MOHMolina Healthcare Inc

Molina insures under government programmes for low-income and elderly patients — almost all its business is paid for by the state.

The state pays a set amount for each person enrolled and leaves the company to arrange their care; whatever is not spent on treatment is the margin. That inverts the usual logic of an insurer, where premiums are priced to a risk the insurer itself assesses: here the price is handed down, and only cost can be managed.

What distinguishes the segment is dependence on policy: enrolment changes by a state's eligibility decision, and the mass review after the pandemic cut coverage. Growth comes from winning tenders to serve new states, and losing one removes a large contract at a stroke. The company pays no dividend but buys back stock.