Molina Healthcare reported a 95% year-over-year drop in net income for the first quarter of 2026, falling to $14 million, from $298 million in the same period last year.
The insurer attributed the decline in part to a $93 million impairment of intangible assets tied to its previously announced exit of the Medicare Part D market.
Premium revenue for the first quarter was $10.2 billion, down 4% year over year. The company cited lower Medicaid membership from general market contraction and the expiration of its Virginia Medicaid contract, as well as a decrease in ACA membership tied to its product and pricing strategy.
The company’s medical loss ratio in Q1 was 91.1%, up from 89.2% in the first quarter of 2025. Molina had approximately 5 million members as of March 31.
The company reaffirmed its full year 2026 guidance of approximately $42 billion in premium revenue and adjusted earnings of at least $5 per diluted share, a figure it said reflects a prudent view at this stage of the year. Molina reduced its adjusted annual earnings guidance three times in 2025 amid rising costs.
In 2025, Molina reported net income of $472 million, down 60% from $1.2 billion in 2024, on total revenues of $45.4 billion.
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