Molina Healthcare is a managed healthcare company that operates health insurance plans for government-sponsored programs, including Medicaid, Medicare, and health insurance Marketplace plans across multiple states. The company generates revenue primarily through monthly per-member-per-month capitation payments from state Medicaid agencies and the federal government, which it receives in advance and uses to pay medical claims, pharmacy benefits, and provider fees; profitability depends on keeping medical care costs as a percentage of premiums (the medical care ratio) below premium rates. Molina's business model involves managing healthcare networks, coordinating care, and bearing the financial risk that actual medical costs do not exceed the fixed premiums received, while being subject to regulatory requirements around minimum capital, medical loss ratios, and annual contract renewals.