The company highlights newly reported RFP successes and acquisitions in 2024, representing nearly $7 billion of incremental annual premium revenue, expected to be fully realized by 2027 and 2028.

The acquisition of ConnectiCare Holding Company closed on February 1, 2025, adding approximately 140,000 members across Marketplace, Medicare, and certain commercial products.

The company estimates a loss of approximately 675,000 members due to the resumption of Medicaid redeterminations, but anticipates a benefit from recent RFP successes and organic growth in 2025.

The G&A ratio decreased to 6.7% in 2024 from 7.2% in 2023, reflecting operating discipline, labor cost management, vendor management, and fixed cost leverage.

Approximately 45% of the company's 2025 Medicare premium revenue is not impacted by Star Ratings, and the company is actively working on improvement plans to improve quality Star scores.

As part of its operating enhancements, the company is making appreciable investments in AI administrative tools and initiatives to create efficiencies and save costs.

The company derives a significant portion of its revenue from health plans operating in 21 states, and the failure to secure new or renewed Medicaid contracts could materially reduce premium revenues.

The company's premium revenues consist of fixed monthly payments, and if premiums do not increase when healthcare service expenses rise, medical margins will be compressed and earnings will be negatively affected.

The company acknowledges the growing number of cybersecurity threats and the potential for operational impact, increased costs, exposure to significant liability, reputational harm, and loss of business if systems are compromised.

The company notes that competition is fierce, as markets are attractive. Public policy and demographics continue to be positive catalysts for growth.

The company competes with national, regional, and local Medicaid managed care companies, and health maintenance organizations, principally on the basis of size, location, quality of the provider network, quality of service, and reputation.

The company notes that margins and the risk pool are stabilizing with the market returning to rational pricing; however, a potential sunset of enhanced subsidiaries creates risk to near-term growth and risk pool stability.

The G&A ratio was 6.7% in 2024, compared to 7.2% in 2023. The G&A ratio in 2024 reflects operating discipline, including labor cost management and vendor management, and the continued benefit of fixed cost leverage as we grow our business.

Approximately 45% of our 2025 Medicare premium revenue is not impacted by Star Ratings. We are actively working on improvement plans and remain committed to invest in these programs to improve our quality Star scores with a focus on member experience and access measures.

The company is focused on managing medical costs amid higher-than-expected utilization, particularly in LTSS, pharmacy and behavioral health services.

As part of our operating enhancements, we are making appreciable investments in Al administrative tools and initiatives to create efficiencies and save costs.

Our information systems require an ongoing commitment of significant resources to maintain, protect, and enhance existing systems and develop new systems to keep pace with continuing changes in information processing technology, evolving systems and regulatory standards, changing customer preferences, acquisitions and increased security risks.

The Program is based on the National Institute of Standards and Technology ("NIST") Cybersecurity Framework ("CSF"), NIST Special Publication 800-53, and the Payment Card Industry standards, as applicable, and designed to comply with applicable laws and regulations, including HIPAA and the New York Department of Financial Services Cybersecurity Regulation, as applicable.

In October 2024, the board of directors authorized the purchase of up to $1 billion of common stock. This new program extends through December 31, 2025 and supersedes the stock purchase program previously approved by our board of directors in September 2023.

In November 2024, the company completed the private offering of $750 million aggregate principal amount of 6.250% senior notes due 2033. We used the approximately $740 million in net proceeds from this offering for general corporate purposes.

Our regulated health plans paid $997 million in total dividends to the parent company, representing cash in excess of their capital needs.

Since 2021, the Molina Healthcare Charitable Foundation has funded over 800 grants to local community organizations in 27 states that address social determinants of health, disaster relief, behavioral health, maternal child health, and other health-related concerns that our afflicting our communities in need.

Information relating to our Code of Business Conduct and Ethics, our Insider Trading Policy and compliance with Section 16(a) of the Exchange Act will be set forth in the 2025 Proxy Statement and is incorporated herein by reference.

Molina Healthcare, Inc. Policy for Recovery of Erroneously Awarded Compensation. Filed as Exhibit 97 to registrant's Form 10-K filed February 13, 2024.

During the COVID-19 pandemic, Medicaid enrollment across the country, as well as our enrollment, grew substantially compared to before the pandemic. Beginning April 1, 2023, broad-based Medicaid eligibility redeterminations commenced, and are now almost entirely completed.

To coordinate care for those who qualify to receive both Medicare and Medicaid services (the "dual eligibles"), under the direction of CMS some states implemented demonstration pilot programs to integrate Medicare and Medicaid services for the dual eligibles.

Recently, members of the U.S. House of Representatives have started to weigh a series of legislative proposals targeting Medicaid, Medicare, and other entitlement programs as part of a broader campaign to reduce federal spending