Molina Healthcare’s Earnings Miss Sparks Sector-Wide Selloff
Molina Healthcare (MOH) shares cratered 19.5% in after-hours trading after slashing full-year guidance, dragging down peers including UnitedHealth and Centene. The health insurer posted Q3 revenue of $11.48 billion—beating estimates—but earnings collapsed 69% amid runaway medical costs in its Marketplace division.
The dismal results highlight systemic pressures across managed care providers. Medicaid margins failed to offset marketplace losses, exposing vulnerability to rising medical utilization. Sector contagion was immediate: Centene dropped 6.7%, Humana fell 1.9%, and Elevance Health declined 1.2% in sympathy.
Market participants now question whether this earnings shock represents company-specific mismanagement or broader industry headwinds. The guidance cut suggests medical cost trends are deteriorating faster than actuarial models predicted—a warning sign for insurers entering 2024 rate negotiations.
