Molina’s Resilience Through Low-Cost Administration

27 days ago

Steve Gorelik

"Molina is actually still making money. Not as much money as it used to. So normally it operates at about a 4% margin. Right now we're at about 2%."

Molina Healthcare continues to post profits despite a compression in its operating margins (from 4% to 2%). This is largely attributed to its focused business model in Medicaid, which enables it to maintain lower administrative expenses compared with its peers. Its cost-efficient operations act as a competitive moat and provide the company with resilience amid rising medical cost pressures.

Related Stocks