Molina Cuts Forecast Again on Costs in Embattled ACA Plans (3)

Molina Healthcare Inc. reported a steep quarterly earnings miss and cut its guidance for the third time in recent months, warning profit won’t grow next year as medical costs climb.

The health insurer faced significant challenges in its Affordable Care Act plans, where patients had “unprecedented” costs that will likely make the business unprofitable this year, Chief Executive Officer Joseph Zubretsky said on a conference call with analysts Thursday morning.

Molina shares plunged 21% when markets opened Thursday in New York. Centene Corp., Oscar Health Inc. and other health insurers with large businesses focused on ACA plans also fell. ...