News Release

(Troy, MI) Molina Healthcare of Michigan has been granted New Health Plan Accreditation by the National Committee on Quality Assurance (NCQA) effective October 24, 2002. This accreditation status will be in effect for three years.

Molina Healthcare of Michigan, based in Troy, Michigan, was granted an HMO license in September 2000. The health plan, which serves Medicaid patients in the Detroit-metro area, Grand Rapids and about 30 additional counties, has over 34,000 members. The company is an affiliate of Molina Healthcare, Inc., headquartered in Long Beach, California.

NCQA's mission is to improve the quality of health care delivered to people everywhere. NCQA New Health Plan Accreditation surveys consist of an on-and-off-site review of the organization by a team of physicians and managed care experts. NCQA Accreditation is an evaluation of how a new health plan ensures that its members are receiving high quality care. NCQA's New Health Plan Accreditation Program applies to health plans that are less than two years old. The program is distinct from NCQA's MCO Accreditation Program.

“NCQA accreditation is a significant accomplishment for a relatively young organization such as ours,” says Roman T. Kulich, President and CEO of Molina Healthcare of Michigan. “This recognition of the quality of our care coupled with our solid financial performance and strong membership growth makes me feel good about our future.”

“Molina Healthcare of Michigan has met an important goal of Molina Healthcare's strategic plan for providing excellent care to our membership,” says J. Mario Molina, MD, President and Chairman of the Board for Molina Healthcare, Inc. “The accreditation reflects our company's mission of providing quality care and accessible services in a caring manner.”

Molina Healthcare, Inc. is among the most experienced managed health care companies serving individuals covered under Medicaid, the Healthy Families Program, the State Children's Health Insurance Program (SCHIP) and other government sponsored health programs. Molina Healthcare also has health plans in California, Washington and Utah.