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Molina Healthcare’s Medicaid Margin Crisis and Strategic Exit
Molina sinks on weak 2026 profit outlook as Medicaid medical costs jump
What happened
Molina Healthcare ($MOH) shares fell more than 28% after the company forecast 2026 adjusted EPS of at least $5.00, far below Wall Street’s ~$13.76 estimate, citing rising medical costs across its government-backed plans (especially Medicaid).
Molina also said it will exit Medicare Advantage prescription drug plans (Part D) in 2027 due to underperformance, and management called 2026 a “trough year” for Medicaid margins because rates are not keeping up with medical cost trends.
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