Molina Healthcare of Texas Begins Administering CHIP Program in Rural Areas

New Service Area Includes 174 Counties, and New Enrollment is Nearly 64,000
Women and Children
SAN ANTONIO--(Business Wire)--
Molina Healthcare of Texas announced today that it has begun arranging
healthcare services for approximately 63,700 low-income children and pregnant
women in 174 predominantly rural counties through Texas` Children`s Health
Insurance Program (CHIP) and CHIP Perinatal Program.

The contract is held by Molina Healthcare of Texas`s newly formed, wholly owned
subsidiary, Molina Healthcare of Texas Insurance Company, which has been
approved to operate as an exclusive provider organization in the service area.
Molina Healthcare of Texas will administer the contract on behalf of its
subsidiary.

Originally created in 1997, CHIP is a state and federal partnership that
provides low-cost health insurance coverage for children in families who earn
too much income to qualify for Medicaid but cannot afford to purchase private
health insurance coverage.

"As of September 1st, we began serving a significant percentage of the
population enrolled in CHIP in these Texas communities. We are excited about
welcoming and assisting our new members in accessing quality healthcare
benefits," said Don Hairston, president of Molina Healthcare of Texas. "Our
involvement in this program will complement our existing participation in Texas`
STAR and STAR+PLUS Medicaid programs, as well as CHIP in non-rural areas. The
additional scale offered by the expansion of our programs in the state will
enable us to further leverage our resources in order to bring important benefits
to a greater number of persons and communities."

In January 2010, the Texas Health and Human Services Commission (HHSC) selected
Molina Healthcare of Texas as one of two managed care organizations to enter
into a contract to provide comprehensive healthcare services for participants of
Texas` CHIP Rural Service Area Program.

"Texas has one of the highest numbers of uninsured children in the nation," said
Robert Hilliard, Jr., M.D., Chief Medical Officer of Molina Healthcare of Texas.
"By participating not only in the CHIP but also in the CHIP Perinatal Program,
we are able to care for children even before they are born. One of the most
significant factors in a mother`s delivery of a healthy baby is having timely
access to prenatal care. We are excited to be working closely with local
providers to provide these much needed healthcare services."

Molina Healthcare of Texas already serves Medicaid, CHIP and Medicare
beneficiaries in the Harris service area, which includes Houston, in the Bexar
service area, which includes San Antonio, and the Webb Service area, which
includes Laredo. In addition, Molina Healthcare of Texas was recently awarded a
contract for the STAR+PLUS program starting in the first quarter of 2011 in the
Dallas Service Area, which includes Dallas and six surrounding counties. It is
estimated that there are approximately 50,000 aged, blind or disabled
beneficiaries in this service area.

About Molina Healthcare

Molina Healthcare, Inc. (NYSE: MOH) 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 licensed health plans in California, Florida, Michigan,
Missouri, New Mexico, Ohio, Texas, Utah, and Washington currently serve
approximately 1.5 million members, and our subsidiary, Molina Medicaid
Solutions, provides business processing and information technology
administrative services to Medicaid agencies in Idaho, Louisiana, Maine, New
Jersey, and West Virginia, and drug rebate administration services in Florida.
More information about Molina Healthcare is available at
www.molinahealthcare.com.

Cautionary Statement under the Private Securities Litigation Reform Act: This
press release contains "forward-looking statements" that are subject to risks
and uncertainties that may cause actual results to differ materially.A
discussion of the risk factors facing the Company can be found in its annual
report on Form 10-K for the year ended December 31, 2009, in its quarterly
reports on Form 10-Q for the quarters ended March 31 and June 30, 2010, in its
Form 8-K current reports, and in its other reports and filings with the
SEC.These reports can be accessed under the investor relations tab of the
Company's website or on the SEC's website at www.sec.gov.Except as required by
law, the Company disclaims any obligation to update its forward-looking
statements.

Molina Healthcare, Inc.
Investor Relations:
Juan José Orellana, 562-435-3666, ext. 111143
or
Public Relations
Sunny Yu, 562-901-1039

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