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): February 8, 2016 
______________
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 2.02.    Results of Operations and Financial Condition.
On February 8, 2016, Molina Healthcare, Inc. issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2015. The full text of the press release is included as Exhibit 99.1 to this report. The information contained in the websites cited in the press release is not part of this report.
The information in this Form 8-K and the exhibit attached hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, 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 Securities Exchange Act of 1934, as amended, 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              Press release of Molina Healthcare, Inc. issued February 8, 2016, as to financial results for the fourth quarter and year ended December 31, 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:	February 8, 2016	By:	/s/ Jeff D. Barlow	
 	 	Jeff D. Barlow	
 	 	Chief Legal Officer and Secretary	

EXHIBIT INDEX

Exhibit	 	
No.	Description	
 	 	
99.1	Press release of Molina Healthcare, Inc. issued February 8, 2016, as to financial results for the fourth quarter and year ended December 31, 2015.	

News Release

Contact:
Juan José Orellana
Investor Relations
562-435-3666, ext. 111143

MOLINA HEALTHCARE REPORTS
FOURTH QUARTER AND YEAR-END 2015 RESULTS
 	 	
•	Full year 2015 net income per diluted share of $2.57, up nearly 100% over 2014.	
 	 	
•	Full year 2015 total revenue of $14.1 billion, up 46% over 2014.	
 	 	
•	Aggregate membership up 35% over 2014.	
 	 	
•	Excluding a contract settlement charge of $0.16 per diluted share, diluted net income per share for the fourth quarter of 2015 would have been $0.67 compared with $0.69 for the fourth quarter of 2014.	

Long Beach, California (February 8, 2016) - Molina Healthcare, Inc. (NYSE: MOH) today reported its financial results for the fourth quarter of 2015.
“The fourth quarter of 2015 capped off a very strong year for Molina Healthcare. Net income more than doubled compared with 2014, and we are making progress toward our goal of a 1.5% to 2% net income margin by the end of 2017,” said J. Mario Molina M.D., chief executive officer of Molina Healthcare, Inc. “The in-market ‘tuck-in’ acquisitions already announced give us strong momentum going into 2016 and complement the already strong revenue growth we experienced over the past two years. I want to thank all of our employees for a great year.”
2016 Business Outlook and Investor Meeting
As has been the Company’s past practice, it will discuss its 2016 business outlook and strategy at its Investor Day Conference webcast and presentation to be held on February 11, 2016, at the Le Parker Meridien Hotel in New York City from 12:30 p.m. to 4:30 p.m. Eastern Time. The Company will webcast the presentations offered by its management team, which will be followed by question-and-answer sessions. A 30-day online replay of the Investor Day meeting will be available approximately one hour following the conclusion of the live webcast. A link to this webcast can be found on the Company’s website at  molinahealthcare.com .
Overview of 2015 Financial Results, Continuing Operations 
Earnings per diluted share nearly doubled in 2015 when compared with 2014, while net income more than doubled. Substantial increases in revenue, along with improved operating efficiency, were responsible for

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MOH Reports Fourth Quarter and Year-End 2015 Results
Page 2
February 8, 2016

the Company’s improved performance. The Company’s after-tax margin increased to 1.0% in 2015 from 0.6% in 2014.
Strong enrollment growth combined with a 4% increase in premium revenue per member generated over $4 billion, or 46% more premium revenue in 2015 compared with 2014.
Enrollment growth was primarily due to increased Medicaid Expansion, Marketplace and integrated Medicare-Medicaid Plan (MMP) enrollment, and the start-up of the Puerto Rico health plan in April 2015. 
Medical care costs as a percent of premium revenue (the “medical care ratio”) decreased to 89.0% in 2015, from 89.5% in 2014.
General and administrative expenses as a percentage of total revenue (the “general and administrative expense ratio”) increased slightly to 8.2% in 2015, from 7.9% in 2014, primarily as a result of dramatic growth in the Company’s Marketplace membership. Excluding Marketplace broker and exchange fees from both years, the general and administrative expense ratio decreased to 7.5% in 2015 from 7.8% in 2014.
Other items affecting premium revenue in 2015 included the Affordable Care Act health insurer fee (HIF). During 2015, the Company secured full reimbursement for its expenses under the HIF. Additionally, as the Company has previously disclosed, it has been unable to recognize certain quality related revenue at its Texas health plan because it does not have historical information, clear definitions, and clarity around minimum standards. The Company recognized no such revenue in either the fourth quarter of 2015, or the year as a whole.
Fourth Quarter Developments
Fourth quarter results were favorable for the reasons explained above. The following items are included in results for the fourth quarter of 2015:
 	 	
•	During the quarter, the Company recorded a contract settlement charge of approximately $15 million ($0.16 per diluted share) as a result of its termination of a hospital management agreement.  	
 	 	
•	During the fourth quarter of 2015, the Company recognized approximately $6 million ($0.07 per diluted share) of interest expense related to $700 million of senior notes due 2022 issued in November.	
 	 	
•	General and administrative expense for the fourth quarter 2015 includes approximately $3 million ($0.03 per diluted share) in transaction costs for business acquisitions.	
Conference Call
The Company’s management will host a conference call and webcast to discuss its fourth quarter and year-end results at 5:00 p.m. Eastern time on Monday, February 8, 2016. The number to call for the interactive teleconference is (212) 271-4657. A telephonic replay of the conference call will be available from 7:00 p.m. Eastern time on Monday, February 8, 2016, through 6:00 p.m. on Tuesday, February 9, 2016, by dialing (800) 633-8284 and entering confirmation number 21802135. A live audio broadcast of Molina Healthcare’s conference call will be available on the Company’s website,  molinahealthcare.com . A 30-day online replay will be available approximately an hour following the conclusion of the live broadcast.
About Molina Healthcare
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed health care services under the Medicaid and Medicare programs and through the state insurance marketplaces. Through our locally operated health plans in 11 states across the nation and in the Commonwealth of Puerto Rico, Molina currently serves approximately 3.5 million members. Dr. C. David Molina founded our company in 1980 as a provider organization serving low-income families in Southern California. Today, we continue his mission of providing high quality and cost-effective health care to those who need it most. For more information about Molina Healthcare, please visit our website at molinahealthcare.com .

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MOH Reports Fourth Quarter and Year-End 2015 Results
Page 3
February 8, 2016

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This earnings release contains “forward-looking statements” regarding the Company’s plans, expectations, and anticipated future events. Actual results could differ materially due to numerous known and unknown risks and uncertainties. Those known risks and uncertainties include, but are not limited, to the following:
 	 	
•	uncertainties and evolving market and provider economics associated with the implementation of the Affordable Care Act, the Medicaid expansion, the insurance marketplaces, the effect of various implementing regulations, and uncertainties regarding the Medicare-Medicaid dual eligible demonstration programs in California, Illinois, Michigan, Ohio, South Carolina, and Texas;  	
 	 	
•	management of our medical costs, including seasonal flu patterns and rates of utilization that are consistent with our expectations, and our ability to reduce over time the high medical costs commonly associated with new patient populations;	
 	 	
•	federal or state medical cost expenditure floors, administrative cost and profit ceilings, premium stabilization programs, profit sharing arrangements, and conflicting interpretations thereof;  	
 	 	
•	the interpretation and implementation of at-risk premium rules regarding the achievement of certain quality measures; 	
 	 	
•	cyber-attacks or other privacy or data security incidents resulting in an inadvertent unauthorized disclosure of protected health information;  	
 	 	
•	the success of our new health plan in Puerto Rico, including the successful resolution of the Puerto Rico debt crisis and the payment of all amounts due under our Medicaid contract;  	
 	 	
•	specialty drugs or generic drugs that are exorbitantly priced but not factored into the calculation of our capitated rates;  	
 	 	
•	significant budget pressures on state governments and their potential inability to maintain current rates, to implement expected rate increases, or to maintain existing benefit packages or membership eligibility thresholds or criteria, including the resolution of the Illinois budget impasse and continued payment of our Illinois health plan;  	
 	 	
•	the accurate estimation of incurred but not reported or paid medical costs across our health plans;  	
 	 	
•	retroactive adjustments to premium revenue or accounting estimates which require adjustment based upon subsequent developments;	
 	 	
•	efforts by states to recoup previously paid amounts; 	
 	 	
•	the success of our efforts to retain existing government contracts and to obtain new government contracts in connection with state requests for proposals (RFPs) in both existing and new states;  	
 	 	
•	the continuation and renewal of the government contracts of both our health plans and Molina Medicaid Solutions and the terms under which such contracts are renewed;  	
 	 	
•	complications, member confusion, or enrollment backlogs related to the annual renewal of Medicaid coverage;  	
 	 	
•	government audits and reviews, and any fine, enrollment freeze, or monitoring program that may result therefrom;  	
 	 	
•	changes with respect to our provider contracts and the loss of providers; 	
 	 	
•	approval by state regulators of dividends and distributions by our health plan subsidiaries;  	
 	 	
•	changes in funding under our contracts as a result of regulatory changes, programmatic adjustments, or other reforms;  	
 	 	
•	high dollar claims related to catastrophic illness; 	
 	 	
•	the favorable resolution of litigation, arbitration, or administrative proceedings;  	
 	 	
•	the relatively small number of states in which we operate health plans;  	
 	 	
•	the effect on our Los Angeles County subcontract of Centene’s acquisition of Health Net;  	
 	 	
•	the availability of adequate financing on acceptable terms to fund and capitalize our expansion and growth, repay our outstanding indebtedness at maturity and meet our liquidity needs, including the interest expense and other costs associated with such financing;  	
 	 	
•	the failure of a state in which we operate to renew its federal Medicaid waiver;  	
 	 	
•	changes generally affecting the managed care or Medicaid management information systems industries; 	
 	 	
•	increases in government surcharges, taxes, and assessments;  	
 	 	
•	newly emergent viruses or widespread epidemics, including the Zika virus, and associated public alarm;	
 	 	
•	changes in general economic conditions, including unemployment rates;	
 	 	
•	the sufficiency of our funds, on hand to pay the amounts due upon conversion of our outstanding notes; 	
 	 	
•	increasing competition and consolidation in the Medicaid industry;	
and numerous other risk factors, including those discussed in the Company’s periodic reports and filings with the Securities and Exchange Commission. These reports can be accessed under the investor relations tab of the Company’s website or on the SEC’s website at  sec.gov . Given these risks and uncertainties, we can give no assurances that the Company’s forward-looking statements will prove to be accurate, or that any other results or events projected or contemplated by the Company’s forward-looking statements will in fact occur, and we caution investors not to place undue reliance on these statements. All forward-looking statements in this release represent the Company’s judgment as of February 8, 2016, and we disclaim any obligation to update any forward-looking statements to conform the statement to actual results or changes in the Company’s expectations.

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MOH Reports Fourth Quarter and Year-End 2015 Results
Page 4
February 8, 2016

MOLINA HEALTHCARE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

 	Three Months Ended	 	Year Ended	
 	December 31,	 	December 31,	
 	2015	 	2014	 	2015	 	2014	
 	(Dollar amounts in millions, except net income per share)	
Revenue:	 	 	 	 	 	 	 	
Premium revenue	$	3,488	
 	 	$	2,599	
 	 	$	13,140	
 	 	$	9,023	
 	
Service revenue	106	
 	 	54	
 	 	252	
 	 	210	
 	
Premium tax revenue	104	
 	 	91	
 	 	393	
 	 	294	
 	
Health insurer fee revenue	61	
 	 	52	
 	 	264	
 	 	120	
 	
Investment income	6	
 	 	2	
 	 	18	
 	 	8	
 	
Other revenue	—	
 	 	4	
 	 	5	
 	 	12	
 	
Total revenue	3,765	
 	 	2,802	
 	 	14,072	
 	 	9,667	
 	
Operating expenses:	 	 	 	 	 	 	 	
Medical care costs	3,110	
 	 	2,322	
 	 	11,691	
 	 	8,076	
 	
Cost of service revenue	90	
 	 	39	
 	 	193	
 	 	157	
 	
General and administrative expenses	317	
 	 	205	
 	 	1,147	
 	 	765	
 	
Premium tax expenses	104	
 	 	91	
 	 	393	
 	 	294	
 	
Health insurer fee expenses	40	
 	 	23	
 	 	157	
 	 	89	
 	
Depreciation and amortization	28	
 	 	25	
 	 	104	
 	 	93	
 	
Total operating expenses	3,689	
 	 	2,705	
 	 	13,685	
 	 	9,474	
 	
Operating income	76	
 	 	97	
 	 	387	
 	 	193	
 	
Other expenses, net:	 	 	 	 	 	 	 	
Interest expense	22	
 	 	15	
 	 	67	
 	 	57	
 	
Other (income) expense, net	(2	)	 	—	
 	 	(2	)	 	1	
 	
Total other expenses, net	20	
 	 	15	
 	 	65	
 	 	58	
 	
Income from continuing operations before income tax expense	56	
 	 	82	
 	 	322	
 	 	135	
 	
Income tax expense	26	
 	 	48	
 	 	179	
 	 	73	
 	
Income from continuing operations	30	
 	 	34	
 	 	143	
 	 	62	
 	
Net income	$	30	
 	 	$	34	
 	 	$	143	
 	 	$	62	

Diluted net income per share: (1)	 	 	 	 	 	 	 	
Income from continuing operations	$	0.51	
 	 	$	0.69	
 	 	$	2.57	
 	 	$	1.30	
 	
Loss from discontinued operations	—	
 	 	—	
 	 	—	
 	 	(0.01	)	
Diluted net income per share	$	0.51	
 	 	$	0.69	
 	 	$	2.57	
 	 	$	1.29	

Diluted weighted average shares outstanding	57.7	
 	 	48.9	
 	 	55.6	
 	 	48.3	

Operating Statistics, Continuing Operations: (1)	 	 	 	 	 	 	 	
Medical care ratio (2)	89.2	%	 	89.4	%	 	89.0	%	 	89.5	%	
Service revenue ratio (3)	84.7	%	 	72.6	%	 	76.4	%	 	74.6	%	
General and administrative expense ratio (4)	8.4	%	 	7.3	%	 	8.2	%	 	7.9	%	
Premium tax ratio (2)	2.9	%	 	3.4	%	 	2.9	%	 	3.2	%	
Effective tax rate	47.0	%	 	58.6	%	 	55.5	%	 	53.8	%	
Net profit margin, continuing operations (4)	0.8	%	 	1.2	%	 	1.0	%	 	0.6	%	
____________
 	 	
(1)	Source data for calculations in thousands.	
 	 	
(2)	Medical care ratio represents medical care costs as a percentage of premium revenue; premium tax ratio represents premium tax expenses as a percentage of premium revenue plus premium tax revenue. Medical care costs include costs incurred for providing long term services and supports (LTSS).	
(3) Service revenue ratio represents cost of service revenue as a percentage of service revenue.
 	 	
(4)	Computed as a percentage of total revenue.	

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MOH Reports Fourth Quarter and Year-End 2015 Results
Page 5
February 8, 2016

MOLINA HEALTHCARE, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS

 	December 31,	
 	2015	 	2014	
 	(Amounts in millions,
except per-share data)	
ASSETS	
Current assets:	 	 	 	
Cash and cash equivalents	$	2,329	
 	 	$	1,539	
 	
Investments	1,801	
 	 	1,019	
 	
Receivables	597	
 	 	596	
 	
Income taxes refundable	13	
 	 	—	
 	
Prepaid expenses and other current assets	192	
 	 	49	
 	
Derivative asset	374	
 	 	—	
 	
Total current assets	5,306	
 	 	3,203	
 	
Property, equipment, and capitalized software, net	393	
 	 	341	
 	
Deferred contract costs	81	
 	 	54	
 	
Intangible assets, net	122	
 	 	89	
 	
Goodwill	519	
 	 	272	
 	
Restricted investments	109	
 	 	102	
 	
Derivative asset	—	
 	 	329	
 	
Deferred income taxes	18	
 	 	15	
 	
Other assets	28	
 	 	30	
 	
 	$	6,576	
 	 	$	4,435	

LIABILITIES AND STOCKHOLDERS’ EQUITY	
Current liabilities:	 	 	 	
Medical claims and benefits payable	$	1,582	
 	 	$	1,201	
 	
Amounts due government agencies	834	
 	 	527	
 	
Accounts payable and accrued liabilities	360	
 	 	242	
 	
Deferred revenue	223	
 	 	196	
 	
Income taxes payable	—	
 	 	9	
 	
Current portion of long-term debt	449	
 	 	—	
 	
Derivative liability	374	
 	 	—	
 	
Total current liabilities	3,822	
 	 	2,175	
 	
Senior notes	962	
 	 	690	
 	
Lease financing obligations	198	
 	 	157	
 	
Lease financing obligations - related party	—	
 	 	40	
 	
Derivative liability	—	
 	 	329	
 	
Other long-term liabilities	37	
 	 	34	
 	
Total liabilities	5,019	
 	 	3,425	
 	
Stockholders’ equity:	 	 	 	
Common stock, $0.001 par value; 150 shares authorized; outstanding: 56 shares at December 31, 2015 and 50 shares at December 31, 2014	—	
 	 	—	
 	
Preferred stock, $0.001 par value; 20 shares authorized, no shares issued and outstanding	—	
 	 	—	
 	
Additional paid-in capital	803	
 	 	396	
 	
Accumulated other comprehensive loss	(4	)	 	(1	)	
Retained earnings	758	
 	 	615	
 	
Total stockholders’ equity	1,557	
 	 	1,010	
 	
 	$	6,576	
 	 	$	4,435	
 	
____________
Note: Certain 2014 amounts have been reclassified to conform to the 2015 presentation. Specifically, current and non-current deferred issuance costs are now reported as direct deductions from “Current portion of long-term debt,” and “Senior notes,” respectively. Additionally, the aggregate amount of deferred income taxes are now reported as non-current. Both reclassifications are a result of recently adopted accounting pronouncements.

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MOH Reports Fourth Quarter and Year-End 2015 Results
Page 6
February 8, 2016

MOLINA HEALTHCARE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS,
CONTINUING AND DISCONTINUED OPERATIONS

 	Three Months Ended	 	Year Ended	
 	December 31,	 	December 31,	
 	2015	 	2014	 	2015	 	2014	
 	(Amounts in millions)	
Operating activities:	 	 	 	 	 	 	 	
Net income	$	30	
 	 	$	34	
 	 	$	143	
 	 	$	62	
 	
Adjustments to reconcile net income to net cash provided by operating activities:	 	 	 	 	 	 	 	
Depreciation and amortization	33	
 	 	35	
 	 	126	
 	 	134	
 	
Deferred income taxes	5	
 	 	9	
 	 	(7	)	 	(2	)	
Share-based compensation	7	
 	 	6	
 	 	23	
 	 	22	
 	
Amortization of convertible senior notes and lease financing obligations	8	
 	 	7	
 	 	30	
 	 	27	
 	
Other, net	6	
 	 	3	
 	 	19	
 	 	7	
 	
Changes in operating assets and liabilities:	 	 	 	 	 	 	 	
Receivables	79	
 	 	(171	)	 	56	
 	 	(298	)	
Prepaid expenses and other current assets	28	
 	 	32	
 	 	(35	)	 	(20	)	
Medical claims and benefits payable	20	
 	 	77	
 	 	379	
 	 	531	
 	
Amounts due government agencies	(146	)	 	129	
 	 	307	
 	 	470	
 	
Accounts payable and accrued liabilities	48	
 	 	37	
 	 	82	
 	 	11	
 	
Deferred revenue	153	
 	 	5	
 	 	24	
 	 	74	
 	
Income taxes	(52	)	 	17	
 	 	(22	)	 	42	
 	
Net cash provided by operating activities	219	
 	 	220	
 	 	1,125	
 	 	1,060	

Investing activities:	 	 	 	 	 	 	 	
Purchases of investments	(612	)	 	(337	)	 	(1,923	)	 	(953	)	
Proceeds from sales and maturities of investments	263	
 	 	159	
 	 	1,126	
 	 	633	
 	
Purchases of property, equipment, and capitalized software	(31	)	 	(43	)	 	(132	)	 	(115	)	
Increase in restricted investments	(1	)	 	(10	)	 	(6	)	 	(34	)	
Net cash paid in business combinations	(373	)	 	(36	)	 	(450	)	 	(44	)	
Other, net	(1	)	 	(8	)	 	(35	)	 	(23	)	
Net cash used in investing activities	(755	)	 	(275	)	 	(1,420	)	 	(536	)	
 	 	 	 	 	 	 	 	
Financing activities:	 	 	 	 	 	 	 	
Proceeds from senior notes offerings, net of issuance costs	689	
 	 	—	
 	 	689	
 	 	123	
 	
Proceeds from common stock offering, net of issuance costs	—	
 	 	—	
 	 	373	
 	 	—	
 	
Contingent consideration liabilities settled	—	
 	 	—	
 	 	—	
 	 	(50	)	
Proceeds from employee stock plans	10	
 	 	6	
 	 	18	
 	 	14	
 	
Principal payments on convertible senior notes	—	
 	 	(10	)	 	—	
 	 	(10	)	
Other, net	2	
 	 	—	
 	 	5	
 	 	2	
 	
Net cash provided by (used in) financing activities	701	
 	 	(4	)	 	1,085	
 	 	79	
 	
Net increase (decrease) in cash and cash equivalents	165	
 	 	(59	)	 	790	
 	 	603	
 	
Cash and cash equivalents at beginning of period	2,164	
 	 	1,598	
 	 	1,539	
 	 	936	
 	
Cash and cash equivalents at end of period	$	2,329	
 	 	$	1,539	
 	 	$	2,329	
 	 	$	1,539	

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MOH Reports Fourth Quarter and Year-End 2015 Results
Page 7
February 8, 2016

MOLINA HEALTHCARE, INC.
UNAUDITED NON-GAAP FINANCIAL MEASURES
The Company uses two non-GAAP financial measures as supplemental metrics in evaluating its financial performance, making financing and business decisions, and forecasting and planning for future periods. For these reasons, management believes such measures are useful supplemental measures to investors in comparing the Company’s performance to the performance of other public companies in the health care industry. These non-GAAP financial measures should be considered as supplements to, and not as substitutes for or superior to, GAAP measures.

The first of these non-GAAP measures is earnings before interest, taxes, depreciation and amortization (EBITDA). The following table reconciles net income, which the Company believes to be the most comparable GAAP measure, to EBITDA.

 	Three Months Ended	 	Year Ended	
 	December 31,	 	December 31,	
 	2015	 	2014	 	2015	 	2014	
 	(Amounts in millions)	
Net income	$	30	
 	 	$	34	
 	 	$	143	
 	 	$	62	
 	
Adjustments:	 	 	 	 	 	 	 	
Depreciation, and amortization of intangible assets and capitalized software	33	
 	 	30	
 	 	120	
 	 	114	
 	
Interest expense	22	
 	 	15	
 	 	67	
 	 	57	
 	
Income tax expense	26	
 	 	48	
 	 	179	
 	 	72	
 	
EBITDA	$	111	
 	 	$	127	
 	 	$	509	
 	 	$	305	
 	
The second of these non-GAAP measures is adjusted net income, continuing operations (including adjusted net income per diluted share). The following table reconciles net income from continuing operations, which the Company believes to be the most comparable GAAP measure, to adjusted net income, continuing operations. The source data for per diluted share calculations below is in thousands.

 	Three Months Ended December 31,	 	Year Ended December 31,	 	
 	2015	 	2014	 	2015	 	2014	 	
 	(In millions, except per diluted share amounts)	 	
 	Amount	 	Per share	 	Amount	 	Per share	 	Amount	 	Per share	 	Amount	 	Per share	 	
Net income, continuing operations	$	30	
 	 	$	0.51	
 	 	$	34	
 	 	$	0.69	
 	 	$	143	
 	 	$	2.57	
 	 	$	62	
 	 	$	1.30	
 	 	
Adjustments, net of tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Amortization of convertible senior notes and lease financing obligations	5	
 	 	0.08	
 	 	4	
 	 	0.09	
 	 	19	
 	 	0.34	
 	 	17	
 	 	0.36	
 	 	
Amortization of intangible assets	3	
 	 	0.06	
 	 	3	
 	 	0.06	
 	 	11	
 	 	0.20	
 	 	13	
 	 	0.27	
 	 	
Adjusted net income, continuing operations (1)	$	38	
 	 	$	0.65	
 	 	$	41	
 	 	$	0.84	
 	 	$	173	
 	 	$	3.11	
 	 	$	92	
 	 	$	1.93	
 	 	
________________________
 	 	
(1)	Beginning in the first quarter of 2015, the Company revised its calculation of adjusted net income, continuing operations. The Company no longer subtracts  “ depreciation, and amortization of capitalized software ”  and  “ share-based compensation ”  from net income, continuing operations to arrive at adjusted net income, continuing operations. The Company made this change to better reflect the way in which it evaluates its financial performance, makes financing and business decisions, and forecasts and plans for future periods. All periods presented conform to this presentation.	

-MORE-

MOH Reports Fourth Quarter and Year-End 2015 Results
Page 8
February 8, 2016

MOLINA HEALTHCARE, INC.
UNAUDITED HEALTH PLANS SEGMENT MEMBERSHIP, CONTINUING OPERATIONS

 	As of December 31,	
 	2015	 	2014	 	2013	
Ending Membership by Health Plan:	 	 	 	 	 	
California	620,000	
 	 	531,000	
 	 	368,000	
 	
Florida	440,000	
 	 	164,000	
 	 	89,000	
 	
Illinois	98,000	
 	 	100,000	
 	 	4,000	
 	
Michigan	328,000	
 	 	242,000	
 	 	213,000	
 	
New Mexico	231,000	
 	 	212,000	
 	 	168,000	
 	
Ohio	327,000	
 	 	347,000	
 	 	255,000	
 	
Puerto Rico (1)	348,000	
 	 	—	
 	 	—	
 	
South Carolina	99,000	
 	 	118,000	
 	 	—	
 	
Texas	260,000	
 	 	245,000	
 	 	252,000	
 	
Utah	102,000	
 	 	83,000	
 	 	86,000	
 	
Washington	582,000	
 	 	497,000	
 	 	403,000	
 	
Wisconsin	98,000	
 	 	84,000	
 	 	93,000	
 	
 	3,533,000	
 	 	2,623,000	
 	 	1,931,000	
 	
Ending Membership by Program:	 	 	 	 	 	
Temporary Assistance for Needy Families (TANF), CHIP (2)	2,312,000	
 	 	1,809,000	
 	 	1,603,000	
 	
Medicaid Expansion(3)	557,000	
 	 	385,000	
 	 	—	
 	
Aged, Blind or Disabled (ABD)	366,000	
 	 	347,000	
 	 	289,000	
 	
Marketplace(3)	205,000	
 	 	15,000	
 	 	—	
 	
Medicare-Medicaid Plan (MMP) - Integrated(4)	51,000	
 	 	18,000	
 	 	—	
 	
Medicare Special Needs Plans	42,000	
 	 	49,000	
 	 	39,000	
 	
 	3,533,000	
 	 	2,623,000	
 	 	1,931,000	
 	
_______________________
 	 	
(1)	The Puerto Rico health plan began serving members effective April 1, 2015.	
 	 	
(2)	CHIP stands for Children’s Health Insurance Program.	
 	 	
(3)	Medicaid Expansion membership phased in, and Marketplace became available for consumers to access coverage, beginning January 1, 2014.	
 	 	
(4)	MMP members who receive both Medicaid and Medicare coverage from the Company. The Company began serving members under this program in the second quarter of 2014.	

-MORE-

MOH Reports Fourth Quarter and Year-End 2015 Results
Page 9
February 8, 2016

MOLINA HEALTHCARE, INC.
UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA,
CONTINUING OPERATIONS
(In millions, except percentages and per-member per-month amounts)

 	Three Months Ended December 31, 2015	 	
 	Member
Months(1)	 	Premium Revenue	 	Medical Care Costs	 	MCR(2)	 	Medical Margin	 	
 	 	 	Total	 	PMPM	 	Total	 	PMPM	 	 	 	 	 	 	 	
California	1.8	
 	 	$	563	
 	 	$	309.31	
 	 	$	474	
 	 	$	260.44	
 	 	84.2	%	 	$	89	
 	 	 	 	
Florida	1.2	
 	 	329	
 	 	277.71	
 	 	318	
 	 	268.98	
 	 	96.9	
 	 	11	
 	 	 	 	
Illinois	0.3	
 	 	85	
 	 	287.88	
 	 	79	
 	 	266.91	
 	 	92.7	
 	 	6	
 	 	 	 	
Michigan	1.0	
 	 	329	
 	 	334.44	
 	 	282	
 	 	287.00	
 	 	85.8	
 	 	47	
 	 	 	 	
New Mexico	0.7	
 	 	304	
 	 	438.82	
 	 	263	
 	 	379.10	
 	 	86.4	
 	 	41	
 	 	 	 	
Ohio	1.0	
 	 	500	
 	 	501.11	
 	 	437	
 	 	436.77	
 	 	87.2	
 	 	63	
 	 	 	 	
Puerto Rico	1.1	
 	 	192	
 	 	184.79	
 	 	159	
 	 	153.04	
 	 	82.8	
 	 	33	
 	 	 	 	
South Carolina	0.3	
 	 	78	
 	 	261.07	
 	 	69	
 	 	229.48	
 	 	87.9	
 	 	9	
 	 	 	 	
Texas	0.7	
 	 	543	
 	 	693.06	
 	 	496	
 	 	633.77	
 	 	91.4	
 	 	47	
 	 	 	 	
Utah	0.4	
 	 	89	
 	 	290.05	
 	 	77	
 	 	251.55	
 	 	86.7	
 	 	12	
 	 	 	 	
Washington	1.7	
 	 	416	
 	 	241.28	
 	 	376	
 	 	217.77	
 	 	90.3	
 	 	40	
 	 	 	 	
Wisconsin	0.3	
 	 	55	
 	 	186.57	
 	 	53	
 	 	182.41	
 	 	97.8	
 	 	2	
 	 	 	 	
Other(3)	—	
 	 	5	
 	 	—	
 	 	27	
 	 	—	
 	 	—	
 	 	(22	)	 	 	 	
 	10.5	
 	 	$	3,488	
 	 	$	334.62	
 	 	$	3,110	
 	 	$	298.43	
 	 	89.2	%	 	$	378	

 	Three Months Ended December 31, 2014	 	 	 	
 	Member
Months(1)	 	Premium Revenue	 	Medical Care Costs	 	MCR(2)	 	Medical Margin	 	 	 	
 	 	 	Total	 	PMPM	 	Total	 	PMPM	 	 	 	 	 	 	 	 	 	
California	1.6	
 	 	$	463	
 	 	$	291.27	
 	 	$	379	
 	 	$	238.49	
 	 	81.9	%	 	$	84	
 	 	 	 	 	 	
Florida	0.4	
 	 	126	
 	 	348.60	
 	 	129	
 	 	356.76	
 	 	102.3	
 	 	(3	)	 	 	 	 	 	
Illinois	0.2	
 	 	84	
 	 	353.71	
 	 	78	
 	 	323.76	
 	 	91.5	
 	 	6	
 	 	 	 	 	 	
Michigan	0.7	
 	 	213	
 	 	294.14	
 	 	185	
 	 	254.41	
 	 	86.5	
 	 	28	
 	 	 	 	 	 	
New Mexico	0.7	
 	 	299	
 	 	456.40	
 	 	294	
 	 	448.99	
 	 	98.4	
 	 	5	
 	 	 	 	 	 	
Ohio	1.1	
 	 	492	
 	 	475.15	
 	 	426	
 	 	412.02	
 	 	86.7	
 	 	66	
 	 	 	 	 	 	
Puerto Rico	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	 	 	
South Carolina	0.4	
 	 	93	
 	 	263.97	
 	 	73	
 	 	208.10	
 	 	78.8	
 	 	20	
 	 	 	 	 	 	
Texas	0.8	
 	 	339	
 	 	458.42	
 	 	299	
 	 	404.88	
 	 	88.3	
 	 	40	
 	 	 	 	 	 	
Utah	0.2	
 	 	76	
 	 	300.28	
 	 	69	
 	 	277.44	
 	 	92.4	
 	 	7	
 	 	 	 	 	 	
Washington	1.4	
 	 	364	
 	 	246.91	
 	 	342	
 	 	232.08	
 	 	94.0	
 	 	22	
 	 	 	 	 	 	
Wisconsin	0.2	
 	 	38	
 	 	148.99	
 	 	36	
 	 	139.75	
 	 	93.8	
 	 	2	
 	 	 	 	 	 	
Other(3)	—	
 	 	12	
 	 	—	
 	 	12	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	 	 	
 	7.7	
 	 	$	2,599	
 	 	$	338.52	
 	 	$	2,322	
 	 	$	302.60	
 	 	89.4	%	 	$	277	
 	 	 	 	 	 	
____________
 	 	
(1)	A member month is defined as the aggregate of each month’s ending membership for the period presented.	
 	 	
(2)	The MCR represents medical costs as a percentage of premium revenue. Source data in thousands.	
 	 	
(3)	“Other” medical care costs include primarily medically related administrative costs at the parent company, and direct delivery costs.	

-MORE-

MOH Reports Fourth Quarter and Year-End 2015 Results
Page 10
February 8, 2016

MOLINA HEALTHCARE, INC.
UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA,
CONTINUING OPERATIONS
(In millions, except percentages and per-member per-month amounts)

 	Year Ended December 31, 2015	 	
 	Member
Months(1)	 	Premium Revenue	 	Medical Care Costs	 	MCR(2)	 	Medical Margin	 	
 	 	 	Total	 	PMPM	 	Total	 	PMPM	 	 	 	 	 	 	 	
California	7.1	
 	 	$	2,101	
 	 	$	296.93	
 	 	$	1,823	
 	 	$	257.67	
 	 	86.8	%	 	$	278	
 	 	 	 	
Florida	4.1	
 	 	1,197	
 	 	289.38	
 	 	1,081	
 	 	261.49	
 	 	90.4	
 	 	116	
 	 	 	 	
Illinois	1.2	
 	 	397	
 	 	328.93	
 	 	367	
 	 	303.72	
 	 	92.3	
 	 	30	
 	 	 	 	
Michigan	3.4	
 	 	1,067	
 	 	317.15	
 	 	903	
 	 	268.27	
 	 	84.6	
 	 	164	
 	 	 	 	
New Mexico	2.8	
 	 	1,237	
 	 	446.27	
 	 	1,106	
 	 	398.98	
 	 	89.4	
 	 	131	
 	 	 	 	
Ohio	4.1	
 	 	2,034	
 	 	499.34	
 	 	1,718	
 	 	421.61	
 	 	84.4	
 	 	316	
 	 	 	 	
Puerto Rico	3.2	
 	 	567	
 	 	178.31	
 	 	505	
 	 	158.80	
 	 	89.1	
 	 	62	
 	 	 	 	
South Carolina	1.3	
 	 	348	
 	 	267.25	
 	 	278	
 	 	213.30	
 	 	79.8	
 	 	70	
 	 	 	 	
Texas	3.1	
 	 	1,961	
 	 	621.25	
 	 	1,809	
 	 	573.32	
 	 	92.3	
 	 	152	
 	 	 	 	
Utah	1.2	
 	 	331	
 	 	286.22	
 	 	300	
 	 	259.32	
 	 	90.6	
 	 	31	
 	 	 	 	
Washington	6.6	
 	 	1,602	
 	 	242.36	
 	 	1,470	
 	 	222.36	
 	 	91.7	
 	 	132	
 	 	 	 	
Wisconsin	1.2	
 	 	261	
 	 	213.48	
 	 	215	
 	 	176.01	
 	 	82.4	
 	 	46	
 	 	 	 	
Other(3)	—	
 	 	37	
 	 	—	
 	 	116	
 	 	—	
 	 	—	
 	 	(79	)	 	 	 	
 	39.3	
 	 	$	13,140	
 	 	$	334.71	
 	 	$	11,691	
 	 	$	297.81	
 	 	89.0	%	 	$	1,449	

 	Year Ended December 31, 2014	 	 	 	
 	Member
Months(1)	 	Premium Revenue	 	Medical Care Costs	 	MCR(2)	 	Medical Margin	 	 	 	
 	 	 	Total	 	PMPM	 	Total	 	PMPM	 	 	 	 	 	 	 	 	 	
California	5.6	
 	 	$	1,523	
 	 	$	270.51	
 	 	$	1,269	
 	 	$	225.37	
 	 	83.3	%	 	$	254	
 	 	 	 	 	 	
Florida	1.1	
 	 	439	
 	 	397.79	
 	 	419	
 	 	379.95	
 	 	95.5	
 	 	20	
 	 	 	 	 	 	
Illinois	0.3	
 	 	153	
 	 	498.48	
 	 	141	
 	 	456.88	
 	 	91.7	
 	 	12	
 	 	 	 	 	 	
Michigan	2.8	
 	 	781	
 	 	278.68	
 	 	661	
 	 	235.81	
 	 	84.6	
 	 	120	
 	 	 	 	 	 	
New Mexico	2.5	
 	 	1,076	
 	 	435.17	
 	 	996	
 	 	402.92	
 	 	92.6	
 	 	80	
 	 	 	 	 	 	
Ohio	3.7	
 	 	1,553	
 	 	425.47	
 	 	1,335	
 	 	365.87	
 	 	86.0	
 	 	218	
 	 	 	 	 	 	
Puerto Rico	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	 	 	
South Carolina	1.5	
 	 	381	
 	 	260.72	
 	 	323	
 	 	220.89	
 	 	84.7	
 	 	58	
 	 	 	 	 	 	
Texas	3.0	
 	 	1,318	
 	 	442.32	
 	 	1,197	
 	 	401.81	
 	 	90.8	
 	 	121	
 	 	 	 	 	 	
Utah	1.0	
 	 	310	
 	 	310.64	
 	 	285	
 	 	286.43	
 	 	92.2	
 	 	25	
 	 	 	 	 	 	
Washington	5.5	
 	 	1,305	
 	 	236.27	
 	 	1,219	
 	 	220.75	
 	 	93.4	
 	 	86	
 	 	 	 	 	 	
Wisconsin	1.0	
 	 	156	
 	 	150.87	
 	 	136	
 	 	130.91	
 	 	86.8	
 	 	20	
 	 	 	 	 	 	
Other(3)	—	
 	 	28	
 	 	—	
 	 	95	
 	 	—	
 	 	—	
 	 	(67	)	 	 	 	 	 	
 	28.0	
 	 	$	9,023	
 	 	$	322.68	
 	 	$	8,076	
 	 	$	288.84	
 	 	89.5	%	 	$	947	
 	 	 	 	 	 	
____________
 	 	
(1)	A member month is defined as the aggregate of each month’s ending membership for the period presented.	
 	 	
(2)	The MCR represents medical costs as a percentage of premium revenue. Source data in thousands.	
 	 	
(3)	“Other” medical care costs include primarily medically related administrative costs at the parent company, and direct delivery costs.	

-MORE-

MOH Reports Fourth Quarter and Year-End 2015 Results
Page 11
February 8, 2016

MOLINA HEALTHCARE, INC.
UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA,
CONTINUING OPERATIONS
(In millions, except percentages and per-member per-month amounts)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended December 31, 2015 (1)	 	
 	Member
Months(2)	 	Premium Revenue	 	Medical Care Costs	 	MCR(3)	 	Medical Margin	 	
 	 	 	Total	 	PMPM	 	Total	 	PMPM	 	 	 	 	 	 	
TANF and CHIP	6.9	
 	 	$	1,203	
 	 	$	175.96	
 	 	$	1,092	
 	 	$	159.83	
 	 	90.8	%	 	$	111	
 	 	 	
Medicaid Expansion	1.7	
 	 	637	
 	 	386.27	
 	 	503	
 	 	305.28	
 	 	79.0	
 	 	134	
 	 	 	
ABD	1.1	
 	 	1,059	
 	 	967.72	
 	 	995	
 	 	910.11	
 	 	94.0	
 	 	64	
 	 	 	
Marketplace	0.6	
 	 	126	
 	 	223.57	
 	 	111	
 	 	194.80	
 	 	87.1	
 	 	15	
 	 	 	
MMP	0.1	
 	 	330	
 	 	2,160.91	
 	 	290	
 	 	1,905.00	
 	 	88.2	
 	 	40	
 	 	 	
Medicare	0.1	
 	 	133	
 	 	1,076.00	
 	 	119	
 	 	954.40	
 	 	88.7	
 	 	14	
 	 	 	
 	10.5	
 	 	$	3,488	
 	 	$	334.62	
 	 	$	3,110	
 	 	$	298.43	
 	 	89.2	%	 	$	378	

 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Year Ended December 31, 2015 (1)	 	
 	Member
Months(2)	 	Premium Revenue	 	Medical Care Costs	 	MCR(3)	 	Medical Margin	 	
 	 	 	Total	 	PMPM	 	Total	 	PMPM	 	 	 	 	 	 	
TANF and CHIP	25.5	
 	 	$	4,483	
 	 	$	175.64	
 	 	$	4,122	
 	 	$	161.50	
 	 	92.0	%	 	$	361	
 	 	 	
Medicaid Expansion	5.9	
 	 	2,291	
 	 	391.62	
 	 	1,828	
 	 	312.58	
 	 	79.8	
 	 	463	
 	 	 	
ABD	4.3	
 	 	4,122	
 	 	966.37	
 	 	3,784	
 	 	887.27	
 	 	91.8	
 	 	338	
 	 	 	
Marketplace	2.6	
 	 	651	
 	 	251.96	
 	 	481	
 	 	185.85	
 	 	73.8	
 	 	170	
 	 	 	
MMP	0.5	
 	 	1,063	
 	 	2,033.76	
 	 	974	
 	 	1,863.93	
 	 	91.6	
 	 	89	
 	 	 	
Medicare	0.5	
 	 	530	
 	 	1,038.15	
 	 	502	
 	 	982.50	
 	 	94.6	
 	 	28	
 	 	 	
 	39.3	
 	 	$	13,140	
 	 	$	334.71	
 	 	$	11,691	
 	 	$	297.81	
 	 	89.0	%	 	$	1,449	
 	 	 	
_______________________
 	 	
(1)	Three and twelve months ended December 31, 2014 data not presented due to lack of comparability.	
 	 	
(2)	A member month is defined as the aggregate of each month’s ending membership for the period presented.	
 	 	
(3)	The MCR represents medical costs as a percentage of premium revenue. Source data in thousands.	

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MOH Reports Fourth Quarter and Year-End 2015 Results
Page 12
February 8, 2016

MOLINA HEALTHCARE, INC.
UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA,
CONTINUING OPERATIONS
(In millions, except percentages and per-member per-month amounts)

The following tables provide the details of the Company’s medical care costs from continuing operations for the periods indicated:

 	Three Months Ended December 31,	
 	2015	 	2014	
 	Amount	 	PMPM	 	% of
Total	 	Amount	 	PMPM	 	% of
Total	
Fee for service	$	2,297	
 	 	$	220.34	
 	 	73.9	%	 	$	1,644	
 	 	$	214.14	
 	 	70.8	%	
Pharmacy	449	
 	 	43.08	
 	 	14.4	
 	 	354	
 	 	46.12	
 	 	15.3	
 	
Capitation	257	
 	 	24.69	
 	 	8.3	
 	 	211	
 	 	27.60	
 	 	9.1	
 	
Direct delivery	43	
 	 	4.14	
 	 	1.4	
 	 	26	
 	 	3.42	
 	 	1.1	
 	
Other	64	
 	 	6.18	
 	 	2.0	
 	 	87	
 	 	11.32	
 	 	3.7	
 	
 	$	3,110	
 	 	$	298.43	
 	 	100.0	%	 	$	2,322	
 	 	$	302.60	
 	 	100.0	%	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Year Ended December 31,	
 	2015	 	2014	
 	Amount	 	PMPM	 	% of
Total	 	Amount	 	PMPM	 	% of
Total	
Fee for service	$	8,572	
 	 	$	218.35	
 	 	73.3	%	 	$	5,673	
 	 	$	202.87	
 	 	70.2	%	
Pharmacy	1,610	
 	 	41.01	
 	 	13.8	
 	 	1,273	
 	 	45.54	
 	 	15.8	
 	
Capitation	982	
 	 	25.02	
 	 	8.4	
 	 	748	
 	 	26.77	
 	 	9.3	
 	
Direct delivery	128	
 	 	3.26	
 	 	1.1	
 	 	96	
 	 	3.44	
 	 	1.2	
 	
Other	399	
 	 	10.17	
 	 	3.4	
 	 	286	
 	 	10.22	
 	 	3.5	
 	
 	$	11,691	
 	 	$	297.81	
 	 	100.0	%	 	$	8,076	
 	 	$	288.84	
 	 	100.0	%	
The following table provides the details of the Company’s medical claims and benefits payable as of the dates indicated:

 	December 31,	
 	2015	 	2014	
Fee-for-service claims incurred but not paid (IBNP)	$	1,191	
 	 	$	871	
 	
Pharmacy payable	88	
 	 	71	
 	
Capitation payable	37	
 	 	28	
 	
Other (1)	266	
 	 	231	
 	
 	$	1,582	
 	 	$	1,201	
 	
______________________
 	 	
(1)	“Other” medical claims and benefits payable include amounts payable to certain providers for which the Company acts as an intermediary on behalf of various state agencies without assuming financial risk. Such receipts and payments do not impact the Company’s consolidated statements of income. As of December 31, 2015 and 2014, the Company had recorded non-risk provider payables of approximately $167 million and $119 million, respectively.	

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MOH Reports Fourth Quarter and Year-End 2015 Results
Page 13
February 8, 2016

MOLINA HEALTHCARE, INC.
UNAUDITED CHANGE IN MEDICAL CLAIMS AND BENEFITS PAYABLE
(Dollars in millions, except per-member amounts)

The Company’s claims liability includes a provision for adverse claims deviation based on historical experience and other factors including, but not limited to, variations in claims payment patterns, changes in utilization and cost trends, known outbreaks of disease, and large claims. The Company’s reserving methodology is consistently applied across all periods presented. The amounts displayed for “Components of medical care costs related to: Prior period” represent the amount by which the Company’s original estimate of claims and benefits payable at the beginning of the period were more than the actual amount of the liability based on information (principally the payment of claims) developed since that liability was first reported. The following table presents the components of the change in medical claims and benefits payable from continuing and discontinued operations combined for the periods indicated:

 	 	 	 	 	 	 	 	
 	Year Ended	
 	December 31,	
 	2015	 	2014	
 	 	
Medical claims and benefits payable, beginning balance	$	1,201	
 	 	$	670	
 	
Components of medical care costs related to:	 	 	 	
Current period	11,832	
 	 	8,123	
 	
Prior period	(141	)	 	(46	)	
Total medical care costs	11,691	
 	 	8,077	

Change in non-risk provider payables	48	
 	 	(32	)	
Payments for medical care costs related to:	 	 	 	
Current period	10,448	
 	 	7,064	
 	
Prior period	910	
 	 	450	
 	
Total paid	11,358	
 	 	7,514	
 	
Medical claims and benefits payable, ending balance	$	1,582	
 	 	$	1,201	

Benefit from prior period as a percentage of:	 	 	 	
Balance at beginning of period	11.8	%	 	6.9	%	
Premium revenue, trailing twelve months	1.1	%	 	0.5	%	
Medical care costs, trailing twelve months	1.2	%	 	0.6	%	
 	 	 	 	
Fee-For-Service Claims Data:	 	 	 	
Days in claims payable, fee for service	48	
 	 	49	
 	
Number of members at end of year	3,533,000	
 	 	2,623,000	
 	
Number of claims in inventory at end of year	380,800	
 	 	307,700	
 	
Billed charges of claims in inventory at end of year	$	816	
 	 	$	719	
 	
Claims in inventory per member at end of year	0.11	
 	 	0.12	
 	
Billed charges of claims in inventory per member at end of year	$	230.91	
 	 	$	273.92	
 	
Number of claims received during the year	40,173,300	
 	 	27,597,000	
 	
Billed charges of claims received during the year	$	46,211	
 	 	$	30,316	

-MORE-

MOH Reports Fourth Quarter and Year-End 2015 Results
Page 14
February 8, 2016

MOLINA HEALTHCARE, INC.
HEALTH INSURER FEE DETAILS BY HEALTH PLAN
(In millions)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	HIF Reimbursement Revenue, Gross(1)	
 	Year Ended December 31, 2015	
 	Recognized	 	Necessary for Full Reimbursement	
 	Q1 2015	 	 Q2 2015	 	Q3 2015	 	Q4 2015	 	Total	 	 	
2015 HIF:	 	
California	$	—	
 	 	$	17	
 	 	$	6	
 	 	$	8	
 	 	$	31	
 	 	$	31	
 	
Florida	2	
 	 	2	
 	 	2	
 	 	2	
 	 	8	
 	 	8	
 	
Illinois	1	
 	 	1	
 	 	1	
 	 	1	
 	 	4	
 	 	4	
 	
Michigan	—	
 	 	—	
 	 	21	
 	 	7	
 	 	28	
 	 	28	
 	
New Mexico	7	
 	 	8	
 	 	8	
 	 	7	
 	 	30	
 	 	30	
 	
Ohio	12	
 	 	12	
 	 	12	
 	 	12	
 	 	48	
 	 	48	
 	
South Carolina	3	
 	 	3	
 	 	3	
 	 	3	
 	 	12	
 	 	12	
 	
Texas	6	
 	 	6	
 	 	6	
 	 	5	
 	 	23	
 	 	23	
 	
Utah	—	
 	 	—	
 	 	4	
 	 	2	
 	 	6	
 	 	6	
 	
Washington	11	
 	 	11	
 	 	6	
 	 	9	
 	 	37	
 	 	37	
 	
Wisconsin	1	
 	 	1	
 	 	1	
 	 	2	
 	 	5	
 	 	5	
 	
Subtotal, Medicaid	43	
 	 	61	
 	 	70	
 	 	58	
 	 	232	
 	 	232	
 	
Marketplace	—	
 	 	—	
 	 	1	
 	 	1	
 	 	2	
 	 	2	
 	
Medicare	6	
 	 	4	
 	 	4	
 	 	5	
 	 	19	
 	 	19	
 	
 	49	
 	 	65	
 	 	75	
 	 	64	
 	 	253	
 	 	$	253	
 	
2014 HIF:	 	 	 	 	 	 	 	 	 	 	 	
California	—	
 	 	12	
 	 	—	
 	 	—	
 	 	12	
 	 	 	
Michigan	—	
 	 	—	
 	 	7	
 	 	—	
 	 	7	
 	 	 	
Utah	—	
 	 	—	
 	 	1	
 	 	—	
 	 	1	
 	 	 	
 	$	49	
 	 	$	77	
 	 	$	83	
 	 	$	64	
 	 	$	273	

Recognized in:	 	 	 	 	 	 	 	 	 	 	 	
Health insurer fee revenue	$	48	
 	 	$	74	
 	 	$	81	
 	 	$	61	
 	 	$	264	
 	 	 	
Premium tax revenue	1	
 	 	3	
 	 	2	
 	 	3	
 	 	9	
 	 	 	
 	$	49	
 	 	$	77	
 	 	$	83	
 	 	$	64	
 	 	$	273	
 	 	 	
_____________
 	 	
(1)	Amounts in the table include the Company’s estimate of the full economic impact of the excise tax including premium tax and the income tax effect.	

-END-