Molina Healthcare withdraws from Medicare Advantage plan after failing to meet performance expectations.

Molina Healthcare announced that they will be exiting the Medicare Advantage Part D program for federal prescription drug coverage by 2027. CEO Joe Zubretsky stated on a call with analysts on Friday, "We have determined that the MAPD products are not aligned with our strategy of focusing on dual-eligible members in the federal Medicare program." The program has also been dragging down the company's profits. Molina expects adjusted earnings per share to be at least $5 in 2026, much lower than the analysts' expected $13.66. The company stated that its performance outlook has been impacted to some extent by the underperformance of their traditional MAPD products. The company's stock price dropped by 32% in pre-market trading.