Alignment Healthcare reported a $37.3 million loss in the first quarter that was a bit narrower than … [+]
Alignment Healthcare reported a $37.3 million loss in the first quarter that was a bit narrower than the year-ago period as enrollment in its Medicare Advantage plans exceeded 109,000.
Alignment, which Thursday said it has “met or exceeded guidance every single quarter” since its initial public offering in March 2021, reported a first quarter loss of $37.3 million, or 20 cents per share, compared to $40.8 million, or 23 cents, in the first quarter of last year. Revenue, meanwhile, rose more than 27% to $439.2 million in the first quarter.
The increase in revenue and Medicare Advantage membership is a sign Alignment’s investments into new markets to further grow enrollment are paying off. Alignment’s health plan membership was up 16.5% to 109,700.
Medicare Advantage plans contract with the federal government to provide extra benefits and services to seniors, such as disease management and nurse help hotlines with some also offering vision, dental care and wellness programs. And in recent years, the Centers for Medicare & Medicaid Services has allowed Medicare Advantage plans to cover more supplemental benefits, adding to their popularity among seniors.
Alignment’s growth in Medicare Advantage is important given it is competing with much larger players like UnitedHealth Group, CVS Health’s Aetna health insurance unit, Humana and an array of Blue Cross and Blue Shield plans. Furthermore, there have been reports lately showing Medicare Advantage enrollment may be slowing and some plans are losing members, particularly among smaller and more regional plans.
“Alignment continues to differentiate itself with our first quarter results, surpassing guidance once again,” Alignment founder and chief executive John Kao said. “We’ve built a highly repeatable and durable model, showing that we can do well by doing good as we continue to deliver high-quality, low-cost care.”