ORANGE, Calif. - Alignment Healthcare, Inc. (NASDAQ: ALHC) has reported that the majority of its Medicare Advantage members are enrolled in plans that have received high marks from the Centers for Medicare & Medicaid Services (CMS) for 2025. According to the company, 98% of Alignment Health Plan members are in plans rated 4 stars or higher.
The CMS star rating system is designed to help beneficiaries compare the quality and performance of Medicare Advantage plans. With a scale of 1 to 5 stars, 5 stars denote excellent performance. The ratings are based on several factors, including member satisfaction, plan retention, complaints, and clinical metrics.
Alignment Healthcare's California HMO contract, which covers about 86% of its Medicare Advantage membership, has retained a rating of 4 stars or higher for the eighth consecutive year. The company's HMO contracts in Nevada and North Carolina have maintained a 5-star rating for the third year in a row. Furthermore, its California PPO has achieved a 4.5-star rating.
John Kao, founder and CEO of Alignment Healthcare, highlighted the company's commitment to quality care for seniors, stating that their high star ratings reflect their leadership in the Medicare Advantage space. Dawn Maroney, president of markets at Alignment Healthcare and CEO of Alignment Health Plan, attributed the success to the company's focus on the health and wellness needs of its members.
The annual enrollment period for Medicare runs from October 15 to December 7, with plan benefits starting on January 1, 2025. Beneficiaries can review the CMS Star Ratings at Medicare.gov and learn more about available plans.
This announcement is based on the latest CMS Star Ratings data published on October 10, 2024, and plan enrollment figures from September 2024. Alignment Health continues to focus on providing high-quality, low-cost care to its Medicare Advantage members, leveraging its care model and technology platform, AVA®. The information for this article is derived from a press release statement by Alignment Healthcare.
In other recent news, Alignment Healthcare continues to make significant strides. The company has retained its high CMS star rating, a critical factor for Medicare Advantage plans, with the final 2025 Star Ratings confirming the company's ability to maintain a 4-Star Rating for its principal contract, H3815. This development has been positively received by analysts from William Blair, who have maintained an Outperform rating on Alignment Healthcare.
Financially, the company has experienced a 47% increase in revenue and a 56% surge in health plan membership, leading firms including Baird, TD Cowen, and Stifel to raise their price targets. KeyBanc has also initiated coverage on Alignment Healthcare, assigning a Sector Weight rating and acknowledging the company's potential for long-term growth.
Additionally, the company has seen changes in its board structure with the resignations of Thomas Carella and Jeffrey Margolis. Margolis has transitioned into a consulting agreement with Alignment Healthcare's primary operating subsidiary, with neither departure attributed to disagreements regarding company operations, policies, or practices.
These recent developments have led to an upward adjustment in year-end membership expectations by 8,000 members and a forecast of at least 20% growth in 2025. However, Alignment Healthcare has stated it has no plans to enter new states in 2025, focusing instead on profitability and expanding its national footprint.
InvestingPro Insights
Alignment Healthcare's strong performance in CMS star ratings is reflected in its recent financial metrics and market performance. According to InvestingPro data, the company has shown impressive revenue growth, with a 47.34% increase in quarterly revenue as of Q2 2024. This growth aligns with the company's success in maintaining high-quality ratings for its Medicare Advantage plans, which likely contributes to member retention and attraction.
Despite the positive ratings and revenue growth, InvestingPro Tips highlight that Alignment Healthcare is not currently profitable, with an adjusted operating income of -$128.54 million over the last twelve months. This suggests that while the company is expanding its member base and revenue, it is still investing heavily in growth and operations.
The market appears to be optimistic about Alignment Healthcare's prospects, as evidenced by the strong stock performance. InvestingPro data shows a remarkable 134.65% price return over the past six months, indicating investor confidence in the company's strategy and market position.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Alignment Healthcare, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.