10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K/A

(Amendment No. 1)

(Mark One)

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2011

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-31719

MOLINA HEALTHCARE, INC.

(Exact name of registrant as specified in its charter)

Delaware	13-4204626
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

200 Oceangate, Suite 100, Long Beach, California 90802

(Address of principal executive offices)

(562) 435-3666

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Class	Name of Each Exchange on Which Registered
Common Stock, $0.001 Par Value	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.     x  Yes     ¨  No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

    ¨  Yes    x  No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     x  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     x  Yes    ¨  No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     ¨  Yes     x  No

The aggregate market value of Common Stock held by non-affiliates of the registrant as of June 30, 2011, the last business day of our most recently completed second fiscal quarter, was approximately $731 million (based upon the closing price for shares of the registrant’s Common Stock as reported by the New York Stock Exchange, Inc. on June 30, 2011).

As of February 24, 2012, approximately 45,838,000 shares of the registrant’s Common Stock, $0.001 par value per share, were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Proxy Statement for the 2012 Annual Meeting of Stockholders to be held on May 2, 2012, are incorporated by reference into Part III of this Form 10-K.

Explanatory Note

This Amendment No. 1 to the Molina Healthcare, Inc. Annual Report on Form 10-K for the year ended December 31, 2011, as filed with the Securities and Exchange Commission on February 29, 2012 (the “Form 10-K”), is solely to furnish Exhibit 101 to the Form 10-K. Exhibit 101 provides the financial statement and related notes formatted in XBRL (eXtensible Business Reporting Language).

No other changes have been made to the Form 10-K. This Amendment No. 1 to the Form 10-K speaks as of the original filing date of the Form 10-K, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-K.

EXHIBIT INDEX

The following exhibits, which are furnished with this annual report or incorporated herein by reference, are filed as part of this annual report.

The agreements included or incorporated by reference as exhibits to this Annual Report on Form 10-K contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties were made solely for the benefit of the other parties to the applicable agreement and (i) were not intended to be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; (ii) may have been qualified in such agreement by disclosures that were made to the other party in connection with the negotiation of the applicable agreement; (iii) may apply contract standards of “materiality” that are different from “materiality” under the applicable securities laws; and (iv) were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement. The Company acknowledges that, notwithstanding the inclusion of the foregoing cautionary statements, it is responsible for considering whether additional specific disclosures of material information regarding material contractual provisions are required to make the statements in this Annual Report on Form 10-K not misleading.

Number	Description	Method of Filing
2.1	Asset Purchase Agreement between Molina Healthcare, Inc. and Unisys Corporation dated as of January 18, 2010	Filed as Exhibit 2.1 to registrant’s Form 8-K filed January 19, 2010.
3.1	Certificate of Incorporation	Filed as Exhibit 3.2 to registrant’s Registration Statement on Form S-1 filed December 30, 2002.
3.2	Amended and Restated Bylaws	Filed as Exhibit 3.2 to registrant’s Form 8-K filed February 17, 2009.
4.1	Indenture dated as of October 11, 2008	Filed as Exhibit 4.1 to registrant’s Form 8-K filed October 5, 2007.
4.2	First Supplemental Indenture dated as of October 11, 2008	Filed as Exhibit 4.2 to registrant’s Form 8-K filed October 5, 2007.
4.3	Global Form of 3.75% Convertible Senior Note due 2014	Filed as Exhibit 4.3 to registrant’s Form 8-K filed October 5, 2007.
10.1	2000 Omnibus Stock and Incentive Plan	Filed as Exhibit 10.12 to registrant’s Form S-1 filed December 30, 2002.
10.2	2002 Equity Incentive Plan	Filed as Exhibit 10.13 to registrant’s Form S-1 filed December 30, 2002.
10.3	2002 Employee Stock Purchase Plan	Filed as Exhibit 10.14 to registrant’s Form S-1 filed December 30, 2002.
10.4	2005 Molina Deferred Compensation Plan adopted November 6, 2006	Filed as Exhibit 10.4 to registrant’s Form 10-Q filed November 9, 2006.
10.5	2005 Incentive Compensation Plan	Filed as Appendix A to registrant’s Proxy Statement filed March 28, 2005.
10.6	2011 Equity Incentive Plan	Filed as Appendix A to registrant’s Proxy Statement filed March 23, 2011.
10.7	2011 Employee Stock Purchase Plan	Filed as Appendix B to registrant’s Proxy Statement filed March 23, 2011.
10.8	Form of Restricted Stock Award Agreement (Executive Officer) under Molina Healthcare, Inc. Equity Incentive Plan	Filed as Exhibit 10.1 to registrant’s Form 10-Q filed August 9, 2005.
10.9	Form of Restricted Stock Award Agreement (Outside Director) under Molina Healthcare, Inc. Equity Incentive Plan	Filed as Exhibit 10.1 to registrant’s Form 10-Q filed August 9, 2005.
10.10	Form of Restricted Stock Award Agreement (Employee) under Molina Healthcare, Inc. Equity Incentive Plan	Filed as Exhibit 10.1 to registrant’s Form 10-Q filed August 9, 2005.

Number	Description	Method of Filing
10.11	Form of Stock Option Agreement under Equity Incentive Plan	Filed as Exhibit 10.3 to registrant’s Form 10-K filed March 14, 2007.
10.12	Amended and Restated Employment Agreement with J. Mario Molina, M.D. dated as of December 31, 2009	Filed as Exhibit 10.1 to registrant’s Form 8-K filed January 7, 2010.
10.13	Amended and Restated Employment Agreement with John C. Molina dated as of December 31, 2009	Filed as Exhibit 10.2 to registrant’s Form 8-K filed January 7, 2010.
10.14	Amended and Restated Change in Control Agreement with Terry Bayer, dated as of December 31, 2009	Filed as Exhibit 10.4 to registrant’s Form 8-K filed January 7, 2010.
10.15	Amended and Restated Change in Control Agreement with Joseph W. White, dated as of December 31, 2009	Filed as Exhibit 10.6 to registrant’s Form 8-K filed January 7, 2010.
10.16	Form of Indemnification Agreement	Filed as Exhibit 10.14 to registrant’s Form 10-K filed March 14, 2007.
10.17	Credit Agreement, dated as of September 9, 2011, among Molina Healthcare, Inc., as the Borrower, certain lenders, and U.S. Bank National Association, as Administrative Agent	Filed as Exhibit 10.1 to registrant’s current report on Form 8-K filed September 13, 2011.
10.18	Term Loan Agreement, dated as of December 7, 2011, among Molina Center LLC, various lenders and East West Bank, as Administrative Agent	Previously filed as an exhibit to registrant’s Form 10-K filed February 29, 2012.
10.19	Guaranty, dated as of December 1, 2011, by Molina Healthcare, Inc. in favor of East West Bank, as Administrative Agent	Previously filed as an exhibit to registrant’s Form 10-K filed February 29, 2012.
10.20	Environmental Indemnity, dated as of December 1, 2011, by Molina Center LLC and Molina Healthcare, Inc. for the benefit of certain lenders and East West Bank, as Administrative Agent	Previously filed as an exhibit to registrant’s Form 10-K filed February 29, 2012.
10.21	Purchase Agreement, dated as of October 11, 2011, between Molina Center LLC and 200 Oceangate, LLC	Previously filed as an exhibit to registrant’s Form 10-K filed February 29, 2012.
10.22	First Amendment to Purchase Agreement, dated as of November 10, 2011, between Molina Center LLC and 200 Oceangate, LLC	Previously filed as an exhibit to registrant’s Form 10-K filed February 29, 2012.
10.23	Second Amendment to Purchase Agreement, dated as of November 30, 2011, between Molina Center LLC and 200 Oceangate, LLC	Previously filed as an exhibit to registrant’s Form 10-K filed February 29, 2012.
10.24	Hospital Services Agreement (fee-for-service) by and between Molina Healthcare of California, a California corporation, and Pacific Hospital of Long Beach	Filed as Exhibit 10.24 to registrant’s Form 10-K filed March 16, 2010.
10.25	Hospital Services Agreement (capitation) by and between Molina Healthcare of California, a California corporation, and HealthSmart Pacific, Inc., dba Pacific Hospital of Long Beach	Filed as Exhibit 10.25 to registrant’s Form 10-K filed March 16, 2010.
12.1	Computation of Ratio of Earnings to Fixed Charges	Previously filed as an exhibit to registrant’s Form 10-K filed February 29, 2012.
21.1	List of subsidiaries	Previously filed as an exhibit to registrant’s Form 10-K filed February 29, 2012.
23.1	Consent of Independent Registered Public Accounting Firm	Previously filed as an exhibit to registrant’s Form 10-K filed February 29, 2012.
31.1	Section 302 Certification of Chief Executive Officer	Filed herewith.

Number	Description	Method of Filing
31.2	Section 302 Certification of Chief Financial Officer	Filed herewith.
32.1	Certificate of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Furnished herewith.
32.2	Certificate of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Furnished herewith.
101.INS (1)	XBRL Taxonomy Instance Document.	Furnished herewith.
101.SCH (1)	XBRL Taxonomy Extension Schema Document.	Furnished herewith.
101.CAL (1)	XBRL Taxonomy Extension Calculation Linkbase Document.	Furnished herewith.
101.DEF (1)	XBRL Taxonomy Extension Definition Linkbase Document.	Furnished herewith.
101.LAB (1)	XBRL Taxonomy Extension Label Linkbase Document.	Furnished herewith.
101.PRE (1)	XBRL Taxonomy Extension Presentation Linkbase Document.	Furnished herewith.

(1) Pursuant to Rule 406T of Regulation S-T, XBRL (eXtensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the undersigned registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 27^th day of March, 2012.

MOLINA HEALTHCARE, INC.
By:	/s/ Joseph M. Molina, M.D.
	Joseph M. Molina, M.D.
	Chief Executive Officer (Principal Executive Officer)

EX-31.1

Exhibit 31.1

SECTION 302 CERTIFICATION

I, Joseph M. Molina, M.D., certify that:

1. I have reviewed this amendment no. 1 to the annual report on Form 10-K for the fiscal year ended December 31, 2011, of Molina Healthcare, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period for which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 27, 2012	/s/ JOSEPH M. MOLINA
	Joseph M. Molina
	Chief Executive Officer and President

EX-31.2

Exhibit 31.2

SECTION 302 CERTIFICATION

I, John C. Molina, certify that:

1. I have reviewed this amendment no. 1 to the annual report on Form 10-K for the fiscal year ended December 31, 2011, of Molina Healthcare, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period for which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 27, 2012	/s/ JOHN C. MOLINA
	John C. Molina, J.D.
	Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATE PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the amendment no. 1 to the annual report of Molina Healthcare, Inc. (the “Company”) on Form 10-K for the period ending December 31, 2011, as filed with the Securities and Exchange Commission (the “Report”), I, J. Mario Molina, M.D., Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: March 27, 2012	/s/ JOSEPH M. MOLINA
	Joseph M. Molina
	Chief Executive Officer and President

This certification accompanies this report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. A signed original of this written statement required by Section 906 has been provided to Molina Healthcare, Inc. and will be retained by Molina Healthcare, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATE PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the amendment no. 1 to the annual report of Molina Healthcare, Inc. (the “Company”) on Form 10-K for the period ending December 31, 2011, as filed with the Securities and Exchange Commission (the “Report”), I, John C. Molina, J.D., Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: March 27, 2012	/s/ JOHN C. MOLINA
	John C. Molina, J.D.
	Chief Financial Officer and Treasurer

This certification accompanies this report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. A signed original of this written statement required by Section 906 has been provided to Molina Healthcare, Inc. and will be retained by Molina Healthcare, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

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Medical Claims and Benefits Payable (Tables)

12 Months Ended

Dec. 31, 2011

Medical Claims and Benefits Payable [Abstract]

Components of change in medical claims and benefits payable

		September 30,			September 30,
	Year Ended December 31,
	2011			2010
	(Dollars in thousands, except per-member amounts)
Balances at beginning of year	$	354,356		$	315,316
Balance of acquired subsidiary		—			3,228
Components of medical care costs related to:
Current year		3,911,803			3,420,235
Prior years		(51,809	)		(49,378	)
Total medical care costs		3,859,994			3,370,857
Payments for medical care costs related to:
Current year		3,516,994			3,085,388
Prior years		294,880			249,657
Total paid		3,811,874			3,335,045
Balances at end of year	$	402,476		$	354,356
Benefit from prior years as a percentage of:
Balance at beginning of year		14.6	%		15.7	%
Premium revenue		1.1	%		1.2	%
Total medical care costs		1.3	%		1.5	%

XML

Earnings per Share (Details Textual) (Stock options [Member]) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Stock options [Member]
Earnings per Share (Textual) [Abstract]
Antidilutive Securities	137,000	478,000	620,000

XML

Significant Accounting Policies (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Depreciation and Amortization
Depreciation, and amortization of capitalized software	$ 30,864	$ 27,230	$ 25,172
Amortization of intangible assets	19,826	18,474	12,938
Depreciation and amortization reported as such in the consolidated statements of income	50,690	45,704	38,110
Amortization recorded as reduction of service revenue	6,822	8,316
Amortization of capitalized software recorded as cost of service revenue	16,871	6,745
Total	$ 74,383	$ 60,765	$ 38,110

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Goodwill and Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Intangible assets:
Cost	$ 200,382	$ 187,692
Accumulated Amortization	98,586	82,192
Net Balance	101,796	105,500
Contract rights and licenses [Member]
Intangible assets:
Cost	140,242	121,017
Accumulated Amortization	69,515	64,201
Net Balance	70,727	56,816
Customer relationships [Member]
Intangible assets:
Cost	24,550	24,550
Accumulated Amortization	8,546	3,418
Net Balance	16,004	21,132
Contract backlog [Member]
Intangible assets:
Cost	23,600	23,600
Accumulated Amortization	15,139	8,316
Net Balance	8,461	15,284
Provider networks [Member]
Intangible assets:
Cost	11,990	18,525
Accumulated Amortization	5,386	6,257
Net Balance	$ 6,604	$ 12,268

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Business Combinations (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended	3 Months Ended
	Dec. 31, 2011	Dec. 31, 2011 Molina Center LLC [Member]	Dec. 07, 2011 Molina Center LLC [Member]
Allocation of purchase price:
Building and improvements			$ 43,116
Land			10,570
Identifiable intangible assets			28,990
Total allocation of purchase price			82,676
Less fair value of total consideration:
Cash paid			32,400
Term loan			48,600
Gain on acquisition	$ 1,676	$ 1,676

XML

Long-Term Debt (Details 1) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Details of the liability component:
Principal amount	$ 187,000	$ 187,000
Unamortized discount	(17,474)	(22,986)
Net carrying amount	$ 169,526	$ 164,014

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Condensed Financial Information of Registrant (Tables)

12 Months Ended

Dec. 31, 2011

Condensed Financial Information of Registrant [Abstract]

Components Of Condensed Balance Sheets

		September 30,			September 30,
	December 31,
	2011			2010
	(Amounts in thousands, except per-share data)
ASSETS
Current assets:
Cash and cash equivalents	$	14,650		$	57,020
Investments		2,010			2,000
Income tax refundable		14,126			1,928
Deferred income taxes		9,133			7,006
Due from affiliates		60,569			19,059
Prepaid and other current assets		10,467			11,009
Total current assets		110,955			98,022
Property and equipment, net		82,437			81,445
Goodwill		53,769			58,719
Auction rate securities		4,694			6,046
Investments in subsidiaries		740,345			702,096
Advances to related parties and other assets		32,473			16,397
	$	1,024,673		$	962,725
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	71,392		$	56,910
Long-term debt		169,526			164,014
Deferred income taxes		16,909			8,425
Other long-term liabilities		11,773			14,319
Total liabilities		269,600			243,668
Stockholders' equity (1):
Common stock, $0.001 par value; 80,000 shares authorized; outstanding:
45,815 shares at December 31, 2011 and 45,463 shares at December 31, 2010		46			45
Preferred stock, $0.001 par value; 20,000 shares authorized, no shares issued and outstanding		—			—
Paid-in capital		266,022			251,612
Accumulated other comprehensive loss		(1,405	)		(2,192	)
Retained earnings		490,410			469,592
Total stockholders' equity		755,073			719,057
	$	1,024,673		$	962,725

Components Of Condensed Statements Of Income

		September 30,			September 30,			September 30,
	Year Ended December 31,
	2011			2010			2009
	(In thousands)
Revenue:
Management fees and other operating revenue	$	308,287		$	238,883		$	218,911
Investment income		81			1,153			1,540
Total revenue		308,368			240,036			220,451
Expenses:
Medical care costs		31,672			30,582			26,865
General and administrative expenses		272,302			218,834			160,792
Depreciation and amortization		31,355			27,166			25,223
Total expenses		335,329			276,582			212,880
Gain on purchase of convertible senior notes		—			—			1,532
Operating (loss) income		(26,961	)		(36,546	)		9,103
Interest expense		14,958			15,500			13,770
Loss before income taxes and equity in net income of subsidiaries		(41,919	)		(52,046	)		(4,667	)
Income tax benefit		(14,826	)		(16,936	)		(3,755	)
Net loss before equity in net income of subsidiaries		(27,093	)		(35,110	)		(912	)
Equity in net income of subsidiaries		47,911			90,080			31,780
Net income	$	20,818		$	54,970		$	30,868

Components Of Condensed Statements Of Cash Flows

		September 30,			September 30,			September 30,
	Year Ended December 31,
	2011			2010			2009
	(In thousands)
Operating activities:
Cash provided by operating activities	$	28,606		$	19,380		$	40,551
Investing activities:
Net dividends from and capital contributions to subsidiaries		27,872			70,800			21,960
Purchases of investments		(2,020	)		(2,019	)		(3,844	)
Sales and maturities of investments		3,760			14,083			12,669
Cash paid in business combinations		—			(139,762	)		(2,894	)
Purchases of equipment		(30,930	)		(40,419	)		(32,245	)
Changes in amounts due to and due from affiliates		(50,090	)		(5,723	)		(17,074	)
Change in other assets and liabilities		(20,441	)		829			(540	)
Net cash used in investing activities		(71,849	)		(102,211	)		(21,968	)
Financing activities:
Proceeds from common stock offering, net of issuance costs		—			111,131			—
Amount borrowed under credit facility		—			105,000			—
Repayment of amount borrowed under credit facility		—			(105,000	)		—
Treasury stock repurchases		(7,000	)		—			(27,712	)
Purchase of convertible senior notes		—			—			(9,653	)
Payment of credit facility fees		(1,125	)		(1,671	)		—
Excess tax benefits from employee stock compensation		1,651			295			31
Proceeds from exercise of stock options and employee stock plan purchases		7,347			4,056			2,015
Net cash provided by (used in) financing activities		873			113,811			(35,319	)
Net (decrease) increase in cash and cash equivalents		(42,370	)		30,980			(16,736	)
Cash and cash equivalents at beginning of year		57,020			26,040			42,776
Cash and cash equivalents at end of year	$	14,650		$	57,020		$	26,040

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2011

Fair Value Measurements [Abstract]

Fair value of assets measured on recurring basis

Our assets measured at fair value on a recurring basis at December 31, 2011, were as follows:

		September 30,		September 30,		September 30,		September 30,
	Total		Level 1		Level 2		Level 3
	(In thousands)
Corporate debt securities	$	231,634	$	—	$	231,634	$	—
Government-sponsored enterprise securities (GSEs)		33,949		33,949		—		—
Municipal securities		47,313		—		47,313		—
U.S. treasury notes		21,748		21,748		—		—
Auction rate securities		16,134		—		—		16,134
Certificates of deposit		2,272		—		2,272		—
	$	353,050	$	55,697	$	281,219	$	16,134

Our assets measured at fair value on a recurring basis at December 31, 2010, were as follows:

		September 30,		September 30,		September 30,		September 30,
	Total		Level 1		Level 2		Level 3
	(In thousands)
Corporate debt securities	$	177,929	$	—	$	177,929	$	—
Government-sponsored enterprise securities (GSEs)		59,713		59,713		—		—
Municipal securities		30,563		—		30,563		—
U.S. treasury notes		23,918		23,918		—		—
Auction rate securities		20,449		—		—		20,449
Certificates of deposit		3,252		—		3,252		—
	$	315,824	$	83,631	$	211,744	$	20,449

Fair value of assets measured on recurring basis using unobservable inputs

		September 30,
	(Level 3)
	(In thousands)
Balance at December 31, 2010	$	20,449
Total gains (unrealized only):
Included in other comprehensive income		1,235
Settlements		(5,550	)
Balance at December 31, 2011	$	16,134
The amount of total unrealized gains for the period included in other comprehensive income attributable to the change in accumulated other comprehensive losses relating to assets still held at December 31, 2011	$	483

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Long-Term Debt (Details 2) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Interest cost recognized for the period relating to the:
Contractual interest coupon rate of 3.75%	$ 7,012	$ 7,012	$ 7,076
Amortization of the discount on the liability component	5,512	5,114	4,782
Total interest cost recognized	$ 12,524	$ 12,126	$ 11,858

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Restricted Investments (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Summary of restricted investments by health plan
Restricted investments by health plan	$ 46,164	$ 42,100
California Health Plan [Member]
Summary of restricted investments by health plan
Restricted investments by health plan	372	372
Florida Health Plan [Member]
Summary of restricted investments by health plan
Restricted investments by health plan	5,198	4,508
Insurance Company [Member]
Summary of restricted investments by health plan
Restricted investments by health plan	4,711	4,689
Michigan Health Plan [Member]
Summary of restricted investments by health plan
Restricted investments by health plan	1,000	1,000
Missouri Health Plan [Member]
Summary of restricted investments by health plan
Restricted investments by health plan	504	508
New Mexico Health Plan [Member]
Summary of restricted investments by health plan
Restricted investments by health plan	15,905	15,881
Ohio Health Plan [Member]
Summary of restricted investments by health plan
Restricted investments by health plan	9,078	9,066
Texas Health Plan [Member]
Summary of restricted investments by health plan
Restricted investments by health plan	3,518	3,501
Utah Health Plan [Member]
Summary of restricted investments by health plan
Restricted investments by health plan	2,895	1,279
Washington Health Plan [Member]
Summary of restricted investments by health plan
Restricted investments by health plan	151	151
Wisconsin Health Plan [Member]
Summary of restricted investments by health plan
Restricted investments by health plan		260
Other Health Plan [Member]
Summary of restricted investments by health plan
Restricted investments by health plan	$ 2,832	$ 885

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Share-Based Compensation (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2011
Unvested restricted stock and restricted stock activity
Unvested, Shares Beginning balance	1,253,624
Unvested, Weighted Average Grant Date Fair Value Beginning balance	$ 15.55
Granted, Shares	792,300
Granted, Weighted Average Grant Date Fair Value	$ 23.21
Vested, Shares	(520,071)
Vested, Weighted Average Grant Date Fair Value	$ 17.76
Forfeited, Shares	(89,971)
Forfeited, Weighted Average Grant Date Fair Value	$ 15.60
Unvested, Shares Ending balance	1,435,882
Unvested, Weighted Average Grant Date Fair Value Ending balance	$ 18.97

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Business Combinations (Details Textual) (USD $)	12 Months Ended					12 Months Ended			12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Mar. 31, 2011 Molina Medicaid Solutions [Member]	May 01, 2010 Molina Medicaid Solutions [Member]	Sep. 01, 2010 Avatar Partners LLC [Member]	Dec. 31, 2011 Molina Center [Member]	Dec. 07, 2011 Molina Center [Member] sqft	Dec. 31, 2010 Molina Center [Member]	Dec. 31, 2011 Building [Member] Molina Center [Member]	Dec. 31, 2011 Building Improvements [Member] Molina Center [Member]	Dec. 31, 2011 Wisconsin Health Plan [Member]	Dec. 31, 2010 Wisconsin Health Plan [Member]	Dec. 31, 2010 Florida Health Plan [Member]	Dec. 31, 2009 Florida Health Plan [Member]
Business Combinations (Textual) [Abstract]
Business combinations square foot acquired							460,000
Business combinations square feet acquired through leases							155,000
Weighted Average Useful Life						6.4
Final purchase price				$ 131,300,000			$ 81,000,000				$ 16,800,000	$ 15,500,000		$ 29,600,000
Rental income						500,000
Transaction cost						2,300,000		200,000
Deferred loan cost						600,000
Amortized term of loan						7 years
Gain on acquisition	1,676,000
Voting equity interests acquired					100.00%									100.00%
Fair value									42,900,000	200,000
Useful life									25	5
Increase in Goodwill											1,300,000
Reduction to goodwill			1,000,000
Amount paid to sellers after settlement of arbitration prior to final hearing													4,100,000
Accumulated amortization, Total	98,586,000	82,192,000				400,000
Future amortization expense, 2012	22,200,000					5,700,000
Future amortization expense, 2013	21,600,000					5,600,000
Future amortization expense, 2014	16,900,000					3,800,000
Future amortization expense, 2015	9,700,000					3,500,000
Future amortization expense, 2016	8,800,000					3,100,000
Contingent consideration												$ 2,800,000

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Medical Claims and Benefits Payable (Details Textual) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Medical claims and benefits payable (Textual) [Abstract]
Benefit from prior period claims development	$ 51.8	$ 49.4

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Stockholders' Equity (Details) (USD $) In Millions, except Share data, unless otherwise specified	0 Months Ended		1 Months Ended		12 Months Ended
	Oct. 26, 2011	Apr. 27, 2011	Aug. 31, 2011	Jul. 31, 2011	Dec. 31, 2011
Stockholders' Equity (Textual) [Abstract]
Approved amount related to stock repurchase program	$ 75.0			$ 7.0
Number of shares purchased			400,000
Number of securities purchased under securities repurchase program					0
Stock repurchase program average price per share			$ 17.47
Retirement of treasury stock					7.0
Stock split of common stock		3-for-2			three-for-two
Issuance of common stock					752,000
Increase to additional paid-in capital					$ 21.4

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Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Current:
Federal	$ 28,336	$ 36,395	$ 9,421
State	1,639	2,144	(1,558)
Total current	29,975	38,539	7,863
Deferred:
Federal	14,028	(4,717)	1,924
State	(167)	700	(2,498)
Total deferred	13,861	(4,017)	(574)
Total provision for income taxes	$ 43,836	$ 34,522	$ 7,289

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Employee Benefits (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Employee Benefits (Textual) [Abstract]
Maximum matching contribution by employer under defined contribution plan	4.00%
Expense recognized in connection with contributions	$ 8.5	$ 5.9	$ 4.7
Deferred compensation plan deferral percentage of basic salary	100.00%
Deferred compensation plan deferral percentage of bonus	100.00%

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Long-Term Debt (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Maturities of Long-term Debt [Abstract]
Total	$ 235,600
2012	1,197
2013	1,155
2014	188,206
2015	1,259
2016	1,309
Thereafter	42,474
Convertible senior notes [Member]
Maturities of Long-term Debt [Abstract]
Total	187,000
2012	0
2013	0
2014	187,000
2015	0
2016	0
Thereafter	0
Term loan [Member]
Maturities of Long-term Debt [Abstract]
Total	48,600
2012	1,197
2013	1,155
2014	1,206
2015	1,259
2016	1,309
Thereafter	$ 42,474

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Goodwill and Intangible Assets (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Changes in the carrying amount of goodwill and indefinite-lived intangible assets
Goodwill, Beginning Balance	$ 212,228
Impairment of Missouri health plan goodwill	(58,530)
Goodwill adjustments relating to the acquisitions of Molina Medicaid Solutions and the Wisconsin health plan	256
Goodwill, Ending Balance	$ 153,954

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Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Reporting

19. Segment Reporting

We report our financial performance based on two reportable segments: Health Plans and Molina Medicaid Solutions. Our reportable segments are consistent with how we manage the business and view the markets we serve. Our Health Plans segment consists of our state health plans which serve Medicaid populations in ten states, and also includes our smaller direct delivery line of business. Our state health plans represent operating segments that have been aggregated for reporting purposes because they share similar economic characteristics.

Our Molina Medicaid Solutions segment provides design, development, implementation; business process outsourcing solutions; hosting services; and information technology support services to Medicaid agencies in an additional five states. The Molina Medicaid Solutions segment was added to our internal financial reporting structure when we acquired this business in the second quarter of 2010.

We rely on an internal management reporting process that provides segment information to the operating income level for purposes of making financial decisions and allocating resources. The accounting policies of the segments are the same as those described in Note 2, "Significant Accounting Policies." The cost of services shared between the Health Plans and Molina Medicaid Solutions segments is charged to the Health Plans segment.

Molina Medicaid Solutions was acquired on May 1, 2010; therefore, the year ended December 31, 2010 includes only eight months of operating results for this segment. Operating segment information is as follows:

		September 30,		September 30,		September 30,
	Year Ended December 31,
	2011		2010		2009
	(In thousands)
Segment Information:
Revenue:
Health Plans:
Premium revenue	$	4,603,407	$	3,989,909	$	3,660,207
Investment income		5,539		6,259		9,149
Rental income		547		—		—
Molina Medicaid Solutions:
Service revenue		160,447		89,809		—
	$	4,769,940	$	4,085,977	$	3,669,356
Depreciation and amortization:
Health Plans	$	45,734	$	42,282	$	38,110
Molina Medicaid Solutions		28,649		18,483		—
	$	74,383	$	60,765	$	38,110
Operating Income:
Health Plans	$	78,110	$	102,392	$	51,934
Molina Medicaid Solutions		2,063		2,609		—
Total operating income		80,173		105,001		51,934
Interest expense		15,519		15,509		13,777
Income before income taxes	$	64,654	$	89,492	$	38,157

		September 30,		September 30,
	As of December 31,
	2011		2010
Goodwill and intangible assets, net:
Health Plans	$	159,963	$	208,945
Molina Medicaid Solutions		95,787		108,783
	$	255,750	$	317,728
Total assets:
Health Plans	$	1,425,764	$	1,333,599
Molina Medicaid Solutions		226,382		175,615
	$	1,652,146	$	1,509,214

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Significant Accounting Policies (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Quality incentive premium revenue recognized
Maximum Available Quality Incentive Premium-Current Year									$ 14,188	$ 14,233	$ 10,740
Amount of Current Year Quality Incentive Premium Revenue Recognized									10,463	6,196	8,134
Amount of Quality Incentive Premium Revenue Recognized from Prior Year									3,879	(669)	766
Total Quality Incentive Premium Revenue Recognized									14,342	5,527	8,900
Total Revenue Recognized	1,254,969	1,138,230	1,128,770	1,081,438	1,042,889	1,005,115	976,685	965,220	4,603,407	3,989,909	3,660,207
New Mexico Health Plan [Member]
Quality incentive premium revenue recognized
Maximum Available Quality Incentive Premium-Current Year									2,271	2,581	2,378
Amount of Current Year Quality Incentive Premium Revenue Recognized									1,558	1,311	1,097
Amount of Quality Incentive Premium Revenue Recognized from Prior Year									378	579	(171)
Total Quality Incentive Premium Revenue Recognized									1,936	1,890	926
Total Revenue Recognized									345,732	366,784	404,026
Ohio Health Plan [Member]
Quality incentive premium revenue recognized
Maximum Available Quality Incentive Premium-Current Year									10,212	9,881	7,040
Amount of Current Year Quality Incentive Premium Revenue Recognized									8,363	3,114	5,715
Amount of Quality Incentive Premium Revenue Recognized from Prior Year									3,501	(1,248)	937
Total Quality Incentive Premium Revenue Recognized									11,864	1,866	6,652
Total Revenue Recognized									988,896	860,324	803,521
Wisconsin Health Plan [Member]
Quality incentive premium revenue recognized
Maximum Available Quality Incentive Premium-Current Year									1,705
Amount of Current Year Quality Incentive Premium Revenue Recognized									542
Total Quality Incentive Premium Revenue Recognized									542
Total Revenue Recognized									69,596	30,033
Texas Health Plan [Member]
Quality incentive premium revenue recognized
Maximum Available Quality Incentive Premium-Current Year										1,771	1,322
Amount of Current Year Quality Incentive Premium Revenue Recognized										1,771	1,322
Total Quality Incentive Premium Revenue Recognized										1,771	1,322
Total Revenue Recognized									409,295	188,716	134,860
New Mexico Ohio Texas Wisconsin Health Plan [Member]
Quality incentive premium revenue recognized
Total Revenue Recognized									1,813,519
New Mexico Ohio Texas Health Plan [Member]
Quality incentive premium revenue recognized
Total Revenue Recognized										$ 1,415,824	$ 1,342,407

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Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2011

Share-Based Compensation [Abstract]

Stock based compensation expense

		September 30,		September 30,		September 30,		September 30,		September 30,		September 30,
	Year Ended December 31,
	2011				2010				2009
	(In thousands)
	Pretax Charges		Net-of-Tax Amount		Pretax Charges		Net-of-Tax Amount		Pretax Charges		Net-of-Tax Amount
Restricted stock awards	$	15,914	$	9,946	$	8,007	$	5,044	$	5,789	$	3,589
Stock options (including expense relating to our ESPP)		1,138		712		1,524		960		1,696		1,052
Total stock-based compensation expense	$	17,052	$	10,658	$	9,531	$	6,004	$	7,485	$	4,641

Unvested restricted stock and restricted stock activity

		September 30,			September 30,
	Shares			Weighted Average Grant Date Fair Value
Unvested balance as of December 31, 2010		1,253,624		$	15.55
Granted		792,300			23.21
Vested		(520,071	)		17.76
Forfeited		(89,971	)		15.60
Unvested balance as of December 31, 2011		1,435,882			18.97

Stock option activity

		September 30,			September 30,		September 30,		September 30,
	Shares			Weighted Average Grant Date Fair Value		Average Intrinsic Value		Weighted Average Remaining Contractual term
						(In thousands)		(Years)
Stock options outstanding as of December 31, 2010		770,421		$	20.39
Exercised		(195,672	)		18.82
Forfeited		(21,700	)		21.45
Stock options outstanding as of December 31, 2011		553,049			20.91	$	1,435		3.9
Stock options exercisable and expected to vest as of December 31, 2011		553,049			20.91	$	1,435		3.9
Exercisable as of December 31, 2011		550,799			20.90	$	1,435		3.9

Summary of information about stock options outstanding and exercisable

		September 30,		September 30,		September 30,		September 30,		September 30,
	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted- Average Remaining Contractual Life (Years)		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$11.32 – $19.11		231,861		3.2	$	17.31		231,861	$	17.31
$20.03 – $21.59		184,275		5.0		20.86		184,275		20.86
$21.72 – $29.53		136,913		3.7		27.07		134,663		27.13
		553,049						550,799

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Medical Claims and Benefits Payable (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Components of medical claims and benefits payable activity
Balances at beginning of year	$ 354,356	$ 315,316
Balance of acquired subsidiary		3,228
Components of medical care costs related to:
Current year	3,911,803	3,420,235
Prior years	(51,809)	(49,378)
Total medical care costs	3,859,994	3,370,857	3,176,236
Payments for medical care costs related to:
Current year	3,516,994	3,085,388
Prior years	294,880	249,657
Total paid	3,811,874	3,335,045
Balances at end of year	$ 402,476	$ 354,356	$ 315,316
Benefit from prior years as a percentage of:
Balance at beginning of year	14.60%	15.70%
Premium Revenue	1.10%	1.20%
Total medical care costs	1.30%	1.50%

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Segment Reporting (Details Textual)	12 Months Ended
	Dec. 31, 2011 segments
Segment Reporting (Textual) [Abstract]
Number of reportable segments	2

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Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2011

Goodwill and Intangible Assets [Abstract]

Summary of identified intangible assets, by major class

		September 30,		September 30,		September 30,
	Cost		Accumulated Amortization		Net Balance
	(In thousands)
Intangible assets:
Contract rights and licenses	$	140,242	$	69,515	$	70,727
Customer relationships		24,550		8,546		16,004
Contract backlog		23,600		15,139		8,461
Provider networks		11,990		5,386		6,604
Balance at December 31, 2011	$	200,382	$	98,586	$	101,796
Intangible assets:
Contract rights and licenses	$	121,017	$	64,201	$	56,816
Customer relationships		24,550		3,418		21,132
Contract backlog		23,600		8,316		15,284
Provider networks		18,525		6,257		12,268
Balance at December 31, 2010	$	187,692	$	82,192	$	105,500

Changes in the carrying amount of goodwill and indefinite-lived intangible assets

		September 30,
Balance as of December 31, 2010	$	212,228
Impairment of Missouri health plan goodwill		(58,530	)
Goodwill adjustments relating to the acquisitions of Molina Medicaid Solutions and the Wisconsin health plan		256
Balance at December 31, 2011	$	153,954

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Significant Accounting Policies (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2011 years	Dec. 31, 2010	Dec. 31, 2009
Property, Plant and Equipment [Line Items]
Minimum expected life of intangible assets	1
Maximum expected life of intangible assets	15
Impairment of goodwill and intangible assets	$ 64,575,000
Impairment of finite-lived intangible assets	6,100,000
Impairment of Goodwill	58,530,000
Receivables from third party	23,401,000	24,649,000
Corresponding current liability	23,401,000	24,649,000
Significant Accounting Policies (Textual) [Abstract]
Maturity of cash and cash equivalents	three months or less
Final maturities of investments	five years or less
Average maturity of investments	two years or less
Percentage of financial responsibility ceded	100.00%
Useful life of software	3 years
Direct contract costs	11,500,000
Deferred financing costs - convertible senior notes	7 years
Deferred financing costs - credit facility	5 years
Percentage of premium revenue in the form of birth income		6.00%
Percentage of premium recorded as fixed amount per member per month	94.00%
Medical administrative costs	102,300,000	85,500,000	74,600,000
Concentration of credit risk	209,000,000	327,000,000
Health plans in number of states	10
Maximum period for member risk scores and member pharmacy cost experience after original year of service	two
Anticipated Medicare risk adjustment premiums	5,000,000
Furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Useful life of property plant and equipment minimum	3
Useful life of property plant and equipment maximum	7
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Useful life of property plant and equipment minimum	5
Useful life of property plant and equipment maximum	10
Building and improvements [Member]
Property, Plant and Equipment [Line Items]
Useful life of property plant and equipment minimum	25
Useful life of property plant and equipment maximum	31.5
Software [Member]
Property, Plant and Equipment [Line Items]
Useful life of property plant and equipment maximum	3
Contract Backlog [Member]
Property, Plant and Equipment [Line Items]
Minimum expected life of intangible assets	1
Maximum expected life of intangible assets	6
Customer relationships [Member]
Property, Plant and Equipment [Line Items]
Minimum expected life of intangible assets	4
Maximum expected life of intangible assets	9
Missouri Health Plan [Member]
Property, Plant and Equipment [Line Items]
Impairment of goodwill and intangible assets	64,575,000
Impairment of finite-lived intangible assets	6,100,000	0	0
Impairment of Goodwill	58,500,000	0	0
Ohio Health Plan [Member]
Property, Plant and Equipment [Line Items]
Percentage of incremental revenue earned maximum	1.00%
Percentage of additional incremental revenue earned, Maximum	0.25%
Non-cash impairment charge	64,600,000
New Mexico Health Plan [Member]
Property, Plant and Equipment [Line Items]
Premium revenue for prior periods	5,600,000
Percentage of incremental revenue earned maximum	0.75%
Texas Health Plan [Member]
Property, Plant and Equipment [Line Items]
Liability recorded related to profit sharing agreement	700,000
Percentage of additional incremental revenue earned	1.00%
Wisconsin Health Plan [Member]
Property, Plant and Equipment [Line Items]
Receivables from third party	3,000,000
Corresponding current liability	3,000,000
Percentage of incremental revenue earned maximum	3.25%
California Health Plan [Member]
Property, Plant and Equipment [Line Items]
Liability recorded related to profit sharing agreement	$ 1,000,000

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Property, Equipment, and Capitalized Software (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Summary of property and equipment
Property and equipment, gross	$ 319,384	$ 203,336
Less: accumulated depreciation and amortization on building and improvements, furniture and equipment	(65,518)	(54,341)
Less: accumulated amortization for capitalized software	(62,932)	(48,458)
Accumulated depreciation, Total	(128,450)	(102,799)
Property, equipment, and capitalized software, net	190,934	100,537
Land [Member]
Summary of property and equipment
Property and equipment, gross	14,094	3,524
Building and improvements [Member]
Summary of property and equipment
Property and equipment, gross	109,789	49,735
Furniture and equipment [Member]
Summary of property and equipment
Property and equipment, gross	79,112	60,074
Capitalized software [Member]
Summary of property and equipment
Property and equipment, gross	$ 116,389	$ 90,003

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Investments (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Investments
Amortized Cost	$ 355,317	$ 319,199
Gross Unrealized Gains	841	1,001
Gross Unrealized Losses	3,108	4,376
Estimated Fair Value	353,050	315,824
Corporate debt securities [Member]
Investments
Amortized Cost	231,407	177,692
Gross Unrealized Gains	442	419
Gross Unrealized Losses	215	182
Estimated Fair Value	231,634	177,929
Government-sponsored enterprise securities [Member]
Investments
Amortized Cost	33,912	59,386
Gross Unrealized Gains	46	353
Gross Unrealized Losses	9	26
Estimated Fair Value	33,949	59,713
Municipal securities [Member]
Investments
Amortized Cost	47,099	30,483
Gross Unrealized Gains	232	111
Gross Unrealized Losses	18	31
Estimated Fair Value	47,313	30,563
U.S. treasury notes [Member]
Investments
Amortized Cost	21,627	23,836
Gross Unrealized Gains	121	118
Gross Unrealized Losses	0	36
Estimated Fair Value	21,748	23,918
Auction rate securities [Member]
Investments
Amortized Cost	19,000	24,550
Gross Unrealized Gains	0	0
Gross Unrealized Losses	2,866	4,101
Estimated Fair Value	16,134	20,449
Certificates of deposit [Member]
Investments
Amortized Cost	2,272	3,252
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 2,272	$ 3,252

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Basis of Presentation (Details) (USD $)	0 Months Ended	3 Months Ended								12 Months Ended
	Apr. 27, 2011	Dec. 31, 2011 customers	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011 customers	Dec. 31, 2010	Dec. 31, 2009
Non-cash impairment charge										$ 64,575,000
Basis of Presentation (Textual) [Abstract]
Number of members eligible for the health care programs		1,697,000								1,697,000
Approximate revenue under plan										57,000,000	32,000,000
Revenue expected to recognize, minimum										45,000,000
Revenue expected to recognize, maximum										50,000,000
Stock split in the form of a stock dividend	3-for-2									three-for-two
Premium revenue		1,254,969,000	1,138,230,000	1,128,770,000	1,081,438,000	1,042,889,000	1,005,115,000	976,685,000	965,220,000	4,603,407,000	3,989,909,000	3,660,207,000
Income loss from non cash impairment charges per diluted share										$ 1.34
Missouri Health Plan [Member]
Non-cash impairment charge										64,575,000
Percentage of total premium revenue										5.00%
Number of members in health care plan										79,000
Total percentage of health plans segment membership										4.70%
Basis of Presentation (Textual) [Abstract]
Premium revenue										$ 229,584,000	$ 210,852,000	$ 230,222,000

XML

Earnings per Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Earnings per Share

3. Earnings per Share

The denominators for the computation of basic and diluted earnings per share were calculated as follows:

		September 30,			September 30,		September 30,
	December 31,
	2011			2010		2009
	(In thousands)
Shares outstanding at the beginning of the period		45,463			38,410		40,088
Weighted-average number of shares issued under equity offering		—			2,506		—
Weighted-average number of shares purchased		(160	)		—		(1,482	)
Weighted-average number of shares issued under employee stock plans		453			258		159
Denominator for basic earnings per share		45,756			41,174		38,765
Dilutive effect of employee stock options and stock grants(1)		669			457		211
Denominator for diluted earnings per share(2)		46,425			41,631		38,976

(1) Options to purchase common shares are included in the calculation of diluted earnings per share when their exercise prices are below the average fair value of the common shares for each of the periods presented. For the years ended December 31, 2011, 2010, and 2009 there were approximately 137,000, 478,000 and 620,000 antidilutive weighted options, respectively. Restricted shares are included in the calculation of diluted earnings per share when their grant date fair values are below the average fair value of the common shares for each of the periods presented. For the years ended December 31, 2011, 2010, and 2009, anti-dilutive restricted shares were insignificant.

(2) Potentially dilutive shares issuable pursuant to our convertible senior notes were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the years ended December 31, 2011, 2010, and 2009.

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Investments (Details 1) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Contractual maturities of investments
Due in one year or less, Amortized Cost	$ 183,607
Due one year through five years, Amortized Cost	153,210
Due after ten years, Amortized Cost	18,500
Total, Amortized Cost	355,317
Due in one year or less, Estimated Fair Value	183,775
Due one year through five years, Estimated Fair Value	153,573
Due after ten years, Estimated Fair value	15,702
Total, Estimated fair value	$ 353,050

XML

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Summary of future minimum lease payments

		September 30,
	(In thousands)
2012	$	25,553
2013		22,425
2014		18,511
2015		14,544
2016		7,794
Thereafter		12,597
Total minimum lease payments	$	101,424

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Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2011

Significant Accounting Policies [Abstract]

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents consist of cash and short-term, highly liquid investments that are both readily convertible into known amounts of cash and have a maturity of three months or less on the date of purchase.

Investments

Investments

Our investments are principally held in debt securities, which are grouped into two separate categories for accounting and reporting purposes: available-for-sale securities, and held-to-maturity securities. Available-for-sale securities are recorded at fair value and unrealized gains and losses, if any, are recorded in stockholders' equity as other comprehensive income, net of applicable income taxes. Held-to-maturity securities are recorded at amortized cost, which approximates fair value, and unrealized holding gains or losses are not generally recognized. Realized gains and losses and unrealized losses judged to be other than temporary with respect to available-for-sale and held-to-maturity securities are included in the determination of net income. The cost of securities sold is determined using the specific-identification method, on an amortized cost basis.

Our investment policy requires that all of our investments have final maturities of five years or less (excluding auction rate and variable rate securities where interest rates may be periodically reset), and that the average maturity be two years or less. Investments and restricted investments are subject to interest rate risk and will decrease in value if market rates increase. Declines in interest rates over time will reduce our investment income.

In general, our available-for-sale securities are classified as current assets without regard to the securities' contractual maturity dates because they may be readily liquidated. Our auction rate securities are classified as non-current assets. For comprehensive discussions of the fair value and classification of our current and non-current investments, including auction rate securities, see Note 5, "Fair Value Measurements," Note 6, "Investments" and Note 10, "Restricted Investments."

Receivables

Receivables

Receivables consist primarily of amounts due from the various states in which we operate, and are subject to potential retroactive adjustment. Because such receivables are readily determinable and our creditors are primarily state governments, our allowance for doubtful accounts is immaterial. Any amounts determined to be uncollectible are charged to expense when such determination is made. See Note 7, "Receivables." Additionally, we cede 100% of the financial responsibility for Medicare members covered by our Wisconsin health plan to third a party health reinsurer. In connection with the arrangement, as of December 31, 2011, we have recorded a receivable from the third party reinsurer of $3.0 million along with a corresponding current liability of $3.0 million.

Property, Equipment, and Capitalized Software

Property, Equipment, and Capitalized Software

Property and equipment are stated at historical cost. Replacements and major improvements are capitalized, and repairs and maintenance are charged to expense as incurred. Furniture and equipment are generally depreciated using the straight-line method over estimated useful lives ranging from three to seven years. Software developed for internal use is capitalized. Software is generally amortized over its estimated useful life of three years. Leasehold improvements are amortized over the term of the lease, or over their useful lives from five to 10 years, whichever is shorter. Buildings are depreciated over their estimated useful lives of 25 to 31.5 years. See Note 8, "Property, Equipment, and Capitalized Software."

As discussed below, the costs associated with certain of our Molina Medicaid Solutions segment equipment and software are capitalized and recorded as deferred contract costs. Such costs are amortized on a straight-line basis over the shorter of the useful life or the contract period.

Depreciation and Amortization

Depreciation and Amortization

Depreciation and amortization related to our Health Plans segment is all recorded in "Depreciation and Amortization" in the consolidated statements of income. Amortization related to our Molina Medicaid Solutions segment is recorded within three different headings in the consolidated statements of income as follows:

• Amortization of purchased intangibles relating to customer relationships is reported as amortization within the heading "Depreciation and Amortization;"

• Amortization of purchased intangibles relating to contract backlog is recorded as a reduction of "Service Revenue;" and

• Amortization of capitalized software is recorded within the heading "Cost of Service Revenue."

The following table presents all depreciation and amortization recorded in our consolidated statements of income, regardless of whether the item appears as depreciation and amortization, a reduction of service revenue, or as cost of service revenue.

		September 30,		September 30,		September 30,
	Year Ended December 31,
	2011		2010		2009
	(Dollar amounts in thousands)
Depreciation, and amortization of capitalized software	$	30,864	$	27,230	$	25,172
Amortization of intangible assets		19,826		18,474		12,938
Depreciation and amortization reported as such in the consolidated statements of income		50,690		45,704		38,110
Amortization recorded as reduction of service revenue		6,822		8,316		—
Amortization of capitalized software recorded as cost of service revenue		16,871		6,745		—
Total	$	74,383	$	60,765	$	38,110

Long-Lived Assets, including Intangible Assets

Long-Lived Assets, including Intangible Assets

Long-lived assets comprise primarily property, equipment, capitalized software and intangible assets. Finite-lived, separately-identifiable intangible assets are acquired in business combinations and are assets that represent future expected benefits but lack physical substance (such as purchased contract rights and provider contracts). Intangible assets are initially recorded at their fair values and are then amortized on a straight-line basis over their expected useful lives, generally between one and 15 years.

Identifiable intangible assets associated with Molina Medicaid Solutions are classified as either contract backlog or customer relationships as follows:

• The contract backlog intangible asset comprises all contractual cash flows anticipated to be received during

the remaining contracted period for each specific contract relating to work that was performed prior to the acquisition. Because each acquired contract constitutes a single revenue stream, amortization of the contract backlog intangible is recorded to contra-service revenue so that amortization is matched to any revenues associated with contract performance that occurred prior to the acquisition date. The contract backlog intangible asset is amortized on a straight-line basis for each specific contract over periods generally ranging from one to six years.

• The customer relationship intangible asset comprises all contractual cash flows that are anticipated to be received during the option periods of each specific contract as well as anticipated renewals of those contracts. The customer relationship intangible is amortized on a straight-line basis for each specific contract over periods generally ranging from four to nine years.

Our intangible assets are subject to impairment tests when events or circumstances indicate that a finite-lived intangible asset's (or asset group's) carrying value may not be recoverable. Consideration is given to a number of potential impairment indicators. For example, our health plan subsidiaries have generally been successful in obtaining the renewal by amendment of their contracts in each state prior to the actual expiration of their contracts. However, there can be no assurance that these contracts will continue to be renewed as in the case of our Missouri health plan, described below.

Following the identification of any potential impairment indicators, to determine whether an impairment exists, we would compare the carrying amount of a finite-lived intangible asset with the undiscounted cash flows that are expected to result from the use of the asset or related group of assets. If it is determined that the carrying amount of the asset is not recoverable, the amount by which the carrying value exceeds the estimated fair value is recorded as an impairment.

On February 17, 2012, we received notification that our Missouri health plan's existing contract with the state of Missouri will expire without renewal on June 30, 2012. In connection with this notification, we recorded a total non-cash impairment charge of $64.6 million in 2011, of which $6.1 million related to finite-lived intangible assets, and $58.5 million related to goodwill, discussed below. Because the existing contract expires without renewal on June 30, 2012, the impairment charge comprised substantially all intangible assets relating to contract rights and licenses, and provider networks recorded at the time of our acquisition of the Missouri health plan in 2007. As described in Note 19, "Segment Reporting," the Missouri health plan is a component of our Health Plans segment. No impairment charges relating to long-lived assets, including intangible assets, were recorded in the years ended December 31, 2010, and 2009.

Goodwill

Goodwill

Goodwill represents the amount of the purchase price in excess of the fair values assigned to the underlying identifiable net assets of acquired businesses. Goodwill is not amortized, but is subject to an annual impairment test. Tests are performed more frequently if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount.

To determine whether goodwill is impaired, we perform an impairment test. We measure the fair values of our reporting units and compare them to their aggregate carrying values, including goodwill. If the fair value is less than the carrying value of the reporting unit, then the implied value of goodwill would be calculated and compared to the carrying amount of goodwill to determine whether goodwill is impaired.

We estimate the fair values of our reporting units using discounted cash flows. To determine fair values, we must make assumptions about a wide variety of internal and external factors. Significant assumptions used in the impairment analysis include financial projections of free cash flow (including significant assumptions about operations, capital requirements and income taxes), long-term growth rates for determining terminal value, and discount rates.

In connection with our Missouri health plan as described above, we recorded a non-cash impairment charge of $58.5 million in 2011. Because the existing contract expires without renewal on June 30, 2012, the impairment charge comprised all of the goodwill recorded at the time of our acquisition of the Missouri health plan in 2007. The goodwill impairment charge is not tax deductible. No impairment charges relating to goodwill were recorded in the years ended December 31, 2010, and 2009.

Restricted Investments

Restricted Investments

Restricted investments, which consist of certificates of deposit and treasury securities, are designated as held-to-maturity and are carried at amortized cost, which approximates market value. The use of these funds is limited to specific purposes as required by each state, or as protection against the insolvency of capitated providers. We have the ability to hold our restricted investments until maturity and, as a result, we would not expect the value of these investments to decline significantly due to a sudden change in market interest rates. See Note 10, "Restricted Investments."

Receivable/Liability for Ceded Life and Annuity Contracts

Receivable/Liability for Ceded Life and Annuity Contracts

We report a 100% ceded reinsurance arrangement for life insurance policies written and held by our wholly owned insurance subsidiary, Molina Healthcare Insurance Company, by recording a non-current receivable from the reinsurer with a corresponding non-current liability for ceded life and annuity contracts. See Note 22, "Subsequent Events."

Other Assets

Other Assets

Significant items included in other assets include deferred financing costs associated with our convertible senior notes and with our credit facility, certain investments held in connection with our employee deferred compensation program, and an investment in a vision services provider (see Note 17, "Related Party Transactions"). The deferred financing costs are being amortized on a straight-line basis over the seven-year term of the convertible senior notes and the five year term of the credit facility.

Delegated Provider Insolvency

Delegated Provider Insolvency

Circumstances may arise where providers to whom we have delegated risk, due to insolvency or other circumstances, are unable to pay claims they have incurred with third parties in connection with referral services (including hospital inpatient services) provided to our members. The inability of delegated providers to pay referral claims presents us with both immediate financial risk and potential disruption to member care. Depending on states' laws, we may be held liable for such unpaid referral claims even though the delegated provider has contractually assumed such risk. Additionally, competitive pressures may force us to pay such claims even when we have no legal obligation to do so. To reduce the risk that delegated providers are unable to pay referral claims, we monitor the operational and financial performance of such providers. We also maintain contingency plans that include transferring members to other providers in response to potential network instability.

In certain instances, we have required providers to place funds on deposit with us as protection against their potential insolvency. These reserves are frequently in the form of segregated funds received from the provider and held by us or placed in a third-party financial institution. These funds may be used to pay claims that are the financial responsibility of the provider in the event the provider is unable to meet these obligations. Additionally, we have recorded liabilities for estimated losses arising from provider instability or insolvency in excess of provider funds on deposit with us. Such liabilities were not material at December 31, 2011, or December 31, 2010.

Premium Revenue

Premium Revenue

Premium revenue is fixed in advance of the periods covered and, except as described below, is not generally subject to significant accounting estimates. For the year ended December 31, 2011 we received approximately 94% of our premium revenue as a fixed amount per member per month, or PMPM, pursuant to our contracts with state Medicaid agencies, Medicare and other managed care organizations for which we operate as a subcontractor. These premium revenues are recognized in the month that members are entitled to receive health care services. The state Medicaid programs and the federal Medicare program periodically adjust premium rates.

The following table summarizes premium revenue by health plan for the periods indicated:

		September 30,		September 30,		September 30,
	Year Ended December 31,
	2011		2010		2009
	(In thousands)
California	$	575,176	$	506,871	$	481,717
Florida		203,945		170,683		102,232
Michigan		662,127		630,134		557,421
Missouri		229,584		210,852		230,222
New Mexico		345,732		366,784		404,026
Ohio		988,896		860,324		803,521
Texas		409,295		188,716		134,860
Utah		287,290		258,076		207,297
Washington		823,323		758,849		726,137
Wisconsin(1)		69,596		30,033		—
Other		8,443		8,587		12,774
	$	4,603,407	$	3,989,909	$	3,660,207

(1) We acquired the Wisconsin health plan on September 1, 2010.

For the year ended December 31, 2010, we received approximately 6% of our premium revenue in the form of "birth income" — a one-time payment for the delivery of a child — from the Medicaid programs in all of our state health plans except New Mexico. Such payments are recognized as revenue in the month the birth occurs.

Certain components of premium revenue are subject to accounting estimates. The components of premium revenue subject to estimation fall into two categories:

Contractual provisions that may limit revenue based upon the costs incurred or the profits realized under a specific contract. These are contractual provisions that require the health plan to return premiums to the extent that certain thresholds are not met. In some instances premiums are returned when medical costs fall below a certain percentage of gross premiums; or when administrative costs or profits exceed a certain percentage of gross premiums. In other instances, premiums are partially determined by the acuity of care provided to members (risk adjustment). To the extent that our expenses and profits change from the amounts previously reported (due to changes in estimates) our revenue earned for those periods will also change. In all of these instances our revenue is only subject to estimate due to the fact that the thresholds themselves contain elements (expense or profit) that are subject to estimate. While we have adequate experience and data to make sound estimates of our expenses or profits, changes to those estimates may be necessary, which in turn will lead to changes in our estimates of revenue. In general, a change in estimate relating to expense or profit would offset any related change in estimate to premium, resulting in no or small impact to net income. The following contractual provisions fall into this category:

• California Health Plan Medical Cost Floors (Minimums): A portion of certain premiums received by our California health plan may be returned to the state if certain minimum amounts are not spent on defined medical care costs. At December 31, 2011, we recorded a liability of $1.0 million under the terms of these contract provisions.

• Florida Health Plan Medical Cost Floor (Minimum) for Behavioral Health: A portion of premiums received by our Florida health plan may be returned to the state if certain minimum amounts are not spent on defined behavioral health care costs. At December 31, 2011, we had not recorded any liability under the terms of this contract provision since behavioral health expenses are not less than the contractual floor.

• New Mexico Health Plan Medical Cost Floors (Minimums) and Administrative Cost and Profit Ceilings (Maximums): A portion of premiums received by our New Mexico health plan may be returned to the state if certain minimum amounts are not spent on defined medical care costs, or if administrative costs or profit (as defined) exceed certain amounts. Our contract with the state of New Mexico requires that we spend a minimum percentage of premium revenue on certain explicitly defined medical care costs (the medical cost floor). The New Mexico health plan contract also contains certain limits on the amount our New Mexico health plan can: (a) expend on administrative costs; and (b) retain as profit. At December 31, 2011, we had not recorded any liability under the terms of these contract provisions. In the fourth quarter of 2011, our New Mexico health plan entered into a contract amendment that more closely aligns the calculation of revenue with the methodology adopted under the Affordable Care Act. The contract amendment changed the calculation of the amount of revenue that may be recognized relative to medical costs, and resulted in the recognition of approximately $5.6 million of premium revenue which all related to periods prior to 2011.

• Texas Health Plan Profit Sharing: Under our contract with the state of Texas, there is a profit-sharing agreement under which we pay a rebate to the state of Texas if our Texas health plan generates pretax income, as defined in the contract, above a certain specified percentage, as determined in accordance with a tiered rebate schedule. The rebates, if any, are calculated separately for the TANF/CHIP and ABD products. We are limited in the amount of administrative costs that we may deduct in calculating the rebate, if any. As a result of profits in excess of the amount we are allowed to fully retain, we had an aggregate liability of approximately $0.7 million accrued pursuant to our profit-sharing agreement with the state of Texas at December 31, 2011.

• Medicare Revenue Risk Adjustment: Based on member encounter data that we submit to CMS, our Medicare premiums are subject to retroactive adjustment for both member risk scores and member pharmacy cost experience for up to two years after the original year of service. This adjustment takes into account the acuity of each member's medical needs relative to what was anticipated when premiums were originally set for that member. In the event that a member requires less acute medical care than was anticipated by the original premium amount, CMS may recover premium from us. In the event that a member requires more acute medical care than was anticipated by the original premium amount, CMS may pay us additional retroactive premium. A similar retroactive reconciliation is undertaken by CMS for our Medicare members' pharmacy utilization. We estimate the amount of Medicare revenue that will ultimately be realized for the periods presented based on our knowledge of our members' heath care utilization patterns and CMS practices. Based on our knowledge of member health care utilization patterns and expenses we have recorded a receivable of approximately $5.0 million for anticipated Medicare risk adjustment premiums at December 31, 2011.

Quality incentives that allow us to recognize incremental revenue if certain quality standards are met. These are contract provisions that allow us to earn additional premium revenue in certain states if we achieve certain quality-of-care or administrative measures. We estimate the amount of revenue that will ultimately be realized for the periods presented based on our experience and expertise in meeting the quality and administrative measures as well as our ongoing and current monitoring of our progress in meeting those measures. The amount of the revenue that we will realize under these contractual provisions is determinable based upon that experience. The following contractual provisions fall into this category:

New Mexico Health Plan Quality Incentive Premiums: Under our contract with the state of New Mexico, incremental revenue of up to 0.75% of our total premium is earned if certain performance measures are met. These performance measures are generally linked to various quality-of-care and administrative measures dictated by the state.

Ohio Health Plan Quality Incentive Premiums: Under our contract with the state of Ohio, incremental revenue of up to 1% of our total premium is earned if certain performance measures are met. Effective February 1, 2010 through June 30, 2011, we are eligible to earn additional incremental revenue of up to 0.25% of our total premium if we meet certain pharmacy specific performance measures. These performance measures are generally linked to various quality-of-care measures dictated by the state.

Texas Health Plan Quality Incentive Premiums: Under our contract with the state of Texas, incremental revenue of up to 1% of our total premium may be earned if certain performance measures are met. These performance measures are generally linked to various quality-of-care measures established by the state. The time period for the assessment of these performance measures previously followed the state's fiscal year, but effective January 1, 2011, it follows the calendar year. The state of Texas has notified us that it has discontinued the program for the 2011 calendar year.

Wisconsin Health Plan Quality Incentive Premiums: Under our contract with the state of Wisconsin, effective beginning in 2011, up to 3.25% of the premium is withheld by the state. The withheld premiums can be earned by the health plan by meeting certain performance measures. These performance measures are generally linked to various quality-of-care measures dictated by the state.

The following table quantifies the quality incentive premium revenue recognized for the periods presented, including the amounts earned in the period presented and prior periods. Although the reasonably possible effects of a change in estimate related to quality incentive premium revenue as of December 31, 2011 are not known, we have no reason to believe that the adjustments to prior years noted below are not indicative of the potential future changes in our estimates as of December 31, 2011.

		September 30,		September 30,		September 30,		September 30,		September 30,
	Year Ended December 31, 2011
	Maximum Available Quality Incentive Premium – Current Year		Amount of Current Year Quality Incentive Premium Revenue Recognized		Amount of Quality Incentive Premium Revenue Recognized from Prior Year		Total Quality Incentive Premium Revenue Recognized		Total Revenue Recognized
	(In thousands)
New Mexico	$	2,271	$	1,558	$	378	$	1,936	$	345,732
Ohio		10,212		8,363		3,501		11,864		988,896
Texas		—		—		—		—		409,295
Wisconsin		1,705		542		—		542		69,596
	$	14,188	$	10,463	$	3,879	$	14,342	$	1,813,519

		September 30,		September 30,		September 30,			September 30,		September 30,
	Year Ended December 31, 2010
	Maximum Available Quality Incentive Premium – Current Year		Amount of Current Year Quality Incentive Premium Revenue Recognized		Amount of Quality Incentive Premium Revenue Recognized from Prior Year			Total Quality Incentive Premium Revenue Recognized		Total Revenue Recognized
	(In thousands)
New Mexico	$	2,581	$	1,311	$	579		$	1,890	$	366,784
Ohio		9,881		3,114		(1,248	)		1,866		860,324
Texas		1,771		1,771		—			1,771		188,716
	$	14,233	$	6,196	$	(669	)	$	5,527	$	1,415,824

		September 30,		September 30,		September 30,			September 30,		September 30,
	Year Ended December 31, 2009
	Maximum Available Quality Incentive Premium – Current Year		Amount of Current Year Quality Incentive Premium Revenue Recognized		Amount of Quality Incentive Premium Revenue Recognized from Prior Year			Total Quality Incentive Premium Revenue Recognized		Total Revenue Recognized
	(In thousands)
New Mexico	$	2,378	$	1,097	$	(171	)	$	926	$	404,026
Ohio		7,040		5,715		937			6,652		803,521
Texas		1,322		1,322		—			1,322		134,860
	$	10,740	$	8,134	$	766		$	8,900	$	1,342,407

Medical Care Costs

Medical Care Costs

Expenses related to medical care services are captured in the following four categories:

• Fee-for-service: Physician providers paid on a fee-for-service basis are paid according to a fee schedule set by the state or by our contracts with these providers. Most hospitals are paid on a fee-for-service basis in a variety of ways, including per diem amounts, diagnostic-related groups or DRGs, percent of billed charges, and case rates. As discussed below, we also pay a small portion of hospitals on a capitated basis. We also have stop-loss agreements with the hospitals with which we contract. Under all fee-for-service arrangements, we retain the financial responsibility for medical care provided. Expenses related to fee-for-service contracts are recorded in the period in which the related services are dispensed. The costs of drugs administered in a physician or hospital setting that are not billed through our pharmacy benefit managers are included in fee-for-service costs.

• Capitation: Many of our primary care physicians and a small portion of our specialists and hospitals are paid on a capitated basis. Under capitation contracts, we typically pay a fixed per-member per-month, or PMPM, payment to the provider without regard to the frequency, extent, or nature of the medical services actually furnished. Under capitated contracts, we remain liable for the provision of certain health care services. Certain of our capitated contracts also contain incentive programs based on service delivery, quality of care, utilization management, and other criteria. Capitation payments are fixed

in advance of the periods covered and are not subject to significant accounting estimates. These payments are expensed in the period the providers are obligated to provide services. The financial risk for pharmacy services for a small portion of our membership is delegated to capitated providers.

• Pharmacy: Pharmacy costs include all drug, injectibles, and immunization costs paid through our pharmacy benefit managers. As noted above, drugs and injectibles not paid through our pharmacy benefit managers are included in fee-for-service costs, except in those limited instances where we capitate drug and injectible costs.

• Other: Other medical care costs include medically related administrative costs, certain provider incentive costs, reinsurance cost, and other health care expense. Medically related administrative costs include, for example, expenses relating to health education, quality assurance, case management, disease management, 24-hour on-call nurses, and a portion of our information technology costs. Salary and benefit costs are a substantial portion of these expenses. For the years ended December 31, 2011, 2010, and 2009, medically related administrative costs were approximately $102.3 million, $85.5 million, and $74.6 million, respectively.

The following table provides the details of our consolidated medical care costs for the periods indicated (dollars in thousands, except PMPM amounts):

		xxxxxxxx		xxxxxxxx		xxxxxxxx			xxxxxxxx		xxxxxxxx		xxxxxxxx			xxxxxxxx		xxxxxxxx		xxxxxxxx
	Year Ended December 31,
	2011							2010							2009
					% of							% of							% of
	Amount		PMPM		Total			Amount		PMPM		Total			Amount		PMPM		Total
Fee-for-service	$	2,764,309	$	139.02	$	71.6	%	$	2,360,858	$	128.73	$	70.0	%	$	2,077,489	$	126.14	$	65.4	%
Capitation		518,835		26.09		13.4			555,487		30.29		16.5			558,538		33.91		17.6
Pharmacy		418,007		21.02		10.8			325,935		17.77		9.7			414,785		25.18		13.1
Other		158,843		8.00		4.2			128,577		7.01		3.8			125,424		7.62		3.9
Total	$	3,859,994	$	194.13	$	100.0	%	$	3,370,857	$	183.80	$	100.0	%	$	3,176,236	$	192.85	$	100.0	%

Our medical care costs include amounts that have been paid by us through the reporting date, as well as estimated liabilities for medical care costs incurred but not paid by us as of the reporting date. Such medical care cost liabilities include, among other items, unpaid fee-for-service claims, capitation payments owed providers, unpaid pharmacy invoices, and various medically related administrative costs that have been incurred but not paid. We use judgment to determine the appropriate assumptions for determining the required estimates.

The most important element in estimating our medical care costs is our estimate for fee-for-service claims which have been incurred but not paid by us. These fee-for-service costs that have been incurred but have not been paid at the reporting date are collectively referred to as medical costs that are "Incurred But Not Paid," or IBNP. Our IBNP claims reserve, as reported in our balance sheet, represents our best estimate of the total amount of claims we will ultimately pay with respect to claims that we have incurred as of the balance sheet date. We estimate our IBNP monthly using actuarial methods based on a number of factors.

The factors we consider when estimating our IBNP include, without limitation, claims receipt and payment experience (and variations in that experience), changes in membership, provider billing practices, health care service utilization trends, cost trends, product mix, seasonality, prior authorization of medical services, benefit changes, known outbreaks of disease or increased incidence of illness such as influenza, provider contract changes, changes to Medicaid fee schedules, and the incidence of high dollar or catastrophic claims. Our assessment of these factors is then translated into an estimate of our IBNP liability at the relevant measuring point through the calculation of a base estimate of IBNP, a further reserve for adverse claims development, and an estimate of the administrative costs of settling all claims incurred through the reporting date. The base estimate of IBNP is derived through application of claims payment completion factors and trended PMPM cost estimates. See Note 11, "Medical Claims and Benefits Payable."

We report reinsurance premiums as medical care costs, while related reinsurance recoveries are reported as deductions from medical care costs. We limit our risk of catastrophic losses by maintaining high deductible reinsurance coverage. We do not consider this coverage to be material because the cost is not significant and the likelihood that coverage will apply is low.

Taxes Based on Premiums

Taxes Based on Premiums

Our California, Florida, Michigan, New Mexico, Ohio, Texas and Washington health plans are assessed a tax based on premium revenue collected. We report these taxes on a gross basis, included in premium tax expense.

Premium Deficiency Reserves on Loss Contracts

Premium Deficiency Reserves on Loss Contracts

We assess the profitability of our contracts for providing medical care services to our members and identify those contracts where current operating results or forecasts indicate probable future losses. Anticipated future premiums are compared to anticipated medical care costs, including the cost of processing claims. If the anticipated future costs exceed the premiums, a loss contract accrual is recognized. No such accrual was recorded as of December 31, 2011, or 2010.

Service Revenue and Cost of Service Revenue - Molina Medicaid Solutions Segment

Service Revenue and Cost of Service Revenue — Molina Medicaid Solutions Segment

The payments received by our Molina Medicaid Solutions segment under its state contracts are based on the performance of multiple services. The first of these is the design, development and implementation, or DDI, of a Medicaid Management Information System, or MMIS. An additional service, following completion of DDI, is the operation of the MMIS under a business process outsourcing, or BPO arrangement. While providing BPO services (which include claims payment and eligibility processing) we also provide the state with other services including both hosting and support and maintenance. We have evaluated our Molina Medicaid Solutions contracts to determine if such arrangements include a software element. Based on this evaluation, we have concluded that these arrangements do not include a software element. As such, we have concluded that our Molina Medicaid Solutions contracts are multiple-element service arrangements under the scope of FASB Accounting Standards Codification Subtopic 605-25, Revenue Recognition –– Multiple–Element Arrangements, and SEC Staff Accounting Bulletin Topic 13, Revenue Recognition.

Effective January 1, 2011, we adopted a new accounting standard that amends the guidance on the accounting for multiple-element arrangements. Pursuant to the new standard, each required deliverable is evaluated to determine whether it qualifies as a separate unit of accounting which is generally based on whether the deliverable has standalone value to the customer. In addition to standalone value, previous guidance also required objective and reliable evidence of fair value of a deliverable in order to treat the deliverable as a separate unit of accounting. The arrangement's consideration that is fixed or determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. In general, the consideration allocated to each unit of accounting is recognized as the related goods or services are delivered, limited to the consideration that is not contingent. We have adopted this guidance on a prospective basis for all new or materially modified revenue arrangements with multiple deliverables entered into on or after January 1, 2011. Our adoption of this guidance has not impacted the timing or pattern of our revenue recognition in 2011. Also, there would have been no change in revenue recognized relating to multiple-element arrangements if we had adopted this guidance retrospectively for contracts entered into prior to January 1, 2011.

We have concluded that the various service elements in our Molina Medicaid Solutions contracts represent a single unit of accounting due to the fact that DDI, which is the only service performed in advance of the other services (all other services are performed over an identical period), does not have standalone value because our DDI services are not sold separately by any vendor and the customer could not resell our DDI services. Further, we have no objective and reliable evidence of fair value for any of the individual elements in these contracts, and at no point in the contract will we have objective and reliable evidence of fair value for the undelivered elements in the contracts. For contracts entered into prior to January 1, 2011, objective and reliable evidence of fair value would be required, in addition to DDI standalone value which we do not have, in order to treat DDI as a separate unit of accounting. We lack objective and reliable evidence of the fair value of the individual elements of our Molina Medicaid Solutions contracts for the following reasons:

• Each contract calls for the provision of its own specific set of services. While all contracts support the system of record for state MMIS, the actual services we provide vary significantly between contracts; and

• The nature of the MMIS installed varies significantly between our older contracts (proprietary mainframe systems) and our new contracts (commercial off-the-shelf technology solutions).

Because we have determined the service provided under our Molina Medicaid Solutions contracts represent a single unit of accounting, and because we are unable to determine a pattern of performance of services during the contract period, we recognize revenue associated with such contracts on a straight-line basis over the period during which BPO, hosting, and support and maintenance services are delivered.

Provisions specific to each contract may, however, lead us to modify this general principle. In those circumstances, the right of the state to refuse acceptance of services, as well as the related obligation to compensate us, may require us to delay recognition of all or part of our revenue until that contingency (the right of the state to refuse acceptance) has been removed. In those circumstances we defer recognition of any contingent revenue (whether DDI, BPO services, hosting, and support and maintenance services) until the contingency has been removed. These types of contingency features are present in our Maine and Idaho contracts. We began to recognize revenue associated with our Maine contract upon state acceptance in September 2010. In Idaho, we will begin recognition of revenue upon state acceptance.

Costs associated with our Molina Medicaid Solutions contracts include software related costs and other costs. With respect to software related costs, we apply the guidance for internal-use software and capitalize external direct costs of materials and services consumed in developing or obtaining the software, and payroll and payroll-related costs associated with employees who are directly associated with and who devote time to the computer software project. With respect to all other direct costs, such costs are expensed as incurred, unless corresponding revenue is being deferred. If revenue is being deferred, direct costs relating to delivered service elements are deferred as well and are recognized on a straight-line basis over the period of revenue recognition, in a manner consistent with our recognition of revenue that has been deferred. Such direct costs can include:

• Transaction processing costs

• Employee costs incurred in performing transaction services

• Vendor costs incurred in performing transaction services

• Costs incurred in performing required monitoring of and reporting on contract performance

• Costs incurred in maintaining and processing member and provider eligibility

• Costs incurred in communicating with members and providers

The recoverability of deferred contract costs associated with a particular contract is analyzed on a periodic basis using the undiscounted estimated cash flows of the whole contract over its remaining contract term. If such undiscounted cash flows are insufficient to recover the long-lived assets and deferred contract costs, the deferred contract costs are written down by the amount of the cash flow deficiency. If a cash flow deficiency remains after reducing the balance of the deferred contract costs to zero, any remaining long-lived assets are evaluated for impairment. Any such impairment recognized would equal the amount by which the carrying value of the long-lived assets exceeds the fair value of those assets.

We are currently deferring recognition of all revenue as well as all direct costs (to the extent that such costs are estimated to be recoverable) in Idaho until the MMIS in that state receives certification from CMS. For the year ended December 31, 2011, cost of service revenue includes $11.5 million of direct costs associated with the Idaho contract that would otherwise have been recorded as deferred contract costs. In assessing the recoverability of the deferred contract costs associated with the Idaho contract at December 31, 2011, we determined that these costs should be expensed as a period cost.

Income Taxes

Income Taxes

The provision for income taxes is determined using an estimated annual effective tax rate, which is generally greater than the U.S. federal statutory rate primarily because of state taxes. The effective tax rate may be subject to fluctuations during the year as new information is obtained. Such information may affect the assumptions used to estimate the annual effective tax rate, including factors such as the mix of pretax earnings in the various tax jurisdictions in which we operate, valuation allowances against deferred tax assets, the recognition or derecognition of tax benefits related to uncertain tax positions, and changes in or the interpretation of tax laws in jurisdictions where we conduct business. We recognize deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities, along with net operating loss and tax credit carryovers. For further discussion and disclosure, see Note 13, "Income Taxes."

Concentrations of Credit Risk

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments, receivables, and restricted investments. We invest a substantial portion of our cash in the PFM Funds Prime Series — Institutional Class, and the PFM Funds Government Series. These funds represent a portfolio of highly liquid money market securities that are managed by PFM Asset Management LLC (PFM), a Virginia business trust registered as an open-end management investment fund. As of December 31, 2011, and 2010, our investments with PFM totaled $209 million and $327 million, respectively. Our investments and a portion of our cash equivalents are managed by professional portfolio managers operating under documented investment guidelines. No investment that is in a loss position can be sold by our managers without our prior approval. Concentration of credit risk with respect to accounts receivable is limited due to payors consisting principally of the governments of each state in which our health plan subsidiaries operate.

Risks and Uncertainties

Risks and Uncertainties

Our profitability depends in large part on our ability to accurately predict and effectively manage medical care costs. We continually review our medical costs in light of our underlying claims experience and revised actuarial data. However, several factors could adversely affect medical care costs. These factors, which include changes in health care practices, inflation, new technologies, major epidemics, natural disasters, and malpractice litigation, are beyond our control and may have an adverse effect on our ability to accurately predict and effectively control medical care costs. Costs in excess of those anticipated could have a material adverse effect on our financial condition, results of operations, or cash flows.

At December 31, 2011, we operated health plans in 10 states, primarily as a direct contractor with the states, and in Los Angeles County, California, as a subcontractor to another health plan holding a direct contract with the state. We are therefore dependent upon a small number of contracts to support our revenue. The loss of any one of those contracts could have a material adverse effect on our financial position, results of operations, or cash flows. Our ability to arrange for the provision of medical services to our members is dependent upon our ability to develop and maintain adequate provider networks. Our inability to develop or maintain such networks might, in certain circumstances, have a material adverse effect on our financial position, results of operations, or cash flows.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Goodwill Impairment Testing. The FASB issued the following guidance which modifies goodwill impairment testing.

• ASU No. 2011-08, Intangibles—Goodwill and Other (ASC Topic 350) — Testing Goodwill for Impairment, a consensus of the FASB Emerging Issues Task Force. This guidance allows an entity the option to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under that option, an entity would no longer be required to calculate the fair value of a reporting unit unless the entity determines, based on the qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. This guidance is effective for interim and annual goodwill impairment tests performed for fiscal years beginning after December 15, 2011. We do not expect the adoption of this guidance to impact our consolidated financial position, results of operations, or cash flows.

Presentation of Financial Statements. In June 2011, the FASB and International Accounting Standards Board, or IASB, issued the following guidance which modifies how other comprehensive income, or OCI, is reported under U.S. Generally Accepted Accounting Principles, or GAAP, and International Financial Reporting Standards, or IFRS.

• ASU No. 2011-05, Comprehensive Income (ASC Topic 220) — Presentation of Comprehensive Income, a consensus of the FASB Emerging Issues Task Force. This guidance eliminates the option to present components of OCI as part of the statement of changes to stockholders' equity. All filers are required to present all non-owner changes in stockholders' equity in a single statement of comprehensive income or in two separate but consecutive statements. This guidance is effective for interim and annual reporting beginning on or after December 15, 2011. We do not expect the adoption of this guidance to impact our consolidated financial position, results of operations or cash flows.

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, or AICPA, and the Securities and Exchange Commission, or SEC, did not have, or are not believed by management to have, a material impact on our present or future consolidated financial statements.

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Subsequent Events

12 Months Ended

Dec. 31, 2011

Subsequent Events [Abstract]

Subsequent Events

22. Subsequent Events

Missouri Health Plan

On February 17, 2012, the Division of Purchasing of the Missouri Office of Administration notified us that we were not awarded a contract under the Missouri HealthNet Managed Care Request for Proposal. As a result, our existing contract with the state will expire without renewal on June 30, 2012.

Molina Healthcare Insurance Company

Effective February 17, 2012, we sold our wholly owned insurance subsidiary, Molina Healthcare Insurance Company. To be recorded in the first quarter of 2012, the transaction will result in the elimination of both the noncurrent receivable and liability for ceded life and annuity contracts, each amounting to approximately $23.4 million as of December 31, 2011. Additionally, a gain of approximately $2 million is expected to be recorded upon closing of the transaction.

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Condensed Financial Information of Registrant (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Revenue:
Total revenue									$ 4,769,940	$ 4,085,977	$ 3,669,356
Expenses:
General and administrative expenses									415,932	345,993	276,027
Depreciation and amortization									50,690	45,704	38,110
Operating (loss) income	(16,103)	33,566	31,410	31,300	33,432	29,953	21,178	20,438	80,173	105,001	51,934
Income tax benefit									(43,836)	(34,522)	(7,289)
Net income	(32,960)	18,950	17,440	17,388	17,628	16,173	10,579	10,590	20,818	54,970	30,868
Parent Company [Member]
Revenue:
Management fees and other operating revenue									308,287	238,883	218,911
Investment income									81	1,153	1,540
Total revenue									308,368	240,036	220,451
Expenses:
Medical care costs									31,672	30,582	26,865
General and administrative expenses									272,302	218,834	160,792
Depreciation and amortization									31,355	27,166	25,223
Total expenses									335,329	276,582	212,880
Gain on purchase of convertible senior notes											1,532
Operating (loss) income									(26,961)	(36,546)	9,103
Interest expense									14,958	15,500	13,770
Loss before income taxes and equity in net income of subsidiaries									(41,919)	(52,046)	(4,667)
Income tax benefit									(14,826)	(16,936)	(3,755)
Net loss before equity in net income of subsidiaries									(27,093)	(35,110)	(912)
Equity in net income of subsidiaries									47,911	90,080	31,780
Net income									$ 20,818	$ 54,970	$ 30,868

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Business Combinations (Details 1) (Level 3 [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Level 3 [Member]
Liability for contingent consideration
Balance at December 31, 2010	$ (2,800)
Total gains included in earnings	2,800
Balance at December 31, 2011	$ 0

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Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Operating segment information

Year Ended December 31,
	2011		2010		2009
	(In thousands)
Segment Information:
Revenue:
Health Plans:
Premium revenue	$	4,603,407	$	3,989,909	$	3,660,207
Investment income		5,539		6,259		9,149
Rental income		547		—		—
Molina Medicaid Solutions:
Service revenue		160,447		89,809		—
	$	4,769,940	$	4,085,977	$	3,669,356
Depreciation and amortization:
Health Plans	$	45,734	$	42,282	$	38,110
Molina Medicaid Solutions		28,649		18,483		—
	$	74,383	$	60,765	$	38,110
Operating Income:
Health Plans	$	78,110	$	102,392	$	51,934
Molina Medicaid Solutions		2,063		2,609		—
Total operating income		80,173		105,001		51,934
Interest expense		15,519		15,509		13,777
Income before income taxes	$	64,654	$	89,492	$	38,157

		September 30,		September 30,
	As of December 31,
	2011		2010
Goodwill and intangible assets, net:
Health Plans	$	159,963	$	208,945
Molina Medicaid Solutions		95,787		108,783
	$	255,750	$	317,728
Total assets:
Health Plans	$	1,425,764	$	1,333,599
Molina Medicaid Solutions		226,382		175,615
	$	1,652,146	$	1,509,214

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Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2011

Significant Accounting Policies [Abstract]

Depreciation and amortization

		September 30,		September 30,		September 30,
	Year Ended December 31,
	2011		2010		2009
	(Dollar amounts in thousands)
Depreciation, and amortization of capitalized software	$	30,864	$	27,230	$	25,172
Amortization of intangible assets		19,826		18,474		12,938
Depreciation and amortization reported as such in the consolidated statements of income		50,690		45,704		38,110
Amortization recorded as reduction of service revenue		6,822		8,316		—
Amortization of capitalized software recorded as cost of service revenue		16,871		6,745		—
Total	$	74,383	$	60,765	$	38,110

Summarized premium revenue

		September 30,		September 30,		September 30,
	Year Ended December 31,
	2011		2010		2009
	(In thousands)
California	$	575,176	$	506,871	$	481,717
Florida		203,945		170,683		102,232
Michigan		662,127		630,134		557,421
Missouri		229,584		210,852		230,222
New Mexico		345,732		366,784		404,026
Ohio		988,896		860,324		803,521
Texas		409,295		188,716		134,860
Utah		287,290		258,076		207,297
Washington		823,323		758,849		726,137
Wisconsin(1)		69,596		30,033		—
Other		8,443		8,587		12,774
	$	4,603,407	$	3,989,909	$	3,660,207

(1) We acquired the Wisconsin health plan on September 1, 2010.

Quality incentive premium revenue recognized

		September 30,		September 30,		September 30,		September 30,		September 30,
	Year Ended December 31, 2011
	Maximum Available Quality Incentive Premium – Current Year		Amount of Current Year Quality Incentive Premium Revenue Recognized		Amount of Quality Incentive Premium Revenue Recognized from Prior Year		Total Quality Incentive Premium Revenue Recognized		Total Revenue Recognized
	(In thousands)
New Mexico	$	2,271	$	1,558	$	378	$	1,936	$	345,732
Ohio		10,212		8,363		3,501		11,864		988,896
Texas		—		—		—		—		409,295
Wisconsin		1,705		542		—		542		69,596
	$	14,188	$	10,463	$	3,879	$	14,342	$	1,813,519

		September 30,		September 30,		September 30,			September 30,		September 30,
	Year Ended December 31, 2010
	Maximum Available Quality Incentive Premium – Current Year		Amount of Current Year Quality Incentive Premium Revenue Recognized		Amount of Quality Incentive Premium Revenue Recognized from Prior Year			Total Quality Incentive Premium Revenue Recognized		Total Revenue Recognized
	(In thousands)
New Mexico	$	2,581	$	1,311	$	579		$	1,890	$	366,784
Ohio		9,881		3,114		(1,248	)		1,866		860,324
Texas		1,771		1,771		—			1,771		188,716
	$	14,233	$	6,196	$	(669	)	$	5,527	$	1,415,824

		September 30,		September 30,		September 30,			September 30,		September 30,
	Year Ended December 31, 2009
	Maximum Available Quality Incentive Premium – Current Year		Amount of Current Year Quality Incentive Premium Revenue Recognized		Amount of Quality Incentive Premium Revenue Recognized from Prior Year			Total Quality Incentive Premium Revenue Recognized		Total Revenue Recognized
	(In thousands)
New Mexico	$	2,378	$	1,097	$	(171	)	$	926	$	404,026
Ohio		7,040		5,715		937			6,652		803,521
Texas		1,322		1,322		—			1,322		134,860
	$	10,740	$	8,134	$	766		$	8,900	$	1,342,407

Consolidated medical care costs

		xxxxxxxx		xxxxxxxx		xxxxxxxx			xxxxxxxx		xxxxxxxx		xxxxxxxx			xxxxxxxx		xxxxxxxx		xxxxxxxx
	Year Ended December 31,
	2011							2010							2009
					% of							% of							% of
	Amount		PMPM		Total			Amount		PMPM		Total			Amount		PMPM		Total
Fee-for-service	$	2,764,309	$	139.02	$	71.6	%	$	2,360,858	$	128.73	$	70.0	%	$	2,077,489	$	126.14	$	65.4	%
Capitation		518,835		26.09		13.4			555,487		30.29		16.5			558,538		33.91		17.6
Pharmacy		418,007		21.02		10.8			325,935		17.77		9.7			414,785		25.18		13.1
Other		158,843		8.00		4.2			128,577		7.01		3.8			125,424		7.62		3.9
Total	$	3,859,994	$	194.13	$	100.0	%	$	3,370,857	$	183.80	$	100.0	%	$	3,176,236	$	192.85	$	100.0	%

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Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Summary of denominators for the computation of basic and diluted earnings per share

		September 30,			September 30,		September 30,
	December 31,
	2011			2010		2009
	(In thousands)
Shares outstanding at the beginning of the period		45,463			38,410		40,088
Weighted-average number of shares issued under equity offering		—			2,506		—
Weighted-average number of shares purchased		(160	)		—		(1,482	)
Weighted-average number of shares issued under employee stock plans		453			258		159
Denominator for basic earnings per share		45,756			41,174		38,765
Dilutive effect of employee stock options and stock grants(1)		669			457		211
Denominator for diluted earnings per share(2)		46,425			41,631		38,976

(1) Options to purchase common shares are included in the calculation of diluted earnings per share when their exercise prices are below the average fair value of the common shares for each of the periods presented. For the years ended December 31, 2011, 2010, and 2009 there were approximately 137,000, 478,000 and 620,000 antidilutive weighted options, respectively. Restricted shares are included in the calculation of diluted earnings per share when their grant date fair values are below the average fair value of the common shares for each of the periods presented. For the years ended December 31, 2011, 2010, and 2009, anti-dilutive restricted shares were insignificant.

(2) Potentially dilutive shares issuable pursuant to our convertible senior notes were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the years ended December 31, 2011, 2010, and 2009.

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Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Significant Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

Cash and Cash Equivalents

Cash and cash equivalents consist of cash and short-term, highly liquid investments that are both readily convertible into known amounts of cash and have a maturity of three months or less on the date of purchase.

Investments

Our investments are principally held in debt securities, which are grouped into two separate categories for accounting and reporting purposes: available-for-sale securities, and held-to-maturity securities. Available-for-sale securities are recorded at fair value and unrealized gains and losses, if any, are recorded in stockholders' equity as other comprehensive income, net of applicable income taxes. Held-to-maturity securities are recorded at amortized cost, which approximates fair value, and unrealized holding gains or losses are not generally recognized. Realized gains and losses and unrealized losses judged to be other than temporary with respect to available-for-sale and held-to-maturity securities are included in the determination of net income. The cost of securities sold is determined using the specific-identification method, on an amortized cost basis.

Our investment policy requires that all of our investments have final maturities of five years or less (excluding auction rate and variable rate securities where interest rates may be periodically reset), and that the average maturity be two years or less. Investments and restricted investments are subject to interest rate risk and will decrease in value if market rates increase. Declines in interest rates over time will reduce our investment income.

In general, our available-for-sale securities are classified as current assets without regard to the securities' contractual maturity dates because they may be readily liquidated. Our auction rate securities are classified as non-current assets. For comprehensive discussions of the fair value and classification of our current and non-current investments, including auction rate securities, see Note 5, "Fair Value Measurements," Note 6, "Investments" and Note 10, "Restricted Investments."

Receivables

Receivables consist primarily of amounts due from the various states in which we operate, and are subject to potential retroactive adjustment. Because such receivables are readily determinable and our creditors are primarily state governments, our allowance for doubtful accounts is immaterial. Any amounts determined to be uncollectible are charged to expense when such determination is made. See Note 7, "Receivables." Additionally, we cede 100% of the financial responsibility for Medicare members covered by our Wisconsin health plan to third a party health reinsurer. In connection with the arrangement, as of December 31, 2011, we have recorded a receivable from the third party reinsurer of $3.0 million along with a corresponding current liability of $3.0 million.

Property, Equipment, and Capitalized Software

Property and equipment are stated at historical cost. Replacements and major improvements are capitalized, and repairs and maintenance are charged to expense as incurred. Furniture and equipment are generally depreciated using the straight-line method over estimated useful lives ranging from three to seven years. Software developed for internal use is capitalized. Software is generally amortized over its estimated useful life of three years. Leasehold improvements are amortized over the term of the lease, or over their useful lives from five to 10 years, whichever is shorter. Buildings are depreciated over their estimated useful lives of 25 to 31.5 years. See Note 8, "Property, Equipment, and Capitalized Software."

As discussed below, the costs associated with certain of our Molina Medicaid Solutions segment equipment and software are capitalized and recorded as deferred contract costs. Such costs are amortized on a straight-line basis over the shorter of the useful life or the contract period.

Depreciation and Amortization

Depreciation and amortization related to our Health Plans segment is all recorded in "Depreciation and Amortization" in the consolidated statements of income. Amortization related to our Molina Medicaid Solutions segment is recorded within three different headings in the consolidated statements of income as follows:

• Amortization of purchased intangibles relating to customer relationships is reported as amortization within the heading "Depreciation and Amortization;"

• Amortization of purchased intangibles relating to contract backlog is recorded as a reduction of "Service Revenue;" and

• Amortization of capitalized software is recorded within the heading "Cost of Service Revenue."

The following table presents all depreciation and amortization recorded in our consolidated statements of income, regardless of whether the item appears as depreciation and amortization, a reduction of service revenue, or as cost of service revenue.

		September 30,		September 30,		September 30,
	Year Ended December 31,
	2011		2010		2009
	(Dollar amounts in thousands)
Depreciation, and amortization of capitalized software	$	30,864	$	27,230	$	25,172
Amortization of intangible assets		19,826		18,474		12,938
Depreciation and amortization reported as such in the consolidated statements of income		50,690		45,704		38,110
Amortization recorded as reduction of service revenue		6,822		8,316		—
Amortization of capitalized software recorded as cost of service revenue		16,871		6,745		—
Total	$	74,383	$	60,765	$	38,110

Long-Lived Assets, including Intangible Assets

Long-lived assets comprise primarily property, equipment, capitalized software and intangible assets. Finite-lived, separately-identifiable intangible assets are acquired in business combinations and are assets that represent future expected benefits but lack physical substance (such as purchased contract rights and provider contracts). Intangible assets are initially recorded at their fair values and are then amortized on a straight-line basis over their expected useful lives, generally between one and 15 years.

Identifiable intangible assets associated with Molina Medicaid Solutions are classified as either contract backlog or customer relationships as follows:

• The contract backlog intangible asset comprises all contractual cash flows anticipated to be received during

the remaining contracted period for each specific contract relating to work that was performed prior to the acquisition. Because each acquired contract constitutes a single revenue stream, amortization of the contract backlog intangible is recorded to contra-service revenue so that amortization is matched to any revenues associated with contract performance that occurred prior to the acquisition date. The contract backlog intangible asset is amortized on a straight-line basis for each specific contract over periods generally ranging from one to six years.

• The customer relationship intangible asset comprises all contractual cash flows that are anticipated to be received during the option periods of each specific contract as well as anticipated renewals of those contracts. The customer relationship intangible is amortized on a straight-line basis for each specific contract over periods generally ranging from four to nine years.

Our intangible assets are subject to impairment tests when events or circumstances indicate that a finite-lived intangible asset's (or asset group's) carrying value may not be recoverable. Consideration is given to a number of potential impairment indicators. For example, our health plan subsidiaries have generally been successful in obtaining the renewal by amendment of their contracts in each state prior to the actual expiration of their contracts. However, there can be no assurance that these contracts will continue to be renewed as in the case of our Missouri health plan, described below.

Following the identification of any potential impairment indicators, to determine whether an impairment exists, we would compare the carrying amount of a finite-lived intangible asset with the undiscounted cash flows that are expected to result from the use of the asset or related group of assets. If it is determined that the carrying amount of the asset is not recoverable, the amount by which the carrying value exceeds the estimated fair value is recorded as an impairment.

On February 17, 2012, we received notification that our Missouri health plan's existing contract with the state of Missouri will expire without renewal on June 30, 2012. In connection with this notification, we recorded a total non-cash impairment charge of $64.6 million in 2011, of which $6.1 million related to finite-lived intangible assets, and $58.5 million related to goodwill, discussed below. Because the existing contract expires without renewal on June 30, 2012, the impairment charge comprised substantially all intangible assets relating to contract rights and licenses, and provider networks recorded at the time of our acquisition of the Missouri health plan in 2007. As described in Note 19, "Segment Reporting," the Missouri health plan is a component of our Health Plans segment. No impairment charges relating to long-lived assets, including intangible assets, were recorded in the years ended December 31, 2010, and 2009.

Goodwill

Goodwill represents the amount of the purchase price in excess of the fair values assigned to the underlying identifiable net assets of acquired businesses. Goodwill is not amortized, but is subject to an annual impairment test. Tests are performed more frequently if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount.

To determine whether goodwill is impaired, we perform an impairment test. We measure the fair values of our reporting units and compare them to their aggregate carrying values, including goodwill. If the fair value is less than the carrying value of the reporting unit, then the implied value of goodwill would be calculated and compared to the carrying amount of goodwill to determine whether goodwill is impaired.

We estimate the fair values of our reporting units using discounted cash flows. To determine fair values, we must make assumptions about a wide variety of internal and external factors. Significant assumptions used in the impairment analysis include financial projections of free cash flow (including significant assumptions about operations, capital requirements and income taxes), long-term growth rates for determining terminal value, and discount rates.

In connection with our Missouri health plan as described above, we recorded a non-cash impairment charge of $58.5 million in 2011. Because the existing contract expires without renewal on June 30, 2012, the impairment charge comprised all of the goodwill recorded at the time of our acquisition of the Missouri health plan in 2007. The goodwill impairment charge is not tax deductible. No impairment charges relating to goodwill were recorded in the years ended December 31, 2010, and 2009.

Restricted Investments

Restricted investments, which consist of certificates of deposit and treasury securities, are designated as held-to-maturity and are carried at amortized cost, which approximates market value. The use of these funds is limited to specific purposes as required by each state, or as protection against the insolvency of capitated providers. We have the ability to hold our restricted investments until maturity and, as a result, we would not expect the value of these investments to decline significantly due to a sudden change in market interest rates. See Note 10, "Restricted Investments."

Receivable/Liability for Ceded Life and Annuity Contracts

We report a 100% ceded reinsurance arrangement for life insurance policies written and held by our wholly owned insurance subsidiary, Molina Healthcare Insurance Company, by recording a non-current receivable from the reinsurer with a corresponding non-current liability for ceded life and annuity contracts. See Note 22, "Subsequent Events."

Other Assets

Significant items included in other assets include deferred financing costs associated with our convertible senior notes and with our credit facility, certain investments held in connection with our employee deferred compensation program, and an investment in a vision services provider (see Note 17, "Related Party Transactions"). The deferred financing costs are being amortized on a straight-line basis over the seven-year term of the convertible senior notes and the five year term of the credit facility.

Delegated Provider Insolvency

Circumstances may arise where providers to whom we have delegated risk, due to insolvency or other circumstances, are unable to pay claims they have incurred with third parties in connection with referral services (including hospital inpatient services) provided to our members. The inability of delegated providers to pay referral claims presents us with both immediate financial risk and potential disruption to member care. Depending on states' laws, we may be held liable for such unpaid referral claims even though the delegated provider has contractually assumed such risk. Additionally, competitive pressures may force us to pay such claims even when we have no legal obligation to do so. To reduce the risk that delegated providers are unable to pay referral claims, we monitor the operational and financial performance of such providers. We also maintain contingency plans that include transferring members to other providers in response to potential network instability.

In certain instances, we have required providers to place funds on deposit with us as protection against their potential insolvency. These reserves are frequently in the form of segregated funds received from the provider and held by us or placed in a third-party financial institution. These funds may be used to pay claims that are the financial responsibility of the provider in the event the provider is unable to meet these obligations. Additionally, we have recorded liabilities for estimated losses arising from provider instability or insolvency in excess of provider funds on deposit with us. Such liabilities were not material at December 31, 2011, or December 31, 2010.

Premium Revenue

Premium revenue is fixed in advance of the periods covered and, except as described below, is not generally subject to significant accounting estimates. For the year ended December 31, 2011 we received approximately 94% of our premium revenue as a fixed amount per member per month, or PMPM, pursuant to our contracts with state Medicaid agencies, Medicare and other managed care organizations for which we operate as a subcontractor. These premium revenues are recognized in the month that members are entitled to receive health care services. The state Medicaid programs and the federal Medicare program periodically adjust premium rates.

The following table summarizes premium revenue by health plan for the periods indicated:

		September 30,		September 30,		September 30,
	Year Ended December 31,
	2011		2010		2009
	(In thousands)
California	$	575,176	$	506,871	$	481,717
Florida		203,945		170,683		102,232
Michigan		662,127		630,134		557,421
Missouri		229,584		210,852		230,222
New Mexico		345,732		366,784		404,026
Ohio		988,896		860,324		803,521
Texas		409,295		188,716		134,860
Utah		287,290		258,076		207,297
Washington		823,323		758,849		726,137
Wisconsin(1)		69,596		30,033		—
Other		8,443		8,587		12,774
	$	4,603,407	$	3,989,909	$	3,660,207

(1) We acquired the Wisconsin health plan on September 1, 2010.

For the year ended December 31, 2010, we received approximately 6% of our premium revenue in the form of "birth income" — a one-time payment for the delivery of a child — from the Medicaid programs in all of our state health plans except New Mexico. Such payments are recognized as revenue in the month the birth occurs.

Certain components of premium revenue are subject to accounting estimates. The components of premium revenue subject to estimation fall into two categories:

Contractual provisions that may limit revenue based upon the costs incurred or the profits realized under a specific contract. These are contractual provisions that require the health plan to return premiums to the extent that certain thresholds are not met. In some instances premiums are returned when medical costs fall below a certain percentage of gross premiums; or when administrative costs or profits exceed a certain percentage of gross premiums. In other instances, premiums are partially determined by the acuity of care provided to members (risk adjustment). To the extent that our expenses and profits change from the amounts previously reported (due to changes in estimates) our revenue earned for those periods will also change. In all of these instances our revenue is only subject to estimate due to the fact that the thresholds themselves contain elements (expense or profit) that are subject to estimate. While we have adequate experience and data to make sound estimates of our expenses or profits, changes to those estimates may be necessary, which in turn will lead to changes in our estimates of revenue. In general, a change in estimate relating to expense or profit would offset any related change in estimate to premium, resulting in no or small impact to net income. The following contractual provisions fall into this category:

• California Health Plan Medical Cost Floors (Minimums): A portion of certain premiums received by our California health plan may be returned to the state if certain minimum amounts are not spent on defined medical care costs. At December 31, 2011, we recorded a liability of $1.0 million under the terms of these contract provisions.

• Florida Health Plan Medical Cost Floor (Minimum) for Behavioral Health: A portion of premiums received by our Florida health plan may be returned to the state if certain minimum amounts are not spent on defined behavioral health care costs. At December 31, 2011, we had not recorded any liability under the terms of this contract provision since behavioral health expenses are not less than the contractual floor.

• New Mexico Health Plan Medical Cost Floors (Minimums) and Administrative Cost and Profit Ceilings (Maximums): A portion of premiums received by our New Mexico health plan may be returned to the state if certain minimum amounts are not spent on defined medical care costs, or if administrative costs or profit (as defined) exceed certain amounts. Our contract with the state of New Mexico requires that we spend a minimum percentage of premium revenue on certain explicitly defined medical care costs (the medical cost floor). The New Mexico health plan contract also contains certain limits on the amount our New Mexico health plan can: (a) expend on administrative costs; and (b) retain as profit. At December 31, 2011, we had not recorded any liability under the terms of these contract provisions. In the fourth quarter of 2011, our New Mexico health plan entered into a contract amendment that more closely aligns the calculation of revenue with the methodology adopted under the Affordable Care Act. The contract amendment changed the calculation of the amount of revenue that may be recognized relative to medical costs, and resulted in the recognition of approximately $5.6 million of premium revenue which all related to periods prior to 2011.

• Texas Health Plan Profit Sharing: Under our contract with the state of Texas, there is a profit-sharing agreement under which we pay a rebate to the state of Texas if our Texas health plan generates pretax income, as defined in the contract, above a certain specified percentage, as determined in accordance with a tiered rebate schedule. The rebates, if any, are calculated separately for the TANF/CHIP and ABD products. We are limited in the amount of administrative costs that we may deduct in calculating the rebate, if any. As a result of profits in excess of the amount we are allowed to fully retain, we had an aggregate liability of approximately $0.7 million accrued pursuant to our profit-sharing agreement with the state of Texas at December 31, 2011.

• Medicare Revenue Risk Adjustment: Based on member encounter data that we submit to CMS, our Medicare premiums are subject to retroactive adjustment for both member risk scores and member pharmacy cost experience for up to two years after the original year of service. This adjustment takes into account the acuity of each member's medical needs relative to what was anticipated when premiums were originally set for that member. In the event that a member requires less acute medical care than was anticipated by the original premium amount, CMS may recover premium from us. In the event that a member requires more acute medical care than was anticipated by the original premium amount, CMS may pay us additional retroactive premium. A similar retroactive reconciliation is undertaken by CMS for our Medicare members' pharmacy utilization. We estimate the amount of Medicare revenue that will ultimately be realized for the periods presented based on our knowledge of our members' heath care utilization patterns and CMS practices. Based on our knowledge of member health care utilization patterns and expenses we have recorded a receivable of approximately $5.0 million for anticipated Medicare risk adjustment premiums at December 31, 2011.

Quality incentives that allow us to recognize incremental revenue if certain quality standards are met. These are contract provisions that allow us to earn additional premium revenue in certain states if we achieve certain quality-of-care or administrative measures. We estimate the amount of revenue that will ultimately be realized for the periods presented based on our experience and expertise in meeting the quality and administrative measures as well as our ongoing and current monitoring of our progress in meeting those measures. The amount of the revenue that we will realize under these contractual provisions is determinable based upon that experience. The following contractual provisions fall into this category:

New Mexico Health Plan Quality Incentive Premiums: Under our contract with the state of New Mexico, incremental revenue of up to 0.75% of our total premium is earned if certain performance measures are met. These performance measures are generally linked to various quality-of-care and administrative measures dictated by the state.

Ohio Health Plan Quality Incentive Premiums: Under our contract with the state of Ohio, incremental revenue of up to 1% of our total premium is earned if certain performance measures are met. Effective February 1, 2010 through June 30, 2011, we are eligible to earn additional incremental revenue of up to 0.25% of our total premium if we meet certain pharmacy specific performance measures. These performance measures are generally linked to various quality-of-care measures dictated by the state.

Texas Health Plan Quality Incentive Premiums: Under our contract with the state of Texas, incremental revenue of up to 1% of our total premium may be earned if certain performance measures are met. These performance measures are generally linked to various quality-of-care measures established by the state. The time period for the assessment of these performance measures previously followed the state's fiscal year, but effective January 1, 2011, it follows the calendar year. The state of Texas has notified us that it has discontinued the program for the 2011 calendar year.

Wisconsin Health Plan Quality Incentive Premiums: Under our contract with the state of Wisconsin, effective beginning in 2011, up to 3.25% of the premium is withheld by the state. The withheld premiums can be earned by the health plan by meeting certain performance measures. These performance measures are generally linked to various quality-of-care measures dictated by the state.

The following table quantifies the quality incentive premium revenue recognized for the periods presented, including the amounts earned in the period presented and prior periods. Although the reasonably possible effects of a change in estimate related to quality incentive premium revenue as of December 31, 2011 are not known, we have no reason to believe that the adjustments to prior years noted below are not indicative of the potential future changes in our estimates as of December 31, 2011.

		September 30,		September 30,		September 30,		September 30,		September 30,
	Year Ended December 31, 2011
	Maximum Available Quality Incentive Premium – Current Year		Amount of Current Year Quality Incentive Premium Revenue Recognized		Amount of Quality Incentive Premium Revenue Recognized from Prior Year		Total Quality Incentive Premium Revenue Recognized		Total Revenue Recognized
	(In thousands)
New Mexico	$	2,271	$	1,558	$	378	$	1,936	$	345,732
Ohio		10,212		8,363		3,501		11,864		988,896
Texas		—		—		—		—		409,295
Wisconsin		1,705		542		—		542		69,596
	$	14,188	$	10,463	$	3,879	$	14,342	$	1,813,519

		September 30,		September 30,		September 30,			September 30,		September 30,
	Year Ended December 31, 2010
	Maximum Available Quality Incentive Premium – Current Year		Amount of Current Year Quality Incentive Premium Revenue Recognized		Amount of Quality Incentive Premium Revenue Recognized from Prior Year			Total Quality Incentive Premium Revenue Recognized		Total Revenue Recognized
	(In thousands)
New Mexico	$	2,581	$	1,311	$	579		$	1,890	$	366,784
Ohio		9,881		3,114		(1,248	)		1,866		860,324
Texas		1,771		1,771		—			1,771		188,716
	$	14,233	$	6,196	$	(669	)	$	5,527	$	1,415,824

		September 30,		September 30,		September 30,			September 30,		September 30,
	Year Ended December 31, 2009
	Maximum Available Quality Incentive Premium – Current Year		Amount of Current Year Quality Incentive Premium Revenue Recognized		Amount of Quality Incentive Premium Revenue Recognized from Prior Year			Total Quality Incentive Premium Revenue Recognized		Total Revenue Recognized
	(In thousands)
New Mexico	$	2,378	$	1,097	$	(171	)	$	926	$	404,026
Ohio		7,040		5,715		937			6,652		803,521
Texas		1,322		1,322		—			1,322		134,860
	$	10,740	$	8,134	$	766		$	8,900	$	1,342,407

Medical Care Costs

Expenses related to medical care services are captured in the following four categories:

• Fee-for-service: Physician providers paid on a fee-for-service basis are paid according to a fee schedule set by the state or by our contracts with these providers. Most hospitals are paid on a fee-for-service basis in a variety of ways, including per diem amounts, diagnostic-related groups or DRGs, percent of billed charges, and case rates. As discussed below, we also pay a small portion of hospitals on a capitated basis. We also have stop-loss agreements with the hospitals with which we contract. Under all fee-for-service arrangements, we retain the financial responsibility for medical care provided. Expenses related to fee-for-service contracts are recorded in the period in which the related services are dispensed. The costs of drugs administered in a physician or hospital setting that are not billed through our pharmacy benefit managers are included in fee-for-service costs.

• Capitation: Many of our primary care physicians and a small portion of our specialists and hospitals are paid on a capitated basis. Under capitation contracts, we typically pay a fixed per-member per-month, or PMPM, payment to the provider without regard to the frequency, extent, or nature of the medical services actually furnished. Under capitated contracts, we remain liable for the provision of certain health care services. Certain of our capitated contracts also contain incentive programs based on service delivery, quality of care, utilization management, and other criteria. Capitation payments are fixed

in advance of the periods covered and are not subject to significant accounting estimates. These payments are expensed in the period the providers are obligated to provide services. The financial risk for pharmacy services for a small portion of our membership is delegated to capitated providers.

• Pharmacy: Pharmacy costs include all drug, injectibles, and immunization costs paid through our pharmacy benefit managers. As noted above, drugs and injectibles not paid through our pharmacy benefit managers are included in fee-for-service costs, except in those limited instances where we capitate drug and injectible costs.

• Other: Other medical care costs include medically related administrative costs, certain provider incentive costs, reinsurance cost, and other health care expense. Medically related administrative costs include, for example, expenses relating to health education, quality assurance, case management, disease management, 24-hour on-call nurses, and a portion of our information technology costs. Salary and benefit costs are a substantial portion of these expenses. For the years ended December 31, 2011, 2010, and 2009, medically related administrative costs were approximately $102.3 million, $85.5 million, and $74.6 million, respectively.

The following table provides the details of our consolidated medical care costs for the periods indicated (dollars in thousands, except PMPM amounts):

		xxxxxxxx		xxxxxxxx		xxxxxxxx			xxxxxxxx		xxxxxxxx		xxxxxxxx			xxxxxxxx		xxxxxxxx		xxxxxxxx
	Year Ended December 31,
	2011							2010							2009
					% of							% of							% of
	Amount		PMPM		Total			Amount		PMPM		Total			Amount		PMPM		Total
Fee-for-service	$	2,764,309	$	139.02	$	71.6	%	$	2,360,858	$	128.73	$	70.0	%	$	2,077,489	$	126.14	$	65.4	%
Capitation		518,835		26.09		13.4			555,487		30.29		16.5			558,538		33.91		17.6
Pharmacy		418,007		21.02		10.8			325,935		17.77		9.7			414,785		25.18		13.1
Other		158,843		8.00		4.2			128,577		7.01		3.8			125,424		7.62		3.9
Total	$	3,859,994	$	194.13	$	100.0	%	$	3,370,857	$	183.80	$	100.0	%	$	3,176,236	$	192.85	$	100.0	%

Our medical care costs include amounts that have been paid by us through the reporting date, as well as estimated liabilities for medical care costs incurred but not paid by us as of the reporting date. Such medical care cost liabilities include, among other items, unpaid fee-for-service claims, capitation payments owed providers, unpaid pharmacy invoices, and various medically related administrative costs that have been incurred but not paid. We use judgment to determine the appropriate assumptions for determining the required estimates.

The most important element in estimating our medical care costs is our estimate for fee-for-service claims which have been incurred but not paid by us. These fee-for-service costs that have been incurred but have not been paid at the reporting date are collectively referred to as medical costs that are "Incurred But Not Paid," or IBNP. Our IBNP claims reserve, as reported in our balance sheet, represents our best estimate of the total amount of claims we will ultimately pay with respect to claims that we have incurred as of the balance sheet date. We estimate our IBNP monthly using actuarial methods based on a number of factors.

The factors we consider when estimating our IBNP include, without limitation, claims receipt and payment experience (and variations in that experience), changes in membership, provider billing practices, health care service utilization trends, cost trends, product mix, seasonality, prior authorization of medical services, benefit changes, known outbreaks of disease or increased incidence of illness such as influenza, provider contract changes, changes to Medicaid fee schedules, and the incidence of high dollar or catastrophic claims. Our assessment of these factors is then translated into an estimate of our IBNP liability at the relevant measuring point through the calculation of a base estimate of IBNP, a further reserve for adverse claims development, and an estimate of the administrative costs of settling all claims incurred through the reporting date. The base estimate of IBNP is derived through application of claims payment completion factors and trended PMPM cost estimates. See Note 11, "Medical Claims and Benefits Payable."

We report reinsurance premiums as medical care costs, while related reinsurance recoveries are reported as deductions from medical care costs. We limit our risk of catastrophic losses by maintaining high deductible reinsurance coverage. We do not consider this coverage to be material because the cost is not significant and the likelihood that coverage will apply is low.

Taxes Based on Premiums

Our California, Florida, Michigan, New Mexico, Ohio, Texas and Washington health plans are assessed a tax based on premium revenue collected. We report these taxes on a gross basis, included in premium tax expense.

Premium Deficiency Reserves on Loss Contracts

We assess the profitability of our contracts for providing medical care services to our members and identify those contracts where current operating results or forecasts indicate probable future losses. Anticipated future premiums are compared to anticipated medical care costs, including the cost of processing claims. If the anticipated future costs exceed the premiums, a loss contract accrual is recognized. No such accrual was recorded as of December 31, 2011, or 2010.

Service Revenue and Cost of Service Revenue — Molina Medicaid Solutions Segment

The payments received by our Molina Medicaid Solutions segment under its state contracts are based on the performance of multiple services. The first of these is the design, development and implementation, or DDI, of a Medicaid Management Information System, or MMIS. An additional service, following completion of DDI, is the operation of the MMIS under a business process outsourcing, or BPO arrangement. While providing BPO services (which include claims payment and eligibility processing) we also provide the state with other services including both hosting and support and maintenance. We have evaluated our Molina Medicaid Solutions contracts to determine if such arrangements include a software element. Based on this evaluation, we have concluded that these arrangements do not include a software element. As such, we have concluded that our Molina Medicaid Solutions contracts are multiple-element service arrangements under the scope of FASB Accounting Standards Codification Subtopic 605-25, Revenue Recognition –– Multiple–Element Arrangements, and SEC Staff Accounting Bulletin Topic 13, Revenue Recognition.

Effective January 1, 2011, we adopted a new accounting standard that amends the guidance on the accounting for multiple-element arrangements. Pursuant to the new standard, each required deliverable is evaluated to determine whether it qualifies as a separate unit of accounting which is generally based on whether the deliverable has standalone value to the customer. In addition to standalone value, previous guidance also required objective and reliable evidence of fair value of a deliverable in order to treat the deliverable as a separate unit of accounting. The arrangement's consideration that is fixed or determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable. In general, the consideration allocated to each unit of accounting is recognized as the related goods or services are delivered, limited to the consideration that is not contingent. We have adopted this guidance on a prospective basis for all new or materially modified revenue arrangements with multiple deliverables entered into on or after January 1, 2011. Our adoption of this guidance has not impacted the timing or pattern of our revenue recognition in 2011. Also, there would have been no change in revenue recognized relating to multiple-element arrangements if we had adopted this guidance retrospectively for contracts entered into prior to January 1, 2011.

We have concluded that the various service elements in our Molina Medicaid Solutions contracts represent a single unit of accounting due to the fact that DDI, which is the only service performed in advance of the other services (all other services are performed over an identical period), does not have standalone value because our DDI services are not sold separately by any vendor and the customer could not resell our DDI services. Further, we have no objective and reliable evidence of fair value for any of the individual elements in these contracts, and at no point in the contract will we have objective and reliable evidence of fair value for the undelivered elements in the contracts. For contracts entered into prior to January 1, 2011, objective and reliable evidence of fair value would be required, in addition to DDI standalone value which we do not have, in order to treat DDI as a separate unit of accounting. We lack objective and reliable evidence of the fair value of the individual elements of our Molina Medicaid Solutions contracts for the following reasons:

• Each contract calls for the provision of its own specific set of services. While all contracts support the system of record for state MMIS, the actual services we provide vary significantly between contracts; and

• The nature of the MMIS installed varies significantly between our older contracts (proprietary mainframe systems) and our new contracts (commercial off-the-shelf technology solutions).

Because we have determined the service provided under our Molina Medicaid Solutions contracts represent a single unit of accounting, and because we are unable to determine a pattern of performance of services during the contract period, we recognize revenue associated with such contracts on a straight-line basis over the period during which BPO, hosting, and support and maintenance services are delivered.

Provisions specific to each contract may, however, lead us to modify this general principle. In those circumstances, the right of the state to refuse acceptance of services, as well as the related obligation to compensate us, may require us to delay recognition of all or part of our revenue until that contingency (the right of the state to refuse acceptance) has been removed. In those circumstances we defer recognition of any contingent revenue (whether DDI, BPO services, hosting, and support and maintenance services) until the contingency has been removed. These types of contingency features are present in our Maine and Idaho contracts. We began to recognize revenue associated with our Maine contract upon state acceptance in September 2010. In Idaho, we will begin recognition of revenue upon state acceptance.

Costs associated with our Molina Medicaid Solutions contracts include software related costs and other costs. With respect to software related costs, we apply the guidance for internal-use software and capitalize external direct costs of materials and services consumed in developing or obtaining the software, and payroll and payroll-related costs associated with employees who are directly associated with and who devote time to the computer software project. With respect to all other direct costs, such costs are expensed as incurred, unless corresponding revenue is being deferred. If revenue is being deferred, direct costs relating to delivered service elements are deferred as well and are recognized on a straight-line basis over the period of revenue recognition, in a manner consistent with our recognition of revenue that has been deferred. Such direct costs can include:

• Transaction processing costs

• Employee costs incurred in performing transaction services

• Vendor costs incurred in performing transaction services

• Costs incurred in performing required monitoring of and reporting on contract performance

• Costs incurred in maintaining and processing member and provider eligibility

• Costs incurred in communicating with members and providers

The recoverability of deferred contract costs associated with a particular contract is analyzed on a periodic basis using the undiscounted estimated cash flows of the whole contract over its remaining contract term. If such undiscounted cash flows are insufficient to recover the long-lived assets and deferred contract costs, the deferred contract costs are written down by the amount of the cash flow deficiency. If a cash flow deficiency remains after reducing the balance of the deferred contract costs to zero, any remaining long-lived assets are evaluated for impairment. Any such impairment recognized would equal the amount by which the carrying value of the long-lived assets exceeds the fair value of those assets.

We are currently deferring recognition of all revenue as well as all direct costs (to the extent that such costs are estimated to be recoverable) in Idaho until the MMIS in that state receives certification from CMS. For the year ended December 31, 2011, cost of service revenue includes $11.5 million of direct costs associated with the Idaho contract that would otherwise have been recorded as deferred contract costs. In assessing the recoverability of the deferred contract costs associated with the Idaho contract at December 31, 2011, we determined that these costs should be expensed as a period cost.

Income Taxes

The provision for income taxes is determined using an estimated annual effective tax rate, which is generally greater than the U.S. federal statutory rate primarily because of state taxes. The effective tax rate may be subject to fluctuations during the year as new information is obtained. Such information may affect the assumptions used to estimate the annual effective tax rate, including factors such as the mix of pretax earnings in the various tax jurisdictions in which we operate, valuation allowances against deferred tax assets, the recognition or derecognition of tax benefits related to uncertain tax positions, and changes in or the interpretation of tax laws in jurisdictions where we conduct business. We recognize deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities, along with net operating loss and tax credit carryovers. For further discussion and disclosure, see Note 13, "Income Taxes."

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments, receivables, and restricted investments. We invest a substantial portion of our cash in the PFM Funds Prime Series — Institutional Class, and the PFM Funds Government Series. These funds represent a portfolio of highly liquid money market securities that are managed by PFM Asset Management LLC (PFM), a Virginia business trust registered as an open-end management investment fund. As of December 31, 2011, and 2010, our investments with PFM totaled $209 million and $327 million, respectively. Our investments and a portion of our cash equivalents are managed by professional portfolio managers operating under documented investment guidelines. No investment that is in a loss position can be sold by our managers without our prior approval. Concentration of credit risk with respect to accounts receivable is limited due to payors consisting principally of the governments of each state in which our health plan subsidiaries operate.

Risks and Uncertainties

Our profitability depends in large part on our ability to accurately predict and effectively manage medical care costs. We continually review our medical costs in light of our underlying claims experience and revised actuarial data. However, several factors could adversely affect medical care costs. These factors, which include changes in health care practices, inflation, new technologies, major epidemics, natural disasters, and malpractice litigation, are beyond our control and may have an adverse effect on our ability to accurately predict and effectively control medical care costs. Costs in excess of those anticipated could have a material adverse effect on our financial condition, results of operations, or cash flows.

At December 31, 2011, we operated health plans in 10 states, primarily as a direct contractor with the states, and in Los Angeles County, California, as a subcontractor to another health plan holding a direct contract with the state. We are therefore dependent upon a small number of contracts to support our revenue. The loss of any one of those contracts could have a material adverse effect on our financial position, results of operations, or cash flows. Our ability to arrange for the provision of medical services to our members is dependent upon our ability to develop and maintain adequate provider networks. Our inability to develop or maintain such networks might, in certain circumstances, have a material adverse effect on our financial position, results of operations, or cash flows.

Recent Accounting Pronouncements

Goodwill Impairment Testing. The FASB issued the following guidance which modifies goodwill impairment testing.

• ASU No. 2011-08, Intangibles—Goodwill and Other (ASC Topic 350) — Testing Goodwill for Impairment, a consensus of the FASB Emerging Issues Task Force. This guidance allows an entity the option to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under that option, an entity would no longer be required to calculate the fair value of a reporting unit unless the entity determines, based on the qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. This guidance is effective for interim and annual goodwill impairment tests performed for fiscal years beginning after December 15, 2011. We do not expect the adoption of this guidance to impact our consolidated financial position, results of operations, or cash flows.

Presentation of Financial Statements. In June 2011, the FASB and International Accounting Standards Board, or IASB, issued the following guidance which modifies how other comprehensive income, or OCI, is reported under U.S. Generally Accepted Accounting Principles, or GAAP, and International Financial Reporting Standards, or IFRS.

• ASU No. 2011-05, Comprehensive Income (ASC Topic 220) — Presentation of Comprehensive Income, a consensus of the FASB Emerging Issues Task Force. This guidance eliminates the option to present components of OCI as part of the statement of changes to stockholders' equity. All filers are required to present all non-owner changes in stockholders' equity in a single statement of comprehensive income or in two separate but consecutive statements. This guidance is effective for interim and annual reporting beginning on or after December 15, 2011. We do not expect the adoption of this guidance to impact our consolidated financial position, results of operations or cash flows.

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, or AICPA, and the Securities and Exchange Commission, or SEC, did not have, or are not believed by management to have, a material impact on our present or future consolidated financial statements.

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Business Combinations (Tables)

12 Months Ended

Dec. 31, 2011

Business Combinations [Abstract]

Summary of acquisition-date fair values of the assets acquired

		September 30,
Allocation of purchase price:
Building and improvements	$	43,116
Land		10,570
Identifiable intangible assets		28,990
		82,676
Less fair value of total consideration:
Cash paid		32,400
Term loan		48,600
Gain on acquisition	$	1,676

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Income Taxes (Details 2) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Significant components of deferred tax assets and liabilities
Accrued expenses	$ 14,541	$ 12,618
Reserve liabilities	1,292	877
State taxes	(396)	(120)
Other accrued medical costs	2,051	2,126
Net operating losses	27	27
Unrealized gains	(316)	(254)
Unearned premiums	4,139	3,517
Prepaid expenses	(3,032)	(3,006)
Other, net	21	(69)
Deferred tax asset, net of valuation allowance - current	18,327	15,716
Accrued expenses	223	791
Reserve liabilities	3,015	3,071
State tax credit carryover	2,609	1,960
Net operating losses	2,694	1,362
Unrealized losses	1,176	1,559
Depreciation and amortization	(39,939)	(20,110)
Deferred compensation	7,904	6,829
Debt basis	(7,604)	(9,673)
Other, net	(278)	(830)
Valuation allowance	(2,927)	(1,194)
Deferred tax liability, net of valuation allowance - long term	(33,127)	(16,235)
Net deferred income tax liability	$ (14,800)	$ (519)

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Long Term Debt (Tables)

12 Months Ended

Dec. 31, 2011

Long-Term Debt [Abstract]

Maturities of long-term debt

		September 30,		September 30,		September 30,		September 30,		September 30,		September 30,		September 30,
	Total		2012		2013		2014		2015		2016		Thereafter
Convertible senior notes	$	187,000	$	—	$	—	$	187,000	$	—	$	—	$	—
Term loan		48,600		1,197		1,155		1,206		1,259		1,309		42,474
	$	235,600	$	1,197	$	1,155	$	188,206	$	1,259	$	1,309	$	42,474

Long term debt

		September 30,			September 30,
	December 31,
	2011			2010
	(In thousands)
Details of the liability component:
Principal amount	$	187,000		$	187,000
Unamortized discount		(17,474	)		(22,986	)
Net carrying amount	$	169,526		$	164,014

Debt instruments interest cost recognized

		September 30,		September 30,		September 30,
	Years Ended December 31,
	2011		2010		2009
	(in thousands)
Interest cost recognized for the period relating to the:
Contractual interest coupon rate of 3.75%	$	7,012	$	7,012	$	7,076
Amortization of the discount on the liability component		5,512		5,114		4,782
Total interest cost recognized	$	12,524	$	12,126	$	11,858

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Earnings per Share (Details) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Summary of denominators for the computation of basic and diluted earnings per share
Shares outstanding at the beginning of the period		45,463	38,410	40,088
Weighted-average number of shares issued under equity offering		2,506
Weighted-average number of shares purchased	(160)		(1,482)
Weighted-average number of shares issued under employee stock plans	453	258	159
Denominator for basic earnings per share	45,756	41,174	38,765
Dilutive effect of employee stock options and stock grants	669	457	211
Denominator for diluted earnings per share	46,425	41,631	38,976

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Goodwill and Intangible Assets (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2011 years
Goodwill and Intangible Assets (Textual) [Abstract]
Amortization of other intangible assets useful lives, minimum	1
Amortization of other intangible assets useful lives, maximum	15
Future amortization expense, 2012	$ 22,200,000
Future amortization expense, 2013	21,600,000
Future amortization expense, 2014	16,900,000
Future amortization expense, 2015	9,700,000
Future amortization expense, 2016	8,800,000
Impairment of Goodwill	58,530,000
Impairment of finite-lived intangible assets	$ 6,100,000
Contract rights and licenses [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Weighted average amortization period	10
Customer relationships [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Weighted average amortization period	5
Contract backlog [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Weighted average amortization period	2
Provider networks [Member]
Indefinite-lived Intangible Assets by Major Class [Line Items]
Weighted average amortization period	10

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011		Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 493,827		$ 455,886
Investments	336,916		295,375
Receivables	167,898		168,190
Income tax refundable	11,679		0
Deferred income taxes	18,327		15,716
Prepaid expenses and other current assets	19,435		25,050
Total current assets	1,048,082		960,217
Property, equipment, and capitalized software, net	190,934		100,537
Deferred contract costs	54,582		28,444
Intangible assets, net	101,796		105,500
Goodwill and indefinite-lived intangible assets	153,954		212,228
Auction rate securities	16,134		20,449
Restricted investments	46,164		42,100
Receivable for ceded life and annuity contracts	23,401		24,649
Other assets	17,099		15,090
Total assets	1,652,146		1,509,214
Current liabilities:
Medical claims and benefits payable	402,476		354,356
Accounts payable and accrued liabilities	147,214		137,930
Deferred revenue	50,947		60,086
Income taxes payable	0		13,176
Current maturities of long-term debt	1,197		0
Total current liabilities	601,834		565,548
Long-term debt	216,929		164,014
Deferred income taxes	33,127		16,235
Liability for ceded life and annuity contracts	23,401		24,649
Other long-term liabilities	21,782		19,711
Total liabilities	897,073		790,157
Stockholders' equity:
Common stock, $0.001 par value; 80,000 shares authorized; outstanding: 45,815 shares at December 31, 2011 and 45,463 shares at December 31, 2010	46	[1]	45	[1]
Preferred stock, $0.001 par value; 20,000 shares authorized, no shares issued and outstanding		[1]		[1]
Additional paid-in capital	266,022	[1]	251,612	[1]
Accumulated other comprehensive loss	(1,405)	[1]	(2,192)	[1]
Retained earnings	490,410	[1]	469,592	[1]
Total stockholders' equity	755,073	[1]	719,057	[1]
Total liabilities and stockholders' equity	$ 1,652,146		$ 1,509,214

[1] All applicable share and per-share amounts reflect the retroactive effects of the three-for-two common stock split in the form of a stock dividend that was effective May 20, 2011.

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Quarterly Results of Operations (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2011

Quarterly Results of Operations [Abstract]

Summary of quarterly results of operations

For The Quarter Ended,
	March 31, 2011		June 30, 2011		September 30, 2011		December 31, 2011
	(In thousands)
Premium revenue	$	1,081,438	$	1,128,770	$	1,138,230	$	1,254,969
Service revenue		36,674		36,888		37,728		49,157
Operating income		31,300		31,410		33,566		(16,103	)
Income before income taxes		27,697		27,727		29,186		(19,956	)
Net income		17,388		17,440		18,950		(32,960	)
Net income per share (1):
Basic	$	0.38	$	0.38	$	0.41	$	(0.72	)
Diluted	$	0.38	$	0.38	$	0.41	$	(0.72	)

		September 30,		September 30,		September 30,		September 30,
	For The Quarter Ended,
	March 31, 2010		June 30, 2010		September 30, 2010		December 31, 2010
	(In thousands)
Premium revenue	$	965,220	$	976,685	$	1,005,115	$	1,042,889
Service revenue		—		21,054		32,271		36,484
Operating income		20,438		21,178		29,953		33,432
Income before income taxes		17,081		17,079		25,353		29,979
Net income		10,590		10,579		16,173		17,628
Net income per share (1)(2):
Basic	$	0.28	$	0.27	$	0.38	$	0.39
Diluted	$	0.27	$	0.27	$	0.38	$	0.39

(1) All applicable share and per-share amounts reflect retroactive effects of the three-for-two common stock split in the form of a stock dividend that was effective May 20, 2011.

(2) Potentially dilutive shares issuable pursuant to our 2007 offering of convertible senior notes were not included in the computation of diluted net income per share because to do so would have been anti-dilutive for the years ended December 31, 2011, and 2010.

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Segment Reporting (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Health Plans:
Premium revenue	$ 1,254,969	$ 1,138,230	$ 1,128,770	$ 1,081,438	$ 1,042,889	$ 1,005,115	$ 976,685	$ 965,220	$ 4,603,407	$ 3,989,909	$ 3,660,207
Investment income									5,539	6,259	9,149
Molina Medicaid Solutions:
Service revenue	49,157	37,728	36,888	36,674	36,484	32,271	21,054		160,447	89,809
Revenue									4,769,940	4,085,977	3,669,356
Depreciation and amortization:
Depreciation and amortization									74,383	60,765	38,110
Operating income:
Operating income	(16,103)	33,566	31,410	31,300	33,432	29,953	21,178	20,438	80,173	105,001	51,934
Interest expense									15,519	15,509	13,777
Income before income taxes	(19,956)	29,186	27,727	27,697	29,979	25,353	17,079	17,081	64,654	89,492	38,157
Goodwill and intangible assets, net:
Goodwill and intangible assets, net	255,750				317,728				255,750	317,728
Total assets:
Total assets	1,652,146				1,509,214				1,652,146	1,509,214
Health Plans [Member]
Health Plans:
Premium revenue									4,603,407	3,989,909	3,660,207
Investment income									5,539	6,259	9,149
Rental income									547
Depreciation and amortization:
Depreciation and amortization									45,734	42,282	38,110
Operating income:
Operating income									78,110	102,392	51,934
Goodwill and intangible assets, net:
Goodwill and intangible assets, net	159,963				208,945				159,963	208,945
Total assets:
Total assets	1,425,764				1,333,599				1,425,764	1,333,599
Molina Medicaid Solutions [Member]
Molina Medicaid Solutions:
Service revenue									160,447	89,809
Depreciation and amortization:
Depreciation and amortization									28,649	18,483
Operating income:
Operating income									2,063	2,609
Goodwill and intangible assets, net:
Goodwill and intangible assets, net	95,787				108,783				95,787	108,783
Total assets:
Total assets	$ 226,382				$ 175,615				$ 226,382	$ 175,615

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Operating activities:
Net income	$ 20,818	$ 54,970	$ 30,868
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	74,383	60,765	38,110
Deferred income taxes	13,836	(4,092)	(1)
Stock-based compensation	17,052	9,531	7,485
Non-cash interest on convertible senior notes	5,512	5,114	4,782
Impairment of goodwill and intangible assets	64,575
Gain on purchase of convertible senior notes			(1,532)
Amortization of premium/discount on investments	7,242	2,029
Amortization of deferred financing costs	2,818	1,780	1,872
Gain on acquisition	(1,676)
Unrealized gain on trading securities		(4,170)	(3,394)
Loss on rights agreement		3,807	3,100
Tax deficiency from employee stock compensation	(714)	(968)	(749)
Changes in operating assets and liabilities:
Receivables	352	(7,539)	(8,092)
Prepaid expenses and other current assets	3,308	(12,034)	383
Medical claims and benefits payable	48,120	34,363	22,874
Accounts payable and accrued liabilities	2,778	40,482	(26,467)
Deferred revenue	(8,154)	(41,899)	88,181
Income taxes	(24,855)	19,258	(2,049)
Net cash provided by operating activities	225,395	161,397	155,371
Investing activities:
Purchases of equipment	(60,581)	(48,538)	(35,870)
Purchases of investments	(345,968)	(302,842)	(186,764)
Sales and maturities of investments	302,667	223,077	204,365
Net cash paid in business combinations	(84,253)	(130,743)	(11,294)
Increase in deferred contract costs	(42,830)	(29,319)
(Increase) decrease in restricted investments	(4,064)	(5,566)	1,928
Change in other noncurrent assets and liabilities	(1,898)	5,108	(10,078)
Net cash used in investing activities	(236,927)	(288,823)	(37,713)
Financing activities:
Amount borrowed under term loan	48,600
Amount borrowed under credit facility		105,000
Proceeds from common stock offering, net of issuance costs		111,131
Repayment of amount borrowed under credit facility		(105,000)
Treasury stock purchases	(7,000)		(27,712)
Purchase of convertible senior notes			(9,653)
Credit facility fees paid	(1,125)	(1,671)
Proceeds from employee stock plans	7,347	4,056	2,015
Excess tax benefits from employee stock compensation	1,651	295	31
Net cash provided by (used in) financing activities	49,473	113,811	(35,319)
Net increase (decrease) in cash and cash equivalents	37,941	(13,615)	82,339
Cash and cash equivalents at beginning of period	455,886	469,501	387,162
Cash and cash equivalents at end of period	493,827	455,886	469,501
Supplemental cash flow information:
Income taxes	54,663	18,299	23,480
Interest	11,399	10,951	8,205
Schedule of non-cash investing and financing activities:
Retirement of treasury stock	7,000		48,102
Details of business combinations:
Increase in fair value of assets acquired	(81,256)	(159,916)	(34,594)
(Decrease) increase in fair value of liabilities assumed	(1,045)	24,450
Release of deposit			18,000
(Decrease) increase in payable to seller	(1,952)	4,723	5,300
Net cash paid in business combinations	$ (84,253)	$ (130,743)	$ (11,294)

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Commitments and Contingencies (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Summary of future minimum lease payments
2012	$ 25,553
2013	22,425
2014	18,511
2015	14,544
2016	7,794
Thereafter	12,597
Total minimum lease payments	$ 101,424

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Fair Value Measurements (Details 1) (Fair Value, Measurements, Recurring [Member], Level 3 [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Assets measured at fair value on recurring basis using unobservable inputs
Balance at December 31, 2010	$ 20,449
Total gains (unrealized only):
Included in other comprehensive income	1,235
Settlements	(5,550)
Balance at December 31, 2011	16,134
The amount of total unrealized gains for the period included in other comprehensive income attributable to the change in accumulated other comprehensive losses relating to assets still held at December 31, 2011	$ 483

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Condensed Financial Information of Registrant (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$ 493,827		$ 455,886		$ 469,501	$ 387,162
Investments	336,916		295,375
Income tax refundable	11,679		0
Deferred income taxes	18,327		15,716
Total current assets	1,048,082		960,217
Property and equipment, net	190,934		100,537
Goodwill and intangible assets, net	153,954		212,228
Total assets	1,652,146		1,509,214
Current liabilities:
Long-term Debt	169,526		164,014
Deferred income taxes	33,127		16,235
Other long-term liabilities	21,782		19,711
Total liabilities	897,073		790,157
Stockholders' equity:
Preferred stock, $0.001 par value; 20,000 shares authorized, no shares issued and outstanding		[1]		[1]
Accumulated other comprehensive loss	(1,405)	[1]	(2,192)	[1]
Retained earnings	490,410	[1]	469,592	[1]
Total stockholders' equity	755,073	[1]	719,057	[1]
Total liabilities and stockholders' equity	1,652,146		1,509,214
Parent Company [Member]
Current assets:
Cash and cash equivalents	14,650		57,020		26,040	42,776
Investments	2,010		2,000
Income tax refundable	14,126		1,928
Deferred income taxes	9,133		7,006
Due from affiliates	60,569		19,059
Prepaid and other current assets	10,467		11,009
Total current assets	110,955		98,022
Property and equipment, net	82,437		81,445
Goodwill and intangible assets, net	53,769		58,719
Auction rate securities	4,694		6,046
Investments in subsidiaries	740,345		702,096
Advances to related parties and other assets	32,473		16,397
Total assets	1,024,673		962,725
Current liabilities:
Accounts payable and accrued liabilities	71,392		56,910
Long-term Debt	169,526		164,014
Deferred income taxes	16,909		8,425
Other long-term liabilities	11,773		14,319
Total liabilities	269,600		243,668
Stockholders' equity:
Common stock, $0.001 par value; 80,000 shares authorized, outstanding 45,815 shares at December 31, 2011 and 45,463 shares at December 31, 2010	46		45
Preferred stock, $0.001 par value; 20,000 shares authorized, no shares issued and outstanding
Paid-in capital	266,022		251,612
Accumulated other comprehensive loss	(1,405)		(2,192)
Retained earnings	490,410		469,592
Total stockholders' equity	755,073		719,057
Total liabilities and stockholders' equity	$ 1,024,673		$ 962,725

[1] All applicable share and per-share amounts reflect the retroactive effects of the three-for-two common stock split in the form of a stock dividend that was effective May 20, 2011.

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Receivables (Tables)

12 Months Ended

Dec. 31, 2011

Receivables [Abstract]

Summary of accounts receivable

		September 30,		September 30,
	December 31,
	2011		2010
	(In thousands)
Health Plans segment:
California	$	22,175	$	46,482
Michigan		8,864		13,596
Missouri		27,092		22,841
New Mexico		9,350		18,310
Ohio		27,458		21,622
Texas		1,608		1,221
Utah		2,825		1,589
Washington		15,006		14,486
Wisconsin		4,909		5,437
Others		2,489		2,377
Total Health Plans segment		121,776		147,961
Molina Medicaid Solutions segment		46,122		20,229
	$	167,898	$	168,190

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Receivables (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Health Plans segment:
Total Health Plans segment	$ 121,776	$ 147,961
Total receivables	167,898	168,190
California Health Plan [Member]
Health Plans segment:
Total Health Plans segment	22,175	46,482
Michigan Health Plan [Member]
Health Plans segment:
Total Health Plans segment	8,864	13,596
Missouri Health Plan [Member]
Health Plans segment:
Total Health Plans segment	27,092	22,841
New Mexico Health Plan [Member]
Health Plans segment:
Total Health Plans segment	9,350	18,310
Ohio Health Plan [Member]
Health Plans segment:
Total Health Plans segment	27,458	21,622
Texas Health Plan [Member]
Health Plans segment:
Total Health Plans segment	1,608	1,221
Utah Health Plan [Member]
Health Plans segment:
Total Health Plans segment	2,825	1,589
Washington Health Plan [Member]
Health Plans segment:
Total Health Plans segment	15,006	14,486
Wisconsin Health Plan [Member]
Health Plans segment:
Total Health Plans segment	4,909	5,437
Other Health Plan [Member]
Health Plans segment:
Total Health Plans segment	2,489	2,377
Molina Medicaid Solutions Segment [Member]
Health Plans segment:
Total receivables	$ 46,122	$ 20,229

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Share-Based Compensation

12 Months Ended

Dec. 31, 2011

Share-Based Compensation [Abstract]

Share-Based Compensation

16. Share-Based Compensation

In 2011, we adopted the 2011 Equity Incentive Plan (the "2011 Plan") , which provides for the award of stock options, restricted stock, performance shares, and stock bonuses to the company's officers, employees, directors, consultants, advisors, and other service providers. The 2011 Plan allows for the issuance of 4.5 million shares of common stock.

At December 31, 2011, we had employee equity incentives outstanding under three plans: (1) the 2011 Plan; (2) the 2002 Equity Incentive Plan (from which equity incentives are no longer awarded); and (3) the 2000 Omnibus Stock and Incentive Plan (from which equity incentives are no longer awarded). On March 1, 2011, our chief executive officer, chief financial officer, and chief operating officer were awarded 150,000 shares, 112,500 shares, and 27,000 shares, respectively, of restricted stock with performance and service conditions. Each of the grants shall vest on March 1, 2012, provided that: (i) the Company's total operating revenue for 2011 is equal to or greater than $3.7 billion, and (ii) the respective officer continues to be employed by the Company as of March 1, 2012. In the event both vesting conditions are not achieved, the equity compensation awards shall lapse. As of December 31, 2011, we expect these awards to vest in full.

Restricted stock awards are granted with a fair value equal to the market price of our common stock on the date of grant, and generally vest in equal annual installments over periods up to four years from the date of grant. Stock option awards have an exercise price equal to the fair market value of our common stock on the date of grant, generally vest in equal annual installments over periods up to four years from the date of grant, and have a maximum term of ten years from the date of grant.

Under our employee stock purchase plan (the "ESPP"), eligible employees may purchase common shares at 85% of the lower of the fair market value of our common stock on either the first or last trading day of each six-month offering period. Each participant is limited to a maximum purchase of $25,000 (as measured by the fair value of the stock acquired) per year through payroll deductions. We issued 201,700 and 164,700 shares of our common stock under the ESPP during the years ended December 31, 2011 and 2010, respectively. In 2011, stockholders approved our 2011 ESPP, which superseded the 2002 Employee Stock Purchase Plan. The 2011 ESPP allows for the issuance of three million shares of common stock.

The following table illustrates the components of our stock-based compensation expense that are reported in general and administrative expenses in the consolidated statements of income:

		September 30,		September 30,		September 30,		September 30,		September 30,		September 30,
	Year Ended December 31,
	2011				2010				2009
	(In thousands)
	Pretax Charges		Net-of-Tax Amount		Pretax Charges		Net-of-Tax Amount		Pretax Charges		Net-of-Tax Amount
Restricted stock awards	$	15,914	$	9,946	$	8,007	$	5,044	$	5,789	$	3,589
Stock options (including expense relating to our ESPP)		1,138		712		1,524		960		1,696		1,052
Total stock-based compensation expense	$	17,052	$	10,658	$	9,531	$	6,004	$	7,485	$	4,641

As of December 31, 2011, there was $14.2 million of total unrecognized compensation expense related to unvested restricted stock awards, which we expect to recognize over a remaining weighted-average period of 1.8 years. This unrecognized compensation cost assumes an estimated forfeiture rate of 6.6% as of December 31, 2011. As of December 31, 2011, there was no remaining unrecognized compensation expense related to unvested stock options.

Unvested restricted stock and restricted stock activity for the year ended December 31, 2011 is summarized below:

		September 30,			September 30,
	Shares			Weighted Average Grant Date Fair Value
Unvested balance as of December 31, 2010		1,253,624		$	15.55
Granted		792,300			23.21
Vested		(520,071	)		17.76
Forfeited		(89,971	)		15.60
Unvested balance as of December 31, 2011		1,435,882			18.97

The total fair value of restricted shares granted during the year ended December 31, 2011, 2010, and 2009 was $18.4 million, $12.7 million, and $8.0 million, respectively. The total fair value of restricted shares vested during the year ended December 31, 2011, 2010, and 2009 was $12.2 million, $6.4 million, and $3.2 million, respectively.

Stock option activity for the year ended December 31, 2011 is summarized below:

		September 30,			September 30,		September 30,		September 30,
	Shares			Weighted Average Grant Date Fair Value		Average Intrinsic Value		Weighted Average Remaining Contractual term
						(In thousands)		(Years)
Stock options outstanding as of December 31, 2010		770,421		$	20.39
Exercised		(195,672	)		18.82
Forfeited		(21,700	)		21.45
Stock options outstanding as of December 31, 2011		553,049			20.91	$	1,435		3.9
Stock options exercisable and expected to vest as of December 31, 2011		553,049			20.91	$	1,435		3.9
Exercisable as of December 31, 2011		550,799			20.90	$	1,435		3.9

The following is a summary of information about stock options outstanding and exercisable at December 31, 2011:

		September 30,		September 30,		September 30,		September 30,		September 30,
	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted- Average Remaining Contractual Life (Years)		Weighted- Average Exercise Price		Number Exercisable		Weighted- Average Exercise Price
$11.32 – $19.11		231,861		3.2	$	17.31		231,861	$	17.31
$20.03 – $21.59		184,275		5.0		20.86		184,275		20.86
$21.72 – $29.53		136,913		3.7		27.07		134,663		27.13
		553,049						550,799

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Property, Equipment, and Capitalized Software (Tables)

12 Months Ended

Dec. 31, 2011

Property and Equipment [Abstract]

Summary of property and equipment

		September 30,			September 30,
	December 31,
	2011			2010
	(In thousands)
Land	$	14,094		$	3,524
Building and improvements		109,789			49,735
Furniture and equipment		79,112			60,074
Capitalized software		116,389			90,003
		319,384			203,336
Less: accumulated depreciation and amortization on building and improvements, furniture and equipment		(65,518	)		(54,341	)
Less: accumulated amortization for capitalized software		(62,932	)		(48,458	)
		(128,450	)		(102,799	)
Property, equipment, and capitalized software, net	$	190,934		$	100,537

Summary of future minimum rentals on noncancelable leases

		September 30,
	(In thousands)
2012	$	5,943
2013		6,053
2014		4,395
2015		4,545
2016		4,749
Thereafter		32,310
Total minimum future rentals	$	57,995

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Quarterly Results of Operations (Unaudited) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009
Summary of quarterly results of operations
Premium revenue	$ 1,254,969	$ 1,138,230	$ 1,128,770	$ 1,081,438	$ 1,042,889	$ 1,005,115	$ 976,685	$ 965,220	$ 4,603,407		$ 3,989,909		$ 3,660,207
Service revenue	49,157	37,728	36,888	36,674	36,484	32,271	21,054		160,447		89,809
Operating income	(16,103)	33,566	31,410	31,300	33,432	29,953	21,178	20,438	80,173		105,001		51,934
Income before income taxes	(19,956)	29,186	27,727	27,697	29,979	25,353	17,079	17,081	64,654		89,492		38,157
Net income	$ (32,960)	$ 18,950	$ 17,440	$ 17,388	$ 17,628	$ 16,173	$ 10,579	$ 10,590	$ 20,818		$ 54,970		$ 30,868
Net income per share:
Basic	$ (0.72)	$ 0.41	$ 0.38	$ 0.38	$ 0.39	$ 0.38	$ 0.27	$ 0.28	$ 0.45	[1]	$ 1.34	[1]	$ 0.80	[1]
Diluted	$ (0.72)	$ 0.41	$ 0.38	$ 0.38	$ 0.39	$ 0.38	$ 0.27	$ 0.27	$ 0.45	[1]	$ 1.32	[1]	$ 0.79	[1]

[1] All applicable share and per-share amounts reflect the retroactive effects of the three-for-two common stock split in the form of a stock dividend that was effective May 20, 2011.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

18. Commitments and Contingencies

Leases

We lease office space, clinics, equipment, and automobiles under agreements that expire at various dates through 2018. Future minimum lease payments by year and in the aggregate under all non-cancelable operating leases consist of the following approximate amounts:

		September 30,
	(In thousands)
2012	$	25,553
2013		22,425
2014		18,511
2015		14,544
2016		7,794
Thereafter		12,597
Total minimum lease payments	$	101,424

Rental expense related to these leases amounted to $23.1 million, $25.1 million, and $20.8 million for the years ended December 31, 2011, 2010, and 2009, respectively.

Employment Agreements

In 2002 we entered into employment agreements with our Chief Executive Officer and Chief Financial Officer, which have been amended and restated as of December 31, 2009. These employment agreements had initial terms of one to three years and are subject to automatic one-year extensions thereafter. Should the executives be terminated without cause or resign for good reason before a change of control, as defined, we will pay one year's base salary and termination bonus, as defined, in addition to full vesting of 401(k) employer contributions and stock-based awards, and a cash sum equal in value to health and welfare benefits provided for 18 months. If the executives are terminated for cause, no further payments are due under the contracts.

If termination occurs within two years following a change of control, the executives will receive two times their base salary and termination bonus, in addition to full vesting of 401(k) employer contributions and stock-based awards, and a cash sum equal in value to health and welfare benefits provided for three years.

Legal Proceedings

The health care and business process outsourcing industries are subject to numerous laws and regulations of federal, state, and local governments. Compliance with these laws and regulations can be subject to government review and interpretation, as well as regulatory actions unknown and unasserted at this time. Penalties associated with violations of these laws and regulations include significant fines and penalties, exclusion from participating in publicly funded programs, and the repayment of previously billed and collected revenues.

We are involved in legal actions in the ordinary course of business, some of which seek monetary damages, including claims for punitive damages, which are not covered by insurance. We have accrued liabilities for certain matters for which we deem the loss to be both probable and estimable. Although we believe that our estimates of such losses are reasonable, these estimates could change as a result of further developments of these matters. The outcome of legal actions is inherently uncertain and such pending matters for which accruals have not been established have not progressed sufficiently through discovery and/or development of important factual information and legal issues to enable us to estimate a range of possible loss, if any. While it is not possible to accurately predict or determine the eventual outcomes of these items, an adverse determination in one or more of these pending matters could have a material adverse effect on our consolidated financial position, results of operations, or cash flows.

Professional Liability Insurance

We carry medical professional liability insurance for health care services rendered through our clinics in California, Virginia and Washington. Claims-made coverage under the policies for California and Washington is $1.0 million per occurrence with an annual aggregate limit of $3.0 million for Washington, beginning in 2010, and for California, each of the years ended December 31, 2011, 2010, and 2009. Claims-made coverage under the Virginia policy is $2.0 million per occurrence with an annual aggregate limit of $6.0 million for each of the years ended December 31, 2011 and 2010, and beginning July 1, 2008. We also carry claims-made managed care errors and omissions professional liability insurance for our health plan operations. This insurance is subject to a coverage limit of $15.0 million per occurrence and $15.0 million in the aggregate for each policy year.

Provider Claims

Many of our medical contracts are complex in nature and may be subject to differing interpretations regarding amounts due for the provision of various services. Such differing interpretations have led certain medical providers to pursue us for additional compensation. The claims made by providers in such circumstances often involve issues of contract compliance, interpretation, payment methodology, and intent. These claims often extend to services provided by the providers over a number of years.

Various providers have contacted us seeking additional compensation for claims that we believe to have been settled. These matters, when finally concluded and determined, will not, in our opinion, have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows.

Regulatory Capital and Dividend Restrictions

Our health plans are subject to state laws and regulations that, among other things, require the maintenance of minimum levels of statutory capital, as defined by each state, and restrict the timing, payment, and amount of dividends and other distributions that may be paid to us as the sole stockholder. To the extent the subsidiaries must comply with these regulations, they may not have the financial flexibility to transfer funds to us. The net assets in these subsidiaries (after intercompany eliminations) which may not be transferable to us in the form of loans, advances, or cash dividends was $492.4 million at December 31, 2011, and $397.8 million at December 31, 2010.

The National Association of Insurance Commissioners, or NAIC, adopted rules effective December 31, 1998, which, if implemented by the states, set minimum capitalization requirements for insurance companies, HMOs, and other entities bearing risk for health care coverage. The requirements take the form of risk-based capital, or RBC, rules. Michigan, Missouri, New Mexico, Ohio, Texas, Utah, Washington, and Wisconsin have adopted these rules, which may vary from state to state. California and Florida have not yet adopted NAIC risk-based capital requirements for HMOs and have not formally given notice of their intention to do so. Such requirements, if adopted by California and Florida, may increase the minimum capital required for those states.

As of December 31, 2011, our health plans had aggregate statutory capital and surplus of approximately $509.9 million compared with the required minimum aggregate statutory capital and surplus of approximately $265.7 million. All of our health plans were in compliance with the minimum capital requirements at December 31, 2011. We have the ability and commitment to provide additional capital to each of our health plans when necessary to ensure that statutory capital and surplus continue to meet regulatory requirements.

New Markets Tax Credit

During the fourth quarter of 2011 our New Mexico data center subsidiary entered into a financing transaction with Wells Fargo Community Investment Holdings, LLC, or Wells Fargo, its wholly owned subsidiary New Mexico Healthcare Data Center Investment Fund, LLC, or Investment Fund, and certain of Wells Fargo's affiliated Community Development Entities, or CDEs, in connection with our participation in the federal government's New Markets Tax Credit Program, or NMTC. The NMTC was established by Congress in 2000 to facilitate new or increased investments in businesses and real estate projects in low-income communities. The NMTC attracts investment capital to low-income communities by permitting investors to receive a tax credit against their federal income tax return in exchange for equity investments in specialized financial institutions called CDEs which provide financing to qualified active businesses operating in low-income communities. The credit totals 39 percent of the original investment amount and is claimed over a period of seven years (five percent for each of the first three years, and six percent for each of the remaining four years). The investment in the CDE cannot be redeemed before the end of the seven-year period.

In the fourth quarter of 2011, as a result of a series of simultaneous financing transactions, Wells Fargo made a capital contribution of $5.9 million in and Molina Healthcare, Inc. made a loan in the principal amount of $15.5 million to the Investment Fund. The Investment Fund then contributed the proceeds to certain CDEs, which, in turn, loaned the proceeds of $20.9 million to our New Mexico data center subsidiary. Wells Fargo will be entitled to claim the NMTC while we effectively received net loan proceeds equal to Wells Fargo contribution to the Investment Fund or approximately $5.9 million. Additionally, financing costs incurred in structuring the arrangement amounting to $1.2 million were deferred and will be recognized as expense over the term of the loans. This transaction also includes a put/call feature that becomes enforceable at the end of the seven-year compliance period. Wells Fargo may exercise its put option or we can exercise the call, both of which will serve to transfer the debt obligation to us. Incremental costs to maintain the structure during the compliance period will be recognized as incurred.

We have determined that the financing arrangement with Investment Fund and CDEs is a variable interest entity, or VIE, and that we are the primary beneficiary of the VIE. We reached this conclusion based on the following:

• The ongoing activities of the VIE—collecting and remitting interest and fees and NMTC compliance—were all considered in the initial design and are not expected to significantly affect economic performance throughout the life of the VIE;

• Contractual arrangements obligate us to comply with NMTC rules and regulations and provide various other guarantees to Investment Fund and CDEs;

• Wells Fargo lacks a material interest in the underling economics of the project; and

• We are obligated to absorb losses of the VIE.

Because we are the primary beneficiary of the VIE, we have included it in our consolidated financial statements. Wells Fargo's contribution of $5.9 million is included in cash at December 31, 2011 and the offsetting Wells Fargo interest in the financing arrangement is included in other liabilities in the accompanying consolidated balance sheets.

As described above, this transaction also includes a put/call provision whereby we may be obligated or entitled to repurchase Wells Fargo's interest in the Investment Fund. The value attributed to the put/call is nominal. The NMTC is subject to 100% recapture for a period of seven years as provided in the Internal Revenue Code and applicable U.S. Treasury regulations. We are required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangement. Non-compliance with applicable requirements could result in Wells Fargo's projected tax benefits not being realized and, therefore, require us to indemnify Wells Fargo for any loss or recapture of NMTCs related to the financing until such time as the recapture provisions have expired under the applicable statute of limitations. We do not anticipate any credit recaptures will be required in connection with this arrangement.

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Property, Equipment, and Capitalized Software (Details 1) (Molina Center [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Molina Center [Member]
Summary of future minimum rentals on non cancelable leases
2012	$ 5,943
2013	6,053
2014	4,395
2015	4,545
2016	4,749
Thereafter	32,310
Total minimum future rentals	$ 57,995

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Basis of Presentation

12 Months Ended

Dec. 31, 2011

Basis of Presentation [Abstract]

Basis of Presentation

1. Basis of Presentation

Organization and Operations

Molina Healthcare, Inc. provides quality and cost-effective Medicaid-related solutions to meet the health care needs of low-income families and individuals and to assist state agencies in their administration of the Medicaid program.

Our Health Plans segment comprises health plans in California, Florida, Michigan, Missouri, New Mexico, Ohio, Texas, Utah, Washington, and Wisconsin. As of December 31, 2011, these health plans served approximately 1.7 million members eligible for Medicaid, Medicare, and other government-sponsored health care programs for low-income families and individuals. The health plans are operated by our respective wholly owned subsidiaries in those states, each of which is licensed as a health maintenance organization, or HMO.

On February 17, 2012, the Division of Purchasing of the Missouri Office of Administration notified us that our Missouri health plan was not awarded a contract under the Missouri HealthNet Managed Care Request for Proposal; therefore, our Missouri health plan's existing contract with the state will expire without renewal on June 30, 2012. In connection with this notification, we recorded a non-cash impairment charge of approximately $64.6 million, or $1.34 per diluted share. Most of the impairment charge is not tax deductible, resulting in a disproportionate impact to net income. For the year ended December 31, 2011, our Missouri health plan contributed premium revenue of $229.6 million, or 5% of total premium revenue, and comprised 79,000 members, or 4.7% of total Health Plans segment membership. For further discussion of the impairment charge, see Note 2, "Significant Accounting Policies."

Our Molina Medicaid Solutions segment, which we acquired during the second quarter of 2010, provides business processing and information technology development and administrative services to Medicaid agencies in Idaho, Louisiana, Maine, New Jersey, and West Virginia, and drug rebate administration services in Florida.

On June 9, 2011, Molina Medicaid Solutions received notice from the state of Louisiana that the state intends to award the contract for a replacement Medicaid Management Information System, or MMIS, to another firm. Our revenue under the Louisiana MMIS contract from May 1, 2010, the date we acquired Molina Medicaid Solutions, through December 31, 2010, was approximately $32 million. For the year ended December 31, 2011, our revenue under the Louisiana MMIS contract was approximately $57 million. We expect that we will continue to perform under this contract through implementation and acceptance of the successor MMIS. Based upon our past experience and our knowledge of the Louisiana MMIS bid process, we believe that implementation and acceptance of the successor MMIS will not occur until 2014 at the earliest. Through implementation and acceptance of the successor MMIS we expect to recognize between $45 million and $50 million in revenue annually under our Louisiana MMIS contract.

Consolidation and Presentation

The consolidated financial statements include the accounts of Molina Healthcare, Inc. and all majority owned subsidiaries. See Note 18, "Commitments and Contingencies," for the discussion of a financing arrangement classified as a variable interest entity that is included in our consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the results as of the date and for the interim periods presented have been included; such adjustments consist of normal recurring adjustments. All significant intercompany balances and transactions have been eliminated in consolidation. Financial information related to subsidiaries acquired during any year is included only for periods subsequent to their acquisition.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Principal areas requiring the use of estimates include:

• Health plan contractual provisions that may limit revenue based upon the costs incurred or the profits realized under a specific contract;

• Health plan quality incentives that allow us to recognize incremental revenue if certain quality standards are met;

• The determination of medical claims and benefits payable of our Health Plans segment;

• The determination of allowances for uncollectible accounts;

• The valuation of certain investments;

• Settlements under risk or savings sharing programs;

• The assessment of deferred contract costs, deferred revenue, long-lived and intangible assets, and goodwill for impairment;

• The determination of professional and general liability claims, and reserves for potential absorption of claims unpaid by insolvent providers;

• The determination of reserves for the outcome of litigation;

• The determination of valuation allowances for deferred tax assets; and

• The determination of unrecognized tax benefits.

Adjustments and Reclassifications

We have adjusted all applicable share and per-share amounts to reflect the retroactive effects of the three-for-two stock split in the form of a stock dividend that was effective May 20, 2011.

We have reclassified certain prior year balance sheet amounts to conform to the 2011 presentation.

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Consolidated Balance Sheets [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	80,000	80,000
Common stock, shares outstanding	45,815	45,463
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000	20,000
Preferred stock, shares issued
Preferred stock, shares outstanding

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Medical Claims and Benefits Payable

12 Months Ended

Dec. 31, 2011

Medical Claims and Benefits Payable [Abstract]

Medical Claims and Benefits Payable

11. Medical Claims and Benefits Payable

The following table presents the components of the change in our medical claims and benefits payable for the years ended December 31, 2011 and 2010. The negative amounts displayed for "Components of medical care costs related to: Prior years" represent the amount by which our original estimate of claims and benefits payable at the beginning of the period exceeded the actual amount of the liability based on information (principally the payment of claims) developed since that liability was first reported.

		September 30,			September 30,
	Year Ended December 31,
	2011			2010
	(Dollars in thousands, except per-member amounts)
Balances at beginning of year	$	354,356		$	315,316
Balance of acquired subsidiary		—			3,228
Components of medical care costs related to:
Current year		3,911,803			3,420,235
Prior years		(51,809	)		(49,378	)
Total medical care costs		3,859,994			3,370,857
Payments for medical care costs related to:
Current year		3,516,994			3,085,388
Prior years		294,880			249,657
Total paid		3,811,874			3,335,045
Balances at end of year	$	402,476		$	354,356
Benefit from prior years as a percentage of:
Balance at beginning of year		14.6	%		15.7	%
Premium revenue		1.1	%		1.2	%
Total medical care costs		1.3	%		1.5	%

We recognized a benefit from prior period claims development in the amount of $51.8 million for the year ended December 31, 2011. This amount represents our estimate as of December 31, 2011 of the extent to which our initial estimate of medical claims and benefits payable at December 31, 2010 exceeded the amount that will ultimately be paid out in satisfaction of that liability. The overestimation of claims liability at December 31, 2010 was due primarily to the following factors:

• We overestimated the impact of a buildup in claims inventory in Ohio.

• We overestimated the impact of the settlement of disputed provider claims in California.

• We underestimated the reduction in outpatient facility claims costs as a result of a fee schedule reduction in New Mexico effective November 2010, partially offsetting the impact of the two items above.

We recognized a benefit from prior period claims development in the amount of $49.4 million for the year ended 2010. This was primarily caused by the overestimation of our liability for claims and medical benefits payable at December 31, 2009. The overestimation of claims liability at December 31, 2009 was the result of the following factors:

• In New Mexico, we underestimated the degree to which cuts to the Medicaid fees schedule would reduce our liability as of December 31, 2009.

• In California, we underestimated the extent to which various network restructuring, provider contracting, and medical management initiatives had reduced our medical care costs during the second half of 2009, thereby resulting in a lower liability at December 31, 2009.

In estimating our claims liability at December 31, 2011, we adjusted our base calculation to take account of the following factors which we believe are reasonably likely to change our final claims liability amount:

• The increasing amount of claims recoveries in Texas.

• Recent increases in inpatient utilization in Missouri, as well as a substantial increase in inpatient claims inventory.

• A significant reduction to our outstanding claims recoveries in Ohio.

• An increase to our aged blind and disabled membership in California.

• Late enrollment of newborns, and hence late claims payments, in Michigan due to issues with the State's administration system, which has disrupted the normal completion pattern for claims in that state.

The use of a consistent methodology in estimating our liability for claims and medical benefits payable minimizes the degree to which the under- or overestimation of that liability at the close of one period may affect consolidated results of operations in subsequent periods. Facts and circumstances unique to the estimation process at any single date, however, may still lead to a material impact on consolidated results of operations in subsequent periods. Any absence of adverse claims development (as well as the expensing through general and administrative expense of the costs to settle claims held at the start of the period) will lead to the recognition of a benefit from prior period claims development in the period subsequent to the date of the original estimate. In 2010 and 2011, the absence of adverse development of the liability for claims and medical benefits payable at the close of the previous period resulted in the recognition of substantial favorable prior period development. In both years, however, the recognition of a benefit from prior period claims development did not have a material impact on our consolidated results of operations because the amount of benefit recognized in each year was roughly consistent with that recognized in the previous year.

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Subsequent Events (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Molina Health Care Insurance Company [Member]
Subsequent Events (Textual) [Abstract]
Noncurrent receivable and liability for ceded life and annuity contracts	$ 23.4
Expected gain recorded upon closing of transaction	$ 2
Missouri Health Plan [Member]
Subsequent Events (Textual) [Abstract]
Contract expiration date	June 30, 2012

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Related Party Transactions (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Related Party Transactions (Textual) [Abstract]
Equity investment with related party	$ 3.9	$ 3.8
Payments for medical services fees to related party	24.3	22.0	21.8
Payments to related party under fee for services agreement	$ 0.7	$ 1.0	$ 0.7

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Share-Based Compensation (Details 3) (USD $)	12 Months Ended
	Dec. 31, 2011 years
Summary of information about stock options outstanding and exercisable
Number of options outstanding	553,049
Number of Exercisable Options	550,799
Range One [Member]
Summary of information about stock options outstanding and exercisable
Lower range	$ 11.32
Upper range	$ 19.11
Number of options outstanding	231,861
Outstanding Options, Weighted Average Exercise Price	$ 17.31
Outstanding Options, Weighted Average Remaining Contractual Life (Years)	3.2
Number of Exercisable Options	231,861
Exercisable Options, Weighted Average Exercise Price	$ 17.31
Range Two [Member]
Summary of information about stock options outstanding and exercisable
Lower range	$ 20.03
Upper range	$ 21.59
Number of options outstanding	184,275
Outstanding Options, Weighted Average Exercise Price	$ 20.86
Outstanding Options, Weighted Average Remaining Contractual Life (Years)	5.0
Number of Exercisable Options	184,275
Exercisable Options, Weighted Average Exercise Price	$ 20.86
Range Three [Member]
Summary of information about stock options outstanding and exercisable
Lower range	$ 21.72
Upper range	$ 29.53
Number of options outstanding	136,913
Outstanding Options, Weighted Average Exercise Price	$ 27.07
Outstanding Options, Weighted Average Remaining Contractual Life (Years)	3.7
Number of Exercisable Options	134,663
Exercisable Options, Weighted Average Exercise Price	$ 27.13

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Document and Entity Information (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Feb. 24, 2012	Jun. 30, 2011
Document and Entity Information [Abstract]
Entity Registrant Name	MOLINA HEALTHCARE INC
Entity Central Index Key	0001179929
Document Type	10-K
Document Period End Date	Dec. 31, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 731
Entity Common Stock, Shares Outstanding		45,838,000

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Long-Term Debt

12 Months Ended

Dec. 31, 2011

Long-Term Debt [Abstract]

Long-Term Debt

12. Long-Term Debt

Maturities of long-term debt for the years ending December 31 are as follows:

		September 30,		September 30,		September 30,		September 30,		September 30,		September 30,		September 30,
	Total		2012		2013		2014		2015		2016		Thereafter
Convertible senior notes	$	187,000	$	—	$	—	$	187,000	$	—	$	—	$	—
Term loan		48,600		1,197		1,155		1,206		1,259		1,309		42,474
	$	235,600	$	1,197	$	1,155	$	188,206	$	1,259	$	1,309	$	42,474

Credit Facility

On September 9, 2011, we entered into a credit agreement for a $170 million revolving credit facility (the "Credit Facility") with various lenders and U.S. Bank National Association, as LC Issuer, Swing Line Lender, and Administrative Agent. The Credit Facility will be used for general corporate purposes.

The Credit Facility has a term of five years under which all amounts outstanding will be due and payable on September 9, 2016. Subject to obtaining commitments from existing or new lenders and satisfaction of other specified conditions, we may increase the Credit Facility to up to $195 million. As of December 31, 2011 there was no outstanding principal balance under the Credit Facility. However, as of December 31, 2011, our lenders had issued two letters of credit in the aggregate principal amount of $10.3 million in connection with the Molina Medicaid Solutions contracts with the states of Maine and Idaho, which reduces the amount available under the Credit Facility.

Borrowings under the Credit Facility will bear interest based, at our election, on the base rate plus an applicable margin or the Eurodollar rate. The base rate is, for any day, a rate of interest per annum equal to the highest of (i) the prime rate of interest announced from time to time by U.S. Bank or its parent, (ii) the sum of the federal funds rate for such day plus 0.50% per annum and (iii) the Eurodollar rate (without giving effect to the applicable margin) for a one month interest period on such day (or if such day is not a business day, the immediately preceding business day) plus 1.00%. The Eurodollar rate is a reserve adjusted rate at which Eurodollar deposits are offered in the interbank Eurodollar market plus an applicable margin. In addition to interest payable on the principal amount of indebtedness outstanding from time to time under the Credit Facility, we are required to pay a quarterly commitment fee of 0.25% to 0.50% (based upon our leverage ratio) of the unused amount of the lenders' commitments under the Credit Facility. The initial commitment fee shall be set at 0.35% until our delivery of its financials for the year ended December 31, 2011. The applicable margins range between 0.75% to 1.75% for base rate loans and 1.75% to 2.75% for Eurodollar loans, in each case, based upon our leverage ratio.

Our obligations under the Credit Facility are secured by a lien on substantially all of our assets, with the exception of certain of our real estate assets, and by a pledge of the capital stock or membership interests of our operating subsidiaries and health plans (with the exception of the California health plan).

The Credit Facility includes usual and customary covenants for credit facilities of this type, including covenants limiting liens, mergers, asset sales, other fundamental changes, debt, acquisitions, dividends and other distributions, capital expenditures, and investments. The Credit Facility also requires us to maintain a ratio of total consolidated debt to total consolidated EBITDA of not more than 2.75 to 1.00 as of the end of each fiscal quarter and a fixed charge coverage ratio of not less than 1.75 to 1.00. At December 31, 2011, we were in compliance with all financial covenants under the Credit Facility.

In the event of a default, including cross-defaults relating to specified other debt in excess of $20 million, the lenders may terminate the commitments under the Credit Facility and declare the amounts outstanding, including all accrued interest and unpaid fees, payable immediately. In addition, the lenders may enforce any and all rights and remedies created under the Credit Facility or applicable law.

In connection with our entrance into the Credit Facility, on September 9, 2011, we terminated our existing credit agreement with Bank of America, dated March 9, 2005, as amended to date, which had provided us with a $150 million revolving credit facility. As of December 31, 2011 and December 31, 2010, there was no outstanding principal balance under this credit agreement.

Term Loan

On December 7, 2011, our wholly owned subsidiary Molina Center LLC entered into a Term Loan Agreement, dated as of December 1, 2011, with various lenders and East West Bank, as Administrative Agent (the "Administrative Agent"). Pursuant to the terms of the Term Loan Agreement, Molina Center LLC borrowed the aggregate principal amount of $48.6 million to finance a portion of the $81 million purchase price for the acquisition of the approximately 460,000 square foot office building, or Molina Center, located in Long Beach, California.

The outstanding principal amount under the Term Loan Agreement bears interest at the rate of 4.25% per annum from the date of the closing of the loan through December 31, 2011, and at the Eurodollar rate for each Interest Period (as defined below) commencing January 1, 2012. The Eurodollar rate is a per annum rate of interest equal to the greater of (a) the rate that is published in the Wall Street Journal as the London interbank offered rate for deposits in United States dollars, for a period of one month, two business days prior to the commencement of an Interest Period, multiplied by a statutory reserve rate established by the Board of Governors of the Federal Reserve System, or (b) 4.25%. The loan matures on November 30, 2018, and is subject to a 25-year amortization schedule that commences on January 1, 2012.

The Term Loan Agreement contains customary representations, warranties, and financial covenants. In the event of a default as described in the Term Loan Agreement, the outstanding principal amount under the Term Loan Agreement will bear interest at a rate 5.00% per annum higher than the otherwise applicable rate. We have agreed to pay to the Administrative Agent a loan fee in the amount of $486,000 and an agency fee of $50,000. All amounts due under the Term Loan Agreement and related loan documents are secured by a security interest in the Molina Center in favor of and for the benefit of the Administrative Agent and the other lenders under the Term Loan Agreement.

Convertible Senior Notes

As of December 31, 2011, $187.0 million in aggregate principal amount of our 3.75% Convertible Senior Notes due 2014 (the "Notes") remain outstanding. The Notes rank equally in right of payment with our existing and future senior indebtedness. The Notes are convertible into cash and, under certain circumstances, shares of our common stock. The initial conversion rate is 31.9601 shares of our common stock per one thousand dollar principal amount of the Notes. This represents an initial conversion price of approximately $31.29 per share of our common stock. In addition, if certain corporate transactions that constitute a change of control occur prior to maturity, we will increase the conversion rate in certain circumstances. Prior to July 2014, holders may convert their Notes only under the following circumstances:

• During any fiscal quarter after our fiscal quarter ending December 31, 2007, if the closing sale price per share of our common stock, for each of at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the previous fiscal quarter, is greater than or equal to 120% of the conversion price per share of our common stock;

• During the five business day period immediately following any five consecutive trading day period in which the trading price per one thousand dollar principal amount of the Notes for each trading day of such period was less than 98% of the product of the closing price per share of our common stock on such day and the conversion rate in effect on such day; or

• Upon the occurrence of specified corporate transactions or other specified events.

On or after July 1, 2014, holders may convert their Notes at any time prior to the close of business on the scheduled trading day immediately preceding the stated maturity date regardless of whether any of the foregoing conditions is satisfied.

We will deliver cash and shares of our common stock, if any, upon conversion of each $1,000 principal amount of Notes, as follows:

• An amount in cash (the "principal return") equal to the sum of, for each of the 20 Volume-Weighted Average Price (VWAP) trading days during the conversion period, the lesser of the daily conversion value for such VWAP trading day and fifty dollars (representing 1/20th of one thousand dollars); and

• A number of shares based upon, for each of the 20 VWAP trading days during the conversion period, any excess of the daily conversion value above fifty dollars.

The proceeds from the issuance of the Notes have been allocated between a liability component and an equity component. We have determined that the effective interest rate of the Notes is 7.5%, principally based on the seven-year U.S. treasury note rate as of the October 2007 issuance date, plus an appropriate credit spread. The resulting debt discount is being amortized over the period the Notes are expected to be outstanding, as additional non-cash interest expense. As of December 31, 2011, we expect the Notes to be outstanding until their October 1, 2014 maturity date, for a remaining amortization period of 33 months. The Notes' if-converted value did not exceed their principal amount as of December 31, 2011. At December 31, 2011, the equity component of the Notes, net of the impact of deferred taxes, was $24.0 million. The following table provides the details of the liability amounts recorded:

		September 30,			September 30,
	December 31,
	2011			2010
	(In thousands)
Details of the liability component:
Principal amount	$	187,000		$	187,000
Unamortized discount		(17,474	)		(22,986	)
Net carrying amount	$	169,526		$	164,014

		September 30,		September 30,		September 30,
	Years Ended December 31,
	2011		2010		2009
	(in thousands)
Interest cost recognized for the period relating to the:
Contractual interest coupon rate of 3.75%	$	7,012	$	7,012	$	7,076
Amortization of the discount on the liability component		5,512		5,114		4,782
Total interest cost recognized	$	12,524	$	12,126	$	11,858

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Long-Term Debt (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2011 months	Sep. 09, 2011	Dec. 31, 2010	Mar. 09, 2005
Debt Instrument [Line Items]
Line of credit facility commitment fee percentage	0.35%
Principal amount	$ 187,000,000		$ 187,000,000
Debt instrument amortization period	25 years
Long Term Debt (Textual) [Abstract]
Aggregate principal amount of letter of credit	10,300,000
Maximum borrowing capacity under the revolving credit facility		170,000,000
Line of credit facility basis spread on euro dollar rate	1.00%
Number of letter of credit issued	2
Line of credit facility description variable rate basis	The base rate is, for any day, a rate of interest per annum equal to the highest of (i) the prime rate of interest announced from time to time by U.S. Bank or its parent, (ii) the sum of the federal funds rate for such day plus 0.50% per annum and (iii) the Eurodollar rate (without giving effect to the applicable margin) for a one month interest period on such day (or if such day is not a business day, the immediately preceding business day) plus 1.00%.
Minimum fixed charge coverage ratio	1.75
Ratio of debt to EBITDA	2.75
Line of credit facility basis spread on federal fund rate	0.50%
Line of credit principal outstanding	0		0
Line of credit facility debt default minimum amount	20,000,000
Purchase price for acquisition of property	81,000,000
Line of credit facility interest rate period	5 years
Increase in line of credit facility current borrowing capacity	195,000,000
Area covered by property	460,000
Euro Dollar interest rate terms	The Eurodollar rate is a per annum rate of interest equal to the greater of (a) the rate that is published in the Wall Street Journal as the London interbank offered rate for deposits in United States dollars, for a period of one month, two business days prior to the commencement of an Interest Period, multiplied by a statutory reserve rate established by the Board of Governors of the Federal Reserve System, or (b) 4.25%.
Senior notes conversion ratio	31.9601
Debt instrument conversion price	$ 31.29
Principal amount of debt to be convertible into equity	1,000
Senior note effective interest rate	7.50%
Senior notes debt maturity date	Oct. 01, 2014
Senior notes amortization period	33
Amount of equity component of notes net of deferred taxes	24,000,000
First circumstance under which holder convert notes	During any fiscal quarter after our fiscal quarter ending December 31, 2007, if the closing sale price per share of our common stock, for each of at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the previous fiscal quarter, is greater than or equal to 120% of the conversion price per share of our common stock
Second circumstance under which holder convert notes	During the five business day period immediately following any five consecutive trading day period in which the trading price per one thousand dollar principal amount of the Notes for each trading day of such period was less than 98% of the product of the closing price per share of our common stock on such day and the conversion rate in effect on such day
Third circumstance under which holder convert notes	Upon the occurrence of specified corporate transactions or other specified events
Minimum percentage market price for converting notes under first case	120.00%
Maximum percentage market price for converting notes under second case	98.00%
First circumstance for delivery of cash and shares of common stock	An amount in cash (the "principal return") equal to the sum of, for each of the 20 Volume-Weighted Average Price (VWAP) trading days during the conversion period, the lesser of the daily conversion value for such VWAP trading day and fifty dollars (representing 1/20th of one thousand dollars);
Second circumstance for delivery of cash and shares of common stock	A number of shares based upon, for each of the 20 VWAP trading days during the conversion period, any excess of the daily conversion value above fifty dollars
VWAP of trading days during conversion period	20 days
Minimum daily conversion value for converting debt	50
Revolving credit agreement amount				150,000,000
Term loan [Member]
Debt Instrument [Line Items]
Principal amount	48,600,000
Percentage of contractual interest rate	4.25%
Debt instrument increase in interest rate in case of default	5.00%
Loan Processing Fee	486,000
Debt instrument agreement agency fee amount	50,000
Long Term Debt (Textual) [Abstract]
Percentage of contractual interest rate	4.25%
Convertible senior notes [Member]
Debt Instrument [Line Items]
Principal amount	$ 187,000,000
Percentage of contractual interest rate	3.75%
Maturity period based on US government securities	7 years
Long Term Debt (Textual) [Abstract]
Percentage of contractual interest rate	3.75%
Minimum [Member]
Debt Instrument [Line Items]
Line of credit facility commitment fee percentage	0.25%
Line of credit facility applicable margin on base rate loan	0.75%
Line of credit facility applicable margin on Euro dollar loan	1.75%
Maximum [Member]
Debt Instrument [Line Items]
Line of credit facility commitment fee percentage	0.50%
Line of credit facility applicable margin on base rate loan	1.75%
Line of credit facility applicable margin on Euro dollar loan	2.75%

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Share-Based Compensation (Details 2) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 years
Stock option activity
Stock options outstanding, Shares Beginning of period	770,421
Stock options outstanding, Weighted Average Grant Date Fair Value, Beginning of period	$ 20.39
Exercised, Shares	(195,672)
Exercised, Weighted Average Grant date fair Value	$ 18.82
Forfeited, Shares	(21,700)
Forfeited, Weighted Average Grant Date Fair Value	$ 21.45
Stock options outstanding, Shares Ending balance	553,049
Stock options outstanding, Weighted Average Grant Date Fair Value, Ending of Period	$ 20.91
Stock options outstanding, Average Intrinsic Value, Ending of period	$ 1,435
Stock options outstanding, Weighted Average Remaining Contractual term, Ending balance	3.9
Stock options exercisable and expected to vest, Shares	553,049
Stock options exercisable and expected to vest, Weighted Average Grant Date Fair Value	$ 20.91
Stock options exercisable and expected to vest, Average Intrinsic Value	1,435
Stock options exercisable and expected to vest, Weighted Average Remaining Contractual term	3.9
Exercisable, Shares	550,799
Exercisable, Weighted Average Grant Date Fair Value	$ 20.90
Exercisable, Average Intrinsic Value	$ 1,435
Exercisable, Weighted Average Remaining Contractual term	3.9

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Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009
Revenue:
Premium revenue	$ 4,603,407		$ 3,989,909		$ 3,660,207
Service revenue	160,447		89,809
Investment income	5,539		6,259		9,149
Rental income	547
Total revenue	4,769,940		4,085,977		3,669,356
Expenses:
Medical care costs	3,859,994		3,370,857		3,176,236
Cost of service revenue	143,987		78,647
General and administrative expenses	415,932		345,993		276,027
Premium tax expenses	154,589		139,775		128,581
Depreciation and amortization	50,690		45,704		38,110
Total operating costs and expenses	4,625,192		3,980,976		3,618,954
Impairment of goodwill and intangible assets	(64,575)
Gain on purchase of convertible senior notes					1,532
Operating income	80,173		105,001		51,934
Interest expense	15,519		15,509		13,777
Income before income taxes	64,654		89,492		38,157
Provision for income taxes	43,836		34,522		7,289
Net income	$ 20,818		$ 54,970		$ 30,868
Net income per share:
Basic	$ 0.45	[1]	$ 1.34	[1]	$ 0.80	[1]
Diluted	$ 0.45	[1]	$ 1.32	[1]	$ 0.79	[1]
Weighted average shares outstanding:
Basic	45,756	[1]	41,174	[1]	38,765	[1]
Diluted	46,425	[1]	41,631	[1]	38,976	[1]

[1] All applicable share and per-share amounts reflect the retroactive effects of the three-for-two common stock split in the form of a stock dividend that was effective May 20, 2011.

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Investments

12 Months Ended

Dec. 31, 2011

Investments [Abstract]

Investments

6. Investments

The following tables summarize our investments as of the dates indicated:

		September 30,		September 30,		September 30,		September 30,
	December 31, 2011
	Amortized		Gross Unrealized				Estimated
	Cost		Gains		Losses		Fair Value
	(In thousands)
Corporate debt securities	$	231,407	$	442	$	215	$	231,634
GSEs		33,912		46		9		33,949
Municipal securities		47,099		232		18		47,313
U.S. treasury notes		21,627		121		—		21,748
Auction rate securities		19,000		—		2,866		16,134
Certificates of deposit		2,272		—		—		2,272
	$	355,317	$	841	$	3,108	$	353,050

		September 30,		September 30,		September 30,		September 30,
	December 31, 2010
	Amortized		Gross Unrealized				Estimated
	Cost		Gains		Losses		Fair Value
	(In thousands)
Corporate debt securities	$	177,692	$	419	$	182	$	177,929
GSEs		59,386		353		26		59,713
Municipal securities		30,483		111		31		30,563
U.S. treasury notes		23,836		118		36		23,918
Auction rate securities		24,550		—		4,101		20,449
Certificates of deposit		3,252		—		—		3,252
	$	319,199	$	1,001	$	4,376	$	315,824

The contractual maturities of our investments as of December 31, 2011 are summarized below:

		September 30,		September 30,
	Amortized		Estimated
	Cost		Fair Value
	(In thousands)
Due in one year or less	$	183,607	$	183,775
Due one year through five years		153,210		153,573
Due after ten years		18,500		15,702
	$	355,317	$	353,050

Gross realized gains and gross realized losses from sales of available-for-sale securities are calculated under the specific identification method and are included in investment income. Total proceeds from sales and maturities of available-for-sale securities were $302.7 million, $182.3 million, and $201.9 million for the year ended December 31, 2011, 2010, and 2009, respectively. Net realized investment gains for the year ended December 31, 2011, 2010, and 2009 were $367,000, $110,000, and $267,000, respectively.

We monitor our investments for other-than-temporary impairment. For investments other than our auction rate securities, we have determined that unrealized gains and losses at December 31, 2011, and 2010, are temporary in nature, because the change in market value for these securities has resulted from fluctuating interest rates, rather than a deterioration of the credit worthiness of the issuers. So long as we hold these securities to maturity, we are unlikely to experience gains or losses. In the event that we dispose of these securities before maturity, we expect that realized gains or losses, if any, will be immaterial.

As described in Note 5, "Fair Value Measurements," the unrealized losses on our auction rate securities were caused primarily by the illiquidity in the auction markets. Because the decline in market value is not due to the credit quality of the issuers, and because we do not intend to sell, nor is it more likely than not that we will be required to sell, these investments before recovery of their cost, we do not consider the auction rate securities that are designated as available-for-sale to be other-than-temporarily impaired at December 31, 2011.

The following tables segregate those available-for-sale investments that have been in a continuous loss position for less than 12 months, and those that have been in a loss position for 12 months or more as of December 31, 2011.

		September 30,		September 30,		September 30,		September 30,		September 30,		September 30,
	In a Continuous Loss				In a Continuous Loss
	Position				Position
	for Less than 12 Months				for 12 Months or More				Total
	Estimated				Estimated				Estimated
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
Corporate debt securities	$	72,766	$	215	$	—	$	—	$	72,766	$	215
GSEs		11,493		9		—		—		11,493		9
Municipal securities		12,033		18		—		—		12,033		18
Auction rate securities		—		—		16,134		2,866		16,134		2,866
	$	96,292	$	242	$	16,134	$	2,866	$	112,426	$	3,108

The following table segregates those available-for-sale investments that have been in a continuous loss position for less than 12 months, and those that have been in a loss position for 12 months or more as of December 31, 2010.

		September 30,		September 30,		September 30,		September 30,		September 30,		September 30,
	In a Continuous Loss				In a Continuous Loss
	Position				Position
	for Less than 12 Months				for 12 Months or More				Total
	Estimated				Estimated				Estimated
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
Corporate debt securities	$	55,578	$	167	$	1,848	$	14	$	57,426	$	181
GSEs		7,244		26		—		—		7,244		26
Municipal securities		12,629		31		—		—		12,629		31
Auction rate securities		—		—		20,449		4,101		20,449		4,101
U.S. treasury notes		3,414		37		—		—		3,414		37
	$	78,865	$	261	$	22,297	$	4,115	$	101,162	$	4,376

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Fair Value Measurements

12 Months Ended

Dec. 31, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

5. Fair Value Measurements

Our consolidated balance sheets include the following financial instruments: cash and cash equivalents, investments, receivables, trade accounts payable, medical claims and benefits payable, long-term debt, and other liabilities. We consider the carrying amounts of cash and cash equivalents, receivables, other current assets and current liabilities to approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization or payment. For a comprehensive discussion of fair value measurements with regard to our current and non-current investments, see below.

As described in Note 12, "Long-Term Debt," the carrying amount of the convertible senior notes was $169.5 million and $164.0 million as of December 31, 2011 and 2010, respectively. Based on quoted market prices, the fair value of the convertible senior notes was approximately $192.0 million and $188.4 million as of December 31, 2011 and 2010, respectively. The carrying value of the term loan approximates fair value because of the short period of time between the loan origination date of December 7, 2011 and December 31, 2011.

To prioritize the inputs we use in measuring fair value, we apply a three-tier fair value hierarchy as follows:

• Level 1 — Observable inputs such as quoted prices in active markets: Our Level 1 securities consist of government-sponsored enterprise securities (GSEs) and U.S. treasury notes. Level 1 securities are classified as current investments in the accompanying consolidated balance sheets. These securities are actively traded and therefore the fair value for these securities is based on quoted market prices on one or more securities exchanges.

• Level 2 — Inputs other than quoted prices in active markets that are either directly or indirectly observable: Our Level 2 securities consist of corporate debt securities, municipal securities, and certificates of deposit, and are classified as current investments in the accompanying consolidated balance sheets. Our investments in securities classified as Level 2 are traded frequently though not necessarily daily. Fair value for these securities is determined using a market approach based on quoted prices for similar securities in active markets or quoted prices for identical securities in inactive markets.

• Level 3 — Unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions: We hold investments in auction rate securities which are designated as available-for-sale, and are reported at fair value of $16.1 million (par value of $19.0 million) as of December 31, 2011. Our investments in auction rate securities are collateralized by student loan portfolios guaranteed by the U.S. government. We continued to earn interest on substantially all of these auction rate securities as of December 31, 2011. Due to events in the credit markets, the auction rate securities held by us experienced failed auctions beginning in the first quarter of 2008. As such, quoted prices in active markets were not readily available during the majority of 2008, 2009, and 2010, and continued to be unavailable as of December 31, 2011. To estimate the fair value of these securities, we used pricing models that included factors such as the collateral underlying the securities, the creditworthiness of the counterparty, the timing of expected future cash flows, and the expectation of the next time the security would have a successful auction. The estimated values of these securities were also compared, when possible, to valuation data with respect to similar securities held by other parties. We concluded that these estimates, given the lack of market available pricing, provided a reasonable basis for determining the fair value of the auction rate securities as of December 31, 2011. For our investments in auction rate securities, we do not intend to sell, nor is it more likely than not that we will be required to sell, these investments before recovery of their cost.

As a result of changes in the fair value of auction rate securities designated as available-for-sale, we recorded pretax unrealized gains of $1.2 million and pretax unrealized losses of $0.2 million to accumulated other comprehensive loss for the year ended December 31, 2011, and 2010, respectively. Any future fluctuation in fair value related to these instruments that we deem to be temporary, including any recoveries of previous write-downs, would be recorded to accumulated other comprehensive income (loss). If we determine that any future valuation adjustment was other-than-temporary, we would record a charge to earnings as appropriate.

Until July 2, 2010, we held certain auction rate securities (designated as trading securities) with an investment securities firm. In 2008, we entered into a rights agreement with this firm that (1) allowed us to exercise rights (the "Rights") to sell the eligible auction rate securities at par value to this firm between June 30, 2010 and July 2, 2012, and (2) gave the investment securities firm the right to purchase the auction rate securities from us any time after the agreement date as long as we received the par value. On June 30, 2010, and July 1, 2010, all of the eligible auction rate securities remaining at that time were settled at par value. During 2010, the aggregate auction rate securities (designated as trading securities) settled amounted to $40.9 million par value (fair value $36.7 million). Substantially all of the difference between par value and fair value on these securities was recovered through the rights agreement. For the year ended December 31, 2010, we recorded pretax gains of $4.2 million on the auction rate securities underlying the Rights.

We accounted for the Rights as a freestanding financial instrument and, until July 2, 2010, recorded the value of the Rights under the fair value option. For the year ended December 31, 2010, we recorded pretax losses of $3.8 million on the Rights, attributable to the decline in the fair value of the Rights. When the remaining eligible auction rate securities were sold at par value on July 1, 2010, the value of the Rights was zero.

Our assets measured at fair value on a recurring basis at December 31, 2011, were as follows:

		September 30,		September 30,		September 30,		September 30,
	Total		Level 1		Level 2		Level 3
	(In thousands)
Corporate debt securities	$	231,634	$	—	$	231,634	$	—
Government-sponsored enterprise securities (GSEs)		33,949		33,949		—		—
Municipal securities		47,313		—		47,313		—
U.S. treasury notes		21,748		21,748		—		—
Auction rate securities		16,134		—		—		16,134
Certificates of deposit		2,272		—		2,272		—
	$	353,050	$	55,697	$	281,219	$	16,134

Our assets measured at fair value on a recurring basis at December 31, 2010, were as follows:

		September 30,		September 30,		September 30,		September 30,
	Total		Level 1		Level 2		Level 3
	(In thousands)
Corporate debt securities	$	177,929	$	—	$	177,929	$	—
Government-sponsored enterprise securities (GSEs)		59,713		59,713		—		—
Municipal securities		30,563		—		30,563		—
U.S. treasury notes		23,918		23,918		—		—
Auction rate securities		20,449		—		—		20,449
Certificates of deposit		3,252		—		3,252		—
	$	315,824	$	83,631	$	211,744	$	20,449

In prior periods we reported our investments in corporate debt securities, municipal securities and certificates of deposit in Level 1. As a result of analysis of the characteristics of our financial instruments in 2011, we have determined that these investments should be reported in Level 2, and have reclassified the tabular disclosure accordingly.

The following table presents our assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

		September 30,
	(Level 3)
	(In thousands)
Balance at December 31, 2010	$	20,449
Total gains (unrealized only):
Included in other comprehensive income		1,235
Settlements		(5,550	)
Balance at December 31, 2011	$	16,134
The amount of total unrealized gains for the period included in other comprehensive income attributable to the change in accumulated other comprehensive losses relating to assets still held at December 31, 2011	$	483

Our assets measured at fair value on a non-recurring basis in 2011, consisted of the goodwill and intangible assets associated with the acquisition of our Missouri health plan in 2007. As described in Note 1, "Basis of Presentation – Organization and Operations" we recorded a non-cash impairment charge of $64.6 million related to the loss of our Missouri health plan's existing contract with the state of Missouri. To arrive at this impairment charge, we conducted fair value measurements of the goodwill and intangible assets of our Missouri health plan. We used Level 3 inputs in applying an income approach to determining the fair value of these assets.

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Related Party Transactions

12 Months Ended

Dec. 31, 2011

Related Party Transactions [Abstract]

Related Party Transactions

17. Related Party Transactions

We have an equity investment in a medical service provider that provides certain vision services to our members. We account for this investment under the equity method of accounting because we have an ownership interest in the investee that confers significant influence over operating and financial policies of the investee. As of December 31, 2011, and 2010 our carrying amount for this investment amounted to $3.9 million, and $3.8 million, respectively. For the years ended December 31, 2011, 2010, and 2009, we paid $24.3 million, $22.0 million, and $21.8 million, respectively, for medical service fees to this provider.

We are a party to a fee-for-service agreement with Pacific Hospital of Long Beach ("Pacific Hospital"). Until October 2010, Pacific Hospital was owned by Abrazos Healthcare, Inc., the shares of which are held as community property by the husband of Dr. Martha Bernadett, the sister of Dr. J. Mario Molina, our Chief Executive Officer, and John Molina, our Chief Financial Officer. Amounts paid to Pacific Hospital under the terms of this fee-for-service agreement were $0.7 million, $1.0 million, and $0.7 million, for the years ended December 31, 2011, 2010 and 2009, respectively. As of October 2010, Pacific Hospital was no longer owned by Abrazos Healthcare, Inc. or any other related party to the Company.

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Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

13. Income Taxes

The provision for income taxes consisted of the following:

		September 30,			September 30,			September 30,
	Years Ended December 31,
	2011			2010			2009
	(in thousands)
Current:
Federal	$	28,336		$	36,395		$	9,421
State		1,639			2,144			(1,558	)
Total current		29,975			38,539			7,863
Deferred:
Federal		14,028			(4,717	)		1,924
State		(167	)		700			(2,498	)
Total deferred		13,861			(4,017	)		(574	)
Total provision for income taxes	$	43,836		$	34,522		$	7,289

A reconciliation of the effective income tax rate to the statutory federal income tax rate is as follows:

		September 30,			September 30,			September 30,
	Years Ended December 31,
	2011			2010			2009
	(in thousands)
Taxes on income at statutory federal tax rate (35)%	$	22,630		$	31,323		$	13,355
State income taxes, net of federal benefit		957			1,849			(2,637	)
Benefit for unrecognized tax benefits		(396	)		(57	)		(3,315	)
Nondeductible goodwill		20,485			—			—
Other		160			1,407			(114	)
Reported income tax expense		43,836			34,522			7,289

Our effective tax rate is based on expected income, statutory tax rates, and tax planning opportunities available to us in the various jurisdictions in which we operate. Significant management estimates and judgments are required in determining our effective tax rate. We are routinely under audit by federal, state, or local authorities regarding the timing and amount of deductions, nexus of income among various tax jurisdictions, and compliance with federal, state, and local tax laws. We have pursued various strategies to reduce our federal, state and local taxes. As a result, we have reduced our state income tax expense due to California enterprise zone credits.

During 2011, excess tax benefits from shared-based compensation were $937,000. This amount was recorded as a decrease to income taxes payable and an increase to additional paid-in capital. During 2010 and 2009, tax-related deficiencies on share-based compensation were $673,000 and $718,000, respectively. Such amounts were recorded as adjustments to income taxes payable with a corresponding decrease to additional paid-in capital.

Deferred tax assets and liabilities are classified as current or non-current according to the classification of the related asset or liability. Significant components of our deferred tax assets and liabilities as of December 31, 2011 and 2010 were as follows:

		September 30,			September 30,
	December 31,
	2011			2010
	(in thousands)
Accrued expenses	$	14,541		$	12,618
Reserve liabilities		1,292			877
State taxes		(396	)		(120	)
Other accrued medical costs		2,051			2,126
Net operating losses		27			27
Unrealized gains		(316	)		(254	)
Unearned premiums		4,139			3,517
Prepaid expenses		(3,032	)		(3,006	)
Other, net		21			(69	)
Deferred tax asset, net of valuation allowance — current		18,327			15,716
Accrued expenses		223			791
Reserve liabilities		3,015			3,071
State tax credit carryover		2,609			1,960
Net operating losses		2,694			1,362
Unrealized losses		1,176			1,559
Depreciation and amortization		(39,939	)		(20,110	)
Deferred compensation		7,904			6,829
Debt basis		(7,604	)		(9,673	)
Other, net		(278	)		(830	)
Valuation allowance		(2,927	)		(1,194	)
Deferred tax liability, net of valuation allowance — long term		(33,127	)		(16,235	)
Net deferred income tax liability	$	(14,800	)	$	(519	)

         At December 31, 2011, we had federal and state net operating loss carryforwards of $397,000 and $57 million, respectively. The federal net operating loss begins expiring in 2018, and state net operating losses begin expiring in 2013. The utilization of the net operating losses is subject to certain limitations under federal law.

At December 31, 2011, we had California enterprise zone tax credit carryovers of $4 million which do not expire.

We evaluate the need for a valuation allowance taking into consideration the ability to carry back and carry forward tax credits and losses, available tax planning strategies and future income, including reversal of temporary differences. We have determined that as of December 31, 2011, $2.9 million of deferred tax assets did not satisfy the recognition criteria due to uncertainty regarding the realization of some of our state tax operating loss carryforwards. We increased our valuation allowance $1.7 million from $1.2 million at December 31, 2010 to $2.9 million as of December 31, 2011.

We recognize tax benefits only if the tax position is more likely than not to be sustained. We are subject to income taxes in the U.S. and numerous state jurisdictions. Significant judgment is required in evaluating our tax positions and determining our provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. We establish reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when we believe that certain positions might be challenged despite our belief that our tax return positions are fully supportable. We adjust these reserves in light of changing facts and circumstances, such as the outcome of tax audits. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate.

The rollforward of our unrecognized tax benefits is as follows:

		September 30,			September 30,			September 30,
	Years Ended December 31,
	2011			2010			2009
	(in thousands)
Gross unrecognized tax benefits at beginning of period	$	(10,962	)	$	(4,128	)	$	(11,676	)
Increases in tax positions for prior years		(137	)		(6,891	)		(3,748	)
Decreases in tax positions for prior years		—			—			6,804
Settlements		—			—			4,355
Lapse in statute of limitations		387			57			137
Gross unrecognized tax benefits at end of period	$	(10,712	)	$	(10,962	)	$	(4,128	)

As of December 31, 2011, we had $10.7 million of unrecognized tax benefits of which $7.4 million, if fully recognized, would affect our effective tax rate. Approximately $8.4 million of the unrecognized tax benefits recorded at December 31, 2011 relate to a tax position claimed on a state refund claim that will not result in a cash payment for income taxes if our claim is denied. We expect that during the next 12 months it is reasonably possible that unrecognized tax benefit liabilities may decrease by as much as $8.9 million due the resolution to the state refund claim as well as the normal expiration of statute of limitations.

Our continuing practice is to recognize interest and/or penalties related to unrecognized tax benefits in income tax expense. As of December 31, 2011, December 31, 2010, and December 31, 2009, we had accrued $65,000, $82,000, and $75,000, respectively, for the payment of interest and penalties.

We may be subject to examination by the Internal Revenue Service ("IRS") for calendar years 2008 through 2011. We are under examination, or may be subject to examination, in certain state and local jurisdictions, with the major jurisdictions being California, Missouri, and Michigan, for the years 2004 through 2011. Our subsidiary, HCLB, entered into a closing agreement with the IRS in December 2009 that successfully concluded with certainty the IRS examination of HCLB for the year ended May 2006.

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Income Taxes (Details 3) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Unrecognized tax benefits roll forward
Gross unrecognized tax benefits at beginning of period	$ (10,962)	$ (4,128)	$ (11,676)
Increases in tax positions for prior years	(137)	(6,891)	(3,748)
Decreases in tax positions for prior years			6,804
Settlements			4,355
Lapse in statute of limitations	387	57	137
Gross unrecognized tax benefits at end of period	$ (10,712)	$ (10,962)	$ (4,128)

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Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets

9. Goodwill and Intangible Assets

Other intangible assets are amortized over their useful lives ranging from one to 15 years. The weighted average amortization period for contract rights and licenses is approximately 10 years, for customer relationships is approximately 5 years, for backlog is approximately 2 years, and for provider networks is approximately 10 years. Based on the balances of our identifiable intangible assets as of December 31, 2011, we estimate that our intangible asset amortization will be $22.2 million in 2012, $21.6 million in 2013, $16.9 million in 2014, $9.7 million in 2015, and $8.8 million in 2016. The following table provides the details of identified intangible assets, by major class, for the periods indicated. As described in Note 2, "Significant Accounting Policies," we recorded impairment charges to goodwill and intangible assets amounting to $58.5 million and $6.1 million, respectively, for the year ended December 31, 2011. For a description of our goodwill and intangible assets by reportable segment, refer to Note 19, "Segment Reporting."

		September 30,		September 30,		September 30,
	Cost		Accumulated Amortization		Net Balance
	(In thousands)
Intangible assets:
Contract rights and licenses	$	140,242	$	69,515	$	70,727
Customer relationships		24,550		8,546		16,004
Contract backlog		23,600		15,139		8,461
Provider networks		11,990		5,386		6,604
Balance at December 31, 2011	$	200,382	$	98,586	$	101,796
Intangible assets:
Contract rights and licenses	$	121,017	$	64,201	$	56,816
Customer relationships		24,550		3,418		21,132
Contract backlog		23,600		8,316		15,284
Provider networks		18,525		6,257		12,268
Balance at December 31, 2010	$	187,692	$	82,192	$	105,500

The changes in the carrying amount of goodwill and indefinite-lived intangible assets were as follows (in thousands):

		September 30,
Balance as of December 31, 2010	$	212,228
Impairment of Missouri health plan goodwill		(58,530	)
Goodwill adjustments relating to the acquisitions of Molina Medicaid Solutions and the Wisconsin health plan		256
Balance at December 31, 2011	$	153,954

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Fair Value Measurements (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Schedule of Available-for-sale Securities [Line Items]
Pretax unrealized gains	$ 841,000	$ 1,001,000
Pretax unrealized losses	3,108,000	4,376,000
Fair Value Measurements (Textual) [Abstract]
Convertible senior notes	169,526,000	164,014,000
Convertible senior notes fair value	192,000,000	188,400,000
Trading securities par value		40,900,000
Trading securities fair value		36,700,000
Impairment of goodwill and intangible assets	(64,575,000)
Auction rate securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair value of investments	16,100,000
Par value of investments	19,000,000
Pretax unrealized gains	1,200,000
Pretax unrealized losses		200,000
Pretax gains on fair value of rights		4,200,000
Pretax losses on fair value of rights	3,800,000
Value of rights		$ 0

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Receivables

12 Months Ended

Dec. 31, 2011

Receivables [Abstract]

Receivables

7. Receivables

Health Plans segment receivables consist primarily of amounts due from the various states in which we operate. Such receivables are subject to potential retroactive adjustment. Because all of our receivable amounts are readily determinable and our creditors are in almost all instances state governments, our allowance for doubtful accounts is immaterial. Any amounts determined to be uncollectible are charged to expense when such determination is made. Accounts receivable were as follows:

		September 30,		September 30,
	December 31,
	2011		2010
	(In thousands)
Health Plans segment:
California	$	22,175	$	46,482
Michigan		8,864		13,596
Missouri		27,092		22,841
New Mexico		9,350		18,310
Ohio		27,458		21,622
Texas		1,608		1,221
Utah		2,825		1,589
Washington		15,006		14,486
Wisconsin		4,909		5,437
Others		2,489		2,377
Total Health Plans segment		121,776		147,961
Molina Medicaid Solutions segment		46,122		20,229
	$	167,898	$	168,190

During the second quarter of 2011, we settled certain claims we had made against the state of Utah regarding the savings share provision of our contract in effect from 2003 through June of 2009. Additionally, we recognized a liability for certain overpayments received from the state for the period 2003 through 2009. As a result of these developments, we recognized $6.9 million in premium revenue without any corresponding charge to expense during the second quarter of 2011.

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Property, Equipment, and Capitalized Software

12 Months Ended

Dec. 31, 2011

Property and Equipment [Abstract]

Property, Equipment, and Capitalized Software

8. Property, Equipment, and Capitalized Software

A summary of property and equipment is as follows:

		September 30,			September 30,
	December 31,
	2011			2010
	(In thousands)
Land	$	14,094		$	3,524
Building and improvements		109,789			49,735
Furniture and equipment		79,112			60,074
Capitalized software		116,389			90,003
		319,384			203,336
Less: accumulated depreciation and amortization on building and improvements, furniture and equipment		(65,518	)		(54,341	)
Less: accumulated amortization for capitalized software		(62,932	)		(48,458	)
		(128,450	)		(102,799	)
Property, equipment, and capitalized software, net	$	190,934		$	100,537

Depreciation recognized for building and improvements, and furniture and equipment was $17.5 million, $13.9 million, and $11.0 million for the years ended December 31, 2011, 2010 and 2009, respectively. Amortization of capitalized software was $30.2 million, $20.1 million, and $14.2 million for the years ended December 31, 2011, 2010 and 2009, respectively.

Molina Center

As described in Note 4, "Business Combinations," we acquired the Molina Center in December 2011. As of December 31, 2011, the carrying amount of the building was $42.9 million, and accumulated depreciation was insignificant. Future minimum rentals on noncancelable leases are as follows:

		September 30,
	(In thousands)
2012	$	5,943
2013		6,053
2014		4,395
2015		4,545
2016		4,749
Thereafter		32,310
Total minimum future rentals	$	57,995

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Restricted Investments

12 Months Ended

Dec. 31, 2011

Investments [Abstract]

Restricted Investments

10. Restricted Investments

Pursuant to the regulations governing our health plan subsidiaries, we maintain statutory deposits and deposits required by state Medicaid authorities in certificates of deposit and U.S. treasury securities. Additionally, we maintain restricted investments as protection against the insolvency of certain capitated providers. The following table presents the balances of restricted investments by health plan, and for our insurance company:

		September 30,		September 30,
	December 31,
	2011		2010
	(In thousands)
California	$	372	$	372
Florida		5,198		4,508
Insurance Company		4,711		4,689
Michigan		1,000		1,000
Missouri		504		508
New Mexico		15,905		15,881
Ohio		9,078		9,066
Texas		3,518		3,501
Utah		2,895		1,279
Washington		151		151
Wisconsin		—		260
Other		2,832		885
	$	46,164	$	42,100

The contractual maturities of our held-to-maturity restricted investments as of December 31, 2011 are summarized below.

		September 30,		September 30,
	Amortized Cost		Estimated Fair Value
	(In thousands)
Due in one year or less	$	36,900	$	36,909
Due one year through five years		9,264		9,307
	$	46,164	$	46,216

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Investments (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Investments (Textual) [Abstract]
Total proceeds from sales and maturities of available-for-sale securities	$ 302,700,000	$ 182,300,000	$ 201,900,000
Realized Investment Gains (Losses)	$ 367,000	$ 110,000	$ 267,000

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Income Taxes (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Operating Loss Carryforwards [Line Items]
Unrecognized tax benefits	$ 10,712,000	$ 10,962,000	$ 4,128,000	$ 11,676,000
Income Taxes (Textual) [Abstract]
Taxes on income at statutory federal tax rate	35.00%
Tax-related deficiencies on share-based compensation	937,000	673,000	718,000
California enterprise zone tax credit carryovers	4,000,000
Deferred tax assets	2,900,000
Valuation allowance operating loss		1,700,000
Valuation allowance	(2,927,000)	(1,194,000)
Tax benefits fully recognized	7,400,000
Liability for unrecognized tax benefits	8,900,000
Payment of interest and penalties	65,000	82,000	75,000
State [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	57,000,000
Unrecognized tax benefits related to state refund claim	8,400,000
Domestic Country [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 397,000

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Receivables (Details Textual) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jun. 30, 2011
Receivables (Textual) [Abstract]
Premium revenue without corresponding charge	$ 6.9

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Condensed Financial Information of Registrant (Details Textual) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	80,000	80,000
Common stock, shares outstanding	45,815	45,463
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000	20,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Carrying amount for investment	$ 3.9	$ 3.8
Payments To Related Party Under Fee For Services Agreement	0.7	1.0	0.7
Parent Company [Member]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	80,000	80,000
Common stock, shares outstanding	45,815	45,463
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000	20,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Services revenue from subsidiaries	307.9	238.5	218.6
Total dividends received from subsidiaries	76.6	81.3	76.7
Payments for contributions made to subsidiaries	58.4	10.5	54.7
Carrying amount for investment		3.9	3.8
Payments for medical service fees to related party	24.3	22.0	21.8
Payments To Related Party Under Fee For Services Agreement	$ 0.7	$ 1.0	$ 0.7

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Investments (Details 2) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Available-for-sale investments
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value	$ 96,292	$ 78,865
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses	242	261
In a Continuous Loss Position for 12 Months or More, Estimated Fair value	16,134	22,297
In a Continuous Loss Position for 12 Months or More, Unrealized Losses	2,866	4,115
Total, Estimated Fair Value	112,426	101,162
Total, Unrealized Losses	3,108	4,376
Corporate debt securities [Member]
Available-for-sale investments
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value	72,766	55,578
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses	215	167
In a Continuous Loss Position for 12 Months or More, Estimated Fair value	0	1,848
In a Continuous Loss Position for 12 Months or More, Unrealized Losses	0	14
Total, Estimated Fair Value	72,766	57,426
Total, Unrealized Losses	215	181
Government-sponsored enterprise securities [Member]
Available-for-sale investments
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value	11,493	7,244
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses	9	26
In a Continuous Loss Position for 12 Months or More, Estimated Fair value	0	0
In a Continuous Loss Position for 12 Months or More, Unrealized Losses	0	0
Total, Estimated Fair Value	11,493	7,244
Total, Unrealized Losses	9	26
Municipal securities [Member]
Available-for-sale investments
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value	12,033	12,629
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses	18	31
In a Continuous Loss Position for 12 Months or More, Estimated Fair value	0	0
In a Continuous Loss Position for 12 Months or More, Unrealized Losses	0	0
Total, Estimated Fair Value	12,033	12,629
Total, Unrealized Losses	18	31
Auction rate securities [Member]
Available-for-sale investments
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value	0	0
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses	0	0
In a Continuous Loss Position for 12 Months or More, Estimated Fair value	16,134	20,449
In a Continuous Loss Position for 12 Months or More, Unrealized Losses	2,866	4,101
Total, Estimated Fair Value	16,134	20,449
Total, Unrealized Losses	2,866	4,101
U.S. treasury notes [Member]
Available-for-sale investments
In a Continuous Loss Position for Less than 12 Months, Estimated Fair Value		3,414
In a Continuous Loss Position for Less than 12 Months, Unrealized Losses		37
In a Continuous Loss Position for 12 Months or More, Estimated Fair value		0
In a Continuous Loss Position for 12 Months or More, Unrealized Losses		0
Total, Estimated Fair Value		3,414
Total, Unrealized Losses		$ 37

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Share-Based Compensation (Details Textual) (USD $)	12 Months Ended		1 Months Ended				12 Months Ended
	Dec. 31, 2011 years	Dec. 31, 2010	Mar. 31, 2011 Chief Executive Officer [Member]	Mar. 31, 2011 Chief Financial Officer [Member]	Mar. 31, 2011 Chief Operating Officer [Member]	Dec. 31, 2011 2011 Plan [Member]	Dec. 31, 2011 Employee Stock Purchase Plan [Member]	Dec. 31, 2011 Restricted stock awards [Member]	Dec. 31, 2010 Restricted stock awards [Member]	Dec. 31, 2009 Restricted stock awards [Member]	Dec. 31, 2011 Stock options [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Shares awarded			150,000	112,500	27,000
Issuance of shares of common stock						4,500,000	3,000,000
Total fair value of restricted shares granted								$ 18,400,000	$ 12,700,000	$ 8,000,000
Total fair value of restricted shares vested								12,200,000	6,400,000	3,200,000
Fair market value of common stock, Percentage							85.00%
Maximum purchase amount under plan for participants							25,000
Unrecognized compensation forfeited rate							6.60%
Vesting Period, Maximum								upto 4 years			upto 4 years
Maximum Term from the date of grant											10 years
Share-Based Compensation (Textual) [Abstract]
Minimum operating revenue for vesting of awards	3,700,000,000
Unrecognized compensation expense	$ 14,200,000
Employee stock grants and employee stock plan purchases, shares	201,700	164,700
Weighted average period	1.8

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Investments (Tables)

12 Months Ended

Dec. 31, 2011

Investments [Abstract]

Investments

		September 30,		September 30,		September 30,		September 30,
	December 31, 2011
	Amortized		Gross Unrealized				Estimated
	Cost		Gains		Losses		Fair Value
	(In thousands)
Corporate debt securities	$	231,407	$	442	$	215	$	231,634
GSEs		33,912		46		9		33,949
Municipal securities		47,099		232		18		47,313
U.S. treasury notes		21,627		121		—		21,748
Auction rate securities		19,000		—		2,866		16,134
Certificates of deposit		2,272		—		—		2,272
	$	355,317	$	841	$	3,108	$	353,050

		September 30,		September 30,		September 30,		September 30,
	December 31, 2010
	Amortized		Gross Unrealized				Estimated
	Cost		Gains		Losses		Fair Value
	(In thousands)
Corporate debt securities	$	177,692	$	419	$	182	$	177,929
GSEs		59,386		353		26		59,713
Municipal securities		30,483		111		31		30,563
U.S. treasury notes		23,836		118		36		23,918
Auction rate securities		24,550		—		4,101		20,449
Certificates of deposit		3,252		—		—		3,252
	$	319,199	$	1,001	$	4,376	$	315,824

Contractual maturities of investments

		September 30,		September 30,
	Amortized		Estimated
	Cost		Fair Value
	(In thousands)
Due in one year or less	$	183,607	$	183,775
Due one year through five years		153,210		153,573
Due after ten years		18,500		15,702
	$	355,317	$	353,050

Available-for-sale investments

		September 30,		September 30,		September 30,		September 30,		September 30,		September 30,
	In a Continuous Loss				In a Continuous Loss
	Position				Position
	for Less than 12 Months				for 12 Months or More				Total
	Estimated				Estimated				Estimated
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
Corporate debt securities	$	72,766	$	215	$	—	$	—	$	72,766	$	215
GSEs		11,493		9		—		—		11,493		9
Municipal securities		12,033		18		—		—		12,033		18
Auction rate securities		—		—		16,134		2,866		16,134		2,866
	$	96,292	$	242	$	16,134	$	2,866	$	112,426	$	3,108

		September 30,		September 30,		September 30,		September 30,		September 30,		September 30,
	In a Continuous Loss				In a Continuous Loss
	Position				Position
	for Less than 12 Months				for 12 Months or More				Total
	Estimated				Estimated				Estimated
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
Corporate debt securities	$	55,578	$	167	$	1,848	$	14	$	57,426	$	181
GSEs		7,244		26		—		—		7,244		26
Municipal securities		12,629		31		—		—		12,629		31
Auction rate securities		—		—		20,449		4,101		20,449		4,101
U.S. treasury notes		3,414		37		—		—		3,414		37
	$	78,865	$	261	$	22,297	$	4,115	$	101,162	$	4,376

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Significant Accounting Policies (Details 3) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Health Care Organization, Expenses, Gross [Abstract]
Fee-for-service	$ 2,764,309,000	$ 2,360,858,000	$ 2,077,489,000
Capitation	518,835,000	555,487,000	558,538,000
Pharmacy	418,007,000	325,935,000	414,785,000
Other	158,843,000	128,577,000	125,424,000
Total	3,859,994,000	3,370,857,000	3,176,236,000
Percentage of total in Fee for service	71.60%	70.00%	65.40%
Percentage of total in capitation	13.40%	16.50%	17.60%
Percentage of total in pharmacy	10.80%	9.70%	13.10%
Percentage of total in other	4.20%	3.80%	3.90%
Percentage of total	100.00%	100.00%	100.00%
PMPM [Member]
Health Care Organization, Expenses, Gross [Abstract]
Fee-for-service	139.02	128.73	126.14
Capitation	26.09	30.29	33.91
Pharmacy	21.02	17.77	25.18
Other	8.00	7.01	7.62
Total	$ 194.13	$ 183.80	$ 192.85

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Employee Benefits

12 Months Ended

Dec. 31, 2011

Employee Benefits [Abstract]

Employee Benefits

15. Employee Benefits

We sponsor a defined contribution 401(k) plan that covers substantially all full-time salaried and hourly employees of our company and its subsidiaries. Eligible employees are permitted to contribute up to the maximum amount allowed by law. We match up to the first 4% of compensation contributed by employees. Expense recognized in connection with our contributions to the 401(k) plan totaled $8.5 million, $5.9 million and $4.7 million in the years ended December 31, 2011, 2010, and 2009, respectively.

We also have a nonqualified deferred compensation plan for certain key employees. Under this plan, eligible participants may defer up to 100% of their base salary and 100% of their bonus to provide tax-deferred growth for retirement. The funds deferred are invested in corporate-owned life insurance, under a rabbi trust.

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Quarterly Results of Operations (Unaudited)

12 Months Ended

Dec. 31, 2011

Quarterly Results of Operations [Abstract]

Quarterly Results of Operations (Unaudited)

20. Quarterly Results of Operations (Unaudited)

The following is a summary of the quarterly results of operations for the years ended December 31, 2011 and 2010.

		September 30,		September 30,		September 30,		September 30,
	For The Quarter Ended,
	March 31, 2011		June 30, 2011		September 30, 2011		December 31, 2011
	(In thousands)
Premium revenue	$	1,081,438	$	1,128,770	$	1,138,230	$	1,254,969
Service revenue		36,674		36,888		37,728		49,157
Operating income		31,300		31,410		33,566		(16,103	)
Income before income taxes		27,697		27,727		29,186		(19,956	)
Net income		17,388		17,440		18,950		(32,960	)
Net income per share (1):
Basic	$	0.38	$	0.38	$	0.41	$	(0.72	)
Diluted	$	0.38	$	0.38	$	0.41	$	(0.72	)

		September 30,		September 30,		September 30,		September 30,
	For The Quarter Ended,
	March 31, 2010		June 30, 2010		September 30, 2010		December 31, 2010
	(In thousands)
Premium revenue	$	965,220	$	976,685	$	1,005,115	$	1,042,889
Service revenue		—		21,054		32,271		36,484
Operating income		20,438		21,178		29,953		33,432
Income before income taxes		17,081		17,079		25,353		29,979
Net income		10,590		10,579		16,173		17,628
Net income per share (1)(2):
Basic	$	0.28	$	0.27	$	0.38	$	0.39
Diluted	$	0.27	$	0.27	$	0.38	$	0.39

(1) All applicable share and per-share amounts reflect retroactive effects of the three-for-two common stock split in the form of a stock dividend that was effective May 20, 2011.

(2) Potentially dilutive shares issuable pursuant to our 2007 offering of convertible senior notes were not included in the computation of diluted net income per share because to do so would have been anti-dilutive for the years ended December 31, 2011, and 2010.

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Commitments and Contingencies (Details Textual) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Malpractice Insurance [Line Items]
Professional liability insurance, maximum coverage per occurrence		$ 15.0
Professional liability insurance, coverage limit		15.0
Proceeds loaned to subsidiary	5.9
Commitments and Contingencies (Textual) [Abstract]
Rental expense related to leases		23.1	25.1	20.8
Initial terms of employment agreements		one to three years
Extensions related to employment agreements		1 year
Period of employment agreements		18 months
Termination period of employment agreements		2 years
Period of welfare benefits		3 years
Net assets of subsidiaries subject to restrictions	492.4	492.4	397.8
Aggregate statutory capital and surplus	509.9	509.9
Required minimum statutory capital surplus	265.7	265.7
Percentage of original investment amount		39.00%
Period of claim for credit of original investment amount		7 years
Percentage of credit claimed for first three years		5.00%
Percentage of credit claimed for remaining four years		6.00%
Capital contribution by related party		5.9
Loan in principal amount		15.5
Deferred financing costs	1.2	1.2
Percentage recapture for period of seven years as provided in Internal Revenue Code		100.00%
Washington Health Plan [Member]
Malpractice Insurance [Line Items]
Professional liability insurance, maximum coverage per occurrence		1.0	1.0
Professional liability insurance, coverage limit		3.0	3.0
Virginia [Member]
Malpractice Insurance [Line Items]
Professional liability insurance, maximum coverage per occurrence		2.0	2.0
Professional liability insurance, coverage limit		6.0	6.0
California Health Plan [Member]
Malpractice Insurance [Line Items]
Professional liability insurance, maximum coverage per occurrence		1.0	1.0	1.0
Professional liability insurance, coverage limit		3.0	3.0	3.0
New Mexico data center [Member]
Malpractice Insurance [Line Items]
Proceeds loaned to subsidiary	$ 20.9

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Significant Accounting Policies (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Summarized premium revenue
Premium revenue	$ 1,254,969	$ 1,138,230	$ 1,128,770	$ 1,081,438	$ 1,042,889	$ 1,005,115	$ 976,685	$ 965,220	$ 4,603,407	$ 3,989,909	$ 3,660,207
California Health Plan [Member]
Summarized premium revenue
Premium revenue									575,176	506,871	481,717
Florida Health Plan [Member]
Summarized premium revenue
Premium revenue									203,945	170,683	102,232
Michigan Health Plan [Member]
Summarized premium revenue
Premium revenue									662,127	630,134	557,421
Missouri Health Plan [Member]
Summarized premium revenue
Premium revenue									229,584	210,852	230,222
New Mexico Health Plan [Member]
Summarized premium revenue
Premium revenue									345,732	366,784	404,026
Ohio Health Plan [Member]
Summarized premium revenue
Premium revenue									988,896	860,324	803,521
Texas Health Plan [Member]
Summarized premium revenue
Premium revenue									409,295	188,716	134,860
Utah Health Plan [Member]
Summarized premium revenue
Premium revenue									287,290	258,076	207,297
Washington Health Plan [Member]
Summarized premium revenue
Premium revenue									823,323	758,849	726,137
Wisconsin Health Plan [Member]
Summarized premium revenue
Premium revenue									69,596	30,033
Other Health Plan [Member]
Summarized premium revenue
Premium revenue									$ 8,443	$ 8,587	$ 12,774

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Provision for income taxes

		September 30,			September 30,			September 30,
	Years Ended December 31,
	2011			2010			2009
	(in thousands)
Current:
Federal	$	28,336		$	36,395		$	9,421
State		1,639			2,144			(1,558	)
Total current		29,975			38,539			7,863
Deferred:
Federal		14,028			(4,717	)		1,924
State		(167	)		700			(2,498	)
Total deferred		13,861			(4,017	)		(574	)
Total provision for income taxes	$	43,836		$	34,522		$	7,289

Effective income tax rate reconciliation to the statutory federal income tax rate

		September 30,			September 30,			September 30,
	Years Ended December 31,
	2011			2010			2009
	(in thousands)
Taxes on income at statutory federal tax rate (35)%	$	22,630		$	31,323		$	13,355
State income taxes, net of federal benefit		957			1,849			(2,637	)
Benefit for unrecognized tax benefits		(396	)		(57	)		(3,315	)
Nondeductible goodwill		20,485			—			—
Other		160			1,407			(114	)
Reported income tax expense		43,836			34,522			7,289

Significant components of deferred tax assets and liabilities

		September 30,			September 30,
	December 31,
	2011			2010
	(in thousands)
Accrued expenses	$	14,541		$	12,618
Reserve liabilities		1,292			877
State taxes		(396	)		(120	)
Other accrued medical costs		2,051			2,126
Net operating losses		27			27
Unrealized gains		(316	)		(254	)
Unearned premiums		4,139			3,517
Prepaid expenses		(3,032	)		(3,006	)
Other, net		21			(69	)
Deferred tax asset, net of valuation allowance — current		18,327			15,716
Accrued expenses		223			791
Reserve liabilities		3,015			3,071
State tax credit carryover		2,609			1,960
Net operating losses		2,694			1,362
Unrealized losses		1,176			1,559
Depreciation and amortization		(39,939	)		(20,110	)
Deferred compensation		7,904			6,829
Debt basis		(7,604	)		(9,673	)
Other, net		(278	)		(830	)
Valuation allowance		(2,927	)		(1,194	)
Deferred tax liability, net of valuation allowance — long term		(33,127	)		(16,235	)
Net deferred income tax liability	$	(14,800	)	$	(519	)

Unrecognized tax benefits roll forward

		September 30,			September 30,			September 30,
	Years Ended December 31,
	2011			2010			2009
	(in thousands)
Gross unrecognized tax benefits at beginning of period	$	(10,962	)	$	(4,128	)	$	(11,676	)
Increases in tax positions for prior years		(137	)		(6,891	)		(3,748	)
Decreases in tax positions for prior years		—			—			6,804
Settlements		—			—			4,355
Lapse in statute of limitations		387			57			137
Gross unrecognized tax benefits at end of period	$	(10,712	)	$	(10,962	)	$	(4,128	)

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Consolidated Statements of Stockholders' Equity (USD $) In Thousands, except Share data, unless otherwise specified		Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Loss	Retained Earnings	Treasury Stock	Total
Beginning Balance at Dec. 31, 2008		$ 40	[1]	$ 170,668	[1]	$ (2,310)	$ 383,754	$ (20,390)	$ 531,762
Beginning Balance, shares at Dec. 31, 2008		40,087,000	[1]						40,088,000
Comprehensive income:
Net income							30,868		30,868
Other comprehensive income, net of tax:
Unrealized gain/loss on investments						498			498
Total Comprehensive income						498	30,868		31,366
Purchase of treasury stock								(27,712)	(27,712)
Retirement of treasury stock		2	[1]	(48,100)	[1]			48,102
Retirement of treasury stock, shares	[1]	(2,028,000)
Retirement of convertible debt				(476)	[1]				(476)
Employee stock grants and employee stock plan purchases				8,516	[1]				8,516
Employee stock grants and employee stock plan purchases, shares	[1]	351,000
Tax benefit (deficiency) from employee stock compensation				(718)	[1]				(718)
Ending Balance at Dec. 31, 2009		38	[1]	129,890	[1]	(1,812)	414,622		542,738
Ending Balance, shares at Dec. 31, 2009		38,410,000	[1]						38,410,000
Comprehensive income:
Net income							54,970		54,970
Other comprehensive income, net of tax:
Unrealized gain/loss on investments						(380)			(380)
Total Comprehensive income						(380)	54,970		54,590
Common stock issued, net of issuance costs		7	[1]	111,124	[1]				111,131
Common stock issued, net of issuance costs, shares	[1]	6,525,000
Employee stock grants and employee stock plan purchases				11,271	[1]				11,271
Employee stock grants and employee stock plan purchases, shares		528,000	[1]						164,700
Tax benefit (deficiency) from employee stock compensation				(673)	[1]				(673)
Ending Balance at Dec. 31, 2010		45	[1]	251,612	[1]	(2,192)	469,592		719,057
Ending Balance, shares at Dec. 31, 2010		45,463,000	[1]						45,463,000
Comprehensive income:
Net income							20,818		20,818
Other comprehensive income, net of tax:
Unrealized gain/loss on investments						787			787
Total Comprehensive income						787	20,818		21,605
Purchase of treasury stock								(7,000)	(7,000)
Retirement of treasury stock				(7,000)	[1]			7,000	0
Retirement of treasury stock, shares	[1]	(400,000)
Employee stock grants and employee stock plan purchases		1	[1]	20,473	[1]				20,474
Employee stock grants and employee stock plan purchases, shares		752,000	[1]						201,700
Tax benefit (deficiency) from employee stock compensation				937	[1]				937
Ending Balance at Dec. 31, 2011		$ 46	[1]	$ 266,022	[1]	$ (1,405)	$ 490,410	$ 0	$ 755,073
Ending Balance, shares at Dec. 31, 2011	[1]	45,815,000

[1] All applicable share and per-share amounts reflect the retroactive effects of the three-for-two common stock split in the form of a stock dividend that was effective May 20, 2011.

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Share-Based Compensation (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Stock based compensation expense
Stock based compensation expense-Pretax charges	$ 17,052	$ 9,531	$ 7,485
Stock based compensation expense Net-of-Tax Amount	10,658	6,004	4,641
Restricted stock awards [Member]
Stock based compensation expense
Stock based compensation expense-Pretax charges	15,914	8,007	5,789
Stock based compensation expense Net-of-Tax Amount	9,946	5,044	3,589
Stock options [Member]
Stock based compensation expense
Stock based compensation expense-Pretax charges	1,138	1,524	1,696
Stock based compensation expense Net-of-Tax Amount	$ 712	$ 960	$ 1,052

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Business Combinations

12 Months Ended

Dec. 31, 2011

Business Combinations [Abstract]

Business Combinations

4. Business Combinations

Molina Center

On December 7, 2011, our wholly owned subsidiary Molina Center LLC closed on its acquisition of the 460,000 square foot office building located in Long Beach, California. The building, or Molina Center, consists of two conjoined fourteen-story office towers on approximately five acres of land. For the last several years we have leased approximately 155,000 square feet of the Molina Center for use as our corporate headquarters and also for use by our California health plan subsidiary. The final purchase price was $81 million, which amount was paid with a combination of cash on hand and bank financing under a term loan agreement (see Note 12, "Long-Term Debt"). This business combination included the acquisition of the business interests associated with the Molina Center, such as leases to third-party tenants in place as of the acquisition date, and the day-to-day management and operations of the Molina Center. We acquired this business primarily to facilitate space needs for the projected future growth of the Company.

We have recorded $0.5 million in rental income in 2011 since the acquisition date. We incurred approximately $2.3 million and $0.2 million in transaction costs relating to this acquisition in 2011 and 2010, respectively, recorded to general and administrative expenses. Additionally, we recorded $0.6 million in deferred loan costs that are being amortized over the seven-year term of the loan.

Recording of assets acquired: The transaction has been accounted for using the acquisition method of accounting which requires, among other things, that most assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The following table summarizes the acquisition-date fair values of the assets acquired as of December 7, 2011 (in thousands):

		September 30,
Allocation of purchase price:
Building and improvements	$	43,116
Land		10,570
Identifiable intangible assets		28,990
		82,676
Less fair value of total consideration:
Cash paid		32,400
Term loan		48,600
Gain on acquisition	$	1,676

A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. Results that differ from the estimates and judgments used to determine the estimated fair value assigned to each class of assets acquired, as well as asset lives, can materially impact our results of operations.

Building and improvements: The fair value of the building amounted to $42.9 million, and will be amortized over a remaining useful life of 25 years. The fair value of improvements amounted to $0.2 million, to be amortized over a remaining useful life of 5 years.

Identifiable intangible assets: The fair value of the identifiable intangible assets we acquired amounted to $29.0 million, and was attributable to the value assigned to in-place leases of the Molina Center as of the acquisition date. This intangible asset has a weighted average useful life of 6.4 years. Accumulated amortization was approximately $0.4 million as of December 31, 2011, which reflects total amortization recorded since the acquisition date. For identifiable intangible assets recorded as of December 31, 2011, we expect to record amortization in future years as follows — 2012: $5.7 million, 2013: $5.6 million, 2014: $3.8 million, 2015: $3.5 million, and 2016: $3.1 million.

Gain on acquisition: In this acquisition, the fair value of the assets acquired exceeded the fair value of the total consideration paid by $1.7 million, resulting in a bargain purchase gain. This gain was recorded to general and administrative expenses in the accompanying consolidated income statement.

Wisconsin Health Plan

On September 1, 2010, we acquired 100% of the voting equity interests in Avatar Partners, LLC, which was the sole shareholder of Abri Health Plan, Inc., a Medicaid managed care organization based in Milwaukee, Wisconsin. Based on the final membership reconciliation performed in the first quarter of 2011, the final purchase price increased to $16.8 million as of December 31, 2011, from $15.5 million as of December 31, 2010. The $1.3 million increase was recorded to goodwill in 2011.

Additionally, we recorded a $2.8 million liability for contingent consideration in December 2010, based on an estimate of the Wisconsin health plan's minimum surplus requirements as of February 1, 2011. This liability was measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 in the fair value measurement hierarchy. In 2011, we determined that there was no liability for contingent consideration. The following table presents a roll forward of this liability for 2011:

		September 30,
	Fair Value
	Hierarchy Level 3
	(In thousands)
Balance at December 31, 2010	$	(2,800	)
Total gains included in earnings		2,800
Balance at December 31, 2011	$	—

Molina Medicaid Solutions

On May 1, 2010, we acquired Molina Medicaid Solutions, previously an operating unit of Unisys Corporation for a purchase price of $131.3 million. Molina Medicaid Solutions provides design, development, implementation, and business process outsourcing solutions to state governments for their Medicaid Management Information Systems. In the first quarter of 2011, we recorded a $1.0 million reduction to goodwill to adjust certain acquisition date accruals as a result of information obtained regarding facts and circumstances that existed as of the acquisition date.

Florida Health Plan

On December 31, 2009, we acquired 100% of the voting equity interests in Florida NetPASS, LLC, or NetPASS. The final purchase price for this acquisition totalled $29.6 million. In 2010 we entered into arbitration with the sellers of NetPASS regarding certain alleged breaches of contract. That arbitration was settled prior to final hearing in December 2011 for $4.1 million paid to the sellers. This amount is recorded to general and administrative expenses in the accompanying consolidated income statements.

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Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	$ 353,050	$ 315,824
Level 1 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	55,697	83,631
Level 2 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	281,219	211,744
Level 3 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	16,134	20,449
Corporate debt securities [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	231,634	177,929
Corporate debt securities [Member] | Level 1 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	0	0
Corporate debt securities [Member] | Level 2 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	231,634	177,929
Corporate debt securities [Member] | Level 3 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	0	0
Government-sponsored enterprise securities [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	33,949	59,713
Government-sponsored enterprise securities [Member] | Level 1 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	33,949	59,713
Government-sponsored enterprise securities [Member] | Level 2 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	0	0
Government-sponsored enterprise securities [Member] | Level 3 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	0	0
Municipal securities [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	47,313	30,563
Municipal securities [Member] | Level 1 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	0	0
Municipal securities [Member] | Level 2 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	47,313	30,563
Municipal securities [Member] | Level 3 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	0	0
U.S. treasury notes [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	21,748	23,918
U.S. treasury notes [Member] | Level 1 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	21,748	23,918
U.S. treasury notes [Member] | Level 2 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	0	0
U.S. treasury notes [Member] | Level 3 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	0	0
Certificates of deposit [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	2,272	3,252
Certificates of deposit [Member] | Level 1 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	0	0
Certificates of deposit [Member] | Level 2 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	2,272	3,252
Certificates of deposit [Member] | Level 3 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	0	0
Auction rate securities [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	16,134	20,449
Auction rate securities [Member] | Level 1 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	0	0
Auction rate securities [Member] | Level 2 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	0	0
Auction rate securities [Member] | Level 3 [Member]
Fair value of assets measured on recurring basis
Fair value of assets measured on recurring basis	$ 16,134	$ 20,449

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Income Taxes (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Effective income tax rate reconciliation to the statutory federal income tax rate
Taxes on income at statutory federal tax rate (35)%	$ 22,630	$ 31,323	$ 13,355
State income taxes, net of federal benefit	957	1,849	(2,637)
Benefit for unrecognized tax benefits	(396)	(57)	(3,315)
Nondeductible goodwill	20,485
Other	160	1,407	(114)
Total provision for income taxes	$ 43,836	$ 34,522	$ 7,289

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Property, Equipment, and Capitalized Software (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Property, Equipment, and Capitalized Software (Textual) [Abstract]
Property, Plant and Equipment, Net	$ 190,934,000	$ 100,537,000
Building and improvements, and furniture and equipment [Member]
Property, Equipment, and Capitalized Software (Textual) [Abstract]
Depreciation expense recognized	17,500,000	13,900,000	11,000,000
Capitalized software [Member]
Property, Equipment, and Capitalized Software (Textual) [Abstract]
Amortization of capitalized software	30,200,000	20,100,000	14,200,000
Molina Center [Member] | Building [Member]
Property, Equipment, and Capitalized Software (Textual) [Abstract]
Property, Plant and Equipment, Net	$ 42,900,000

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Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2011

Condensed Financial Information of Registrant [Abstract]

Condensed Financial Information of Registrant

21. Condensed Financial Information of Registrant

Following are our parent company only condensed balance sheets as of December 31, 2011 and 2010, and our condensed statements of income and condensed statements of cash flows for each of the three years in the period ended December 31, 2011.

Condensed Balance Sheets

		September 30,			September 30,
	December 31,
	2011			2010
	(Amounts in thousands, except per-share data)
ASSETS
Current assets:
Cash and cash equivalents	$	14,650		$	57,020
Investments		2,010			2,000
Income tax refundable		14,126			1,928
Deferred income taxes		9,133			7,006
Due from affiliates		60,569			19,059
Prepaid and other current assets		10,467			11,009
Total current assets		110,955			98,022
Property and equipment, net		82,437			81,445
Goodwill		53,769			58,719
Auction rate securities		4,694			6,046
Investments in subsidiaries		740,345			702,096
Advances to related parties and other assets		32,473			16,397
	$	1,024,673		$	962,725
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	71,392		$	56,910
Long-term debt		169,526			164,014
Deferred income taxes		16,909			8,425
Other long-term liabilities		11,773			14,319
Total liabilities		269,600			243,668
Stockholders' equity (1):
Common stock, $0.001 par value; 80,000 shares authorized; outstanding:
45,815 shares at December 31, 2011 and 45,463 shares at December 31, 2010		46			45
Preferred stock, $0.001 par value; 20,000 shares authorized, no shares issued and outstanding		—			—
Paid-in capital		266,022			251,612
Accumulated other comprehensive loss		(1,405	)		(2,192	)
Retained earnings		490,410			469,592
Total stockholders' equity		755,073			719,057
	$	1,024,673		$	962,725

⁽¹⁾ All applicable share and per-share amounts reflect the retroactive effects of the three-for-two common stock split in the form of a stock dividend that was effective May 20, 2011.

Condensed Statements of Income

		September 30,			September 30,			September 30,
	Year Ended December 31,
	2011			2010			2009
	(In thousands)
Revenue:
Management fees and other operating revenue	$	308,287		$	238,883		$	218,911
Investment income		81			1,153			1,540
Total revenue		308,368			240,036			220,451
Expenses:
Medical care costs		31,672			30,582			26,865
General and administrative expenses		272,302			218,834			160,792
Depreciation and amortization		31,355			27,166			25,223
Total expenses		335,329			276,582			212,880
Gain on purchase of convertible senior notes		—			—			1,532
Operating (loss) income		(26,961	)		(36,546	)		9,103
Interest expense		14,958			15,500			13,770
Loss before income taxes and equity in net income of subsidiaries		(41,919	)		(52,046	)		(4,667	)
Income tax benefit		(14,826	)		(16,936	)		(3,755	)
Net loss before equity in net income of subsidiaries		(27,093	)		(35,110	)		(912	)
Equity in net income of subsidiaries		47,911			90,080			31,780
Net income	$	20,818		$	54,970		$	30,868

Condensed Statements of Cash Flows

		September 30,			September 30,			September 30,
	Year Ended December 31,
	2011			2010			2009
	(In thousands)
Operating activities:
Cash provided by operating activities	$	28,606		$	19,380		$	40,551
Investing activities:
Net dividends from and capital contributions to subsidiaries		27,872			70,800			21,960
Purchases of investments		(2,020	)		(2,019	)		(3,844	)
Sales and maturities of investments		3,760			14,083			12,669
Cash paid in business combinations		—			(139,762	)		(2,894	)
Purchases of equipment		(30,930	)		(40,419	)		(32,245	)
Changes in amounts due to and due from affiliates		(50,090	)		(5,723	)		(17,074	)
Change in other assets and liabilities		(20,441	)		829			(540	)
Net cash used in investing activities		(71,849	)		(102,211	)		(21,968	)
Financing activities:
Proceeds from common stock offering, net of issuance costs		—			111,131			—
Amount borrowed under credit facility		—			105,000			—
Repayment of amount borrowed under credit facility		—			(105,000	)		—
Treasury stock repurchases		(7,000	)		—			(27,712	)
Purchase of convertible senior notes		—			—			(9,653	)
Payment of credit facility fees		(1,125	)		(1,671	)		—
Excess tax benefits from employee stock compensation		1,651			295			31
Proceeds from exercise of stock options and employee stock plan purchases		7,347			4,056			2,015
Net cash provided by (used in) financing activities		873			113,811			(35,319	)
Net (decrease) increase in cash and cash equivalents		(42,370	)		30,980			(16,736	)
Cash and cash equivalents at beginning of year		57,020			26,040			42,776
Cash and cash equivalents at end of year	$	14,650		$	57,020		$	26,040

Notes to Condensed Financial Information of Registrant

Note A — Basis of Presentation

Molina Healthcare, Inc. (Registrant) was incorporated on July 24, 2002. Prior to that date, Molina Healthcare of California (formerly known as Molina Medical Centers) operated as a California health plan and as the parent company for Molina Healthcare of Utah, Inc. and Molina Healthcare of Michigan, Inc. In June 2003, the employees and operations of the corporate entity were transferred from Molina Healthcare of California to the Registrant.

The Registrant's investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. The parent company-only financial statements should be read in conjunction with the consolidated financial statements and accompanying notes.

Note B — Transactions with Subsidiaries

The Registrant provides certain centralized medical and administrative services to its subsidiaries pursuant to administrative services agreements, including medical affairs and quality management, health education, credentialing, management, financial, legal, information systems and human resources services. Fees are based on the fair market value of services rendered and are recorded as operating revenue. Payment is subordinated to the subsidiaries' ability to comply with minimum capital and other restrictive financial requirements of the states in which they operate. Charges in 2011, 2010, and 2009 for these services totaled $307.9 million, $238.5 million, and $218.6 million, respectively, which are included in operating revenue.

The Registrant and its subsidiaries are included in the consolidated federal and state income tax returns filed by the Registrant. Income taxes are allocated to each subsidiary in accordance with an intercompany tax allocation agreement. The agreement allocates income taxes in an amount generally equivalent to the amount which would be expensed by the subsidiary if it filed a separate tax return. Net operating loss benefits are paid to the subsidiary by the Registrant to the extent such losses are utilized in the consolidated tax returns.

Note C — Capital Contribution and Dividends

During 2011, 2010, and 2009, the Registrant received dividends from its subsidiaries totaling $76.6 million, $81.3 million, and $76.7 million, respectively. Such amounts have been recorded as a reduction to the investments in the respective subsidiaries.

During 2011, 2010, and 2009, the Registrant made capital contributions to certain subsidiaries totaling $58.4 million, $10.5 million, and $54.7 million, respectively, primarily to comply with minimum net worth requirements and to fund contract acquisitions. Such amounts have been recorded as an increase in investment in the respective subsidiaries.

Note D — Related Party Transactions

The Registrant has an equity investment in a medical service provider that provides certain vision services to its members. The Registrant accounts for this investment under the equity method of accounting because the Registrant has an ownership interest in the investee that confers significant influence over operating and financial policies of the investee. As of December 31, 2010 and 2009, the Registrant's carrying amount for this investment totaled $3.9 million and $3.8 million, respectively. For the years ended December 31, 2011, 2010, and 2009, the Registrant paid $24.3 million, $22.0 million, and $21.8 million, respectively, for medical service fees to this provider.

The Registrant is a party to a fee-for-service agreement with Pacific Hospital of Long Beach ("Pacific Hospital"). Until October 2010, Pacific Hospital was owned by Abrazos Healthcare, Inc., the shares of which are held as community property by the husband of Dr. Martha Bernadett, the sister of Dr. J. Mario Molina, our Chief Executive Officer, and John Molina, our Chief Financial Officer. Amounts paid to Pacific Hospital under the terms of this fee-for-service agreement were $0.7 million, $1.0 million, and $0.7 million, for the years ended December 31, 2011, 2010, and 2009, respectively. As of October 2010, Pacific Hospital was no longer owned by Abrazos Healthcare, Inc. or any other related party to the Company.

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Restricted Investments (Details 1) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Contractual maturities of our held-to-maturity restricted investments
Amortized Cost, Due in one year or less	$ 36,900
Amortized Cost, Due one year through five years	9,264
Amortized Cost, Total	46,164
Estimated Fair Value, Due in one year or less	36,909
Estimated Fair Value, Due one year through five years	9,307
Estimated Fair Value, Total	$ 46,216

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Restricted Investments (Tables)

12 Months Ended

Dec. 31, 2011

Investments [Abstract]

Summary of restricted investments by health plan

		September 30,		September 30,
	December 31,
	2011		2010
	(In thousands)
California	$	372	$	372
Florida		5,198		4,508
Insurance Company		4,711		4,689
Michigan		1,000		1,000
Missouri		504		508
New Mexico		15,905		15,881
Ohio		9,078		9,066
Texas		3,518		3,501
Utah		2,895		1,279
Washington		151		151
Wisconsin		—		260
Other		2,832		885
	$	46,164	$	42,100

Contractual maturities of our held-to-maturity restricted investments

		September 30,		September 30,
	Amortized Cost		Estimated Fair Value
	(In thousands)
Due in one year or less	$	36,900	$	36,909
Due one year through five years		9,264		9,307
	$	46,164	$	46,216

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Stockholders' Equity

12 Months Ended

Dec. 31, 2011

Stockholders' Equity [Abstract]

Stockholders' Equity

14. Stockholders' Equity

Securities Repurchase Program. Effective as of October 26, 2011, our board of directors has authorized the repurchase of $75 million in aggregate of either our common stock or our convertible senior notes due 2014 (see Note 12, "Long-Term Debt"). The repurchase program will be funded with working capital or the Company's credit facility, and repurchases may be made from time to time on the open market or through privately negotiated transactions. The repurchase program extends through October 25, 2012, but the Company reserves the right to suspend or discontinue the program at any time. No securities were purchased under this program in 2011.

In late July 2011, our board of directors approved a stock repurchase program of up to $7.0 million, to be used to purchase shares of our common stock under a Rule 10b5-1 trading plan. Under this program, we purchased approximately 400,000 shares of our common stock for $7 million (average cost of approximately $17.47 per share) during August 2011. These purchases did not materially impact diluted earnings per share for the year ended December 31, 2011. Subsequently, we retired the $7.0 million of treasury shares purchased, which reduced additional paid-in capital as of December 31, 2011.

Stock Split. On April 27, 2011, we announced that our board of directors authorized a 3-for-2 stock split of our common stock to be effected in the form of a stock dividend of one share of our stock for every two shares outstanding. The dividend was distributed on May 20, 2011.

Stock Plans. In connection with the plans described in Note 16, "Share-Based Compensation," we issued approximately 752,000 shares of common stock, net of shares used to settle employees' income tax obligations, for the year ended December 31, 2011. Stock plan activity resulted in a $21.4 million increase to additional paid-in capital for the same period.

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Condensed Financial Information of Registrant (Details 2) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Operating activities:
Cash provided by operating activities	$ 225,395	$ 161,397	$ 155,371
Investing activities:
Net cash paid in business combinations	(84,253)	(130,743)	(11,294)
Net cash used in investing activities	(236,927)	(288,823)	(37,713)
Financing activities:
Proceeds from common stock offering, net of issuance costs		111,131
Amount borrowed under credit facility		105,000
Repayment of amount borrowed under credit facility		(105,000)
Credit facility fees paid	(1,125)	(1,671)
Excess tax benefits from employee stock compensation	1,651	295	31
Proceeds from exercise of stock options and employee stock plan purchases	7,347	4,056	2,015
Net cash provided by (used in) financing activities	49,473	113,811	(35,319)
Net (decrease) increase in cash and cash equivalents	37,941	(13,615)	82,339
Cash and cash equivalents at beginning of period	455,886	469,501	387,162
Cash and cash equivalents at end of period	493,827	455,886	469,501
Parent Company [Member]
Operating activities:
Cash provided by operating activities	28,606	19,380	40,551
Investing activities:
Net dividends from and capital contributed to subsidiaries	27,872	70,800	21,960
Purchases of investments	(2,020)	(2,019)	(3,844)
Sales and maturities of investments	3,760	14,083	12,669
Net cash paid in business combinations		(139,762)	(2,894)
Purchases of equipment	(30,930)	(40,419)	(32,245)
Changes in amounts due to and due from affiliates	(50,090)	(5,723)	(17,074)
Change in other assets and liabilities	(20,441)	829	(540)
Net cash used in investing activities	(71,849)	(102,211)	(21,968)
Financing activities:
Proceeds from common stock offering, net of issuance costs		111,131
Amount borrowed under credit facility		105,000
Repayment of amount borrowed under credit facility		(105,000)
Treasury stock repurchases	(7,000)		(27,712)
Payments for convertible senior notes			(9,653)
Credit facility fees paid	(1,125)	(1,671)
Excess tax benefits from employee stock compensation	1,651	295	31
Proceeds from exercise of stock options and employee stock plan purchases	7,347	4,056	2,015
Net cash provided by (used in) financing activities	873	113,811	(35,319)
Net (decrease) increase in cash and cash equivalents	(42,370)	30,980	(16,736)
Cash and cash equivalents at beginning of period	57,020	26,040	42,776
Cash and cash equivalents at end of period	$ 14,650	$ 57,020	$ 26,040