LONG BEACH, Calif.--(BUSINESS WIRE)--July 8, 2005--Molina Healthcare, Inc. (NYSE: MOH) announced today that its wholly owned subsidiary, Molina Healthcare of Texas, Inc., has been tentatively awarded a Medicaid contract by the Texas Health and Human Services Division. The contract award, which is contingent upon the successful negotiation and execution of a final contract by August 17, 2005, involves providing Medicaid managed care services to both Medicaid (STAR) and Children's Health Insurance Program (CHIP) enrollees in the Harris Service Area, which includes Harris, Brazoria, Fort Bend, Galveston, Montgomery, and Waller counties. The contract would commence effective July 1, 2006. The contract announcement follows the award of a Certificate of Authority to Molina Healthcare of Texas by the Texas Commissioner of Insurance licensing it to operate as a health maintenance organization in certain counties in the state.
"The contract award in Texas represents an important opportunity in a new state for Molina to assist those who need help accessing Medicaid benefits," said J. Mario Molina, M.D., chief executive officer of Molina Healthcare, Inc. "We are very pleased to have been selected by the State of Texas, and we look forward to working closely with the State and the local provider community."
Molina Healthcare of Texas anticipates that it will begin offering services to enrollees in Texas in the third quarter of 2006.
About Molina Healthcare, Inc.
Molina Healthcare, Inc. is a multi-state managed care organization that arranges for the delivery of healthcare services to persons eligible for healthcare benefits through government-sponsored programs for low-income families and individuals, such as Medicaid and the State Children's Health Insurance Program, or SCHIP. Molina Healthcare, Inc. currently operates health plans in California, Indiana, Michigan, New Mexico, Utah, and Washington. More information on Molina Healthcare, Inc. can be obtained at www.molinahealthcare.com.
This press release contains forward-looking statements and information. All forward-looking statements are predictions by Molina Healthcare's management and are subject to numerous risks and uncertainties that may cause actual results to differ materially. Such risks include those associated with the timely negotiation and execution of a final contract with the Texas Health and Human Services Division, the assignment to Molina Healthcare of Texas of a sufficient number of Medicaid and CHIP enrollees, the development of an adequate provider network, the successful expansion of Molina Healthcare of Texas' service area, the recruitment and retention of qualified personnel in Texas, the successful execution of Molina Healthcare's growth strategy, changes in federal or state laws or regulations or the interpretation thereof, and other risks as detailed in Molina Healthcare's reports and filings with the Securities and Exchange Commission. All forward-looking statements in this release represent Molina Healthcare's judgment as of the date of this release. Molina Healthcare disclaims any intent or obligation to update its forward-looking statements.
CONTACT: Molina Healthcare, Inc.
Juan Jose Orellana, 562-435-3666
SOURCE: Molina Healthcare, Inc.