Molina Healthcare Ends Traditional Medicare Advantage Drug Plans by December 31
Molina Healthcare (NYSE:MOH) announced in February 2026 that it would exit its traditional Medicare Advantage Prescription Drug (MAPD) plans, but did not notify the approximately 80,000 affected members until October. Members who do nothing risk losing prescription drug coverage and facing a Part D late-enrollment penalty starting January 1, 2027. They must act before December 7 during the Annual Enrollment Period to secure alternative coverage options. The company is shifting its focus exclusively toward dual-eligible Medicare members under Special Needs Plans (D-SNPs), which remain unaffected by this decision. Molina’s MAPD plans were expected to generate about $1 billion in premium revenue for 2026 and served around 80,000 members at the time of announcement. The delay between informing investors and notifying beneficiaries has raised concerns over transparency and member preparedness. While current coverage remains active until December 31, affected individuals must actively seek new plans to avoid losing benefits or incurring penalties.
Tickers: $MOH
Topics: company strategy shift consumer impact health insurance medicare advantage