Because they were familiar with Medicaid, which uses small networks, Molina kept their Obamacare plans limited to small networks as well. Meanwhile, big companies like Anthem BCBS, United Healthcare, Aetna, etc. used large networks. The larger the network, the bigger the financial losses. So by implementing small networks in their health plans, Molina was able to curb significant financial losses. With the Affordable Care Act, small networks are really all that work, which is why Molina is faring better than some other carriers.
In Texas, for example, there used to be nothing but PPO networks available on the market. In other words, people could see any doctor and visit any hospital – in network and out of network. Now, however, there are only HMOs available in Texas, meaning smaller networks. So as the Affordable Care Act continues to govern the individual healthcare industry, the bigger companies will continue to shrink their networks. Only by creating smaller networks can companies manage and control costs. Having already established smaller networks on the individual market, Molina suffered fewer losses than bigger companies.
All in all, they’re doing well and will continue to provide health insurance on the market. Though they’re doing well, they likely won’t expand; for that matter, no carrier is really looking to expand. In some instances, carriers are leaving the market in part or completely. Since they did relatively better than some of their competitors, Molina will probably remain in the market as is. Ultimately, they’re a great carrier. So if you’re looking for qualified health insurance, then consider applying for Molina Healthcare.
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