In this episode of Yet Another Value Podcast, host Andrew Walker welcomes back Steve Gorelik from Firebird Management for a deep dive into Molina Healthcare (ticker: MOH). Together, they explore the sharp drop in Molina's stock despite its long-standing compounder reputation. Steve outlines how Molina operates as a low-cost Medicaid-focused managed care organization, making it uniquely resilient amid rising medical costs and regulatory challenges. They discuss Molina’s competitive advantages, risks tied to healthcare policy, redetermination effects, and its strategic M&A playbook. Tune in to understand why Steve believes Molina remains undervalued and poised to outperform its peers—even as the broader Medicaid sector stumbles.

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[00:00:00 ] Intro and sponsor mention

[00:02:25 ] What is Molina Healthcare?

[00:05:31 ] Medicaid model and revenue growth

[00:06:25 ] Molina stock chart and July crash

[00:07:13 ] Industry-wide margin compression

[00:11:28 ] Why Steve sees alpha in Molina

[00:13:29 ] ROE vs. cost structure explained

[00:15:04 ] Admin efficiency as competitive edge

[00:17:04 ] Molina’s playbook and cost culture

[00:20:16 ] Medicaid redetermination impact

[00:24:07 ] Market share gains amid member losses

[00:26:26 ] What's driving cost inflation now

[00:28:44 ] Will premiums rise to match costs?

[00:30:26 ] Regulatory risks in Medicaid

[00:32:19 ] Medicaid vs. private cost efficiency

[00:33:54 ] Denials, approvals, and outcomes

[00:37:50 ] Molina’s denials as cost control

[00:40:42 ] Tender process and doctor networks

[00:41:43 ] What keeps Steve up at night

[00:44:41 ] Acquisitions: model and pipeline

[00:47:18 ] M&A parallels to John Malone

[00:48:19 ] CEO incentives and share ownership

[00:50:48 ] Share buybacks and capital returns

[00:51:19 ] Could Molina be acquired?

[00:52:57 ] Long-term compounding vs. exit

[00:53:28 ] Scooby-Doo investing explained

[00:54:23 ] Wrapping up the conversation

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