Molina Healthcare Expands Presence With Illinois D-SNP Contract Win

Molina Healthcare, Inc. MOH recently announced that its subsidiary, Molina Healthcare of Illinois, has been selected as one of four organizations to provide a Fully Integrated Dual Eligible Special Needs Plan (D-SNP) in Illinois. This contract, awarded by the Illinois Department of Healthcare and Family Services, positions Molina Healthcare for strategic growth while enhancing its service offerings for dual-eligible beneficiaries.This new contract will replace Illinois' existing Medicare-Medicaid Alignment Initiative, which currently covers approximately 73,000 beneficiaries. With the go-live date set for Jan. 1, 2026, Molina Healthcare of Illinois stands to gain from the transition as it strengthens its foothold in the state’s healthcare landscape.In December 2024, MOH secured wins by expanding its services to dual-eligible populations in Michigan and Idaho. Contract wins like these are expected to increase the overall membership and drive premiums. Premiums remain the most significant contributor to a health insurer’s top line. As of Dec. 31, 2024, MOH’s Medicaid and Medicare membership grew 7.7% and 40.7% year over year, respectively. For 2025, management estimates Medicaid and Medicare membership to be around 5 million and 250,000, respectively.By integrating care services more efficiently under the new D-SNP model, Molina Healthcare can enhance patient outcomes while streamlining operations, potentially driving cost savings and improved member retention. This latest success reaffirms Molina Healthcare’s commitment to serving vulnerable populations and positions the company for continued expansion in the competitive healthcare market. It expects total revenues to rise approximately 8% year over year in 2025.Shares of Molina Healthcare have gained 7.6% over the past three months compared with the industry’s 3.1% growth. MOH currently carries a Zacks Rank #4 (Sell).Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks in the broader Medical sector are Pediatrix Medical Group, Inc. MD, The Ensign Group, Inc. ENSG and Addus HomeCare Corporation ADUS. While Pediatrix Medical currently sports a Zacks Rank #1 (Strong Buy), Ensign and Addus HomeCare carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Pediatrix Medical’s current-year earnings increased 3 cents in the past week. MD beat earnings estimates in each of the trailing four quarters, with an average surprise of 19.4%. The consensus mark for its current-year revenues is pegged at $1.9 billion.The Zacks Consensus Estimate for Ensign’s current-year earnings indicates 13.5% year-over-year growth. ENSG beat earnings estimates in each of the trailing four quarters, with an average surprise of 1.5%. The consensus mark for revenues implies a 14.3% increase from the year-ago period.The Zacks Consensus Estimate for Addus HomeCare’s current-year earnings indicates a 13.5% increase from the year-ago reported figure. ADUS beat earnings estimates in three of the trailing four quarters and met once, with an average surprise of 5.8%. The consensus mark for its current-year revenues is pegged at $1.4 billion, which indicates 21.7% year-over-year growth.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Molina Healthcare, Inc (MOH): Free Stock Analysis Report Pediatrix Medical Group, Inc. (MD): Free Stock Analysis Report Addus HomeCare Corporation (ADUS): Free Stock Analysis Report The Ensign Group, Inc. (ENSG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks