Medicare Advantage insurer Alignment Health is expecting to grow into new markets and carry out acquisitions — and now has the financial backing to do so.
The insurer laid out its plan in a July 30 Securities and Exchange Commission filing. Alignment anticipates acquiring healthcare delivery groups in targeted geographies, standalone and provider-sponsored MA plans, and other risk-bearing assets.
On Feb. 26, Alignment entered into a credit agreement with Citibank. For the next three years, Alignment will have a line of credit worth $200 million, which could go toward permitted acquisitions. As of June 30, the company had not borrowed anything under its credit facility.
Alignment outlined a similar acquisition strategy in its 2021 initial public offering filing. At the time, it added that it would “also selectively explore” other opportunities focused on its technology platform and products. The company had expressed interest in acquisitions in more recent filings, as well.
Alignment acquired California’s Citizens Choice Health Plan in 2014. Citizens Choice subsequently rebranded to Alignment Health Plan in 2015.
Alignment currently operates in 45 markets and has 294,100 health plan members.
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