LONG BEACH, Calif.--(BUSINESS WIRE)--Molina Healthcare, Inc. (NYSE: MOH) today announced that its wholly owned subsidiary, Molina Healthcare of Mississippi, Inc., has been awarded a contract by the Mississippi Division of Medicaid (DOM) for the Children’s Health Insurance Program (CHIP). With this award, Molina is one of two managed care organizations selected to administer CHIP in each of the state’s nine regional service areas and all 82 counties. The terms of the new three-year contract are effective February 1, 2019, and services are expected to begin on July 1, 2019, pending the completion of a readiness review with DOM.
“We are honored to have the opportunity to serve more members through this new CHIP contract,” said Bridget Galatas, president of Molina Healthcare of Mississippi. “It has been an exciting year launching our health plan, and we are pleased to continue working with DOM, local providers, and community-based organizations to further increase accessibility to quality, affordable care and to improve the health, well-being, and success of all those in our community, especially the children we will now be able to serve through CHIP.”
CHIP and MississippiCAN are the programs that DOM administers to improve access to medical services, improve quality of care, and improve program efficiencies and cost predictability. CHIP specifically helps provide affordable health insurance coverage for uninsured children up to 19 years of age who do not qualify for Medicaid. Nearly 50,000 beneficiaries are currently enrolled in the CHIP program in Mississippi. Molina expects the contract to add approximately $75 million to the Company’s revenue annually.
Molina Healthcare of Mississippi currently provides Medicaid coverage to individuals and families across the state through the Mississippi Coordinated Access Network (MississippiCAN), which was awarded in February 2017 and went live in October 2018.
About Molina Healthcare
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed healthcare services under the Medicaid and Medicare programs and through the state insurance marketplaces. Through its locally operated health plans, Molina Healthcare served approximately 4 million members as of September 30, 2018. For more information about Molina Healthcare, please visit molinahealthcare.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release contains “forward-looking statements” regarding the selection of Molina Healthcare of Mississippi for a contract for the Children’s Health Insurance Program in Mississippi. All forward-looking statements are based on current expectations that are subject to numerous risk factors that could cause actual results to differ materially. Such risk factors include, without limitation, a failure of the parties to finalize and execute the new contract, a delay in the start date for the new contract, a reversal of the contract awards in connection with a successful protest by another bidder, and a failure to satisfy readiness review requirements. Additional information regarding the risk factors to which we are subject is provided in greater detail in our periodic reports and filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K. These reports can be accessed under the investor relations tab of our website or on the SEC’s website at sec.gov. Given these risks and uncertainties, we cannot give assurances that our forward-looking statements will prove to be accurate, or that any other results or events projected or contemplated by our forward-looking statements will in fact occur, and we caution investors not to place undue reliance on these statements. All forward-looking statements in this release represent our judgment as of the date hereof, and we disclaim any obligation to update any forward-looking statements to conform the statement to actual results or changes in our expectations that occur after the date of this release.