Dropped from serving Ohio: Down to $26 today!
Companies:
Molina Healthcare Inc.
AMERIGROUP Corporation
Centene Corp.
RELATED QUOTES
Symbol Price Change
MOH 26.35 -8.66
AGP 64.60 -2.85
CNC 44.17 -6.63
WCG 69.40 -4.84
UNH 58.50 -0.51
Ohio said on Friday that it had selected Aetna (AET) and United Healthcare (UNH) to provide service to Ohioans enrolled in Medicaid beginning on January 1, 2013. The state decided not to renew the contracts of Medicaid pure-plays Amerigroup (AGP), Centene (CNC), Molina Healthcare (MOH), and WellCare (WCG). In a note to investors today, Deutsche Bank wrote that Ohio's decision is disappointing for the pure-plays, especially given the large, mature and profitable nature of the Ohio Medicaid market. However, Deutsche believes that Ohio's decision will likely have the most negative impact on Molina, but be more manageable for the other three companies. The firm notes that Ohio was Molina's largest single health plan market in 2011 and accounted for nearly 22% of its premium revenue. Deutsche adds that Ohio accounted for 7% of the total 2011 enrollment of Centene and WellCare, and less than 3% of Amerigroup's Q4 enrollment. Centene said that it would "formally protest" the state's decision, while Molina stated in an SEC filing that it's "evaluating whether to pursue" an appeal. In mid-morning trading, Molina plunged 24.36% to $26.48, Amerigroup slid 4.63% to $64.33, Centene lost 13.25% to $44.08, and WellCare sank 6.32% to $69.55.
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