Molina Healthcare announced that the Florida Agency for Health Care Administration has issued a Notice of Agency Decision to award the company a contract to provide Statewide Medicaid Managed Care (SMMC) and Children’s Health Insurance Program (CHIP) services for the Title XIX and Title XXI Children’s Medical Services (CMS) program. The contract, which is expected to run through December 31, 2030, will cover approximately 120,000 enrollees and is projected to generate about $5 billion in premiums for calendar year 2025.
The award adds a substantial premium stream to Molina’s Medicaid portfolio, which already accounts for roughly 75% of the company’s total premium income. The $5 billion figure represents a significant expansion of the company’s presence in Florida, one of the largest Medicaid markets in the country, and reinforces its position as a leading provider of government‑sponsored health plans.
Molina will be the sole provider for this specialized population, a distinction that underscores its expertise in managing high‑acuity, medically complex children and youth. The company plans to leverage its existing operational infrastructure across Florida’s 27 counties to deliver services efficiently, aiming to maintain strong medical cost ratios and support its broader strategy of sustaining high margins in the Medicaid business.
Florida’s Medicaid market has historically been a key growth engine for Molina. The company previously secured regional Medicaid managed‑care contracts in 2019 that began serving Florida residents in 2020. This new statewide contract consolidates and expands those efforts, positioning Molina to capture future opportunities as state‑level rate negotiations and policy changes evolve.
The contract announcement comes shortly after Molina reported a Q3 2025 earnings miss, with adjusted EPS of $1.84 falling well below analyst expectations of $3.91 and a sharp reduction in full‑year 2025 guidance. While the new contract is a positive development, investors have focused on the company’s profitability challenges, which have tempered enthusiasm for the announcement.
Joseph Zubretsky, Molina’s president and CEO, said the award “honors our track record of being selected for competitive state contracts and validates our ability to serve medically complex, high‑acuity populations.” He added that the company remains committed to delivering high‑quality care while managing costs.
Analysts noted that the contract’s value, while sizable, is unlikely to offset the near‑term earnings pressure stemming from rising medical costs and the company’s recent guidance cut. The market reaction to the announcement was muted, reflecting concerns about profitability rather than the strategic significance of the new contract.
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