Molina Healthcare plummets, dragging other insurers, after forecast cut

Molina Healthcare

23/10/2025 11:01

** Shares of U.S. health insurer Molina Healthcare MOH.N plunge 20% to $154.50 premarket after co cuts annual profit forecast, citing higher medical costs

** CEO Joseph Zubretsky says half of company's underperformance is driven by Marketplace business, which serves individuals under the Affordable Care Act, also known as Obamacare

** Co says it continues to experience much higher levels of utilization in Marketplace business, offsetting strong margins in Medicaid

** Elevance Health ELV.N had also flagged higher costs in Medicaid business, as higher enrollment in government plans for low-income people hit the industry

** Centene CNC.N down 6.6%, Elevance Health, Humana HUM.N, and United Health UNH down between 1.4% and 1.9%

** Molina shares down about 33% YTD vs ~6% rise in the S&P 500 Healthcare index .SPXHC

(Reporting by Utkarsh Tushar Hathi in Bengaluru)

((utkarshtushar.hathi@thomsonreuters.com))