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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________
FORM 8-K
______________

Current Report

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 16, 2023 (May 15, 2023)
 
______________
 
MOLINA HEALTHCARE, INC.
(Exact name of registrant as specified in its charter)

Delaware
001-31719
13-4204626
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer Identification No.)
 
______________
 
200 Oceangate, Suite 100, Long Beach, California 90802
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (562) 435-3666
 
 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.001 Par Value
MOH
New York Stock Exchange
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
   
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section13(a) of the Exchange Act.
☐

Item 5.02.  Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Effective as of May 15, 2023, Jim Woys and Mark Keim were each promoted to the position of senior executive vice president of Molina Healthcare, Inc. (the “Company”). Mr. Woys assumed the role of the Company’s chief operating officer, and Mr. Keim will continue as the Company’s chief financial officer with expanded operational and growth-related responsibilities.

Biographical and other information about Messrs. Woys and Keim required by Item 5.02(c) of Form 8-K is included in the Company’s proxy statement on Schedule 14A for its 2023 annual stockholders’ meeting filed with the Securities and Exchange Commission on March 20, 2023, and such information is hereby incorporated by reference into this Item 5.02. There were no changes to the compensation of Messrs. Woys and Keim incidental to their promotions.

A copy of the press release announcing the promotions of Messrs. Woys and Keim is included as Exhibit 99.1 to this report.  The information in the website cited in the press release is not part of this report.

Item 7.01.  Regulation FD Disclosure.

On May 15, 2023, the Company presented and webcast certain slides as part of the Company’s presentation at its Investor Day Conference, a copy of which slides is included as Exhibit 99.2 to this report. The Company’s presentation included forward looking statements regarding, without limitation, the Company’s growth strategy and long-term outlook, the realization of embedded earnings, the achievement of future premium targets, the expected sustaining of the Company’s profit margins, future RFPs, the Company’s mergers and acquisitions pipeline, future Medicaid rates and carve-ins, the Company’s 2023 guidance, Medicaid redeterminations or reverifications, and the Company’s general business plans. Listeners and readers are cautioned not to place undue reliance on any of the Company’s forward-looking statements, as forward-looking statements are not guarantees of future performance and the Company’s actual results may differ materially due to numerous known and unknown risks and uncertainties. Those risks and uncertainties include, but are not limited to, the risk factors identified in the section titled “Risk Factors” in the Company’s 2022 Annual Report on Form 10-K.

An audio and slide replay of the live webcast of the Company’s Investor Day presentation will be available for 30 days from the date of the presentation at the Company’s website, www.molinahealthcare.com. The information contained in such websites is not part of this report.

Note: The information in Item 7.01 of this Form 8-K and the exhibits attached hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01.  Financial Statements and Exhibits.
 
(d)          Exhibits:
 
Exhibit
No.
Description
99.2
104
Cover page information from Molina Healthcare, Inc.’s Current Report on Form 8-K filed on May 16, 2023 formatted in iXBRL (Inline Extensible Business Reporting Language)

SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 

 
MOLINA HEALTHCARE, INC.
     
Date: May 16, 2023
By:
/s/ Jeff D. Barlow
   
Jeff D. Barlow,
Chief Legal Officer and Secretary




Exhibit 99.1

Molina Healthcare Announces Promotions of Two Senior Executives

LONG BEACH, Calif.--(BUSINESS WIRE)--May 16, 2023--Molina Healthcare, Inc. (NYSE: MOH) (“Molina”) today announced that Jim Woys and Mark Keim have each been promoted to the position of senior executive vice president, effective May 15th. With this promotion, Woys also assumes the role of chief operating officer. Keim will continue as chief financial officer with expanded operational and growth-related responsibilities.

Woys has served as Molina’s executive vice president – health plan services, since May 2018. Keim had served as Molina’s executive vice president – transformation, since January 2018, and became chief financial officer in February 2021.

"Jim and Mark have been instrumental leaders of Molina’s growth and performance over the past five years," said Joe Zubretsky, president and chief executive officer of Molina. "I look forward to working with them and our deep and talented leadership team to drive the next wave of value creation for all of our stakeholders."

About Molina Healthcare

Molina Healthcare, Inc., a FORTUNE 500 company (currently ranked 125), provides managed healthcare services under the Medicaid and Medicare programs and through the state insurance marketplaces. Molina Healthcare served approximately 5.3 million members as of March 31, 2023, located across 19 states. For more information about Molina Healthcare, please visit molinahealthcare.com.

Contacts

Investor Contact: Joseph Krocheski, Joseph.Krocheski@molinahealthcare.com, 562-951-8382
Media Contact: Caroline Zubieta, Caroline.Zubieta@molinahealthcare.com, 562-951-1588

Exhibit 99.2

 Investor Day 2023Sustaining Profitable Growth:The Next Wave  May 15, 2023  
 
 Sustaining Profitable Growth: The Next Wave  Topic  Speaker  Welcome and Introduction  Joe Krocheski  Sustaining Profitable Growth  Joe Zubretsky  Compelling Financial Profile  Mark Keim  Executive Q&A  Joe Zubretsky  Mark Keim 
 
 Cautionary Statement  Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:  This presentation and the accompanying oral remarks include forward-looking statements regarding, without limitation, the Company’s growth strategy and long-term outlook, the realization of embedded earnings, the achievement of our future premium targets, the sustaining of our profit margins, future RFPs, our M&A and acquisitions pipeline, future Medicaid rates and carve-ins, our 2023 guidance, Medicaid redeterminations or reverifications, and the Company’s general business plans. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995. Readers and listeners are cautioned not to place undue reliance on any forward-looking statements as forward-looking statements are not guarantees of future performance, and the Company’s actual results may differ materially due to numerous known and unknown risks and uncertainties. Those risks and uncertainties are discussed under Item 1A in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and also in the Company’s quarterly reports, current reports, and other reports and filings with the Securities and Exchange Commission, or SEC. These reports can be accessed under the investor relations tab of the Company’s website or on the SEC’s website at www.sec.gov. All forward looking statements in this presentation represent management’s judgment as of May 15, 2023, and, except as otherwise required by law, the Company disclaims any obligation to update any forward-looking statements to conform the statement to actual results or changes in its expectations.. 
 
 Sustaining Profitable Growth   Joe Zubretsky  President and Chief Executive Officer 
 
 Our Historical Performance  Our trailing three-year performance has exceeded our long-term targets  What We Delivered 2020 to 2023G  20% Premium revenue CAGR   $4B of growth in current footprint  $3B realized new RFP wins  $7B realized from acquisitions   4.5% average adjusted pre-tax margin  24% Adjusted EPS CAGR   59%  Bronze  Silver  What We Said We Would Do  13% - 15% premium revenue growth, driven by:  Organic growth in our current footprint  Strategic initiatives  Accretive acquisitions  4% - 5% Adjusted pre-tax margins  15% - 18% EPS growth 
 
 Our Performance Outlook  Continued execution of growth strategy with updated premium revenue target of $46 billion in 2026 while sustaining margin profile  How We Will Do It  Maintain our balanced approach to growth   Realize $4.5B of premium from recent RFP wins  Harvest $4.50 of new store embedded EPS  Sustain our industry leading margin profile  Execute the Molina Playbook   59%  Bronze  Silver  What We Will Do – The Next 3 Years  13% - 15% premium revenue growth, driven by:  Organic growth in our current footprint  Strategic initiatives  Accretive acquisitions  4% - 5% Adjusted pre-tax margins  15% - 18% EPS growth 
 
 Sustaining Profitable Growth  Our Value Creating Franchise  Retrospective  Performance Excellence   Our Performance Outlook  The Growth Model  Current Environment  
 
 Our Value Creating Franchise 
 
 Franchise  Leading pure-play, government-sponsored managed care franchise with depth, breadth and scale  125Ranking  $32B  Premium Revenue  2023G  5.1MMembers  YE 2023  22States  2024  3Products  Medicaid, Medicare and Marketplace 
 
 Balanced Portfolio  6-10%  >10%  5% or less  Percent of Total Premium Revenue  $32B   2023G Premium   13%  Medicare   5%  Marketplace  82%  Medicaid  Synergistic Medicare and Marketplace Segments Complement Medicaid   Well Diversified 22 State Portfolio  Increasingly geographically diversified portfolio of complementary product segments, with Medicaid as the flagship   2024 Start 
 
 Portfolio Synergies  Synergistic product segments provide member continuity and leverage common capabilities  Federal Poverty Level  400 -  250 -  138 -  100 -  150 -  MAPD  Duals  Medicaid   Marketplace  (low subsidy)  Marketplace Target  (max subsidies)  MAPD Target (low-income)  <65  >65  Continuity for   “age ins”  Mobility as income levels change  Age 
 
 Retrospective 
 
 Premium Revenue Growth  Our trailing three-year growth has exceeded our long-term targets  8% - 10%  5%  13% - 15%  10%  10%  20%  2020 - 2023G Achieved  2021 IR Day LT Target 
 
 Organic Premium Revenue Growth  We have delivered total organic growth at the high end of our long-term target  2021 IR Day LT Target  2020 - 2023G Achieved  8% - 10%  5% - 8%  11% - 13%  8% - 10%  10%  2%  12%  12%  Weighted Total  Marketplace  Medicare  Medicaid 
 
 Molina Wins  Proven success retaining existing contracts and delivering new store growth with RFP wins and accretive acquisitions  New Procurements   Reprocurements  Announced M&A  CA  MS  OH  WA  KY  NV  IA  NE  TX ABD   IN  LTSS  $3B Premium Realized 2021-2023G  $4.5B Premium To Be Realized 2024-25  $7B Premium Realized 2021-2023G  IA 
 
 Premium Revenue Growth  20% trailing 3-year CAGR was well balanced between organic growth and M&A  2020  Current Footprint  Strategic Initiatives  M&A  2023G  $18  $32  In $ Billions  Organic 
 
 Adjusted EPS Growth  Trailing 24% EPS CAGR driven by current footprint and realization of new store embedded earnings  >$20.25  $17.92  $10.67  $13.54  New Store Realized   ($1.00)  ($1.50)  ($1.00)  New Store Additions  $1.00   $4.00  $0.50  Ending Balance  $2.50  $2.50  $5.00  $4.50  Realized New Store  Organic growth in current footprint 
 
 Current Environment 
 
 Government Managed Care Market  Our addressable markets exceed $1 trillion in annual spend with attractive and durable growth  $443B  58M  Members  Members  Spend  $460B  31M  Spend  Members  16M  $105B  Sources: CBO, CMS and NHE  Spend  8%   Projected Long-term CAGR  9%   Projected Long-term CAGR  5%   Projected Long-term CAGR  Marketplace  Managed Medicare  Managed Medicaid  2023  2023 
 
 Molina Market Share Opportunity  Large enough for scale and relevance yet with significant local market share growth opportunity in all segments  Average State  Market Share  National   Market Share  ~10% - 25%  ~10%  ~4%  ~10% - 30%  ~3%  ~5% - 20%  Medicaid  #4 Nationally  ~6%  #7 Nationally  ~3%  ~2%  Sources: Health Management Associates, State-reported data, CMS and Decision Resources Group   Molina  Top Competitors  Top 15 Nationally  Medicare  Marketplace 
 
 Political and Regulatory Environment  The political and regulatory environment strongly favors the social safety net of government- sponsored healthcare  Medicaid  Commitment to continuity of coverage during redetermination  Continuing penetration of managed care through carve-ins and expansion  Medicare  Recent rate and program changes don’t materially alter long-term growth  Bipartisan program support insulates from drastic change  Marketplace  “Family glitch” fix and extension of enhanced subsidies  Rules to help transition redetermined Medicaid members to Marketplace  Governors  Legislatures  Medicaid and Insurance Regulators  State Level  White House  Congress  HHS and CMS  Federal Level 
 
 The Growth Model  Medicaid / Medicare / Marketplace / Accretive M&A 
 
 Total Growth  Long-Term Premium Revenue Growth - Unchanged  Strong organic growth opportunities complemented by a disciplined acquisition strategy  8% - 10%  5%  13% - 15%  Organic Growth  Weighted Total  Medicare  Marketplace  8% - 10%  5% with Optionality  11% - 13%  8% - 10%  Medicaid 
 
 The Growth Model  Our growth model is well balanced between organic drivers and accretive M&A  ~5%  Bolt-ons in  Core Products Lines  4%  Member Growth and Rate  4% - 6%  New Contracts  Market Share  Penetration  Carve-ins  13% - 15%  Industry Leading Profitable Growth  Current Footprint  Strategic Initiatives  ~2/3 Organic  ~1/3 Accretive M&A 
 
 Medicaid 
 
 Strategic Initiatives  Organic Premium Revenue Opportunity  Medicaid Long-Term Organic Growth  Long-term organic growth rate of 8% - 10% driven by current footprint and strategic initiatives  1  Increase market share  2  Pursue LTSS carve-in and expansion opportunities  3  Win new RFP States  4% - 6%  8% - 10%  ~4% 
 
 Increase Market Share  Focus on fundamental operating tactics to drive significant market share opportunity  Service Area Market Shares  11-15%  6-10%  5% or less  >15%  Engage providers to drive membership loyalty  Improve quality scores to drive auto assignment  Increase voluntary enrollment through community presence and awareness  Maximize retention in redetermination  Retain existing contracts  1%  Increase in Service Area   Market Share  ~$2B  2026 Revenue Opportunity  Actions 
 
 Win New RFP States  New State procurement opportunities total ~$60 billion in annual premium revenue by 2026  Annual Contract Value  2024  2025  2026  GA  ~$30B  ~$20B  ~$10B  TX  STAR Kids   IN  ABD  AZ LTSS  Contract Inception Year  NH  NM  FL  PA  KS  RI  NC  OR  CO  HI 
 
 2026 total premium revenue RFP opportunity   ~$60B  Pursue subset of opportunities  ~40%  ~30%  Projected competitive win rate  ~50%  ~92%  Projected market share  ~20%  ~30%  2026 Molina premium revenue opportunity  ~$2.5B  Sizing the New State RFP Opportunity  Significant RFP opportunities and proven track record provide confidence in additional revenue growth from new State contracts  Outlook  Since 2021 IR Day 
 
 Molina’s Winning RFP Formula  Our RFP success is built on execution of proven strategy and track record of operational excellence   Target Selection Criteria  1  Size and duration of contract  2  Strength of incumbents  3  Number of awardees  4  Access to high-quality low-cost network  5  Rational rate environment  Winning Formula  Strong proposal writing team  2  Effective ground game that starts two years before RFP  1  Demonstrated track record of program success and leading capabilities   3  Experienced implementation team  4 
 
 ~$26B in Opportunities  Pursue LTSS Carve-in and Expansion Opportunities  Numerous LTSS carve-in opportunities and potential expansion as States leverage managed care efficiency  Pursue announced carve-in programs  Leverage Molina’s leading LTSS capabilities and growing platform  Advocate for expansion and additional carve-in programs  Sources: CMS and Company estimates  TX  OH  MS  NE  NV  LTSS Carve-In Opportunities  TX  WI  MS  SC  FL  Expansion Opportunities  Actions  ~8%  Service Area   Market Share  ~$2B  2026 Revenue Opportunity 
 
 Medicare 
 
 Molina Medicare Product Portfolio  Several products within our growing Medicare segment serve high acuity, low-income populations  Current Molina Medicare States  Product  States  2023G Members  (K)  2023G Premium (B)  ‘20-23G   Premium CAGR  MMP  5  64  $2.1  6%  HIDE/FIDE   8  41  $1.1  54%  D-SNP  9  42  $0.7  18%  Low Income MAPD  17  28  $0.3  94%  Total  18  175   $4.2  19% 
 
 Organic Premium Revenue Opportunity  Strategic Initiatives  Medicare Long-Term Growth  Long-term organic growth rate of 11% - 13% driven by current footprint and strategic initiatives  2  Increase HIDE / FIDE share and penetration of Medicaid footprint  1  Increase D-SNP and low income MAPD market share  4% - 6%  11% - 13%  ~7%  3  Maximize MMP conversion into HIDE/FIDE 
 
 Increase D-SNP and Low-Income MAPD Market Shares  Execution of fundamental operating tactics drives significant market share opportunity  Capture age-ins  Expand direct sales channels  Deepen targeted broker relationships  Strengthen key provider relationships  Improve retention through member engagement  D-SNP and MAPD Service Area Market Share  >5%  2-5%  1% or less  Actions  ~$1B  2026 Revenue Opportunity  1%  Increase in Service Area Market Share  
 
 Increase HIDE / FIDE Share and Penetration of Medicaid Footprint  Penetrating remaining footprint and increasing share in current Molina States provides meaningful growth lever  Targeted introduction of HIDE / FIDE in Medicaid footprint  Expand direct sales channels  Deepen targeted broker relationships  Develop key provider relationships  Actions  ~$1B  2026 Revenue Opportunity  1%  Market Share   Current Molina States with HIDE or FIDE Programs  Current Molina HIDE or FIDE States with scale 
 
 Maximize MMP Conversion into HIDE / FIDE  We will transition MMP members to HIDE or FIDE products in remaining MMP States by 2026  CMS sunsetting MMP demonstrations by 2026  Existing MMP members to be transitioned to alternative integrated HIDE / FIDE products  Molina partnering with States to seamlessly transition members to these integrated Molina products  Market Dynamics  Molina MMP Footprint  CA Conversion Complete 
 
 Marketplace 
 
 Strong Market Growth  Several market dynamics are driving continued growth  Source: CMS, Urban Institute and HHS  Market Dynamics  Enhanced subsidies were extended through 2025  Year-round Special Enrollment Period under 150% FPL was made permanent  The “Family glitch” was fixed, expanding access  Member transitions from Medicaid as redetermination resumes  Market Growth  2020  12.0M  11.4M  2023  55%  56%  2021  2022  14.5M  16.3M  59%  Bronze  Silver  Gold  54% 
 
 Marketplace Risk Pool  Significant challenges to the stability of the Marketplace risk pool in recent years led to our reallocation of capital to attractive Medicaid and Medicare segments  Changes that impacted who could enroll and when were often made after pricing was filed  Regulatory Changes  New players entered with aggressive pricing strategies, then exited after incurring significant losses  Competitor Rotation  Membership churn increased due to multiple regulatory changes, creating pricing and risk adjustment challenges   Membership Churn 
 
 Strategic Initiatives  Molina Market Shares  Marketplace Option Value  Continued Marketplace presence within Medicaid footprint provides option value for significant revenue growth once risk pools have stabilized  ~$2.5B  Revenue Opportunity  Return to 2018 Market Share   2022  ~5%  ~2%  2018  4  Exercise option upon market stabilization  3  Prioritize margin discipline  1  Focus on highly subsidized population  2  Maintain presence in Medicaid footprint 
 
 Accretive M&A 
 
 Our M&A Platform  M&A is a key element of our long-term premium growth outlook  3  M&A generally as accretive as new procurement economics  4  Previously announced purchase prices are highly capital efficient  1  Ample excess cash flow internally funds acquisitions  2  We buy long-dated revenue streams  6  Expert integration teams ensure accretion targets are achieved  5  Underperforming properties yield “sweat equity” accretion 
 
 Acquisition Pipeline  Acquisition pipeline remains robust with many remaining opportunities  Strategic Fit and Synergies  Large franchise opportunities  Bolt on plans  Turnaround opportunities  ~300 Government Health Plans   Near-Term Target List  1  Numerous acquisition opportunities remain  4  2026 revenue target assumes additional ~$4.5 billion of acquired revenue  3  Capitated risk, not services or vertical integration  2  Turnarounds provide attractive economics 
 
 2023  2022  2021  2020  M&A Track Record  Seven transactions sequenced for manageable integration  Announced  Closed  Confidential  YourCare Health Plan  YourCare Health Plan  Cigna Texas Medicaid  Magellan Complete Care  Passport Health Plan  Affinity Health Plan  AgeWell New York  My Choice Wisconsin  Passport Health Plan  Magellan Complete Care  Affinity Health Plan  AgeWell New York  My Choice Wisconsin Estimated Mid-2023  Cigna Texas Medicaid  2019 
 
 Performance Excellence 
 
 Performance Excellence – The What  We commit to excellent performance across many dimensions  4  Deliver high-quality healthcare and member experience  3  Target 4% - 5% enterprise pretax margins   1  Maintain target segment MCRs  2  Drive G&A ratio below 7%  5  Maintain pristine compliance 
 
 Performance Excellence – The How  Molina achieves and sustains growth and margins while providing quality healthcare  4  Build Industry-Leading Team and Winning Culture  3  Execute the Molina Playbook  1  Focus on the Fundamentals of Managed Care  2  Deliver Value Added Products and Services 
 
 Performance Excellence - Execution  Larry Anderson  Human Resources  Deb Bacon  Medicare & Marketplace  Jeff Barlow  Legal  Jason Dees  Medical Affairs  Amir Desai  Information Technology  Carolyn Ingram  Marketing  Mark Keim  Finance and Strategy  Ron Kurtz  Chief of Staff  Dave Reynolds  Regional Health Plans  Marc Russo  Medicaid Health Plans  Suzette Valentine  Integration and Innovation  Jim Woys  Health Plan Services  Joe Zubretsky  President & CEO  The Roster  Operating Model  Management Process  Organization Design  Talent  Leadership Values  Decision Rights  “The Molina Manifesto”  Proven leadership team and execution of Molina Playbook drive sustainable value creation   The Playbook 
 
 Our Performance Outlook 
 
 Our Performance Outlook  Continued execution of growth strategy with updated premium revenue target of $46 billion in 2026 while sustaining margin profile  How We Will Do It  Maintain our balanced approach to growth   Realize $4.5B of premium from recent RFP wins  Harvest $4.50 of new store embedded EPS  Sustain our industry leading margin profile  Execute the Molina Playbook   59%  Bronze  Silver  What We Will Do – The Next 3 Years  13% - 15% premium revenue growth, driven by:  Organic growth in our current footprint  Strategic initiatives  Accretive acquisitions  4% - 5% Adjusted pre-tax margins  15% - 18% EPS growth 
 
 Compelling Financial Profile  Mark Keim  Chief Financial Officer 
 
 Compelling Financial Profile  Strong Capital Foundation and Discipline  Long-Term Margin Targets  Value Creation Model   2023 Guidance and Revenue Outlook 
 
 Long-Term Margin Targets 
 
 Medical Care Ratio  87.5% - 88.5%  <7%  4% - 5%  Pre-Tax Margin  Long-Term Margin Targets  We will grow premium at 13% - 15% and maintain our current margin profile  Weighted Total  At current portfolio mix  Medicare  Marketplace  87.5% - 88.5%  78% - 80%  87% - 88%  88% - 89%  Medicaid 
 
 Medicaid Rate Environment  Core rates are expected to remain actuarially sound with many COVID-era risk sharing corridors now expired  Medical Cost Mechanisms  COVID-era corridors eliminated in all but three States  Remaining COVID-era corridors constrain current EPS by ~$2.00  Continuation of legacy minimum MLRs and experience rebate mechanisms  Prospective rate setting, consistent with pre-pandemic methodology  Rates reflect “actuarially sound” trend projection  Expect off-cycle rate adjustments if redetermination shifts trend  Core Rates 
 
 Medicaid Margin Sustainability  Rate setting on total market population allows Molina to continually drive MLR outperformance  Example Market MLRs  25%  25%  25%  25%  Molina Outperformance  Market Risk Pool  Cost trend included in rates as CMS requires rate setting to be actuarially sound  State actuarial processes set rates on total program population, not individual MCO’s  Molina’s sustainable, best in class margins driven by continually outperforming total State populations  All plans must satisfy quality requirements 
 
 Redetermination Trend Impact  Numerous factors are expected to mitigate potential trend impact from redetermination  MCR Drivers  Cohort analysis indicates minimal exposure  Mix effect of lower PMPM members disenrolling reduces impact  Gradual disenrollment dilutes any potential 2023 impact ahead of normal rate cycle adjustments  Experience rebates and minimum MLRs serve as a buffer  Off-cycle and normal course rate adjustments address any cost trends for 2024  88.0%  87.4%  88.0%  88.5%  88.7%  Reported Medicaid MCRs 
 
 Redetermination Cohort Analysis  Cohort analysis indicates minimal exposure in Expansion and TANF / CHIP  40%  Unchanged  Up Slightly  Medicaid Revenue Mix  Members with greater than   1-year duration  Members with less than   25% MCR  Unchanged  Members with   coordination of benefits  Negligible  Potential Trend Impact  ABD  30%  Up Slightly  Up Slightly  Up Slightly  Minimal  Expansion  30%  Up Slightly  Unchanged  Up Slightly  Minimal  TANF / CHIP 
 
 Disenrollment Timing and Rate Cycle  Mid-year disenrollments come in advance of rate cycles, providing ample time for data-driven rate setting  Confidential  Redetermination Timeline  2023 Apr  May  Jun  Jul  Sep  Oct  2024   Jan  May  1  3  9  4  CMS Completion Deadline  52%  14%  10%  14%  10%  MOH States Beginning Disenrollment  Premium Revenue by New Fiscal Year / Rate Cycle 
 
  Operating Focus  State-of-the-art medical economics platform  Utilization management  High-acuity care management  Centers of Excellence for BH, Rx and LTSS  Core technology, automation and quality  Value based contracting  Medical Cost Management  Numerous capabilities drive medical cost efficiencies with focus on high-acuity populations  Risk Adjustment  Care Management  Analytics  Network  Pharmacy  Utilization   Management  Quality  Payment Integrity  Operating Focus 
 
 Member and provider experience  New business development  M&A integration  Medical economics and data analytics  Population health  Automation and process redesign  Digitization  Centralization to Center of Excellence  Transparency and discipline  Outsourcing commodity services  Expense Management  Leveraging the Base  Building Capabilities  G&A Expense Management  Continued expense management and operating leverage drive lower G&A ratio while building capabilities for continued outperformance  50%  Variable  50%Fixed  +  - 
 
 G&A Leverage Geography  New States leverage corporate cost structure while significant growth in legacy States doubles the operating leverage through corporate and local cost structures  Full Year 2021E  New State Growth  Legacy State Growth  Example G&A Ratios  3.5%  3.5%  Stand-Alone Health Plan  1.75%  3.5%  Pro Forma  Corporate  Costs  Local   Costs  7.0%  5.3%  Corporate Cost Leverage  Stand-Alone Health Plan  Pro Forma  Corporate  Costs  Local   Costs  7.0%  3.5%  Corporate Cost Leverage  Local Cost Leverage  3.5%  3.5%  1.75%  1.75% 
 
 2023 Guidance and Revenue Outlook 
 
 Embedded Earnings Power  2023 Guidance and 2024 Building Blocks  Adjusted EPS of at least $20.25 forms solid jump off for next year. 2024 EPS building blocks include current footprint, New Store growth, absence of implementation costs and redetermination  Full Year 2021E  Affirming Guidance  New Store Growth  New Contract Wins (CA, IA, NE, IN)  >$4.00  Acquisitions (AgeWell & My Choice WI)  $0.50  Total New Store Growth  >$4.50  New Store Implementation Costs  $0.75  Redetermination  ($0.65)  COVID-Era Corridors  ~$2.00  Premium Revenue  $32B  Total Revenue  $33B  Adjusted EPS  At least $20.25  MCR %  87.8%  G&A %  7.1%  Pre-tax Margin %  4.8% 
 
 Medicaid Redetermination  We expect 2023 premium revenue impact of ~$0.5 billion and an additional ~$1.1 billion in 2024  Timing  Duration  Eligibility  Redeterminations restarted in February, with first terminations effective April. States share timelines  CMS requires States to complete by May 2024  Precedent and cohort analysis suggest retention of many members gained through pause in redetermination  800,000  Members gained organically since beginning of pandemic  400,000  Estimated 50% of members retained  FY 2022  FY 2023  Implied Premium Revenue  ~$3B  ~$3.5B  FY 2024  ~$1.9B  12 months 
 
 2023G  Current Footprint  RFP Wins  Acquisitions  Redeterminations  Rx Carve-outs  2024 Outlook  $32  Initial 2024 Premium Revenue Outlook  Known building blocks provide line of sight to 13% premium revenue growth in 2024 before additional strategic initiatives  >$36  Iowa - $0.9B  Indiana - $0.5B  Nebraska - $0.6B  California - $2.0B  My Choice Wisconsin   full year  ($1.1)  In $ Billions  ($0.3) 
 
 2023G  Current Footprint  Announced  Identified  M&A  2026 Before Regulatory Headwinds  Redetermination and Rx Carve-outs  2026 Target  $47.5  2026 Premium Revenue Target  Premium revenue target drives 14% CAGR before absorbing regulatory headwinds with high visibility to significant portion of revenue drivers  Strategic Initiatives  Iowa - $0.9  Indiana - $1.0  Nebraska - $0.6  California - $2.0  $46  $32  In $ Billions  ($1.4) 
 
 2026 Strategic Initiative Opportunity  Targeted 2026 premium revenue requires execution of less than 25% of identified strategic initiatives  $2.5  $2.0  $6.5  $11  2026 Premium Revenue Opportunity  Gap to 2026 Premium Revenue Target   $2.0 Increase market share  $2.5 Win new RFP States  $2.0 Pursue carve-in and expansion opportunities  $1.0 Increase D-SNP and MAPD market share  $1.0 Increase HIDE/FIDE share and penetrate Medicaid footprint   - Maximize MMP conversion into HIDE/FIDE  $2.5 Optionality  $2.5  Marketplace  Medicare  Medicaid  In $ Billions 
 
 Strong Capital Foundation and Discipline 
 
 Strong Capital Foundation  Strong balance sheet provides foundation for stability and growth  1Q23 Credit Stats  Reserve Strength   Acquisition Capacity  2023 Parent Company Cash  ~$500M  Debt Capacity  ~$2.0B  Total Deployable Capital   ~$2.5B  Reserves at 3/31/23  $3.8B  Days in Claims Payable  48 Days  Net Debt to EBITDA Ratio  1.5x  Net Debt / Capitalization  ~39%  Revolver Capacity  $1B  Recurring Parent Cash Flow  2023 Dividends to Parent  >$800M  Dividend to Net Income Conversion  80% - 100% 
 
 Capital Deployment Discipline  Capital is deployed to highest return opportunities  EPS Accretion  Long-Term Target   Capital Allocation  Organic growth is the highest priority  Most efficient use of capital to grow  All lines of business are high growth  Re-invest in Business  25%  Robust pipeline  Disciplined approach  Strategic fit and operational synergies  Accretive Acquisitions  50%  Share repurchases  Return to Shareholders  25% 
 
 Value Creation Model 
 
 Total Growth  Long-Term Premium Revenue Growth - Unchanged  Strong organic growth opportunities complemented by a disciplined acquisition strategy  8% - 10%  5%  13% - 15%  Organic Growth  Weighted Total  Medicare  Marketplace  8% - 10%  5% with Optionality  11% - 13%  8% - 10%  Medicaid 
 
 Long-Term EPS Growth  Strong revenue and earnings growth off 2023 outlook, enhanced by operating leverage and share repurchases  Premium Revenue Growth  13% - 15%  Hedge to Margins / Operating Leverage  0% - 1%  Net Income Growth  13% - 16%  Share Repurchases  ~2%  EPS Growth  15% - 18% 
 
 Strong market growth trends  Numerous strategic initiatives  Capitalized at <10% of revenue  Low volatility  Organic  Acquisitions  Enterprise  Value Creation Model  Highly efficient capital generation and deployment model creates significant value  Numerous pipeline opportunities   Announced acquisitions at attractive valuations, averaging 22% of revenue  Turnaround opportunities drive strong EPS accretion  Cost structure yields significant operating leverage  High conversion of net income to cash flow  Attractive capital redeployment opportunities  8% - 10% revenue growth  ~60% levered ROE  ~5% revenue growth  ~20% levered ROE  13% - 15% revenue growth  15% - 18% EPS growth 
 
 Investment Thesis  Strong growth, sustained margins and disciplined capital management form the core of shareholder return  Pure play government sponsored healthcare  Legacy and new market opportunities  Double digit revenue growth  Attractive margins and operating leverage  High return capital deployment  Proven management team 
 
 Executive Q&A 
 
 Reconciliation of Non-GAAP Financial Measures  Adjustments represent additions and deductions to GAAP net income as indicated in the table below, which include the non-cash impact of amortization of acquired intangible assets, acquisition-related expenses, and the impact of certain expenses and other items that management believes are not indicative of longer-term business trends and operations. Managements opinions on business trends and operations can change, so the adjustments included in the table will not be consistent from period to period.  2020  2021  2022  2023G (1)  Net income per diluted share   $ 11.23    $ 11.25    $ 13.55    $ 19.02   Adjustments:   Amortization of intangible assets   0.26    0.83    1.32    1.55   Acquisition-related expenses   0.37    1.59    0.83    0.08   Impairment (2)   -    -    3.56    -   Loss on debt repayment   0.26    0.43    -    -   Marketplace risk corridor judgment   (2.14)   -    -    -   Other (3)   0.51    0.16    -    -   Subtotal, adjustments   (0.74)   3.01    5.71    1.63   Income tax effect   0.18    (0.72)   (1.34)   (0.40)  Adjustments, net of tax   (0.56)   2.29    4.37    1.23   Adjusted net income per diluted share   $ 10.67    $ 13.54    $ 17.92    $ 20.25   (1) 2023 Guidance updated on April 26, 2023   (2) Resulting from the Company's plan to reduce its leased real estate footprint   (3) 2020 includes charitable contribution, premium deficiency reserves, and restructuring costs. 2021 includes change in premium deficiency reserves, loss on sale of property, and restructuring costs. 2022 includes gain on lease termination and disposal of fixed assets