By Will Feuer


Molina Healthcare Inc. said the California Department of Health Care Services has awarded the health-insurance company new Medi-Cal contracts starting on Jan. 1, 2024.

The company said its awards include contracts for Riverside, Sacramento, San Bernardino and San Diego Counties and as a subcontractor in Los Angeles County. The California agency also agreed to grant Molina a contract to offer D-SNP products for dual eligible members in Los Angeles County.

Last week, the California Department of Health Care Services said it was awarding Medi-Cal contracts to five providers, a reversal from an August 2022 announcement in which the agency said it intended to only contract with three. Molina said its footprint was unaffected by the change.

Molina said its Medi-Cal membership is expected to grow from about 600,000 members as of Sept. 30 to about 1.2 million members in 2024.

Molina's current annual premium revenue from its Medi-Cal contract is now expected to grow from about $1.9 billion to about $3.9 billion for 2024, below the $5.5 billion it previously expected based on the California agency's August announcement. Molina said its projection doesn't include potential additional revenue from the D-SNP contract.

Medi-Cal is California's state implementation of the Medicaid health-care program.


Write to Will Feuer at Will.Feuer@wsj.com


(END) Dow Jones Newswires

01-03-23 0715ET