Healthcare Alignment Loss Reduces as Medicare Advantage Business Grows

Alignment Healthcare reported a third-quarter loss of $35 million on Thursday, even as the new Medicare Advantage coverage provider increases its membership to more than 115,000.

Alignment, which improved its results after a $40.2 million loss last year, ended the third quarter of this year with 115,600 members, an 18% increase from the period last year. ‘last year. Meanwhile, total revenue rose nearly 27% to $456.7 million.

The growth in alignments in Medicare Advantage comes during a period of unprecedented competition for seniors from much larger players like Humana, UnitedHealth Group, CVS Healths health insurance unit Aetna and a range of Blue Cross and Blue Shield plans also developing their health plans. More than half of the nation’s Medicare-eligible seniors now choose privatized Medicare Advantage plans.

Medicare Advantage contracts with the federal government to provide additional benefits and services to seniors, such as disease management and nurse hotlines, with some also offering vision, dental and of well-being. And in recent years, the Centers for Medicare & Medicaid Services has allowed Medicare Advantage plans to cover more supplemental benefits, boosting their popularity among seniors.

Although Alignment has yet to turn a profit, the company’s top executive said the health plan continues to perform well in a competitive market. The alignment was listed on Nasdaq in March 2021.

“We delivered strong business results in the third quarter, exceeding forecasts in all four of our key metrics and extending our streak of 11 consecutive strong quarters since our IPO,” said John Kao, Founder and CEO of Alignment Healthcare. “These results underscore our ability to grow sustainably and set the benchmark for Medicare Advantage by prioritizing high-quality, affordable senior care.” We are excited to continue our growth in 2024 and beyond while remaining focused on our strategic goals and objectives. “.

Additionally, higher government quality ratings and improved Alignment results led the company’s management to raise its financial outlook for the remainder of the year, increasing health plan enrollment forecasts year-end at 117,600-118,600, indicating 20% ​​year-over-year growth. halfway through the outlook range, the company said.

Alignment Healthcare’s third-quarter results show we’re doing Medicare Advantage right, Kao said. It’s not just about numbers, it’s about service, quality and advocacy, backed by seven consecutive years of our largest MA contract achieving at least 4 out of 5 stars.

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