Molina Healthcare Employees: How Your Credit Score Influences Your Insurance Premiums

Healthcare Provider Update: Molina Healthcare is a prominent healthcare provider that offers a range of health insurance plans, primarily through the Affordable Care Act (ACA) marketplace. In Florida, Molina is proposing a significant rate increase of approximately 41% for individual plans in 2026, which is the highest among competing insurers. This surge in premiums is part of a broader trend expected across the ACA marketplace, where many participants may face increased costs due to various factors including the potential expiration of enhanced federal premium subsidies and rising medical expenses. If enacted, this could lead to substantial financial strain for a large portion of enrollees, particularly those who are reliant on affordable coverage under the ACA. Click here to learn more

As an employee of Molina Healthcare you may find it interesting to know, one landmark study found that credit-based insurance scores are used by about 95 percent of all auto and home insurers in calculating the cost of insurance to individuals.

While the vast majority of insurance companies use credit-based insurance scores to help determine the price of insurance, it is banned in the states of Massachusetts, Hawaii, and California. Some states only allow it as a factor for property insurance like auto and homeowners insurance. Other states allow it to be used with any type of insurance.

Several Factors

Generally, an insurance company will use a credit-based insurance score as just one factor in its underwriting process. We'd also like to remind our Molina Healthcare clients that other factors may be considered, depending on the type of insurance. For example, with auto insurance, other factors could include your zip code, the age of the drivers, the make, model and age of the car, and the number of miles you drive annually.

The use of credit scores to determine insurance rates is rooted in research that has shown individuals with lower credit scores had higher car insurance losses and higher claims payouts.

You can ask your insurance company if a credit-based insurance score was used to underwrite and rate your policy, and in which risk category you were placed.

For Molina Healthcare employees who want to improve their credit-based insurance score, you should consider taking the same steps you would to improve your credit rating: make timely debt payments, clear up past disputes and keep credit card balances low.

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Articles you may find interesting:

1. Predictive Analytics: Achieving Greater Decision Accuracy, Better Risk Segmentation, and Greater Profitability, Fair Isaac Corporation, 2012 (most recent statistics available).