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Healthcare Provider Pushing Against AHCA Abruptly Fires CEO, CFO

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Health insurance provider Molina Healthcare abruptly fired its CEO and CFO Tuesday afternoon, a move that could prove interesting in Republican’s ongoing battle to repeal and replace Obamacare.

Molina announced, effective immediately, Chief Accounting Officer Joseph W. White is named interim president and chief executive officer replacing former CEO Dr. J. Mario Molina. White will also serve as chief financial officer, replacing John Molina.

“The Board of Directors appreciates Mario and John Molina’s leadership and contributions for more than two decades,” Molina Chairman Dale B. Wolf said in a statement released to The Daily Caller News Foundation. Wolf cited “disappointing financial performance,” as the reason for the quick change in leadership.

Molina primarily covers Medicaid members, but it is still a major player in the Obamacare marketplace. The company provides coverage to over 500,000 people who obtain coverage on the Obamacare exchanges.

Mario was one of the most outspoken critics among health care executives of the Republican-backed American Health Care Act (AHCA).

He threatened to pull the company out of the exchanges entirely in 2018 if President Donald Trump refused to continue funding Obamacare subsidies. He called the AHCA “a big step backward” the day before President Donald Trump and Speaker Paul Ryan pulled the proposal, in an interview with CNBC.

It is unclear whether Molina’s interim CEO will be as ardently opposed to the GOP’s repeal effort, but the change could work to shake things up.

“The Board believes that now is the right time to bring in new leadership to capitalize on Molina’s strong franchise and the opportunities we see for sustained growth,” Wolf said.

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