Molina gets reprieve on potential loss of Medicaid business in Texas

Molina Healthcare (MOH +2%) discloses that the Texas Health and Human Services Commission (HHSC) notified its health plan there, Molina Healthcare of Texas, that it will cancel all contracts associated with the STAR+PLUS re-procurement, including the solicitation from Molina Healthcare of Texas. HHSC is currently “deliberating” next steps in the matter.

In October 2019, the company announced that HHSC awarded its business in the Bexar, Dallas, El Paso, Harris and Jefferson service areas to other providers.

Certain sell-side analysts view HHSC’s decision as a net positive for Molina since there may be a considerable delay in the issuance of a request for new bids due to COVID-19-related disruptions.

https://seekingalpha.com/news/3555487-molina-gets-reprieve-on-potential-loss-of-medicaid-business-in-texas