Molina expands exchange footprint as other insurers pull back

Molina Healthcare is entering health insurance markets where other insurers are leaving, and turning a profit, according to The Hill.

During the Affordable Care Act's first year, the Long Beach, Calif.-based insurer aimed to double its revenue to $12 billion in two years and reached that goal. The insurer, which has 4 million policyholders, now anticipates $16 billion in revenue by year's end. In addition, the insurer plans to expand into three markets, including Florida and California.  

CEO of Molina Healthcare J. Mario Molina told The Hill the payer's success stems from its ability to cut costs. The insurer has a history of offering Medicaid plans, which lack the same flexibility of raising premiums as plans offered by commercial insurers.

"We have to learn to live within a budget, and that's very different than on the commercial side," Dr. Molina said in an interview.

Dr. Molina also said the company cuts costs by providing narrow network plans, limiting the providers policyholders can see.

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