Alignment Healthcare Delivers 44% Year-Over-Year Membership Growth Following Significant Boost from AEP, Increasing Membership to 155,500
Company provides year-end health plan membership guidance, strengthens conviction of path to adjusted EBITDA breakeven in 2024
ORANGE, Calif., Jan. 08, 2024 (GLOBE NEWSWIRE) -- Alignment Healthcare, Inc. (NASDAQ: ALHC), today announced that its Alignment Health Plan membership has increased by 44% to a total of approximately 155,500 members as of Jan. 1, following a successful Annual Enrollment Period (AEP), as compared to its membership as of Jan. 1, 2023.
“Alignment’s purpose-built Medicare Advantage (MA) platform gives us the visibility and control to serve seniors the right way,” said John Kao, founder and CEO of Alignment Healthcare. “This visibility and control have helped us improve stars, effectively manage care and create competitively advantaged products that led to the exceptional growth we achieved. Companies that prioritize happy and healthy members can indeed do well by doing good, and Alignment is proof of that.”
Additionally, the company expects to have 162,000 to 164,000 members by the end of 2024, based on its expectations for continued membership growth during the year.
With its strong membership growth, the company is reaffirming its expectation to achieve adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) breakeven in 2024.
“Our conviction to be adjusted EBITDA breakeven in 2024 is strengthened by Alignment’s product strategy, expected positive gross profit contributions from new membership, continued operating leverage and ongoing cohort improvement,” said Kao. “Furthermore, we believe we will have continued competitive tailwinds that bolster our outlook for 2025.”
Since going public in 2021, Alignment has displayed a disciplined approach to its business with 11 straight quarters of strong business results, having met or exceeded guidance across key financial metrics. Additional achievements for Alignment include earning 4- out of 5-star rating from the Centers for Medicare & Medicaid Services for 2024 in its California HMO, marking its seventh consecutive year as a 4-star or greater plan, being named a 2024 Best Insurance Company for MA in North Carolina by U.S. News & World Report for the second consecutive year (one of only three MA plans in the state to earn the U.S. News “Best” rankings badge) and attaining an impressive 4.9-star rating on Google.
“Our growth and accomplishments reflect that this is our breakout year and highlight how Alignment is the gold standard for MA done right,” continued Kao. “As we continue to expand, we will remain focused on delivering high-quality service and outcomes at a low cost and are poised to take advantage of competitive tailwinds.”
In 2024, Alignment expanded its service to Merced County, California, bringing its gold standard of MA to more seniors with a total reach of 8.5 million Medicare-eligible adults in 53 markets across Arizona, California, Florida, Nevada, North Carolina and Texas.1 Additionally, the company has signed new agreements with Instacart and Walgreens to offer more coverage and convenience for seniors in select markets.
To learn more, visit alignmenthealth.com.
About Alignment Health
Alignment Health is championing a new path in senior care that empowers members to age well and live their most vibrant lives. A consumer brand name of Alignment Healthcare (NASDAQ: ALHC), Alignment Health offers more than 50 benefits-rich, value-driven Medicare Advantage plans that serve 53 counties across six states. The company partners with nationally recognized and trusted local providers to deliver coordinated care, powered by its customized care model, 24/7 concierge care team and purpose-built technology, AVA®. Based in California, the company’s mission-focused team makes high-quality, low-cost care a reality for members every day. As it expands its offerings and grows its national footprint, Alignment upholds its core values of leading with a serving heart and putting the senior first. For more information, visit www.alignmenthealth.com.
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are subject to risks and uncertainties and are based on assumptions that may prove to be inaccurate, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to attract new members and enter new markets, including the need for certain governmental approvals; our ability to maintain a high rating for our plans on the Five Star Quality Rating System; our ability to develop and maintain satisfactory relationships with care providers that service our members; risks associated with being a government contractor; changes in laws and regulations applicable to our business model; risks related to our indebtedness, including the potential for rising interest rates; changes in market or industry conditions and receptivity to our technology and services; results of litigation or a security incident; the impact of shortages of qualified personnel and related increases in our labor costs; and the impact of COVID-19 on our business and results of operation. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our Annual Report on Form 10-K for the year ended December 31, 2022, and the other periodic reports we file with the SEC. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update or revise this information unless required by law.
mPR, Inc. for Alignment Healthcare
1 Centers for Medicare & Medicaid Services Medicare Advantage/Part D Contract and Enrollment Data, December 2023 MA State/County Penetration, https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/MCRAdvPartDEnrolData/MA-State-County-Penetration