Investing

Ohio Medicaid Losses Wreck Providers (MOH, CNC, AGP, WCG)

Molina Healthcare Inc. (NYSE: MOH) and Centene Corporation (NYSE: CNC) are both seeing their shares take a real beating.  On a day where most stocks are lower because of Friday’s payrolls data, this is something entirely different.

The Ohio Department of Jobs and Family Services has reportedly not selected Molina’s Ohio health plan to participate in a freshly issued Ohio Medicaid Managed Care Plan Request for application.  Molina’s filing disclosed the apparent contract loss and it appears as of now that the existing contract that Molina has with Ohio will expire at the end of 2012 without being renewed.  Molina shares are down 22% at $27.15 against a 52-week range of $13.93 to $36.83.  Centene is also listed as one of the losers here and its shares are down 12.6% at $44.41 against a 52-week range of $25.28 to $50.40.

The Wall Street Journal also noted that AMERIGROUP Corporation (NYSE: AGP) and WellCare Health Plans, Inc. (NYSE: WCG) are not being awarded new contracts in Ohio but that Centene was planning an effort to appeal the decision that would impact 9% of the 1.8 million members.  WellCare is down 6.6% at $69.35 against a 52-week range of $33.29 to $74.41.  AMERIGROUP shares are down the least with a drop of 4.7% at $64.22 against a 52-week range of $37.57 to $75.74.

These individual state contract losses are not always set in stone due to appeals and due to lobbying efforts.  That being said, you can clearly see here how state contract awards and losses allow many companies to live by the sword and die by the sword.

JON C. OGG

Credit Card Companies Are Doing Something Nuts

Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.

It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.

We’ve assembled some of the best credit cards for users today.  Don’t miss these offers because they won’t be this good forever.

 

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.