Alignment Healthcare Thursday, August 3, 2023 reported a loss in its second quarter of $28.5 million … [+]
Alignment Healthcare Thursday reported a loss in its second quarter of $28.5 million even as the startup provider of Medicare Advantage coverage grows its membership.
Alignment ended the second quarter of this year with 112,200 members, which was a 17% increase compared to the year-ago period. Meanwhile, total revenue was up 26% to $462.4 million.
Alignment’s growth in Medicare Advantage is important given it is competing with much larger players like Humana, UnitedHealth Group, CVS Health’s Aetna health insurance unit, and an array of Blue Cross and Blue Shield plans. Furthermore, there have been reports lately showing the Medicare Advantage market may be maturing, making it difficult for some plans to grow.
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.
But Alignment founder and chief executive John Kao said Alignment “beat guidance across all four of our key metrics, including membership, revenue, adjusted gross profit and adjusted EBITDA.”
Though Alignment has yet to turn a profit, Kao said the health plan is meeting its financial goals and performance targets since the company became publicly traded on the Nasdaq in March of 2021.
“With 10 consecutive quarters of strong business performance, we’re setting the bar for Medicare Advantage done right,” Kao said. “Ten years into reimagining a new model of senior care, we’re even more passionate about our mission and confident in our approach of delivering quality senior care.”