Molina Healthcare Settles TCPA Wrong Number Class Action

Progyny (PGNY) and other health insurers reported Q2 earnings, with revenues beating estimates by 2.8% but guidance below expectations. PGNY's revenue grew 5.3% YoY, missing EBITDA guidance. CVS Health (CVS) reported 7.3% YoY revenue growth, beating estimates. Molina Healthcare (MOH) saw a 4.8% YoY revenue decline. Alignment Healthcare (ALHC) grew 31.6% YoY, while Clover Health (CLOV) saw 55.6% YoY growth. Stocks have declined since earnings, except CLOV, which rose 4.3%.

Centene (CNC) and Oscar Health (OSCR) shares rose 6% and 12% respectively after Baird reported favorable risk adjustment results. Baird noted the outcomes support Centene's Q4 commentary and align with Oscar's June investor conference remarks. Molina (MOH) shares also rose 2% despite a minor negative impact. The Centers for Medicare & Medicaid Services released final 2025 risk adjustment data on June 30, affecting insurers' earnings.

CVS Health (CVS) reported $106.1B revenue, up 7.3% YoY, beating estimates. UnitedHealth (UNH) reported $112B revenue, flat YoY, also beating estimates. Progyny (PGNY) reported $350.5M revenue, up 5.3% YoY, missing guidance. Molina Healthcare (MOH) reported $10.87B revenue, down 4.8% YoY, missing guidance. All stocks have declined since earnings.

Shares of Centene (CNC), UnitedHealth (UNH), CVS (CVS), and Humana (HUM) fell after-hours Tuesday after a report that the Trump administration plans to end a $3.6B federal subsidy for Medicare Part D plans post-2026. The subsidy helps keep premiums low for 25M enrollees. The loss of support could pressure margins and enrollment for insurers offering stand-alone Part D plans, though some beneficiaries may shift to Medicare Advantage plans.

Molina Healthcare (MOH) discussed Q2 results on its earnings call. Medicaid MCR was 92.4% in first half, expected to rise to 93.3% in second half. Medicare MCR was 90.7% and full-year Medicare MCR guidance was cut to 92.2%, with 2026 EPS contribution of $0.25. Marketplace MCR pressure led to raised 2026 guidance to 90% and a shift to a $0.75 per share loss. 2027 premium outlook is about $46.5B.

Molina Healthcare (MOH) reported Q2 2026 revenue of $10.87B, down 5% from Q2 2025, with GAAP net income falling to $60M ($1.19/share) from $255M ($4.75). Adjusted net income was $77M ($1.51). Medical care ratio rose to 92.2%. Despite weaker results, the company raised full-year guidance for GAAP earnings to at least $2.15/share and adjusted to at least $5.25/share.