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): January 13, 2015
MOLINA HEALTHCARE, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 1-31719 | 13-4204626 | ||
| (State of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
200 Oceangate, Suite 100, Long Beach, California 90802
(Address of principal executive offices)
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)) |
| Item 7.01. | Regulation FD Disclosure. |
On Tuesday, January 13, 2015, at 11:30 a.m. Pacific time, the Company’s management will give a presentation followed by a question and answer session at the 33rd Annual J.P. Morgan Healthcare Conference in San Francisco, California. During the presentation, the Company will present and webcast certain slides, and will address such issues as the revenue expected to be recognized in fiscal year 2014 in connection with the Affordable Care Act annual fee, and preliminary enrollment growth expected in the first quarter of 2015. A copy of the Company’s complete slide presentation is included as Exhibit 99.1 to this report. The live broadcast will be available under the Investors section of the Company’s website, www.molinahealthcare.com. An audio and slide replay of the Company’s presentation will also be available for 30 days from the date of the presentation on the Company’s website.
The information in this Form 8-K current report and the exhibits attached hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 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 or the Securities Exchange Act of 1934, except as expressly set forth by specific reference in such a filing.
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits: |
| Exhibit No. |
Description | |
| 99.1 | Slide presentation in connection with the Company’s presentation at the 33rd Annual J.P. Morgan Healthcare Conference on January 13, 2015. | |
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: January 13, 2015 | By: /s/ Jeff D. Barlow | |||||
| Jeff D. Barlow Chief Legal Officer and Secretary | ||||||
EXHIBIT INDEX
| Exhibit No. |
Description | |
| 99.1 | Slide presentation in connection with the Company’s presentation at the 33rd Annual J.P. Morgan Healthcare Conference on January 13, 2015. | |
| Exhibit 99.1
|
33rd Annual J. P. Morgan
Healthcare Conference
J. Mario Molina, MD
President & Chief Executive Officer
January 12-15, 2015 / San Francisco, California
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Cautionary Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This slide presentation and our accompanying oral remarks contain numerous “forward-looking statements” regarding, without limitation: our future business plans; the expected start dates of our Medicare-Medicaid Plan (MMP) implementations; our expansion plans in Florida; our expansion plans and expected operational start date in Puerto Rico; our Marketplace plans’ growth and operations; the A?ordable Care Act annual health industry fee and its expected reimbursement by states, including any tax impact; and various other matters. All of our forward-looking statements are subject to numerous risks, uncertainties, and other factors that could cause our actual results to di?er materially. Anyone viewing or listening to this presentation is urged to read the risk factors and cautionary statements found under Item 1A in our annual report on Form 10?K, as well as the risk factors and cautionary statements in our quarterly reports and in our other reports and lings with the Securities and Exchange Commission and available for viewing on its website at www.sec.gov. Except to the extent otherwise required by federal securities laws, we do not undertake to address or update forward-looking statements in future lings or communications regarding our business or operating results.
© 2015 MOLINA HEALTHCARE, INC.
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Presence in Key Medicaid Markets1
Health Plan footprint includes 4 of 5 largest Medicaid Markets
Molina Health Plans
Molina Medicaid Solutions
Direct Delivery
ENROLLMENT BY PRODUCT2
3Q14 Jan 15 Ä
Duals 15K 35K 20K
Medicare 45K 45K 0
Marketplace 15K 110K 95K
Medicaid 2.3M 2.6M 300K
Total 2.4M 2.8M 415K
1. On December 8th, 2014 Molina was awarded a managed care contract to administer Puerto Rico’s Medicaid in the East and Southwest regions. Start date is currently scheduled for April 2015.
2. Enrollment described in this column relates to effective membership on January 1, 2015 and will not be reflected in our year-end 2014 earnings release or Form 10-K annual report.
©
2015
MOLINA
HEALTHCARE,
INC.
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Our Growth Story
REVENUE GROWTH
$ BILLIONS
$6.9
$6.6
$5.9
$4.5
$3.9
FY10 FY11 FY12 FY13 3Q14 YTD
ENROLLMENT GROWTH
MILLIONS
2.4
1.9
1.8
1.6
1.5
FY10 FY11 FY12 FY13 3Q14
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2015
MOLINA
HEALTHCARE,
INC.
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Managing Our Growth
2013 INCUBATE
Acquire new business Design systems
Test readiness
Invest in infrastructure New business:
SC, Duals, Marketplace, Medicaid Expansion, NM & FL re-procurements, WI Medicare
2014
TRANSITION & GROW
Transition members into model of care Address pent-up demand Adjust premiums Process transition issues Begin leveraging infrastructure Invest to prepare for 2015 revenue
2015
DEVELOP & GROW
Transition members into model of care Address pent-up demand Adjust premiums
Improve systems
Ensure equitable rates
Leverage administrative costs
2016+ FORTIFY
Improve model of care
Enhance systems Improve margins
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2015
MOLINA
HEALTHCARE,
INC.
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Medicaid Enrollment and Spending
Managed Care Organizations and Fee-For-Service FY 20111
57M $407B
Fee-For-Service 57M 26% $315B 77%
77%
of Medicaid spending
remains in Fee-for-Service
Managed Care
42M 74%
$92B
23%
MEDICAID ENROLLMENT 2011 MEDICAID SPEND 2011
1. Managed care includes only risk based MCOs. CMS-64 data for 2012, and: MACPAC, ‘Report to Congress on Medicaid and CHIP’, June 2013.
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2015
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HEALTHCARE,
INC.
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Medicaid Long Term Services and Supports (LTSS)
Full Medicaid LTSS Spend in 2012: $140 Billion
6% 3%
People with Other/Multiple
Serious Mental Illness Populations
30%
People with
Developmental 61%
Disabilities
Older People &
People with
Physical Disabilities
1. Truven Health Analytics. ‘Medicaid Expenditures for Long-Term Services and Supports in FFY 2012’, April 28, 2014.
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2015
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HEALTHCARE,
INC.
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Molina Long Term Services & Support (LTSS) Footprint
As of January 2015
SERVICE AREAS:
MMP Demonstrations
LTSS “Stand Alone”
LTSS and Acute Care
Home and Community-
Based Services (HCBS)
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©
2015
MOLINA
HEALTHCARE,
INC.
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Medicare-Medicaid Plan (MMP) Implementations
Dual Eligibles
ENROLLMENT
January 151
California 17K
Illinois 5K
Michigan Go live 5/15
Ohio 12K
South Carolina Go live 2/15
Texas Go live 3/15
Total 35K
Contracts awarded to MOH
State working with existing providers
1.Enrollment described in this column relates to effective membership on January 1, 2015 and will not be reflected in our year-end 2014 earnings release or Form 10-K annual report
©
2015
MOLINA
HEALTHCARE,
INC.
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Jacksonville Footprint Expansion
First Coast Advantage Acquisition
Jacksonville
Service Area
served by
First Coast
Advantage
Existing Service Area
New Service Area
On December 1st , Molina acquired Medicaid
business assets of a Florida health plan, First
Coast Advantage
Approximately 64,000 members in the
Jacksonville area transferred to Molina
Members transitioned into Molina as part of
the Florida Managed Medical Assistance
(MMA) program
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2015
MOLINA
HEALTHCARE,
INC.
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Puerto Rico Contract Award
One Health Plan Awarded in Each Region
San Juan
Ponce
Southwest
East
On December 8th, awarded a managed care contract by the Puerto Rico Health Insurance Administration for the East and Southwest regions
350,000 new members expected
Anticipate annualized revenue of $750 million
Effective date of April 1, 2015
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2015
MOLINA
HEALTHCARE,
INC.
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Marketplace Year Two
2014 pricing assumed higher medical costs and
utilization compared to existing membership
Higher premiums
Low enrollment (17K)
2015 focused on competitive pricing in existing
markets
Premiums adjusted downward in nearly
every market
Significant sign up activity during open
enrollment (94K)
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2015
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HEALTHCARE,
INC.
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Status of Reimbursement
ACA Fee in Molina States
Expected
State ACA Fee Gross Up Revenue Recognized
Revenue1
California $7.3 $4.4 $11.6 $0.0
Florida $3.6 $2.3 $5.8 $5.8
Illinois $0.1 $0.1 $0.2 $0.2
Michigan $10.7 $6.8 $17.5 $8.0
New Mexico $7.1 $4.3 $11.3 $11.3
Ohio $18.2 $12.2 $30.4 $30.4
South Carolina $0.0 $0.0 $0.0 $0.0
Texas $11.8 $6.7 $18.5 $18.52
Utah $3.3 $2.0 $5.3 $4.0
Washington $16.1 $9.2 $25.2 $25.2
Wisconsin $2.9 $1.9 $4.8 $4.8
Medicare $7.7 $4.5 $12.2 $12.2
Total $88.6 $54.3 $142.9 $120.5
Revenue recognition amounts shown remain subject to change pending 2014 year-end audit finalization.
See Appendix A regarding Texas HHSC letter to contracted managed care organizations regarding the reimbursement of the ACA fee.
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2015
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HEALTHCARE,
INC.
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The Year Ahead
TAILWINDS
Medicaid expansion
Footprint includes 4 of 5 largest Medicaid
markets
Uniquely positioned to capture Dual
Eligible enrollment
Marketplace open enrollment
HEADWINDS
Delay in state program implementations
ACA reimbursement
Medical cost pressure associated with new
contracts/populations
Flu season
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2015
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HEALTHCARE,
INC.
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Investment Highlights
Attractive sector growth prospects driven by government policies and economic conditions
Focus on government-sponsored health care programs
Proven flexible health care services portfolio (risk-based, fee-based and direct delivery)
Diversified geographic exposure in 16 states with significant presence in high growth regions
Scalable administrative efficiencies stemming from centralized and standardized functions
Seasoned management team with strong track record of delivering earnings growth
Over 30 years of experience
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2015
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HEALTHCARE,
INC.
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Breakout
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2015
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HEALTHCARE,
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Appendix A
Texas HHSC Letter
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2015
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HEALTHCARE,
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