Molina Healthcare, Inc.Investor Day 2019

Molina Healthcare, Inc.Investor Day 2019 May 30, 2019 WIFI: Molina Healthcare Password: #MOH2019

Agenda 9:30 am Welcome and Overview Julie Trudell Pivot to Growth: Who We Are Joe

Zubretsky A Strong Foundation Margin Sustainability Disciplined and Steady Growth Financial Outlook 11:15 am Break 11:30 am Panel Discussion: Margin Sustainability Jim Woys Growth Prospects Pam

Sedmak Financial Profile Tom Tran Management Team Q&A 1:00 pm Lunch

Cautionary Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:This

presentation and the accompanying oral remarks include forward-looking statements regarding, without limitation, the Company's 2019 guidance, its business plans, expectations, and longer-term outlook for the future. The Company intends such

forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company cannot guarantee that it will actually achieve the plans,

outlook, or expectations disclosed in its forward-looking statements and, accordingly, you should not place undue reliance on the Company's forward-looking statements. Those risks and uncertainties are discussed under Item 1A in the section

entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2018, and also in the Company's quarterly reports and other reports and filings with the Securities and Exchange Commission, or SEC. These reports

can be accessed under the investor relations tab of the Company's website or on the SEC's website at www.sec.gov. Given these risks and uncertainties, the Company can give no assurances that its forward-looking statements will prove to be

accurate, or that the results or events projected or contemplated by its forward-looking statements will in fact occur. All forward-looking statements in this presentation represent management's judgment as of May 30, 2019, and, except as

otherwise required by law, the Company disclaims any obligation to update any forward-looking statements to conform the statement to actual results or changes in its expectations.

Pivot to Growth Joe ZubretskyPresident & Chief Executive Officer

Pivoting to Growth Margin recovery complete, sustainability well under way, pivot to growth has

begun Margin Recovery Margin Sustainability Growth

Investment Thesis Focused on sustainable industry leading margins and double digit growth Double

digit revenue growth Lowest cost / highest margins in the business Low capital requirements and significant excess cash flow Return to shareholders in an accretive way Accomplished management team Pure play government business

Outlook: Total Company Long-Term Growth 3 to 5 Years Long-term, compound annual growth rates - average

over time Premium Revenue Growth 10% - 12% After-Tax Margin 3.8% - 4.2% Net Income Growth 9% - 11% EPS Growth 12% - 15% Additional upside could be provided through capital deployment

Who We Are Joe ZubretskyPresident & Chief Executive Officer

Franchise High-quality healthcare through government programs for disadvantaged

people 168Ranking $16.4BRevenue2019E 3.4MMembers1Q19 15Markets

Mission Commitment to providing high-quality care while delivering value to all stakeholders Molina

provides the disadvantaged with access to high-quality healthcare The mission is equally balanced among all those we serve Members Government Agencies Employees Shareholders

Footprint Geographically diverse and national in scope Approximate Premium Revenue by

State: $2.5B $1.5B $ 0.8B $ 0.4B Puerto Rico Strong incumbency status, resilient state relationshipsand growth opportunities Geographically diversified with no state greater than 19% of premium revenue Presence in many of

the nation's largest managed care

Transforming Molina Transformation addressed each major component of the enterprise Accountability and

ownershipTransparency and trustReliability and commitment The Molina brand Culture Operating Model Self-contained health plan and product line P&L'sClear decision rightsRigorous performance management Talent Entirely new at senior

executive levelsMiddle management enhancementSeasoned managed care veterans

Management Team Team of industry-leading executives with over 20 decades of experience President &

CEOJoe Zubretsky Chief of StaffRon Kurtz Health PlansPam Sedmak Health Plan ServicesJim Woys Strategy and M&AMark Keim CFOTom Tran Human ResourcesLarry Anderson General CounselJeff Barlow Policy and Govt. AffairsCarolyn Ingram

Full Year 2019 Guidance Strong financial performance in a high-growth industry All amounts are estimates

and do not include non-recurring significant items. Medical care ratio represents medical costs as a percentage of premium revenueG&A ratio represents general and administrative expenses as a percentage of total revenueSee reconciliation of

non-GAAP financial measures at the end of this presentationAfter-tax margin represents net income as a percentage of total revenue Total Revenue ~ $16.4B Medical Care Ratio %(2) ~ 86% G&A %(3) ~7.7% EBITDA(4) $1,080M -

$1,120M Net Income $680M - $710M After-Tax Margin(5) 4.1% - 4.3% EPS $10.50 - $11.00 As of 1Q19(1)

Strong, Sustainable Margins Best in class margins produce significant free cash flow Full Year 2019

Guidance After-Tax Margins ~3%Medicaid ~11%Marketplace ~6%Medicare 4.1 - 4.3%Total Company

Best in Class ROE Drives EPS Significant cash generation creates flexibility for

deployment Acquisitions Share Repurchases Organic Growth Significant EPS Growth and AccretionPotential Excess Cash Flow Illustration 1 ~4% After-Tax Margins Capital 10% of Revenue 2 40% Unlevered ROE 3 50% Debt to

Capital Ratio 4 ~75% Levered ROE 5

A Strong and Stable Balance Sheet to Support Growth In one year, restored a challenging balance sheet, now

a strength 1Q19 Credit Stats Reserve Strength Liquidity Capital Levels 1Q19 Parent Company Cash 1Q19 ~$440M Remaining Subsidiary Dividends 2019E ~$500M Debt Capacity as of May 2019 ~$900M Total Deployable Capital ~$1.8B Reserves

at 3/31/19 $2.0B PYD 2018 ~$135M PYD 2019 YTD ~$55M Debt to EBITDA Ratio 1.0x Interest Coverage Ratio 14.7x Debt / Capitalization ~45% Debt Ratings S&P: BB- Moody's:

Excess Cash Flow Will be Invested Prudently Will deploy capital to achieve stable, consistent growth and

accretion Accretive bolt-on membership acquisitions Expert acquisition team in placeRobust pipeline, disciplined approachStrategic fit, operational synergies and EPS accretion Organic growth is the highest priorityMost efficient use of capital

to growAll lines of business are high growth Re-invest in business Return to Shareholders Balanced approach to returning capital to shareholdersRetire convertible debtShare repurchase

Margin Sustainability

Guidance Increases Focusing on managed care fundamentals has yielded continued margin improvement

Midpoint of Guidance $11.00

High-Performing Health Plan Portfolio Focus on underperforming business has improved portfolio

margins FY 2017 FY 2018

The Rate Environment and Outlook Rational and actuarially sound Medicaid rate environment with premium

tracking to medical cost trend 3 Carved-in / Carved-out benefits Risk adjustment 4 Acuity levels and mix 2 1 Medical cost trend The typical rating dynamics:

The Profit Improvement Inventory An actionable inventory of initiatives to improve operating and financial

performance Medical Costs At-Risk Revenue Corporate G&A Areas of Margin Recovery 2020E and Beyond $450M Original 2018Midpoint $500M + - May 2019 Addition $100M Recognized2019E $200M January 2019

Utilization Control Ensuring members receive the right service, in the right setting, at the right

cost PROFIT IMPROVEMENT Standardizing business processesEnhancing medical economics engine High-acuity focus; NICU, OUD, BH, LTSS Refining clinical policiesDetailed management of:Inpatient admissionsER utilizationInpatient average length of

stayPharmacy utilization trend Actions: Right Service Right Setting Right Cost Analytics MLTSS Technology Network Pharmacy Best in Class Partners Quality Models Continuous Process Improvement

Payment Integrity Building "best in class" payment integrity capabilities to improve performance PROFIT

IMPROVEMENT Coordination of Benefits Pre-Pay Post-Pay Fraud, Waste and Abuse Subrogation Capabilities Vendor Partners Improvement Opportunity P P Significant Opportunity P Opportunity

G&A Cost Scalability and Leverage Continued cost actions and positive operating leverage fund

investments while reducing G&A ratio PROFIT IMPROVEMENT Cost Actions OutsourcingSpans of controlLower cost labor poolsIntroducing automation, process redesign, and digitization Funding Investments New business developmentTechnology

licensingOutsourcingRent-to-own vendor focusMarketing and media Leveraging the Base Variable Fixed + -

Quality Scores and Risk Adjustment Consistent quality gap closure and risk score data capture will retain

at-risk revenue PROFIT IMPROVEMENT Products: Medicaid, Medicare, Marketplace Enhance: Data collection and analyticsProspective interventionsRetrospective capabilitiesData submission accuracy and completeness Capabilities Complete,

Accurate and Timely: Measurement of health status Data capture Impactful interventions Objectives Enhance: Organizational capabilitiesAnalytical tools and techniquesVendor / partner support Actions

Optimal Operating Model Fully integrated proprietary and rent-to-own operating model provides winning

combination PROFIT IMPROVEMENT Outsourced/Co-Source Internal Capabilities Front Line and Pharmacy Utilization Provider Contracting / Network Claims Payment Member / Provider Services IT Infrastructure: Payment

Integrity: PBM: Risk Adjustment:

Disciplined and Steady Growth

Addressable Markets High growth and synergistic portfolio Source: NHE, Medicaid Actuarial, Medicaid.gov,

Medicare Trustees, CMS, CBO Government Sector Managed Care Spending Growth (2016 - 2021 CAGR) 5% - 8% Underlying segment growthIncrease in managed care, high-acuity populations 8% - 12% Elderly population continues to growIncreasing

managed care penetrationMedicare-Medicaid integration 3% - 5% Stabilized enrollmentGovernment subsidies Marketplace Medicaid Medicare Duals

Pivot to Growth Ongoing growth-oriented investments will drive top-line growth while sustaining

margins Rebuilt team Significant managed care deal experienceExpertise in identifying and executing transactionsJoint ventures, member migrationsGrowing pipeline of acquisition targets New Business Development RFP Process Corporate

Development Rebuilt teamRedesigned RFP process Engaged executive team Recent successes: WA, PR, and MS CHIPPending awards: TX Rebuilt team Focus on high probability targetsPre-RFP boots on the groundRevamped Government Affairs organization

Medicaid Market Share Opportunity Current national and local market shares present significant upside

opportunity Duals Marketplace #5 Nationally #6 Nationally #8 Nationally Average State Market Share National Market Share Molina Top Competitors Average 15% - 20% 9% 8% 10% - 30% 6% 10% -

30% ~ ~ ~ ~ ~ ~ ~5% ~3% ~3%

Molina's Growth Strategy

Molina's Multi-Dimensional Growth Strategy Framework A disciplined and steady approach to

growth Dimensions Characteristics Lenses Win NewTerritories Long-term Annual Growth Inorganic Opportunities Bolt-on Membership Opportunities Opportunistic Capital Deployment Leverage the Existing

Portfolio Actionability Geography Product Predictable Annual Growth Rates Create proprietary target listRespond to banker auctions Strategic fitExecute Addressable marketCustomer controls timing Prioritizing opportunitiesDisciplined

approach Winning capabilitiesTable stakes and innovation Medicaid Market shareAdjacent Medicaid geographiesMedicaid carve-insMarket share and penetration of other products Extensive actionability in existing statesDrive local health plan

execution MedicaidMedicareMarketplaceDualsLTSS Customer controls timing Addressable Market Winning Capabilities Table stakes and innovation Prioritizing Opportunities Disciplined approach

Leverage the Existing Portfolio

Molina's Multi-Dimensional Growth Strategy Framework A disciplined and steady approach to

growth Dimensions Characteristics Lenses Leverage the Existing Portfolio Actionability Geography Product Predictable Annual Growth Rates Win NewTerritories Long-term Annual Growth Inorganic Opportunities Bolt-on Membership

Opportunities Opportunistic Capital Deployment Addressable Market Winning Capabilities Prioritizing Opportunities

Growth Lens One: Actionability The "How" Execute on highly actionable opportunity sets LEVERAGE THE

EXISTING PORTFOLIO > ACTIONABILITY Opportunity Set: 1 2 3 Increase Medicaid market share 4 Add adjacent Medicaid geographies Pursue Medicaid benefit carve-ins Increase market share and penetration of other products in existing

Opportunity Set One: Increase Medicaid Market Share Capture Medicaid market share through tactical

operating changes LEVERAGE THE EXISTING PORTFOLIO > ACTIONABILITY > MEDICAID MARKET SHARE Opportunity Actions National market share: 5%In-state market share ~9%; half of market share leaders Service area market share: 16%#2 - #4 player

in most existing service areas Capture eligibility re-determinationsDeliver quality score improvement to capture more auto assignmentEnhance voluntary selection through community involvementLocal branding and marketingEnhance provider

relationships 1%Service Area Market Share = $750MRevenue

Opportunity Set Two: Add Adjacent Medicaid Geographies Achieve adjacent Medicaid geography growth

through successful procurements in existing markets LEVERAGE THE EXISTING PORTFOLIO > ACTIONABILITY > ADJACENT GEOGRAPHIES Opportunity Actions Service area market share ~16% In-state market share is ~9%Ability to leverage fixed costs

New potential regions in several states including TX Enhance business development and RFP capabilitiesActively evaluate every RFP expansion opportunityFoster relationships with community based organizations Continue to maintain strong standing

Opportunity Set Three: Increase Medicaid Benefit Carve-Ins Drive Medicaid benefit carve-ins with state