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Pilot Project of Molina Healthcare of Washington and Washington State Receive CHCS Grant

BOTHELL, Wash.--(BUSINESS WIRE)--Aug. 29, 2005--The Center for Health Care Strategies (CHCS) has notified the Washington State Department of Social and Health Services (DSHS) and Molina Healthcare of Washington, Inc. that CHCS will award a $50,000 grant to their Washington Medicaid Integration Partnership, or WMIP. The WMIP pilot project is based on an active care-coordination model that integrates primary medical care, mental health treatment, chemical dependency treatment, and long-term care. Disease management enhancements also provide patient education and 24/7 support. The project is intended to build on Washington state research that demonstrates that increased access to mental health and chemical dependency treatment can lower medical costs and reduce the risk of death among aged, blind, or disabled clients.

DSHS has contracted with Molina Healthcare of Washington to implement and manage the WMIP project that will serve up to 6,000 SSI recipients in Snohomish County. WMIP provides an opportunity to study the effects of care coordination as a key component of integration with a population that has a high incidence of chronic illness and commonly experiences fragmentation in their health care.

The grant to the WMIP project is being made by CHCS' "Medicaid Value Program: Health Supports for Consumers with Chronic Conditions." This program is intended to bring together state Medicaid agencies, health plans, and providers to develop, measure, and disseminate successful models of care delivery for Medicaid recipients with multiple chronic conditions. The CHCS grant will provide funding to formally and independently evaluate the success of the WMIP pilot project and the continuity of treatment it will provide for mental illness, substance abuse, long-term care, and medical assistance.

"I am pleased that the State of Washington and Molina can play a significant role in striving to improve the health of our community," said Ann Koontz, chief executive officer of Molina Healthcare of Washington. "By working together, we can contribute to the well-being of our members."

"We believe early assessment, referral to services through integrated care coordination, and a medical home leads to improvements in health outcomes and utilization of services," said Dr. Dan Kent, acting chief medical officer of Molina Healthcare of Washington. "We think the independent evaluation funded by this grant will demonstrate the effectiveness of the WMIP program."

About Molina Healthcare of Washington, Inc.

Molina Healthcare of Washington, Inc., a subsidiary of Molina Healthcare, Inc. (NYSE: MOH), has the largest enrollment of Medicaid members of any health plan in Washington. Molina Healthcare serves members throughout Washington who are enrolled in both the Healthy Options Program and the State Children's Health Insurance Program, or SCHIP, and also participates with the Basic Health Program in several counties. Additional information regarding Molina Healthcare of Washington, Inc., or its parent company, Molina Healthcare, Inc., can be found at www.molinahealthcare.com.

About The Center for Health Care Strategies

Since 1995, the Center for Health Care Strategies (CHCS) has strived to continuously improve the quality of health and health related services for beneficiaries of our nation's health coverage safety net - Medicaid and the State Children's Health Insurance Program. With resources from the nation's leading philanthropies - The Robert Wood Johnson Foundation, The Annie E. Casey Foundation, The Commonwealth Fund, The California HealthCare Foundation, The David and Lucille Packard Foundation - CHCS works with state officials, health plan leaders, and consumer organizations across the country to improve health services for low-income families and for people with severe illnesses and disabilities whose needs cross over from the routine to the highly specialized. More information on The Center for Health Care Strategies can be found at www.chcs.org.

CONTACT: Molina Healthcare of Washington
Ann Koontz, 425-424-1100
or
DSHS, Washington State
WMIP Project Manager
Alice Lind, 360-725-1629

SOURCE: Molina Healthcare, Inc.