On this page of StockholderLetter.com we present the latest annual shareholder letter from MOLINA HEALTHCARE, INC. — ticker symbol MOH. Reading current and past MOH letters to shareholders can bring important insights into the investment thesis.

 •  3/21/2024 Letter Continued (Full PDF)
 •  More "Diagnostics" Category Stockholder Letters
 •  MOH Benford's Law Stock Score = 80

MOH Shareholder/Stockholder Letter Transcript:

Company Profile
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed healthcare services under the Medicaid and
Medicare programs and through the state insurance marketplaces. Molina Healthcare served approximately 5.0 million
members as of December 31, 2023. For more information about Molina Healthcare, please visit molinahealthcare.com.
Line of Business Profile
Membership by Line of Business
Premium by Line of Business
81%
91%
Medicaid
Medicaid
6%
6%
Marketplace
Marketplace
3%
Medicare
13%
Medicare
Historical Highlights
Premium Revenue
Diluted GAAP Net Income
per Share
($ Millions)
'19
'20
'21
'22
'23
16,208
18,299
26,855
30,883
32,529
Diluted Adjusted Net
Income per Share
'19
$11.47
'19
'20
$11.23
'20
'21
$11.25
'21
'22
'23
'22
$13.55
$18.77
'23
$11.57
$10.67
$13.54
$17.92
$20.88
See the reconciliation of GAAP to Adjusted Net Income per Share on Page A3
Annual Meeting
The annual meeting of stockholders will be held on Wednesday, May 1, 2024, at 10:00 a.m. Eastern Time live via the
internet at www.virtualshareholdermeeting.com/MOH2024.

To Our Stockholders:
We are pleased to report that we continued to deliver strong results for all our stakeholders this year, producing excellent
margins while effectively growing premium revenue.
Our management team and our nearly 19,000 associates remained steadfast in our mission to improve the health and lives of
the five million members we serve by delivering high quality, affordable healthcare. Their passion is unwavering and drives
successes across the enterprise, from serving our existing members, to growing business in existing states, winning new
business in new states, and integrating our recently acquired health plans.
We continue to execute our strategy of sustaining profitable growth.
We generated 5 percent premium revenue growth that was well
balanced between organic growth and bolt-on acquisitions. Our
earnings per share exceeded our initial 2023 guidance and our pre-tax
margin was near the high end of our long-term target range, all while
managing through the impacts of the unprecedented Medicaid
redetermination process. During the year, we closed the acquisition of
My Choice Wisconsin, further expanding our market-leading LTSS
franchise, and launched our Iowa Medicaid plan. We also agreed to
   We continue to
execute our
strategy for
sustaining
profitable growth.   
acquire the Bright Health California Medicare business, which we
closed in early 2024.
2023 was also a highly successful year on the Medicaid procurement front. We successfully re-procured our Texas STAR+
contract, we expanded our California platform     doubling our size in the state     and we won new contracts in New Mexico and
Nebraska. Collectively, our acquisitions and organic revenue growth in 2023 represent $7 billion of annual premium revenue.
I am extremely pleased with the momentum we created through our operational and financial successes during 2023. We
continue to see sustainable, profitable growth opportunities to expand our pure-play government managed care franchise into
2024 and beyond.
Thank you for your ongoing support and interest in our Company. We are most grateful for the confidence you express in our
team and the Company   s mission, as demonstrated by your continued ownership.
Sincerely,
Joseph M. Zubretsky
President and Chief Executive Officer

Reconciliation of GAAP to Adjusted Net Income per Diluted Share
2023
Net Income
Adjustments:
Amortization of intangible assets
Acquisition-related expenses (1)
Impairment (2)
Loss (gain) of debt repayment
Marketplace risk corridor judgment
Other (3)
Subtotal, adjustments
Income tax effect
Adjustments, net of tax effect
Adjusted net income
2022
2021
2020
2019
$ 18.77 $ 13.55 $ 11.25 $ 11.23 $ 11.47
1.47
0.12
1.17
2.76
(0.65)
2.11
$ 20.88 $
1.32
0.83
3.56
5.71
(1.34)
4.37
17.92 $
0.83
1.59
0.43
0.16
3.01
(0.72)
2.29
13.54 $
0.26
0.37
0.26
(2.14)
0.51
(0.74)
0.18
(0.56)
10.67 $
0.27
(0.24)
0.10
0.13
(0.03)
0.10
11.57
(1) Reflects non-recurring costs associated with acquisitions, including various transaction and certain
integration costs.
(2) Impairment attributable to the Company's plan to reduce its leased real estate footprint.
(3) 2023 includes a non-recurring credit loss on 2022 Marketplace risk adjustment receivables due to the
insolvency of an issuer in the Texas risk pool, non-recurring litigation costs and one-time termination
benefits. 2022 includes certain non-recurring costs associated with gain on lease termination and disposal
of fixed assets. 2021 includes change in premium deficiency reserve, loss on sale of property, and
restructuring costs. 2020 includes charitable contribution, premium deficiency reserves, and restructuring
costs. 2019 includes only restructuring costs.



 3/21/2024 Letter Continued (Full PDF)