Molina Healthcare to close Henrico office, laying off 268 workers

Molina Healthcare, a Fortune 500 company that manages health care services for Medicaid and Medicare recipients, is closing its Henrico County office and laying off 268 workers, it said in a letter notifying the state.

According to the Virginia Works website’s WARN notice page, California-based Molina notified the state May 13 that it will close its facility at 3829 Gaskins Road on June 30 and that all of its staffers there will be laid off as of July 14. The company provides managed health care services under Medicaid and Medicare programs and through state insurance marketplaces, and in Virginia, Molina is one of five managed care organizations (MCO), health plans that include providers that accept Medicaid.

After June 30, Molina Healthcare will no longer be one of Virginia Medicaid’s MCOs, according to the state Department of Medical Assistance Services. In a memo sent May 29, DMAS’ director noted that the state’s new managed care contract starting July 1 will include existing plans associated with Aetna, Anthem, Sentara and UnitedHealthCare, as well a new plan from Humana. Molina enrollees will be switched to the Humana plan, according to the memo, and will have a 90-day window to change plans if they wish.

The Henrico office’s closing is due to the non-renewal of Molina’s contract with the state, the company’s letter to Virginia Works states. Among the affected employees are care managers, medical directors, analysts, community engagement workers and others. Employees were notified of the office’s closure May 14, according to the letter.

Health insurance has been a major topic of conversation on Capitol Hill, as President Donald Trump‘s “One Big Beautiful Bill” budget reconciliation bill, which has passed the U.S. House of Representatives and is under negotiation in the U.S. Senate, would restructure Medicaid and the health insurance marketplaces, leading to 16 million people nationwide losing their health insurance, according to a nonpartisan Congressional Budget Office report issued last week.

According to U.S. Sens. Mark Warner and Tim Kaine, citing the Joint Economic Committee’s May findings, 262,440 Virginians stand to lose health care coverage under the budget bill, including 161,614 Medicaid recipients.

Molina Healthcare referred to the DMAS memo when contacted Monday for comment.