Medicare Increase 'Slight' Yet Again -8%... Molina Healthcare Shares Plummet

Molina Healthcare Inc. (NYSE: MOH), a U.S. health insurer, plunged 8.45% on the New York Stock Exchange on the 27th, closing at $184.12.

In a single day, the company’s market capitalization lost about $737 million (roughly ₩1 trillion), and trading volume reached 1.89 million shares.

The sell-off accelerated after the Centers for Medicare & Medicaid Services (CMS), part of the U.S. Department of Health and Human Services, proposed raising 2027 private Medicare Advantage plan premiums by just 0.09% on average—well below Wall Street’s 4–6% increase expectations. As a result, insurers with significant Medicare exposure tumbled across the board.

Molina was already down over 40% year to date following an earnings miss and a sharp downward revision to its profit guidance in Q3 2025, driven by surging medical costs, making the stock particularly sensitive to the latest Medicare news.

A midsize managed-care insurer, Molina Healthcare focuses on Medicaid, Medicare, and the Affordable Care Act Marketplace, serving low-income and vulnerable populations. The company generates the bulk of its revenue from government-sponsored programs.

Under CEO Joseph Zubretsky, who took the helm in 2017, Molina has expanded aggressively through competitive bids and acquisitions. However, medical and administrative expenses have risen faster than expected for several consecutive quarters, putting its ability to defend profitability to the test.