Alignment Healthcare Reports Second Profitable Quarter By Taming Costs

Core Insights - Alignment Healthcare reported its second consecutive profitable quarter, achieving a net income of $3.7 million, attributed to better management of medical expenses compared to competitors in the Medicare Advantage market [3][4][6]. Financial Performance - The company’s medical benefit ratio decreased to 87.2%, down from 88.4% in the same quarter last year, indicating improved cost management [3][4]. - Total revenue increased by 43.5% to $993.7 million, driven by growth in Medicare Advantage membership [6]. Membership Growth - Alignment's total health plan membership rose nearly 26% to 228,600 by the end of the third quarter [7]. Market Position - The company continues to operate Medicare Advantage plans in five states and 45 counties, expanding its plan benefit packages from 56 to 68 [8]. - Competitors like Humana and UnitedHealth Group are scaling back in certain markets, while Alignment is confident in its growth strategy [8]. Industry Context - The Medicare Advantage sector is facing challenges with rising medical claims as patients seek delayed treatments post-Covid-19, leading to higher medical cost ratios for larger insurers [5].