Recognizing the continued uncertainty presented by the COVID-19 pandemic as the Delta variant rages across the country, select insurers reporting second-quarter 2021 earnings indicated that Medicaid enrollment helped to offset some of their medical cost increases. But with eligibility redetermination efforts likely to pick back up once the public health emergency (PHE) ends, insurers are looking forward to Medicaid bid opportunities in select states next year.
For the quarter ending June 30, Molina Healthcare, Inc. reported adjusted earnings per share (EPS) of $3.40 and an 88.4% medical loss ratio (MLR) that reflects “solid performance while managing through pandemic-related medical cost challenges that increased the ratio by 110 basis points,” explained President and CEO Joseph Zubretsky during a July 29 earnings call.
Overall membership increased by 91,000 from the first quarter to reach approximately 4.7 million members, which includes 3.9 million Medicaid enrollees, Molina reported. A sequential increase of about 69,000 members in Medicaid was “due primarily to the continuing suspension of Medicaid redeterminations, although this growth catalyst seems to have moderated,” observed Zubretsky.
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