Molina Medicaid Solutions, an operating subsidiary of
Molina Healthcare, Inc.
), announced that the Centers for Medicare and Medicaid Services
("CMS") has endowed complete federation certification to implement
the Medicaid Management Information System ("MMIS") in Idaho. The
system underwent stringent monitoring for a week, followed by
further evaluation by CMS to successfully receive the
As the federal certification will increase the monthly cost of
operation, three-fourth of the MMIS operation costs incurred by
Molina Medicaid Solutions will be reimbursed by the regulatory
bodies. This compensation will be effective retrospectively since
the system began processing the claims.
The federal government was desirous of this upgrade as the
system caters to over 230,000 participants and processes
approximately 140,000 claims a week.
Rising expenditures have always been a cause of concern for
health care companies. The certification and reimbursement of costs
will aid the company's revenues to a certain extent.
Molina Healthcare competes closely with
Unitedhealth Group, Inc.
). In early July, the Government Accountability Office confirmed
the U.S. Department of Defense's TRICARE Managed Care Support
contract award to UnitedHealth Group.TRICARE is a health insurance
service program meant for working as well as retired military
service members and their families.
Under this administrative services contract, UnitedHealth will
support health care delivery to approximately 2.9 million eligible
beneficiaries who are active duty service members, retirees and
family members based in 21 states of TRICARE's West region. The
contract consists of five one-year option periods and is valued at
Molina Healthcare is scheduled to release its second quarter
results after the closing bell on July 26. The Zacks Consensus
Estimate for earnings for the second quarter is currently pegged at
7 cents per share, representing an estimated year-over-year decline
Molina Healthcare currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We have long-term Neutral
recommendation on its shares.
MOLINA HLTHCR (MOH): Free Stock Analysis Report
UNITEDHEALTH GP (UNH): Free Stock Analysis
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