Since its founding in 2013, Orange, Calif.-based Alignment Healthcare has recorded double-digit growth annually and expanded from its home state to reach more than 8 million Medicare-eligible seniors in dozens of counties nationwide.
Pending CMS approval, the Medicare Advantage payer-provider will have health plans available for 2023 in California, Nevada, Arizona, North Carolina, Texas and Florida.
"We're trying to position ourselves to grow revenue by 20 percent annually and we're targeting 20 percent membership growth as well," CEO John Kao told Becker's. "Our business model is really led by the efficacy of our care delivery model, and the care delivery model is focused on using a lot of data and science. As we're able to bend the cost curve, we reinvest those savings into richer benefits."
Ten things to know about Alignment's rapid growth:
- Alignment Healthcare became a publicly-traded company March 26, 2021.
- In June 2021, the company said it would expand into Arizona's Pima and Maricopa counties, reaching 1 million eligible residents.
- Also in June 2021, Alignment said it would expand its offerings in North Carolina to an additional 12 counties.
- In August 2021, Alignment partnered with Rite Aid to offer a co-branded Medicare Advantage plan to 3.6 million Medicare-eligible residents in six markets across Southern California in 2022. The California expansion helped the company double its geographic footprint in 2022.
- In December 2021, Alignment became the first payer to offer a Medicare Advantage plan that covered Galleri, an early-detection blood test for 50 types of cancer.
- Alignment surpassed $1 billion in annual revenues by the end of 2021.
- In January, the company appointed two new members to its board, including Humana's former chief consumer officer, Jody Bilney.
- In June, Alignment said it would expand into Florida and Texas, reaching an additional 1.1 million Medicare-eligible seniors. It also continued expanding within the four states it currently operates in, reaching a total of 8.2 million Medicare-eligible seniors in 52 counties by 2023.
- In July, the company named Optum's former vice president of government programs actuarial advisory, Randall Fitzpatrick, as its new senior vice president of product.
- In August, the company reported its second-quarter earnings. Year over year, membership increased 13 percent to 95,900 people and total revenues in the first half of the year increased more than 23 percent to $712 million. Net losses also fell over 48 percent, shrinking from $101.6 million to $52.4 million in the first six months of 2022.