (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Insurance Claims
Medical claims and benefits payable, beginning balance	$ 2,192	$ 1,929
Components of medical care costs related to:
Current period	7,794	8,633
Prior periods	(222)	(31)
Total medical care costs	7,572	8,602
Change in non-risk provider payables	56	(114)
Payments for medical care costs related to:
Current period	6,248	6,883
Prior periods	1,652	1,457
Total paid	7,900	8,340
Medical claims and benefits payable, ending balance	$ 1,920	$ 2,077

Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Jun. 06, 2017
Current portion of long-term debt:
Lease financing obligations	$ 1	$ 1
Debt issuance costs	(2)	(4)
Current portion of long-term debt	484	653
Non-current portion of long-term debt:
Debt issuance costs	(11)	(12)
Senior notes	1,019	1,318
Lease financing obligations	198	198
Total debt	$ 1,701	2,169
1.125% Convertible Notes
Non-current portion of long-term debt:
Percentage of contractual interest rate on Notes	1.125%
Convertible Notes \| 1.125% Convertible Notes
Current portion of long-term debt:
Debt net of unamortized discount	$ 422	$ 499
Non-current portion of long-term debt:
Percentage of contractual interest rate on Notes	1.125%	1.125%
Convertible Notes \| 1.625% Convertible Notes
Current portion of long-term debt:
Debt net of unamortized discount	$ 63	$ 157
Non-current portion of long-term debt:
Percentage of contractual interest rate on Notes	1.625%
Senior Notes \| 5.375% Notes
Non-current portion of long-term debt:
Debt net of unamortized debt discount	$ 700	700
Percentage of contractual interest rate on Notes	5.375%
Senior Notes \| 4.875% Notes
Non-current portion of long-term debt:
Debt net of unamortized debt discount	$ 330	330
Percentage of contractual interest rate on Notes	4.875%		4.875%
Credit Facility
Non-current portion of long-term debt:
Debt net of unamortized debt discount	$ 0	$ 300

Debt - Interest Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Debt - Interest Expense (Details) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Debt Disclosure [Abstract]
Contractual interest at coupon rate	$ 2	$ 3	$ 4	$ 6
Amortization of the discount	6	8	13	16
Interest expense, debt	$ 8	$ 11	$ 17	$ 22

Debt - Additional Information (Details) $ / shares in Units, shares in Millions	1 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2018 shares	Dec. 31, 2017 USD ($)	Jun. 30, 2018 USD ($) $ / shares	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)	Jan. 31, 2018 USD ($)	Jun. 06, 2017 USD ($)	Jan. 31, 2017 USD ($)
Debt Instrument [Line Items]
Restricted investments transferred to unrestricted investments during period			$ 94,000,000
Restricted investments		$ 169,000,000	80,000,000		$ 169,000,000
Cash paid for partial settlement of conversion option			134,000,000	$ 0
Debt conversion			21,000,000
Loss on debt extinguishment			$ 15,000,000	$ 0
Bridge Credit Agreement
Debt Instrument [Line Items]
Face amount						$ 550,000,000
Acquisition financings						300,000,000
Future reduction to face amount						$ 150,000,000
1.125% Convertible Notes
Debt Instrument [Line Items]
Percentage of contractual interest rate on Notes			1.125%
Senior Notes \| 4.875% Notes
Debt Instrument [Line Items]
Face amount							$ 330,000,000
Percentage of contractual interest rate on Notes			4.875%				4.875%
Senior Notes \| 5.375% Notes
Debt Instrument [Line Items]
Percentage of contractual interest rate on Notes			5.375%
Aggregate principal amount of notes outstanding			$ 700,000,000
Line of Credit \| Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity								$ 500,000,000
Term of debt instrument			5 years
Current borrowing capacity			$ 494,000,000
Line of Credit \| Letter of Credit
Debt Instrument [Line Items]
Amount outstanding under Letter of Credit			$ 6,000,000
Convertible Notes \| 1.125% Convertible Notes
Debt Instrument [Line Items]
Percentage of contractual interest rate on Notes		1.125%	1.125%		1.125%
Repayments of principal			$ 96,000,000
Repayments of debt			228,000,000
Cash paid for partial settlement of conversion option			132,000,000
Aggregate principal amount of notes outstanding			$ 454,000,000
Conversion ratio			0.0245277
Conversion price per share of common stock (in dollars per share) \| $ / shares			$ 40.77
Stock price trigger (in dollars per share) \| $ / shares			$ 53.00
Effective interest percentage			6.00%
Remaining amortization period			1 year 6 months
If-converted value			$ 503,000,000		$ 406,000,000
Loss on debt extinguishment			$ 5,000,000
Convertible Notes \| 1.625% Convertible Notes
Debt Instrument [Line Items]
Term of debt instrument			4 years
Percentage of contractual interest rate on Notes			1.625%
Aggregate principal amount of notes outstanding			$ 64,000,000
Conversion ratio			0.0172157
Conversion price per share of common stock (in dollars per share) \| $ / shares			$ 58.09
Effective interest percentage			5.00%
If-converted value			$ 39,000,000		50,000,000
Debt conversion		$ 97,000,000
Debt conversion (in shares) \| shares	1.8
Loss on debt extinguishment			$ 10,000,000
Discount amortization period			1 month
Carrying amount of equity component		$ 12,000,000	$ 5,000,000		$ 12,000,000

Derivatives (Details) - USD ($) $ in Millions	6 Months Ended
Derivatives (Details) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Derivative [Line Items]
Cash received for partial termination of 1.125% Call Option	$ 134	$ 0
Cash paid for partial termination of 1.125% Warrants	113	$ 0
Debt conversion, net cash receipts	$ 21
1.125% Convertible Notes
Derivative [Line Items]
Percentage of contractual interest rate on Notes	1.125%
1.125% Call Option
Derivative [Line Items]
Percentage of contractual interest rate on Call Option	1.125%
1.125% Conversion Option derivative liability
Derivative [Line Items]
Percentage of contractual interest rate on Call Option	1.125%
Cash received for partial termination of 1.125% Call Option	$ 134
Current assets: Derivative asset \| 1.125% Call Option
Derivative [Line Items]
Derivative assets	657		$ 522
Current liabilities: Derivative liability \| 1.125% Conversion Option derivative liability
Derivative [Line Items]
Derivative liabilities	657		$ 522
Cash Convertible Senior Notes Due 2020, Warrants
Derivative [Line Items]
Cash paid for partial termination of 1.125% Warrants	$ 113

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	6 Months Ended		12 Months Ended
	Mar. 31, 2018	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2013
Class of Stock [Line Items]
Number of warrants issued (in shares)				13,490,236
Warrant, strike price per share (in dollars per share)				$ 53.8475
Cash paid for partial termination of 1.125% Warrants		$ 113	$ 0
Unrecognized compensation expense		$ 46
Unrecognized compensation forfeiture rate		10.80%
Stock options granted (in shares)		0
Stock options exercised (in shares)		0
Restricted Stock Awards
Class of Stock [Line Items]
Weighted average period for recognition		3 years 1 month
Performance Stock Awards
Class of Stock [Line Items]
Weighted average period for recognition		8 months
Performance Stock Units
Class of Stock [Line Items]
Weighted average period for recognition		2 years 7 months
Employee Stock Option
Class of Stock [Line Items]
Unrecognized compensation expense		$ 12
Weighted average period for recognition		2 years 3 months
Common Stock
Class of Stock [Line Items]
Number of common stock issued (in shares)		276,000
1.625% Convertible Notes \| Convertible Notes
Class of Stock [Line Items]
Debt conversion (in shares)	1,800,000
Cash Convertible Senior Notes Due 2020, Warrants
Class of Stock [Line Items]
Stated percentage of warrants		1.125%
Cash paid for partial termination of 1.125% Warrants		$ 113
Number of warrants terminated (in shares)		2,400,000
Warrants outstanding (in shares)		11,100,000

Stockholders' Equity - Share Activity (Details)	6 Months Ended
Stockholders' Equity - Share Activity (Details)	Jun. 30, 2018 $ / shares shares
Number of Shares
Beginning Balance (shares)	578,394
Granted (shares)	558,460
Vested (shares)	(216,524)
Forfeited (shares)	(274,711)
Ending Balance (shares)	645,619
Weighted Average Grant Date Fair Value
Begining Balance (usd per share) \| $ / shares	$ 58.35
Granted (usd per share) \| $ / shares	73.43
Vested (usd per share) \| $ / shares	57.04
Forfeited (usd per share) \| $ / shares	63.38
Ending Balance (usd per share) \| $ / shares	$ 69.69
Restricted Stock Awards
Number of Shares
Beginning Balance (shares)	401,804
Granted (shares)	346,491
Vested (shares)	(183,595)
Forfeited (shares)	(124,690)
Ending Balance (shares)	440,010
Performance Stock Awards
Number of Shares
Beginning Balance (shares)	84,762
Granted (shares)	0
Vested (shares)	(32,929)
Forfeited (shares)	(48,701)
Ending Balance (shares)	3,132
Performance Stock Units
Number of Shares
Beginning Balance (shares)	91,828
Granted (shares)	211,969
Vested (shares)	0
Forfeited (shares)	(101,320)
Ending Balance (shares)	202,477

Stockholders' Equity - Fair Value of Awards Granted and Vested (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total fair value of awards granted	$ 41	$ 35
Total fair value of awards vested	17	44
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total fair value of awards granted	25	19
Total fair value of awards vested	14	20
Performance Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total fair value of awards vested	3	15
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total fair value of awards granted	16	16
Total fair value of awards vested	$ 0	$ 9

Restructuring and Separation Costs - Other Restructuring Costs (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
Restructuring Reserve
Accrued as of December 31, 2017	$ 48
Adjustments	7
Charges	8
Cash payments	(30)
Accrued as of June 30, 2018	33
Separation Costs - Former Executives
Restructuring Reserve
Accrued as of December 31, 2017	2
Adjustments	0
Charges	0
Cash payments	(2)
Accrued as of June 30, 2018	0
One-Time Termination Benefits
Restructuring Reserve
Accrued as of December 31, 2017	11
Adjustments	(1)
Charges	6
Cash payments	(15)
Accrued as of June 30, 2018	1
Other Restructuring Costs
Restructuring Reserve
Accrued as of December 31, 2017	35
Adjustments	8
Charges	2
Cash payments	(13)
Accrued as of June 30, 2018	$ 32

Restructuring and Separation Costs - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended	18 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
Restructuring and separation costs	$ 8	$ 43	$ 33	$ 43	$ 234	$ 267

Segments - Additional Information (Details)	6 Months Ended
Segments - Additional Information (Details)	Jun. 30, 2018 Segment
Segment Reporting [Abstract]
Number of reportable segments (in segment)	3

Segments - Schedule of Operating Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Balance Sheet [Abstract]
Cash and cash equivalents	$ 3,392	$ 2,979	$ 3,392	$ 2,979	$ 3,186
Total assets held for sale	230		230		0
Total liabilities	66		66		$ 0
Income Statement [Abstract]
Total revenue	4,883	4,999	9,529	9,903
Health Plans
Income Statement [Abstract]
Total revenue	4,752	4,868	9,261	9,639
Molina Medicaid Solutions
Balance Sheet [Abstract]
Cash and cash equivalents	9		9
Receivables and prepaid expenses	41		41
Goodwill and property, equipment, and capitalized software, net	70		70
Deferred contract costs and other assets	110		110
Total assets held for sale	230		230
Accounts payable and accrued and other liabilities	27		27
Deferred revenue	39		39
Total liabilities	66		66
Income Statement [Abstract]
Total revenue	48	47	99	93
Other
Income Statement [Abstract]
Total revenue	$ 83	$ 84	$ 169	$ 171

Segments - Reconciliation of Gross Margin to Consolidated Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Add: other operating revenues	$ 4,883	$ 4,999	$ 9,529	$ 9,903
Less: other operating expenses	(4,541)	(5,286)	(8,965)	(10,108)
Operating income (loss)	342	(287)	564	(205)
Other expenses (income), net	37	27	80	(22)
Income (loss) before income tax expense (benefit)	305	(314)	484	(183)
Health Plans
Segment Reporting Information [Line Items]
Add: other operating revenues	4,752	4,868	9,261	9,639
Molina Medicaid Solutions
Segment Reporting Information [Line Items]
Add: other operating revenues	48	47	99	93
Other
Segment Reporting Information [Line Items]
Add: other operating revenues	83	84	169	171
Operating Segments
Segment Reporting Information [Line Items]
Gross margin	673	254	1,288	800
Operating Segments \| Health Plans
Segment Reporting Information [Line Items]
Gross margin	664	249	1,265	786
Operating Segments \| Molina Medicaid Solutions
Segment Reporting Information [Line Items]
Gross margin	4	4	12	8
Operating Segments \| Other
Segment Reporting Information [Line Items]
Gross margin	5	1	11	6
Other operating
Segment Reporting Information [Line Items]
Add: other operating revenues	242	130	431	255
Less: other operating expenses	$ (573)	$ (671)	$ (1,155)	$ (1,260)

Commitments and Contingencies (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Entity Information [Line Items]
Net assets of subsidiaries subject to restrictions	$ 2,008	$ 1,691
Aggregate statutory capital and surplus	2,152
Required minimum statutory capital surplus	1,180
Parent Company
Entity Information [Line Items]
Cash, cash equivalents, and investments (excluding restricted investments)	$ 350	$ 696

Supplemental Condensed Consolidating Financial Information - Additional Information (Details) - Senior Notes - 5.375% Notes $ in Millions	Jun. 30, 2018 USD ($)
Condensed Financial Statements, Captions [Line Items]
Aggregate principal amount of notes outstanding	$ 700
Percentage of contractual interest rate on Notes	5.375%

Supplemental Condensed Consolidating Financial Information - Statements of Operations (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended	18 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Jun. 30, 2018
Revenue:
Total revenue	$ 4,883	$ 4,999	$ 9,529	$ 9,903
Expenses:
General and administrative expenses	335	405	687	844
Premium tax expenses	106	114	210	225
Health insurer fees	99	0	174	0
Depreciation and amortization	25	37	51	76
Impairment losses	0	72	0	72
Restructuring and separation costs	8	43	33	43	$ 234	$ 267
Total operating expenses	4,541	5,286	8,965	10,108
Operating income (loss)	342	(287)	564	(205)
Interest expense	32	27	65	53
Other expense (income), net	5	0	15	(75)
Income (loss) before income tax expense (benefit)	305	(314)	484	(183)
Income tax expense (benefit)	103	(84)	175	(30)
Net loss before equity in net losses of subsidiaries	202	(230)	309	(153)
Equity in net earnings of subsidiaries	0	0	0	0
Net income (loss)	202	(230)	309	(153)
Eliminations
Revenue:
Total revenue	(261)	(293)	(592)	(635)
Expenses:
General and administrative expenses	(261)	(293)	(592)	(635)
Premium tax expenses	0	0	0	0
Health insurer fees	0		0
Depreciation and amortization	0	0	0	0
Impairment losses		0		0
Restructuring and separation costs	0	0	0	0
Total operating expenses	(261)	(293)	(592)	(635)
Operating income (loss)	0	0	0	0
Interest expense	0	0	0	0
Other expense (income), net	0		0	0
Income (loss) before income tax expense (benefit)	0	0	0	0
Income tax expense (benefit)	0	0	0	0
Net loss before equity in net losses of subsidiaries	0	0	0	0
Equity in net earnings of subsidiaries	(249)	241	(387)	197
Net income (loss)	(249)	241	(387)	197
Parent Guarantor \| Reportable Legal Entities
Revenue:
Total revenue	261	289	594	630
Expenses:
General and administrative expenses	252	258	519	555
Premium tax expenses	0	0	0	0
Health insurer fees	0		0
Depreciation and amortization	18	25	36	52
Impairment losses		0		0
Restructuring and separation costs	(1)	43	25	43
Total operating expenses	272	329	587	657
Operating income (loss)	(11)	(40)	7	(27)
Interest expense	31	27	64	53
Other expense (income), net	5		15	(75)
Income (loss) before income tax expense (benefit)	(47)	(67)	(72)	(5)
Income tax expense (benefit)	1	(14)	10	17
Net loss before equity in net losses of subsidiaries	(48)	(53)	(82)	(22)
Equity in net earnings of subsidiaries	250	(177)	391	(131)
Net income (loss)	202	(230)	309	(153)
Other Guarantors \| Reportable Legal Entities
Revenue:
Total revenue	49	51	101	99
Expenses:
General and administrative expenses	3	7	7	14
Premium tax expenses	0	0	0	0
Health insurer fees	0		0
Depreciation and amortization	0	0	0	0
Impairment losses		0		0
Restructuring and separation costs	0	0	0	0
Total operating expenses	47	50	94	99
Operating income (loss)	2	1	7	0
Interest expense	0	0	0	0
Other expense (income), net	0		0	0
Income (loss) before income tax expense (benefit)	2	1	7	0
Income tax expense (benefit)	1	0	2	0
Net loss before equity in net losses of subsidiaries	1	1	5	0
Equity in net earnings of subsidiaries	(1)	(64)	(4)	(66)
Net income (loss)	0	(63)	1	(66)
Non-Guarantors \| Reportable Legal Entities
Revenue:
Total revenue	4,834	4,952	9,426	9,809
Expenses:
General and administrative expenses	341	433	753	910
Premium tax expenses	106	114	210	225
Health insurer fees	99		174
Depreciation and amortization	7	12	15	24
Impairment losses		72		72
Restructuring and separation costs	9	0	8	0
Total operating expenses	4,483	5,200	8,876	9,987
Operating income (loss)	351	(248)	550	(178)
Interest expense	1	0	1	0
Other expense (income), net	0		0	0
Income (loss) before income tax expense (benefit)	350	(248)	549	(178)
Income tax expense (benefit)	101	(70)	163	(47)
Net loss before equity in net losses of subsidiaries	249	(178)	386	(131)
Equity in net earnings of subsidiaries	0	0	0	0
Net income (loss)	249	(178)	386	(131)
Health Care, Premium
Expenses:
Cost of revenue	3,850	4,491	7,572	8,602
Health Care, Premium \| Eliminations
Expenses:
Cost of revenue	0	0	0	0
Health Care, Premium \| Parent Guarantor \| Reportable Legal Entities
Expenses:
Cost of revenue	3	3	7	7
Health Care, Premium \| Other Guarantors \| Reportable Legal Entities
Expenses:
Cost of revenue	0	0	0	0
Health Care, Premium \| Non-Guarantors \| Reportable Legal Entities
Expenses:
Cost of revenue	3,847	4,488	7,565	8,595
Technology Service
Expenses:
Cost of revenue	118	124	238	246
Technology Service \| Eliminations
Expenses:
Cost of revenue	0	0	0	0
Technology Service \| Parent Guarantor \| Reportable Legal Entities
Expenses:
Cost of revenue	0	0	0	0
Technology Service \| Other Guarantors \| Reportable Legal Entities
Expenses:
Cost of revenue	44	43	87	85
Technology Service \| Non-Guarantors \| Reportable Legal Entities
Expenses:
Cost of revenue	$ 74	$ 81	$ 151	$ 161

Supplemental Condensed Consolidating Financial Information - Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Statement of Income Captions [Line Items]
Net income (loss)	$ 202	$ (230)	$ 309	$ (153)
Other comprehensive income, net of tax	2	0	(5)	1
Comprehensive income (loss)	204	(230)	304	(152)
Eliminations
Condensed Statement of Income Captions [Line Items]
Net income (loss)	(249)	241	(387)	197
Other comprehensive income, net of tax	(2)	0	5	(1)
Comprehensive income (loss)	(251)	241	(382)	196
Parent Guarantor \| Reportable Legal Entities
Condensed Statement of Income Captions [Line Items]
Net income (loss)	202	(230)	309	(153)
Other comprehensive income, net of tax	2	0	(5)	1
Comprehensive income (loss)	204	(230)	304	(152)
Other Guarantors \| Reportable Legal Entities
Condensed Statement of Income Captions [Line Items]
Net income (loss)	0	(63)	1	(66)
Other comprehensive income, net of tax	0	0	0	0
Comprehensive income (loss)	0	(63)	1	(66)
Non-Guarantors \| Reportable Legal Entities
Condensed Statement of Income Captions [Line Items]
Net income (loss)	249	(178)	386	(131)
Other comprehensive income, net of tax	2	0	(5)	1
Comprehensive income (loss)	$ 251	$ (178)	$ 381	$ (130)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Supplemental Condensed Consolidating Financial Information - Balance Sheet (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 3,392	$ 3,186	$ 2,979
Investments	2,176	2,524
Restricted investments	80	169
Receivables	1,148	871
Due from (to) affiliates	0	0
Prepaid expenses and other current assets	344	239
Derivative asset	657	522
Assets held for sale	230	0
Total current assets	8,027	7,511
Property, equipment, and capitalized software, net	276	342
Goodwill and intangible assets, net	201	255
Restricted investments	117	119
Investment in subsidiaries, net	0	0
Deferred income taxes	114	103
Other assets	28	141
Total assets held for sale	8,763	8,471
Current liabilities:
Medical claims and benefits payable	1,920	2,192	$ 2,077	$ 1,929
Amounts due government agencies	1,746	1,542
Accounts payable and accrued liabilities	754	366
Deferred revenue	193	282
Current portion of long-term debt	484	653
Derivative liability	657	522
Liabilities held for sale	66	0
Total current liabilities	5,820	5,557
Long-term debt	1,217	1,516
Deferred income taxes	0	0
Other long-term liabilities	68	61
Total liabilities	7,105	7,134
Total stockholders’ equity	1,658	1,337
Total liabilities and stockholders' equity	8,763	8,471
Eliminations
Current assets:
Cash and cash equivalents	0	0
Investments	0	0
Restricted investments	0	0
Receivables	0	0
Due from (to) affiliates	0	0
Prepaid expenses and other current assets	0	(16)
Derivative asset	0	0
Assets held for sale	0
Total current assets	0	(16)
Property, equipment, and capitalized software, net	0	0
Goodwill and intangible assets, net	0	0
Restricted investments	0	0
Investment in subsidiaries, net	(2,837)	(2,388)
Deferred income taxes	(18)	(15)
Other assets	(16)	(1)
Total assets held for sale	(2,871)	(2,420)
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	0	(16)
Derivative liability	0	0
Liabilities held for sale	0
Total current liabilities	0	(16)
Long-term debt	(16)	0
Deferred income taxes	(18)	(15)
Other long-term liabilities	0	(1)
Total liabilities	(34)	(32)
Total stockholders’ equity	(2,837)	(2,388)
Total liabilities and stockholders' equity	(2,871)	(2,420)
Parent Guarantor \| Reportable Legal Entities
Current assets:
Cash and cash equivalents	235	504
Investments	105	192
Restricted investments	80	169
Receivables	2	2
Due from (to) affiliates	68	148
Prepaid expenses and other current assets	62	103
Derivative asset	657	522
Assets held for sale	0
Total current assets	1,209	1,640
Property, equipment, and capitalized software, net	196	223
Goodwill and intangible assets, net	14	15
Restricted investments	0	0
Investment in subsidiaries, net	2,761	2,306
Deferred income taxes	33	17
Other assets	39	32
Total assets held for sale	4,252	4,233
Current liabilities:
Medical claims and benefits payable	2	3
Amounts due government agencies	0	0
Accounts payable and accrued liabilities	211	178
Deferred revenue	0	0
Current portion of long-term debt	484	653
Derivative liability	657	522
Liabilities held for sale	0
Total current liabilities	1,354	1,356
Long-term debt	1,217	1,516
Deferred income taxes	0	0
Other long-term liabilities	23	24
Total liabilities	2,594	2,896
Total stockholders’ equity	1,658	1,337
Total liabilities and stockholders' equity	4,252	4,233
Other Guarantors \| Reportable Legal Entities
Current assets:
Cash and cash equivalents	2	28
Investments	0	0
Restricted investments	0	0
Receivables	0	30
Due from (to) affiliates	(6)	(6)
Prepaid expenses and other current assets	0	14
Derivative asset	0	0
Assets held for sale	230
Total current assets	226	66
Property, equipment, and capitalized software, net	0	33
Goodwill and intangible assets, net	0	43
Restricted investments	0	0
Investment in subsidiaries, net	76	82
Deferred income taxes	0	0
Other assets	0	103
Total assets held for sale	302	327
Current liabilities:
Medical claims and benefits payable	0	0
Amounts due government agencies	0	1
Accounts payable and accrued liabilities	0	40
Deferred revenue	0	49
Current portion of long-term debt	0	0
Derivative liability	0	0
Liabilities held for sale	66
Total current liabilities	66	90
Long-term debt	0	0
Deferred income taxes	18	15
Other long-term liabilities	1	2
Total liabilities	85	107
Total stockholders’ equity	217	220
Total liabilities and stockholders' equity	302	327
Non-Guarantors \| Reportable Legal Entities
Current assets:
Cash and cash equivalents	3,155	2,654
Investments	2,071	2,332
Restricted investments	0	0
Receivables	1,146	839
Due from (to) affiliates	(62)	(142)
Prepaid expenses and other current assets	282	138
Derivative asset	0	0
Assets held for sale	0
Total current assets	6,592	5,821
Property, equipment, and capitalized software, net	80	86
Goodwill and intangible assets, net	187	197
Restricted investments	117	119
Investment in subsidiaries, net	0	0
Deferred income taxes	99	101
Other assets	5	7
Total assets held for sale	7,080	6,331
Current liabilities:
Medical claims and benefits payable	1,918	2,189
Amounts due government agencies	1,746	1,541
Accounts payable and accrued liabilities	543	148
Deferred revenue	193	233
Current portion of long-term debt	0	16
Derivative liability	0	0
Liabilities held for sale	0
Total current liabilities	4,400	4,127
Long-term debt	16	0
Deferred income taxes	0	0
Other long-term liabilities	44	36
Total liabilities	4,460	4,163
Total stockholders’ equity	2,620	2,168
Total liabilities and stockholders' equity	$ 7,080	$ 6,331

Supplemental Condensed Consolidating Financial Information - Cash Flows (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities:
Net cash provided by operating activities	$ 314	$ 672
Investing activities:
Purchases of investments	(914)	(1,636)
Proceeds from sales and maturities of investments	1,335	874
Purchases of property, equipment and capitalized software	(14)	(60)
Capital contributions to subsidiaries	0	0
Dividends from subsidiaries	0	0
Change in amounts due to/from affiliates	0	0
Other, net	(9)	(24)
Net cash provided by (used in) investing activities	398	(846)
Financing activities:
Repayment of credit facility	(300)	0
Repayment of 1.125% Convertible Notes	(89)	0
Cash paid for partial settlement of 1.125% Conversion Option	(134)	0
Cash received for partial termination of 1.125% Call Option	134	0
Cash paid for partial termination of 1.125% Warrants	(113)	0
Proceeds from senior notes offerings, net of issuance costs		325
Other, net	(1)	8
Net cash (used in) provided by financing activities	(503)	333
Net increase in cash, cash equivalents, and restricted cash and cash equivalents	209	159
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period	3,290	2,912
Cash, cash equivalents, and restricted cash and cash equivalents at end of period	3,499	3,071
Eliminations
Operating activities:
Net cash provided by operating activities	0	0
Investing activities:
Purchases of investments	0	0
Proceeds from sales and maturities of investments	0	0
Purchases of property, equipment and capitalized software	0	0
Capital contributions to subsidiaries	0	0
Dividends from subsidiaries	0	0
Change in amounts due to/from affiliates	0	0
Other, net	0	0
Net cash provided by (used in) investing activities	0	0
Financing activities:
Repayment of credit facility	0
Repayment of 1.125% Convertible Notes	0
Cash paid for partial settlement of 1.125% Conversion Option	0
Cash received for partial termination of 1.125% Call Option	0
Cash paid for partial termination of 1.125% Warrants	0
Proceeds from senior notes offerings, net of issuance costs		0
Other, net	0	0
Net cash (used in) provided by financing activities	0	0
Net increase in cash, cash equivalents, and restricted cash and cash equivalents	0	0
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period	0	0
Cash, cash equivalents, and restricted cash and cash equivalents at end of period	0	0
Parent Guarantor \| Reportable Legal Entities
Operating activities:
Net cash provided by operating activities	49	90
Investing activities:
Purchases of investments	(136)	(330)
Proceeds from sales and maturities of investments	303	127
Purchases of property, equipment and capitalized software	(9)	(45)
Capital contributions to subsidiaries	(117)	(238)
Dividends from subsidiaries	60	120
Change in amounts due to/from affiliates	75	(34)
Other, net	0	0
Net cash provided by (used in) investing activities	176	(400)
Financing activities:
Repayment of credit facility	(300)
Repayment of 1.125% Convertible Notes	(89)
Cash paid for partial settlement of 1.125% Conversion Option	(134)
Cash received for partial termination of 1.125% Call Option	134
Cash paid for partial termination of 1.125% Warrants	(113)
Proceeds from senior notes offerings, net of issuance costs		325
Other, net	(1)	8
Net cash (used in) provided by financing activities	(503)	333
Net increase in cash, cash equivalents, and restricted cash and cash equivalents	(278)	23
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period	513	86
Cash, cash equivalents, and restricted cash and cash equivalents at end of period	235	109
Other Guarantors \| Reportable Legal Entities
Operating activities:
Net cash provided by operating activities	9	44
Investing activities:
Purchases of investments	0	0
Proceeds from sales and maturities of investments	0	0
Purchases of property, equipment and capitalized software	(3)	(9)
Capital contributions to subsidiaries	0	2
Dividends from subsidiaries	(10)	0
Change in amounts due to/from affiliates	1	2
Other, net	(14)	(13)
Net cash provided by (used in) investing activities	(26)	(18)
Financing activities:
Repayment of credit facility	0
Repayment of 1.125% Convertible Notes	0
Cash paid for partial settlement of 1.125% Conversion Option	0
Cash received for partial termination of 1.125% Call Option	0
Cash paid for partial termination of 1.125% Warrants	0
Proceeds from senior notes offerings, net of issuance costs		0
Other, net	0	0
Net cash (used in) provided by financing activities	0	0
Net increase in cash, cash equivalents, and restricted cash and cash equivalents	(17)	26
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period	28	6
Cash, cash equivalents, and restricted cash and cash equivalents at end of period	11	32
Non-Guarantors \| Reportable Legal Entities
Operating activities:
Net cash provided by operating activities	256	538
Investing activities:
Purchases of investments	(778)	(1,306)
Proceeds from sales and maturities of investments	1,032	747
Purchases of property, equipment and capitalized software	(2)	(6)
Capital contributions to subsidiaries	117	236
Dividends from subsidiaries	(50)	(120)
Change in amounts due to/from affiliates	(76)	32
Other, net	5	(11)
Net cash provided by (used in) investing activities	248	(428)
Financing activities:
Repayment of credit facility	0
Repayment of 1.125% Convertible Notes	0
Cash paid for partial settlement of 1.125% Conversion Option	0
Cash received for partial termination of 1.125% Call Option	0
Cash paid for partial termination of 1.125% Warrants	0
Proceeds from senior notes offerings, net of issuance costs		0
Other, net	0	0
Net cash (used in) provided by financing activities	0	0
Net increase in cash, cash equivalents, and restricted cash and cash equivalents	504	110
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period	2,749	2,820
Cash, cash equivalents, and restricted cash and cash equivalents at end of period	$ 3,253	$ 2,930

Fair Value Measurements - Fair Value of Financial Instruments on Recurring Basis (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	$ 2,913	$ 3,215
Total liability measured at fair value on a recurring basis	657	522
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	55	101
U.S. treasury notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	25	68
Subtotal - current restricted investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	80	169
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	1,382	1,588
U.S. treasury notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	330	388
Government-sponsored enterprise securities (GSEs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	207	253
Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	136	141
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	99	117
Certificate of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	19	37
Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	3
Subtotal - current investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	2,176	2,524
1.125% Call Option derivative asset
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	657	522
1.125% Conversion Option derivative liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
1.125% Conversion Option derivative liability	$ 657	522
1.125% Call Option
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of contractual interest rate on Call Option	1.125%
1.125% Conversion Option derivative liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of contractual interest rate on Call Option	1.125%
Quoted Market Prices (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	$ 562	709
Total liability measured at fair value on a recurring basis	0	0
Quoted Market Prices (Level 1) \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Quoted Market Prices (Level 1) \| U.S. treasury notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	25	68
Quoted Market Prices (Level 1) \| Subtotal - current restricted investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	25	68
Quoted Market Prices (Level 1) \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Quoted Market Prices (Level 1) \| U.S. treasury notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	330	388
Quoted Market Prices (Level 1) \| Government-sponsored enterprise securities (GSEs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	207	253
Quoted Market Prices (Level 1) \| Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Quoted Market Prices (Level 1) \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Quoted Market Prices (Level 1) \| Certificate of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Quoted Market Prices (Level 1) \| Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0
Quoted Market Prices (Level 1) \| Subtotal - current investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	537	641
Quoted Market Prices (Level 1) \| 1.125% Call Option derivative asset
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Quoted Market Prices (Level 1) \| 1.125% Conversion Option derivative liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
1.125% Conversion Option derivative liability	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	1,694	1,984
Total liability measured at fair value on a recurring basis	0	0
Significant Other Observable Inputs (Level 2) \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	55	101
Significant Other Observable Inputs (Level 2) \| U.S. treasury notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Significant Other Observable Inputs (Level 2) \| Subtotal - current restricted investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	55	101
Significant Other Observable Inputs (Level 2) \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	1,382	1,588
Significant Other Observable Inputs (Level 2) \| U.S. treasury notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Significant Other Observable Inputs (Level 2) \| Government-sponsored enterprise securities (GSEs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Significant Other Observable Inputs (Level 2) \| Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	136	141
Significant Other Observable Inputs (Level 2) \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	99	117
Significant Other Observable Inputs (Level 2) \| Certificate of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	19	37
Significant Other Observable Inputs (Level 2) \| Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	3
Significant Other Observable Inputs (Level 2) \| Subtotal - current investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	1,639	1,883
Significant Other Observable Inputs (Level 2) \| 1.125% Call Option derivative asset
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Significant Other Observable Inputs (Level 2) \| 1.125% Conversion Option derivative liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
1.125% Conversion Option derivative liability	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	657	522
Total liability measured at fair value on a recurring basis	657	522
Significant Unobservable Inputs (Level 3) \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Significant Unobservable Inputs (Level 3) \| U.S. treasury notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Significant Unobservable Inputs (Level 3) \| Subtotal - current restricted investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Significant Unobservable Inputs (Level 3) \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Significant Unobservable Inputs (Level 3) \| U.S. treasury notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Significant Unobservable Inputs (Level 3) \| Government-sponsored enterprise securities (GSEs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Significant Unobservable Inputs (Level 3) \| Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Significant Unobservable Inputs (Level 3) \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Significant Unobservable Inputs (Level 3) \| Certificate of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Significant Unobservable Inputs (Level 3) \| Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0
Significant Unobservable Inputs (Level 3) \| Subtotal - current investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	0	0
Significant Unobservable Inputs (Level 3) \| 1.125% Call Option derivative asset
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value on a recurring basis	657	522
Significant Unobservable Inputs (Level 3) \| 1.125% Conversion Option derivative liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
1.125% Conversion Option derivative liability	$ 657	$ 522