• Net income of $2.90 per diluted share on a GAAP basis for the third quarter of 2018, and $7.60 for the nine months ended September 30, 2018
• Third quarter 2018 results include a net charge of $0.35 per diluted share, and year-to-date results include a net benefit of $0.59 per diluted share, for non-run rate items
• The overall medical care ratio improved to 86.4% from 87.0%, sequentially, when excluding non-run rate items
• Net profit margin of 4.2% in the quarter, and 3.6% year to date
• 2018 guidance increases by $1.65 per diluted share at the midpoint, to a range of $8.80 - $9.00 net income per diluted share on a GAAP basis

LONG BEACH, Calif.--(BUSINESS WIRE)-- Molina Healthcare, Inc. (NYSE: MOH) today reported its financial results for the third quarter of 2018.

“We are very pleased with the continued improvement in the performance of our business,” said Joe Zubretsky, President and Chief Executive Officer. “Our financial results reflect the significant progress we are making in executing our margin recovery and sustainability plan.”

We believe that the sequential comparison of our 2018 third quarter performance with our 2018 second quarter performance is the most useful indicator of our business progress. Significant items impacting the quarter are presented in a table later in this press release.

Third Quarter of 2018 Compared With Second Quarter of 2018

Net income decreased slightly to $197 million, from $202 million in the second quarter of 2018. Net income per diluted share decreased to $2.90, from $3.02 in the second quarter of 2018.

Premium revenue decreased $177 million, or 4%, in the third quarter of 2018 compared with the second quarter of 2018. The sequential decline is mainly attributed to non-run rate items including the 2017 Marketplace risk adjustment premium that we recognized in the second quarter of 2018, and a $57 million reduction in revenues for a retroactive California Medicaid Expansion risk corridor for the state’s 2017 fiscal year that we recognized in the third quarter of 2018.

Overall, the medical care ratio (MCR) increased to 87.4%, from 85.3% in the second quarter of 2018. Excluding the retroactive California Medicaid Expansion risk corridor adjustment and a small benefit from the 2017 Marketplace cost sharing reduction (CSR), the MCR would have been 86.4% in the third quarter of 2018. Excluding the combined benefit of the 2017 Marketplace risk adjustment and CSR reimbursement, the MCR would have been 87.0% in the second quarter of 2018. The sequential improvement in the overall underlying MCR was due to a decrease in the Medicaid and Marketplace MCRs, partially offset by an increase in the Medicare MCR as follows:

• The Medicaid MCR increased to 90.5%, from 89.8% in the second quarter of 2018. Excluding the recognition of the $57 million retroactive California Medicaid Expansion risk corridor adjustment, the Medicaid MCR would have been 89.0% in the third quarter of 2018. The sequential decrease was mainly due to improved performance in the Aged, Blind or Disabled (ABD) and Expansion programs, partially offset by a decline in performance in the Temporary Assistance for Needy Families program (TANF).
• The Marketplace MCR increased to 64.1%, from 57.4% in the second quarter of 2018. Excluding the benefit of the 2017 CSR, the MCR would have been 65.3% in the third quarter of 2018. Excluding the combined benefit of the 2017 risk adjustment and CSR, the Marketplace MCR would have been 68.4% in the second quarter of 2018. The sequential improvement was mainly due to lower medical costs and higher revenue.
• The Medicare MCR increased to 87.3%, from 85.0% in the second quarter of 2018, mainly due to certain premium adjustments and higher inpatient costs in our Medicare-Medicaid Integrated plans.

The general and administrative (G&A) expense ratio decreased to 6.6%, from 6.9% in the second quarter of 2018, due to continuing G&A cost containment.

Capital Plan Progress

In the third quarter of 2018, we repaid $140 million aggregate principal amount of our 1.125% Notes and entered into privately negotiated termination agreements to partially terminate the related 1.125% Call Option and 1.125% Warrants. In addition, we converted the remaining $64 million aggregate principal amount of our 1.625% Notes for cash and 0.6 million shares of our common stock. Year to date, we have reduced the principal amount of outstanding debt by $697 million. In addition, we terminated our bridge credit agreement in the third quarter of 2018.

Sale of Molina Medicaid Solutions (MMS) Segment

We closed on our sale of MMS to DXC Technology Company on September�30, 2018. The net cash selling price for the equity interests of MMS was $233 million, which we received on October 1, 2018. As a result of this transaction, we recorded a pretax gain, net of transactions costs, of $37 million, or $0.42 per diluted share.

Third Quarter of 2018 Compared With Third Quarter of 2017

Net income for the third quarter of 2018 was $197 million, compared with a net loss of $97 million for the third quarter of 2017. Net income per diluted share was $2.90 for the third quarter of 2018 compared with a net loss per diluted share of $1.70 reported for the third quarter of 2017. In the third quarter of 2017, we recorded impairment and restructuring charges of $247 million, or $3.16 per diluted share.

2018 Revised Guidance

The following table summarizes 2018 Revised Guidance (1):

Premium revenue	�	�	�	�	~ $17.5B
Service revenue					~ $390M
Premium tax revenue					~ $420M
Health insurer fees reimbursed					~ $325M
Investment income and other revenue	�	�	�	�	~ $125M
Total revenue					~ $18.8B
Medical care costs					~ $15.1B
Medical care ratio (2)					~ 86%
Cost of service revenue					~ $350M
General and administrative expenses					~ $1.4B
G&A ratio (3)					~ 7.3%
Premium tax expenses					~ $420M
Health insurer fees					~ $350M
Depreciation and amortization					~ $100M
Restructuring and separation costs					~ $40M - $45M
Losses on sale of subsidiaries, net					~ $15M
Interest expense and other expenses, net					~ $145M
Income before income taxes					$870M - $890M
Net income					$585M - $600M
EBITDA (4)					$1,105M - $1,125M
Effective tax rate					32% - 33%
Net profit margin (3)					3.1% - 3.2%
Diluted weighted average shares					~ 66.7M
Net income per share					$8.80 - $9.00
Adjusted net income per share (4)					$9.05 - $9.25
End-of-year Marketplace membership					340,000
End-of-year Medicaid and Medicare membership					3,510,000

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(1) All amounts are estimates; actual results may differ materially. See the Company’s risk factors as discussed in its 2017 Form 10-K and other filings and the statements below in this press release after the heading “Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995.”
(2) Medical care ratio represents medical care costs as a percentage of premium revenue.
(3) G&A ratio represents general and administrative expenses as a percentage of total revenue. Net profit margin represents net income as a percentage of total revenue.
(4) See reconciliation of non-GAAP financial measures at the end of this release.

Conference Call

Management will host a conference call and webcast to discuss Molina Healthcare’s third quarter 2018 results at 7:30 a.m. Eastern time on Thursday, November 1, 2018. The number to call for the interactive teleconference is (877) 883-0383 and the confirmation number is 5420566. A telephonic replay of the conference call will be available through Friday, November 2, 2018, by dialing (877) 344-7529 and entering confirmation number 10124788. A live audio broadcast of this conference call will be available on Molina Healthcare’s website, molinahealthcare.com. A 30-day online replay will be available approximately an hour following the conclusion of the live broadcast.

About Molina Healthcare

Molina Healthcare, Inc., a FORTUNE 500 company, provides managed health care services under the Medicaid and Medicare programs and through the state insurance marketplaces. Through its locally operated health plans, Molina Healthcare served approximately 4.0 million members as of September 30, 2018. For more information about Molina Healthcare, please visit molinahealthcare.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This earnings release contains “forward-looking statements” regarding the Company’s 2018 revised guidance, as well as its plans, expectations, and anticipated future events. Actual results could differ materially due to numerous known and unknown risks and uncertainties. Those known risks and uncertainties include, but are not limited to, the following:

• the success of the Company’s profit improvement and maintenance initiatives, including the timing and amounts of the benefits realized, and administrative and medical cost savings achieved;
• the numerous political and market-based uncertainties associated with the Affordable Care Act (the “ACA”) or “Obamacare;”
• the market dynamics surrounding the ACA Marketplaces, including but not limited to uncertainties associated with risk adjustment requirements, the potential for disproportionate enrollment of higher acuity members, the discontinuation of premium tax credits, and the adequacy of agreed rates;
• subsequent adjustments to reported premium revenue based upon subsequent developments or new information, including changes to estimated amounts payable or receivable related to Marketplace risk adjustment;
• effective management of the Company’s medical costs;
• the Company’s ability to predict with a reasonable degree of accuracy utilization rates, including utilization rates associated with seasonal flu patterns or other newly emergent diseases;
• significant budget pressures on state governments and their potential inability to maintain current rates, to implement expected rate increases, or to maintain existing benefit packages or membership eligibility thresholds or criteria;
• the full reimbursement of the ACA health insurer fee, or HIF;
• the success of the Company’s efforts to retain existing or awarded government contracts, including the success of any protest filings or defenses;
• the Company’s ability to manage its operations, including maintaining and creating adequate internal systems and controls relating to authorizations, approvals, provider payments, and the overall success of its care management initiatives;
• the Company’s ability to consummate and realize benefits from divestitures and acquisitions, including the recently consummated MMS and Pathways divestitures;
• the Company’s receipt of adequate premium rates to support increasing pharmacy costs, including costs associated with specialty drugs and costs resulting from formulary changes that allow the option of higher-priced non-generic drugs;
• the Company’s ability to operate profitably in an environment where the trend in premium rate increases lags behind the trend in increasing medical costs;
• the interpretation and implementation of federal or state medical cost expenditure floors, administrative cost and profit ceilings, premium stabilization programs, profit sharing arrangements, and risk adjustment provisions and requirements;
• the Company’s estimates of amounts owed for such cost expenditure floors, administrative cost and profit ceilings, premium stabilization programs, profit-sharing arrangements, and risk adjustment provisions;
• the Medicaid expansion medical cost corridors in California, New Mexico, and Washington, and any other retroactive adjustment to revenue where methodologies and procedures are subject to interpretation or dependent upon information about the health status of participants other than Molina members;
• the interpretation and implementation of at-risk premium rules and state contract performance requirements regarding the achievement of certain quality measures, and the Company’s ability to recognize revenue amounts associated therewith;
• cyber-attacks or other privacy or data security incidents resulting in an inadvertent unauthorized disclosure of protected health information;
• the success of the Company’s health plan in Puerto Rico, including the resolution of the debt crisis and the effect of the PROMESA law, and the impact of any future significant weather events;
• the success and renewal of the Company’s duals demonstration programs in California, Illinois, Michigan, Ohio, South Carolina, and Texas;
• the accurate estimation of incurred but not reported or paid medical costs across the Company’s health plans;
• efforts by states to recoup previously paid and recognized premium amounts;
• complications, member confusion, or enrollment backlogs related to the annual renewal of Medicaid coverage;
• government audits and reviews, or potential investigations, and any fine, sanction, enrollment freeze, monitoring program, or premium recovery that may result therefrom;
• changes with respect to the Company’s provider contracts and the loss of providers;
• approval by state regulators of dividends and distributions by the Company’s health plan subsidiaries;
• changes in funding under the Company’s contracts as a result of regulatory changes, programmatic adjustments, or other reforms;
• high dollar claims related to catastrophic illness;
• the favorable resolution of litigation, arbitration, or administrative proceedings, including litigation involving the ACA to which we ourselves are not a direct party;
• the relatively small number of states in which we operate health plans, including the greater scale and revenues of the Company’s California, Ohio, Texas, and Washington health plans;
• the availability of adequate financing on acceptable terms to fund and capitalize the Company’s expansion and growth, repay the Company’s outstanding indebtedness at maturity and meet its liquidity needs, including the interest expense and other costs associated with such financing;
• the Company’s failure to comply with the financial or other covenants in its credit agreement or the indentures governing its outstanding notes;
• the sufficiency of the Company’s funds on hand to pay the amounts due upon conversion or maturity of its outstanding notes;
• the failure of a state in which we operate to renew its federal Medicaid waiver;
• changes generally affecting the managed care or Medicaid management information systems industries;
• increases in government surcharges, taxes, and assessments, including but not limited to the deductibility of certain compensation costs;
• newly emergent viruses or widespread epidemics, public catastrophes or terrorist attacks, and associated public alarm;
• the unexpected loss of the leadership of one or more of our senior executives;
• increasing competition and consolidation in the Medicaid industry;

and numerous other risk factors, including those discussed in the Company’s periodic reports and filings with the Securities and Exchange Commission. These reports can be accessed under the investor relations tab of the Company’s website or on the SEC’s website at sec.gov. Given these risks and uncertainties, the Company can give no assurances that its forward-looking statements will prove to be accurate, or that any other results or events projected or contemplated by its forward-looking statements will in fact occur, and the Company cautions investors not to place undue reliance on these statements. All forward-looking statements in this release represent the Company’s judgment as of October 31, 2018, and the Company disclaims any obligation to update any forward-looking statements to conform the statement to actual results or changes in its expectations.

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MOLINA HEALTHCARE, INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
�
	�	�	�	�	Three Months Ended September 30,								�	�	Nine Months Ended September 30,
					2018			�	�	2017					2018			�	�	2017
					(Dollar amounts in millions, except per-share amounts)
Revenue:
Premium revenue					$	4,337				$	4,777				$	13,174				$	14,165
Service revenue					130					130					391					390
Premium tax revenue					110					106					320					331
Health insurer fees reimbursed					83					—					248					—
Investment income and other revenue					37		�			18		�			93		�			48		�
Total revenue					4,697		�			5,031		�			14,226		�			14,934		�
Operating expenses:
Medical care costs					3,790					4,220					11,362					12,822
Cost of service revenue					111					123					349					369
General and administrative expenses					311					383					998					1,227
Premium tax expenses					110					106					320					331
Health insurer fees					87					—					261					—
Depreciation and amortization					25					33					76					109
Restructuring and separation costs					5					118					38					161
Impairment losses					—		�			129		�			—		�			201		�
Total operating expenses					4,439		�			5,112		�			13,404		�			15,220		�
Gain on sale of subsidiary					37		�			—		�			37		�			—		�
Operating income (loss)					295		�			(81		)			859		�			(286		)
Other expenses, net:
Interest expense					26					32					91					85
Other expense (income), net					10		�			—		�			25		�			(75		)
Total other expenses, net					36		�			32		�			116		�			10		�
Income (loss) before income tax expense (benefit)					259					(113		)			743					(296		)
Income tax expense (benefit)					62		�			(16		)			237		�			(46		)
Net income (loss)					$	197	�			$	(97	)			$	506	�			$	(250	)
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Net income (loss) per diluted share					$	2.90	�			$	(1.70	)			$	7.60	�			$	(4.44	)
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Diluted weighted average shares outstanding					67.9		�			56.5		�			66.6		�			56.2		�
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Operating Statistics:
Medical care ratio					87.4		%			88.3		%			86.2		%			90.5		%
G&A ratio					6.6		%			7.6		%			7.0		%			8.2		%
Premium tax ratio					2.5		%			2.2		%			2.4		%			2.3		%
Effective income tax rate					24.0		%			14.6		%			31.9		%			15.5		%
Net profit (loss) margin					4.2		%			(1.9		)%			3.6		%			(1.7		)%

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MOLINA HEALTHCARE, INC. UNAUDITED CONSOLIDATED BALANCE SHEETS
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	�	�	�	�	September 30,			�	�	December 31,
					2018					2017
					(In millions, except per-share data)
ASSETS
Current assets:
Cash and cash equivalents					$	2,814				$	3,186
Investments					1,812					2,524
Restricted investments					—					169
Receivables					1,346					871
Prepaid expenses and other current assets					486					239
Derivative asset					843		�			522		�
Total current assets					7,301					7,511
Property, equipment, and capitalized software, net					264					342
Goodwill and intangible assets, net					195					255
Restricted investments					118					119
Deferred income taxes					143					103
Other assets					30		�			141		�
					$	8,051	�			$	8,471	�
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LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable					$	2,042				$	2,192
Amounts due government agencies					1,030					1,542
Accounts payable and accrued liabilities					824					366
Deferred revenue					178					282
Current portion of long-term debt					296					653
Derivative liability					843		�			522		�
Total current liabilities					5,213					5,557
Long-term debt					1,019					1,318
Lease financing obligations					198					198
Other long-term liabilities					60		�			61		�
Total liabilities					6,490		�			7,134		�
Stockholders’ equity:
Common stock, $0.001 par value, 150 shares authorized; outstanding: 62 shares at September 30, 2018 and 60 shares at December 31, 2017					—					—
Preferred stock, $0.001 par value; 20 shares authorized, no shares issued and outstanding					—					—
Additional paid-in capital					760					1,044
Accumulated other comprehensive loss					(10		)			(5		)
Retained earnings					811		�			298		�
Total stockholders’ equity					1,561		�			1,337		�
					$	8,051	�			$	8,471	�

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MOLINA HEALTHCARE, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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	�	�	�	�	Three Months Ended								�	�	Nine Months Ended
					September 30,										September 30,
					2018			�	�	2017					2018			�	�	2017
					(In millions)
Operating activities:
Net income (loss)					$	197				$	(97	)			$	506				$	(250	)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization					31					43					104					139
Deferred income taxes					(26		)			(27		)			(32		)			(68		)
Share-based compensation					7					3					20					38
Non-cash restructuring costs					—					49					17					49
Amortization of convertible senior notes and lease financing obligations					5					8					18					24
Gain on sale of subsidiary					(37		)			—					(37		)			—
Loss on debt extinguishment					10					—					25					—
Impairment losses					—					129					—					201
Other, net					2					6					6					13
Changes in operating assets and liabilities:
Receivables					(192		)			4					(507		)			(28		)
Prepaid expenses and other current assets					64					(15		)			(117		)			(53		)
Medical claims and benefits payable					123					401					(144		)			549
Amounts due government agencies					(716		)			(520		)			(511		)			122
Accounts payable and accrued liabilities					49					108					398					90
Deferred revenue					(13		)			185					(55		)			153
Income taxes					(9		)			8		�			118		�			(22		)
Net cash (used in) provided by operating activities					(505		)			285		�			(191		)			957		�
Investing activities:
Purchases of investments					(288		)			(258		)			(1,202		)			(1,894		)
Proceeds from sales and maturities of investments					735					662					2,070					1,536
Purchases of property, equipment, and capitalized software					(10		)			(25		)			(24		)			(85		)
Other, net					(14		)			(9		)			(23		)			(33		)
Net cash provided by (used in) investing activities					423		�			370		�			821		�			(476		)
Financing activities:
Repayment of credit facility					—					—					(300		)			—
Repayment of principal amount of 1.125% Notes					(140		)			—					(236		)			—
Cash paid for partial settlement of 1.125% Conversion Option					(343		)			—					(477		)			—
Cash received for partial termination of 1.125% Call Option					343					—					477					—
Cash paid for partial termination of 1.125% Warrants					(306		)			—					(419		)			—
Repayment of principal amount of 1.625% Notes					(64		)			—					(64		)			—
Proceeds from senior notes offerings, net of issuance costs					—					—					—					325
Proceeds from borrowings under credit facility					—					300					—					300
Other, net					1		�			(1		)			7		�			7		�
Net cash (used in) provided by financing activities					(509		)			299		�			(1,012		)			632		�
Net (decrease) increase in cash, cash equivalents, and restricted cash and cash equivalents					(591		)			954					(382		)			1,113
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period					3,499		�			3,071		�			3,290		�			2,912		�
Cash, cash equivalents, and restricted cash and cash equivalents at end of period					$	2,908	�			$	4,025	�			$	2,908	�			$	4,025	�

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MOLINA HEALTHCARE, INC. UNAUDITED HEALTH PLANS SEGMENT MEMBERSHIP
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	�	�	�	�	September 30,		�	�	December 31,		�	�	September 30,
					2018				2017				2017
Ending Membership by Program:
Temporary Assistance for Needy Families (TANF) and Children’s Health Insurance Program (CHIP)					2,436,000				2,457,000				2,451,000
Medicaid Expansion					664,000				668,000				662,000
Aged, Blind or Disabled (ABD)					415,000	�			412,000	�			411,000	�
Total Medicaid					3,515,000	�			3,537,000	�			3,524,000
Medicare-Medicaid Plan (MMP) - Integrated					55,000				57,000				58,000
Medicare Special Needs Plans					45,000	�			44,000	�			44,000	�
Total Medicare					100,000	�			101,000	�			102,000	�
Total Medicaid and Medicare					3,615,000	�			3,638,000	�			3,626,000	�
Marketplace					384,000	�			815,000	�			877,000	�
					3,999,000	�			4,453,000	�			4,503,000	�
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Ending Membership by Health Plan:
California					623,000				746,000				751,000
Florida					395,000				625,000				641,000
Illinois					223,000				165,000				163,000
Michigan					394,000				398,000				399,000
New Mexico					234,000				253,000				256,000
Ohio					315,000				327,000				343,000
Puerto Rico					320,000				314,000				306,000
South Carolina					117,000				116,000				113,000
Texas					436,000				430,000				444,000
Washington					770,000				777,000				770,000
Other (1)					172,000	�			302,000	�			317,000	�
					3,999,000	�			4,453,000	�			4,503,000	�

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(1) “Other” includes the Idaho, New York, Utah and Wisconsin health plans, which are not individually significant to our consolidated operating results.

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MOLINA HEALTHCARE, INC. UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA (In millions, except percentages and per-member per-month amounts)
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	�	�	�	�	Three Months Ended September 30, 2018
					Member Months (1)	�	�	Premium Revenue						�	�	Medical Care Costs						�	�	MCR (2)		�	�	Medical Margin
								Total		�	�	PMPM				Total		�	�	PMPM
TANF and CHIP					7.4			$	1,379			$	187.03			$	1,228			$	166.41			89.0	%			$	151
Medicaid Expansion					2.0				671				333.11				640				317.62			95.3					31
ABD					1.2			�	1,322				1,054.92			�	1,186				946.38			89.7				�	136
Total Medicaid					10.6			�	3,372				316.86			�	3,054				286.86			90.5				�	318
MMP					0.2				353				2,159.72				323				1,981.45			91.7					30
Medicare					0.1			�	156				1,157.71			�	121				895.25			77.3				�	35
Total Medicare					0.3			�	509				1,706.95			�	444				1,490.63			87.3				�	65
Total Medicaid and Medicare					10.9			�	3,881				354.70			�	3,498				319.63			90.1				�	383
Marketplace					1.2			�	456				394.02			�	292				252.61			64.1				�	164
					12.1			$	4,337			$	358.46			$	3,790			$	313.23			87.4	%			$	547
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					Three Months Ended September 30, 2017
					Member Months (1)			Premium Revenue								Medical Care Costs								MCR (2)				Medical Margin
								Total				PMPM				Total				PMPM
TANF and CHIP					7.5			$	1,392			$	185.95			$	1,242			$	165.76			89.1	%			$	150
Medicaid Expansion					2.0				773				385.58				667				332.99			86.4					106
ABD					1.2			�	1,288				1,038.85			�	1,259				1,016.06			97.8				�	29
Total Medicaid					10.7			�	3,453				321.77			�	3,168				295.23			91.8				�	285
MMP					0.2				378				2,263.07				336				2,013.67			89.0					42
Medicare					0.1			�	163				1,231.61			�	126				951.01			77.2				�	37
Total Medicare					0.3			�	541				1,806.26			�	462				1,543.05			85.4				�	79
Total Medicaid and Medicare					11.0			�	3,994				362.04			�	3,630				329.08			90.9				�	364
Marketplace					2.7			�	783				301.72			�	590				227.22			75.3				�	193
					13.7			$	4,777			$	350.55			$	4,220			$	309.68			88.3	%			$	557

__________________
(1) A member month is defined as the aggregate of each month’s ending membership for the period presented.
(2) The MCR represents medical costs as a percentage of premium revenue.

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MOLINA HEALTHCARE, INC. UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA (In millions, except percentages and per-member per-month amounts)
�
	�	�	�	�	Nine Months Ended September 30, 2018
					Member Months		�	�	Premium Revenue								�	�	Medical Care Costs								�	�	MCR		�	�	Medical Margin
									Total			�	�	PMPM					Total			�	�	PMPM
TANF and CHIP					22.3				$	4,145				$	186.12				$	3,705				$	166.35				89.4	%			$	440
Medicaid Expansion					6.1				2,184					359.37					1,957					322.01					89.6				227
ABD					3.7	�			3,864		�			1,034.25					3,550		�			950.11					91.9				314
Total Medicaid					32.1	�			10,193		�			317.70					9,212		�			287.10					90.4				981
MMP					0.5				1,077					2,173.90					941					1,899.26					87.4				136
Medicare					0.4	�			470		�			1,171.59					385		�			959.54					81.9				85
Total Medicare					0.9	�			1,547		�			1,725.71					1,326		�			1,479.06					85.7				221
Total Medicaid and Medicare					33.0	�			11,740		�			355.96					10,538		�			319.50					89.8				1,202
Marketplace					3.8	�			1,434		�			379.91					824		�			218.44					57.5				610
					36.8	�			$	13,174	�			$	358.42				$	11,362	�			$	309.12				86.2	%			$	1,812

	�	�	�	�	Nine Months Ended September 30, 2017
					Member Months		�	�	Premium Revenue								�	�	Medical Care Costs								�	�	MCR		�	�	Medical Margin
									Total			�	�	PMPM					Total			�	�	PMPM
TANF and CHIP					22.8				$	4,185				$	183.69				$	3,861				$	169.44				92.2	%			$	324
Medicaid Expansion					6.1				2,376					389.14					2,045					334.93					86.1				331
ABD					3.6	�			3,769		�			1,033.45					3,634		�			996.58					96.4				135
Total Medicaid					32.5	�			10,330		�			317.49					9,540		�			293.21					92.4				790
MMP					0.5				1,083					2,189.96					976					1,974.22					90.1				107
Medicare					0.4	�			449		�			1,142.68					369		�			939.21					82.2				80
Total Medicare					0.9	�			1,532		�			1,726.39					1,345		�			1,516.09					87.8				187
Total Medicaid and Medicare					33.4	�			11,862		�			354.88					10,885		�			325.66					91.8				977
Marketplace					8.4	�			2,303		�			276.27					1,937		�			232.31					84.1				366
					41.8	�			$	14,165	�			$	339.19				$	12,822	�			$	307.03				90.5	%			$	1,343

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MOLINA HEALTHCARE, INC. UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA— MEDICAID AND MEDICARE (In millions, except percentages and per-member per-month amounts)
�
	�	�	�	�	Three Months Ended September 30, 2018
					Member Months		�	�	Premium Revenue								�	�	Medical Care Costs								�	�	MCR		�	�	Medical Margin
									Total			�	�	PMPM					Total			�	�	PMPM
California					1.7				$	435				$	249.00				$	446				$	255.22				102.5	%			$	(11	)
Florida					1.0				388					363.16					362					339.33					93.4				26
Illinois					0.7				207					312.72					182					274.98					87.9				25
Michigan					1.1				397					350.05					321					282.49					80.7				76
New Mexico					0.6				304					471.66					275					426.69					90.5				29
Ohio					0.9				584					624.84					532					568.93					91.1				52
Puerto Rico					1.0				179					189.65					162					171.96					90.7				17
South Carolina					0.4				124					354.53					112					318.56					89.9				12
Texas					0.7				577					848.47					525					772.14					91.0				52
Washington					2.3				511					226.77					444					197.04					86.9				67
Other (1)					0.5	�			175		�			334.29					137		�			261.49					78.2				38		�
					10.9	�			$	3,881	�			$	354.70				$	3,498	�			$	319.63				90.1	%			$	383	�
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					Three Months Ended September 30, 2017
					Member Months				Premium Revenue										Medical Care Costs										MCR				Medical Margin
									Total					PMPM					Total					PMPM
California					1.9				$	601				$	322.97				$	563				$	302.67				93.7	%			$	38
Florida					1.0				388					355.59					390					356.83					100.3				(2		)
Illinois					0.5				137					287.69					138					289.36					100.6				(1		)
Michigan					1.2				390					337.17					345					298.83					88.6				45
New Mexico					0.7				304					429.07					277					390.91					91.1				27
Ohio					0.9				549					560.06					483					492.61					88.0				66
Puerto Rico					1.0				191					202.59					159					168.25					83.1				32
South Carolina					0.3				113					332.48					101					297.74					89.6				12
Texas					0.7				541					778.50					506					728.19					93.5				35
Washington					2.3				612					276.73					522					236.11					85.3				90
Other (1)					0.5	�			168		�			294.99					146		�			256.99					87.1				22		�
					11.0	�			$	3,994	�			$	362.04				$	3,630	�			$	329.08				90.9	%			$	364	�

__________________
(1) “Other” includes the Idaho, New York, Utah and Wisconsin health plans, which are not individually significant to our consolidated operating results.

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MOLINA HEALTHCARE, INC. UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA—MEDICAID AND MEDICARE (In millions, except percentages and per-member per-month amounts)
�
	�	�	�	�	Nine Months Ended September 30, 2018
					Member Months		�	�	Premium Revenue								�	�	Medical Care Costs								�	�	MCR		�	�	Medical Margin
									Total			�	�	PMPM					Total			�	�	PMPM
California					5.3				$	1,446				$	270.63				$	1,299				$	243.14				89.8	%			$	147
Florida					3.2				1,147					356.15					1,069					331.93					93.2				78
Illinois					1.8				551					308.45					474					265.47					86.1				77
Michigan					3.4				1,161					343.08					983					290.26					84.6				178
New Mexico					2.0				936					469.19					875					438.70					93.5				61
Ohio					2.8				1,670					590.71					1,474					521.26					88.2				196
Puerto Rico					2.9				549					190.34					501					173.83					91.3				48
South Carolina					1.1				369					350.94					323					306.76					87.4				46
Texas					2.1				1,715					831.21					1,554					753.31					90.6				161
Washington					6.8				1,666					245.40					1,544					227.41					92.7				122
Other					1.6	�			530		�			323.84					442		�			269.98					83.4				88		�
					33.0	�			$	11,740	�			$	355.96				$	10,538	�			$	319.50				89.8	%			$	1,202	�
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					Nine Months Ended September 30, 2017
					Member Months				Premium Revenue										Medical Care Costs										MCR				Medical Margin
									Total					PMPM					Total					PMPM
California					5.6				$	1,771				$	316.83				$	1,586				$	283.82				89.6	%			$	185
Florida					3.2				1,132					347.41					1,112					341.15					98.2				20
Illinois					1.6				447					284.18					492					312.54					110.0				(45		)
Michigan					3.5				1,162					332.60					1,035					296.28					89.1				127
New Mexico					2.2				933					431.70					887					410.24					95.0				46
Ohio					2.9				1,598					541.56					1,434					486.02					89.7				164
Puerto Rico					2.9				553					190.99					513					177.01					92.7				40
South Carolina					1.0				329					325.43					301					298.43					91.7				28
Texas					2.1				1,592					760.76					1,468					701.32					92.2				124
Washington					6.7				1,835					275.60					1,603					240.83					87.4				232
Other					1.7	�			510		�			292.93					454		�			261.01					89.1				56		�
					33.4	�			$	11,862	�			$	354.88				$	10,885	�			$	325.66				91.8	%			$	977	�

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MOLINA HEALTHCARE, INC. UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA—MARKETPLACE (In millions, except percentages and per-member per-month amounts)
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	�	�	�	�	Three Months Ended September 30, 2018
					Member Months		�	�	Premium Revenue								�	�	Medical Care Costs								�	�	MCR		�	�	Medical Margin
									Total			�	�	PMPM					Total			�	�	PMPM
California					0.2				$	49				$	309.04				$	37				$	235.63				76.2	%	�		$	12
Florida					0.2				66					548.60					45					362.39					66.1				21
Michigan					—				12					233.51					7					145.13					62.1				5
New Mexico					0.1				28					419.20					18					249.33					59.5				10
Ohio					0.1				27					485.08					18					336.86					69.4				9
Texas					0.6				228					357.54					134					209.80					58.7				94
Washington					—				44					656.70					34					518.75					79.0				10
Other (1)					—	�			2		�			NM					(1		)			NM					NM				3
					1.2	�			$	456	�			$	394.02				$	292	�			$	252.61				64.1	%	�		$	164
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					Three Months Ended September 30, 2017
					Member Months				Premium Revenue										Medical Care Costs										MCR				Medical Margin
									Total					PMPM					Total					PMPM
California					0.3				$	88				$	208.19				$	63				$	147.87				71.0	%	�		$	25
Florida					0.9				260					313.36					235					283.13					90.4				25
Michigan					—				14					212.08					10					150.24					70.8				4
New Mexico					0.1				29					383.58					20					269.28					70.2				9
Ohio					0.1				23					386.09					20					364.31					94.4				3
Texas					0.7				183					291.14					109					172.70					59.3				74
Washington					0.1				42					327.40					33					256.52					78.3				9
Other (1)					0.5	�			144		�			375.83					100		�			259.15					69.0				44
					2.7	�			$	783	�			$	301.72				$	590	�			$	227.22				75.3	%	�		$	193

__________________
(1) “Other” includes the Utah and Wisconsin health plans, which are not individually significant to our consolidated operating results. We terminated Marketplace operations at these plans effective January 1, 2018, so the ratios for 2018 periods are not meaningful (NM).

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MOLINA HEALTHCARE, INC. UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA—MARKETPLACE (In millions, except percentages and per-member per-month amounts)
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	�	�	�	�	Nine Months Ended September 30, 2018
					Member Months		�	�	Premium Revenue							�	�	Medical Care Costs							�	�	MCR		�	�	Medical Margin
									Total			�	�	PMPM				Total			�	�	PMPM
California					0.6				$	171				$	326.82			$	89				$	169.98			52.0	%			$	82
Florida					0.5				211					491.13				67					155.24				31.6				144
Michigan					0.1				40					248.24				23					145.38				58.6				17
New Mexico					0.2				93					426.07				55					247.57				58.1				38
Ohio					0.2				84					466.75				58					324.91				69.6				26
Texas					2.0				679					330.92				440					214.65				64.9				239
Washington					0.2				139					654.78				105					497.00				75.9				34
Other					—	�			17		�			NM				(13		)			NM				NM				30		�
					3.8	�			$	1,434	�			$	379.91			$	824	�			$	218.44			57.5	%			$	610	�
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					Nine Months Ended September 30, 2017
					Member Months				Premium Revenue									Medical Care Costs									MCR				Medical Margin
									Total					PMPM				Total					PMPM
California					1.2				$	241				$	193.33			$	156				$	124.32			64.3	%			$	85
Florida					2.8				821					296.14				758					273.55				92.4				63
Michigan					0.2				41					187.96				27					126.76				67.4				14
New Mexico					0.2				82					338.18				62					256.05				75.7				20
Ohio					0.2				68					365.35				64					346.93				95.0				4
Texas					2.1				517					252.32				351					171.57				68.0				166
Washington					0.4				123					315.95				128					327.51				103.7				(5		)
Other					1.3	�			410		�			333.05				391		�			316.86				95.1				19		�
					8.4	�			$	2,303	�			$	276.27			$	1,937	�			$	232.31			84.1	%			$	366	�

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MOLINA HEALTHCARE, INC. UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA—TOTAL (In millions, except percentages and per-member per-month amounts)
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	�	�	�	�	Three Months Ended September 30, 2018
					Member Months		�	�	Premium Revenue								�	�	Medical Care Costs								�	�	MCR		�	�	Medical Margin
									Total			�	�	PMPM					Total			�	�	PMPM
California					1.9				$	484				$	253.96				$	483				$	253.60				99.9	%			$	1
Florida					1.2				454					382.20					407					341.70					89.4				47
Illinois					0.7				207					312.72					182					274.98					87.9				25
Michigan					1.1				409					345.28					328					276.88					80.2				81
New Mexico					0.7				332					466.63					293					409.68					87.8				39
Ohio					1.0				611					616.95					550					555.83					90.1				61
Puerto Rico					1.0				179					189.65					162					171.96					90.7				17
South Carolina					0.4				124					354.53					112					318.56					89.9				12
Texas					1.3				805					611.01					659					500.14					81.9				146
Washington					2.3				555					239.25					478					206.38					86.3				77
Other (1)					0.5	�			177		�			336.18					136		�			260.19					77.4				41		�
					12.1	�			$	4,337	�			$	358.46				$	3,790	�			$	313.23				87.4	%			$	547	�
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					Three Months Ended September 30, 2017
					Member Months				Premium Revenue										Medical Care Costs										MCR				Medical Margin
									Total					PMPM					Total					PMPM
California					2.2				$	689				$	301.64				$	626				$	273.90				90.8	%			$	63
Florida					1.9				648					337.40					625					325.09					96.4				23
Illinois					0.5				137					287.69					138					289.36					100.6				(1		)
Michigan					1.2				404					330.27					355					290.63					88.0				49
New Mexico					0.8				333					424.61					297					378.98					89.3				36
Ohio					1.0				572					550.75					503					485.61					88.2				69
Puerto Rico					1.0				191					202.59					159					168.25					83.1				32
South Carolina					0.3				113					332.48					101					297.74					89.6				12
Texas					1.4				724					546.57					615					463.83					84.9				109
Washington					2.4				654					279.52					555					237.23					84.9				99
Other (1)					1.0	�			312		�			327.47					246		�			257.86					78.7				66		�
					13.7	�			$	4,777	�			$	350.55				$	4,220	�			$	309.68				88.3	%			$	557	�

__________________
(1) “Other” includes the Idaho, New York, Utah and Wisconsin health plans, which are not individually significant to our consolidated operating results.

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MOLINA HEALTHCARE, INC. UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA—TOTAL (In millions, except percentages and per-member per-month amounts)
�
	�	�	�	Nine Months Ended September 30, 2018
				Member Months		�	�	Premium Revenue								�	�	Medical Care Costs								�	�	MCR		�	�	Medical Margin
								Total			�	�	PMPM					Total			�	�	PMPM
California				5.9				$	1,617				$	275.64				$	1,388				$	236.61				85.8	%			$	229
Florida				3.7				1,358					372.07					1,136					311.09					83.6				222
Illinois				1.8				551					308.45					474					265.47					86.1				77
Michigan				3.5				1,201					338.83					1,006					283.77					83.7				195
New Mexico				2.2				1,029					464.92					930					419.78					90.3				99
Ohio				3.0				1,754					583.29					1,532					509.52					87.4				222
Puerto Rico				2.9				549					190.34					501					173.83					91.3				48
South Carolina				1.1				369					350.94					323					306.76					87.4				46
Texas				4.1				2,394					581.74					1,994					484.70					83.3				400
Washington				7.0				1,805					257.82					1,649					235.59					91.4				156
Other				1.6	�			547		�			334.26					429		�			262.27					78.5				118		�
				36.8	�			$	13,174	�			$	358.42				$	11,362	�			$	309.12				86.2	%			$	1,812	�
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				Nine Months Ended September 30, 2017
				Member Months				Premium Revenue										Medical Care Costs										MCR				Medical Margin
								Total					PMPM					Total					PMPM
California				6.8				$	2,012				$	294.26				$	1,742				$	254.67				86.5	%			$	270
Florida				6.0				1,953					323.86					1,870					310.09					95.7				83
Illinois				1.6				447					284.18					492					312.54					110.0				(45		)
Michigan				3.7				1,203					324.12					1,062					286.35					88.3				141
New Mexico				2.4				1,015					422.25					949					394.66					93.5				66
Ohio				3.1				1,666					531.17					1,498					477.81					90.0				168
Puerto Rico				2.9				553					190.99					513					177.01					92.7				40
South Carolina				1.0				329					325.43					301					298.43					91.7				28
Texas				4.2				2,109					509.09					1,819					439.11					86.3				290
Washington				7.1				1,958					277.83					1,731					245.62					88.4				227
Other				3.0	�			920		�			309.56					845		�			284.16					91.8				75		�
				41.8	�			$	14,165	�			$	339.19				$	12,822	�			$	307.03				90.5	%			$	1,343	�

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MOLINA HEALTHCARE, INC. UNAUDITED SELECTED HEALTH PLANS SEGMENT FINANCIAL DATA (In millions, except percentages and per-member per-month amounts)
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The following tables provide the details of our medical care costs for the periods indicated:
�
	�	�	�	�	Three Months Ended September 30,
					2018												�	�	2017
					Amount			�	�	PMPM			�	�	% of Total				Amount			�	�	PMPM				�		% of Total
Fee for service					$	2,865				$	236.74				75.6	%			$	3,196				$	234.51					75.8	%
Pharmacy					495					40.90					13.1				638					46.85						15.1
Capitation					297					24.52					7.8				342					25.07						8.1
Other					133		�			11.07		�			3.5	�			44		�			3.25			�			1.0	�
					$	3,790	�			$	313.23	�			100.0	%			$	4,220	�			$	309.68		�			100.0	%
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					Nine Months Ended September 30,
					2018														2017
					Amount					PMPM					% of Total �				Amount					PMPM						% of Total �
Fee for service					$	8,471				$	230.46				74.6	%			$	9,630				$	230.58					75.1	%
Pharmacy					1,645					44.76					14.5				1,904					45.60						14.8
Capitation					891					24.23					7.8				1,022					24.47						8.0
Other					355		�			9.67		�			3.1	�			266		�			6.38			�			2.1	�
					$	11,362	�			$	309.12	�			100.0	%			$	12,822	�			$	307.03		�			100.0	%
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The following table provides the details of our medical claims and benefits payable as of the dates indicated:
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																					September 30,							December 31,
																					2018							2017
Fee-for-service claims incurred but not paid (IBNP)																					$	1,609						�	$	1,717
Pharmacy payable																					121							112
Capitation payable																					48							67
Other (1)																					264					�		296
																					$	2,042				�		�	$	2,192

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(1) “Other” medical claims and benefits payable include amounts payable to certain providers for which we act as an intermediary on behalf of various state agencies without assuming financial risk. Such receipts and payments do not impact our consolidated statements of operations. As of September 30, 2018 and December 31, 2017, we had recorded non-risk provider payables of approximately $158 million and $122 million, respectively.

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MOLINA HEALTHCARE, INC. UNAUDITED CHANGE IN MEDICAL CLAIMS AND BENEFITS PAYABLE (Dollars in millions, except per-member amounts)
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Our claims liability includes a provision for adverse claims deviation based on historical experience and other factors including, but not limited to, variations in claims payment patterns, changes in utilization and cost trends, known outbreaks of disease, and large claims. Our reserving methodology is consistently applied across all periods presented. The amounts displayed for “Components of medical care costs related to: Prior period” represent the amount by which our original estimate of claims and benefits payable at the beginning of the period was (more) less than the actual amount of the liability based on information (principally the payment of claims) developed since that liability was first reported. The following table presents the components of the change in medical claims and benefits payable for the periods indicated:
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	�	�	Nine Months Ended September 30,							�	Year Ended December 31, 2017
			2018			�	2017
Medical claims and benefits payable, beginning balance			$	2,192			$	1,929			$	1,929
Components of medical care costs related to:
Current period			11,589				12,813				17,037
Prior period (1)			(227		)		9		�		36		�
Total medical care costs			11,362		�		12,822		�		17,073		�
											�
Change in non-risk provider payables			60		�		172		�		(106		)
Payments for medical care costs related to:
Current period			9,866				10,944				15,130
Prior period			1,706		�		1,501		�		1,574		�
Total paid			11,572		�		12,445		�		16,704		�
Medical claims and benefits payable, ending balance			$	2,042	�		$	2,478	�		$	2,192	�
											�
Days in claims payable, fee for service (2)			53				50				54

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(1) Excludes the 2018 benefit of the 2017 Marketplace CSR reimbursement.
(2) Claims payable includes primarily IBNP. It also includes certain fee-for-service payables reported in “Other” medical claims and benefits payable amounting to $34 million, $78 million and $99 million, as of September 30,�2018, 2017 and December 31, 2017, respectively.

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MOLINA HEALTHCARE, INC. UNAUDITED SUMMARY OF SIGNIFICANT ITEMS AFFECTING CURRENT QUARTER AND YEAR-TO-DATE FINANCIAL RESULTS (In millions, except per diluted share amounts)
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The table below summarizes the impact of certain items significant to our financial performance in the periods presented. The individual items presented below increase (decrease) income before income tax expense.
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	�	�	Three Months Ended September 30, 2018							�	Nine Months Ended September 30, 2018
			Amount			�	Per Diluted Share (1)				Amount			�	Per Diluted Share (1)
Retroactive California Medicaid Expansion risk corridor for the state fiscal year ended June 30, 2017			$	(57	)		$	(0.65	)		$	(57	)		$	(0.67	)
Marketplace risk adjustment, for 2017 dates of service			—				—				56				0.66
Marketplace CSR subsidies, for 2017 dates of service			5				0.06				81				0.95
Gain on sale of subsidiary			37				0.42				37				0.43
Restructuring costs			(5		)		(0.06		)		(38		)		(0.45		)
Loss on debt extinguishment			(10		)		(0.12		)		(25		)		(0.33		)
			$	(30	)		$	(0.35	)		$	54	�		$	0.59	�

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(1) Except for certain items that are not deductible for tax purposes, per diluted share amounts are generally calculated at the statutory income tax rate of 22%.

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MOLINA HEALTHCARE, INC. UNAUDITED NON-GAAP FINANCIAL MEASURES
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We use non-generally accepted accounting principles, or non-GAAP, financial measures as supplemental metrics in evaluating our financial performance, making financing and business decisions, and forecasting and planning for future periods. For these reasons, management believes such measures are useful supplemental measures to investors in comparing our performance to the performance of other public companies in the health care industry. These non-GAAP financial measures should be considered as supplements to, and not as substitutes for or superior to, GAAP measures. See further information regarding non-GAAP measures below the tables (in millions, except per diluted share amounts).
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								Three Months Ended September 30,																Nine Months Ended September 30,
								2018							�	2017								2018									�	2017
																																		�
Net income (loss)								$	197							$	(97					)		$			506							$	(250					)
Adjustments:
Depreciation, and amortization of intangible assets and capitalized software								28								39								95										129
Interest expense								26								32								91										85
Income tax expense (benefit)								62						�		(16						)		237								�		(46						)
EBITDA								$	313					�		$	(42					)		$			929					�		$	(82					)
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	Three Months Ended September 30,																		�	Nine Months Ended September 30,
	2018								2017											2018									�	2017
	�
	Amount			�	Per Diluted Share				Amount			�	Per Diluted Share							Amount					�	Per Diluted Share				Amount							�	Per Diluted Share
Net income (loss)	$	197			$	2.90			$	(97	)		$	(1.70				)		$	506					$	7.60			$	(250					)		$	(4.44	)
Adjustment:
Amortization of intangible assets	6				0.08				7				0.13							16						0.23				24								0.43
Income tax effect (1)	(2		)		(0.01		)		(3		)		(0.05					)		(4				)		(0.05		)		(9						)		(0.16		)
Amortization of intangible assets, net of tax effect	4		�		0.07		�		4		�		0.08					�		12				�		0.18		�		15						�		0.27		�
Adjusted net income (loss)	$	201	�		$	2.97	�		$	(93	)		$	(1.62				)		$	518			�		$	7.78	�		$	(235					)		$	(4.17	)

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(1) Income tax effect of adjustments calculated at the blended federal and state statutory tax rate of 22% and 37% for 2018 and 2017, respectively.

The following are descriptions of the adjustments made to GAAP measures used to calculate the non-GAAP measures used in this news release:

Earnings before interest, taxes, depreciation and amortization (EBITDA): Net income (loss) (GAAP) less depreciation, and amortization of intangible assets and capitalized software, interest expense and income tax expense. We believe that EBITDA is helpful in assessing our ability to meet the cash demands of our operating units.

Adjusted net income: Net income (loss) (GAAP) less amortization of intangible assets, net of income tax effect calculated at the statutory tax rate. We believe that adjusted net income (loss) is helpful in assessing our financial performance exclusive of the non-cash impact of the amortization of purchased intangibles.

Adjusted net income per diluted share: Adjusted net income (loss) divided by weighted average common shares outstanding on a fully diluted basis.

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MOLINA HEALTHCARE, INC. 2018 REVISED GUIDANCE
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Reconciliation of Non-GAAP Financial Measures
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(in millions, except per-share amounts)
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												�	Low End			�	�	High End
Net income													$	585				$	600
Adjustments:
Depreciation, and amortization of intangible assets and capitalized software													120					120
Interest expense													115					115
Income tax expense													285		�			290		�
EBITDA													$	1,105	�			$	1,125	�
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	�	�	Low End										High End
			Amount			�	�	Per share (2)					Amount					Per share (2)
Net income			$	585				$	8.80				$	600				$	9.00
Adjustments:
Amortization of intangible assets			21					0.32					21					0.32
Income tax effect (1)			(5		)			(0.07		)			(5		)			(0.07		)
Amortization of intangible assets, net of tax effect			16		�			0.25		�			16		�			0.25		�
Adjusted net income			$	601	�			$	9.05	�			$	616	�			$	9.25	�

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(1) Income tax effect calculated at the statutory tax rate of 22%.
(2) Computation assumes 66.7 million diluted weighted average shares outstanding.

View source version on businesswire.com: https://www.businesswire.com/news/home/20181031005824/en/

Molina Healthcare, Inc.

Investor Relations:

Ryan Kubotam, 562-435-3666, ext. 119057

Source: Molina Healthcare, Inc.