(Bloomberg) -- Molina Healthcare Inc. is cutting costs, shrinking its headcount and exiting some Obamacare markets after the health insurer posted a steep second-quarter loss, three months after pushing out the brothers who’d led the firm their father founded.
The company said it’s eliminating about 1,500 jobs as part of a restructuring plan that it hopes will save $300 million to $400 million by late next year.
In the meantime, Molina withdrew its 2017 earnings outlook. The company also said it will exit money-losing Affordable Care Act markets in Utah and Wisconsin for next year.
Molina, a major player in Medicaid health plans and the ACA, fired Chief Executive Officer Mario Molina and Chief Financial Officer John Molina in May. The company is still searching for a permanent leader as interim CEO Joseph White, who is also the finance chief, takes action to improve results.
The second-quarter loss was $230 million, or $4.10 a share. The company said it increased the amount of funds set aside to cover losses in ACA plans to $100 million, as performance in those markets deteriorated. Molina said it will exit other states “as may be necessary.”
The shares fell 8.1 percent to $60.85 at 4:54 p.m. in New York.
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