Yet Another Value Podcast Firebird Management's Steve Gorelik's Molina Healthcare Bull Thesis $MOH
10 snips
Sep 29, 2025 
Steve Gorelik, a portfolio manager at Firebird Management, dives deep into Molina Healthcare, a Medicaid-focused managed care organization. He discusses the recent stock drop, attributing it to rising medical costs and industry challenges. Steve highlights Molina’s unique cost advantages and efficient operations, predicting it can outperform peers despite recent setbacks. They explore the impact of healthcare policy, market dynamics, and Molina’s strategic M&A playbook, underscoring why he believes it remains undervalued in the market.
AI Snips
Chapters
Transcript
Episode notes
Molina Is A Medicaid Specialist
- Molina is a Medicaid-focused managed care organization covering ~5M people with ~$40B revenue and ~10B market cap.
- It grows by winning state tenders and buying underperforming local plans to expand membership and revenue.
Cost Inflation Sank The Sector
- Industry medical cost ratios rose to ~92%, pushing many insurers into loss territory.
- Molina's lower administrative cost lets it remain profitable while peers bleed money.
Efficiency Comes From Culture And Playbook
- Molina built a low-cost operating culture called the "Molina Playbook" under CEO Joe Zubretsky since 2017.
- That specialization on Medicaid drives materially lower admin ratios and durable competitive advantage.