Molina to lose NM Medicaid contract

Molina Healthcare confirmed late Tuesday it is losing its contract to provide coverage for Medicaid clients in New Mexico next year.

“We are disappointed that we were not selected to provide services through New Mexico’s Statewide Medicaid Managed Care program beginning January 1, 2019,” the company said in a prepared statement in response to questions Tuesday. “As the largest Medicaid managed care plan in the state of New Mexico, and with 20 years of experience serving Medicaid members, we believe we are well-positioned to continue providing a high level of service to our members and providers.”

The company said in the statement that it was trying to get more information about the state’s decision and was “exploring our options.”

The Long Beach, Calif.-based company, which is investor-owned, serves approximately 270,000 members in New Mexico through Medicaid, Medicare and the state health insurance marketplace. It serves nearly 5 million people in 12 states and Puerto Rico.

According to the Kaiser Family Foundation, Molina was serving 236,000 Medicaid clients through the state’s Medicaid managed care program, as of last March. Presbyterian Health Plans was number two, with 230,000 enrollees.

There are more than 700,000 people insured through Medicaid in the state.