Rising Medical Costs Hit Molina’s Profit

Insurer Molina Healthcare Inc. said its first-quarter profit fell 42% as medical costs increased.

Net income at the Long Beach-based company fell to $8.6 million, or 31 cents a share, from $14.8 million, or 53 cents, a year earlier. Revenue rose 15% to $453 million.

Analysts, on average, expected a profit of 26 cents a share, according to Reuters Estimates.

Molina’s shares fell 58 cents to $33.50 before the earnings announcement.