Alignment Health Tuesday reported a loss in its fourth quarter of nearly $57 million as the startup provider of Medicare Advantage coverage launches into new markets and projects health plan membership of more than 100,000 in the new year.
Alignment Health ended 2022 with 98,400 health plan members, which was an increase of 14.3% compared to the year-ago period. Meanwhile, total revenue rose more than 21% to $361.8 million in the fourth quarter.
The increase in revenue is a sign Alignment’s investments into new markets to further grow enrollment are paying off, though losses for the company continue.
“Alignment Healthcare’s relentless focus on quality allowed us to deliver strong financial results in 2022, having exceeded or met our guidance across all four of our key performance indicators for the eighth consecutive quarter,” Alignment Health founder and chief executive John Kao said.
Alignment reported a loss of $56.9 million, or 31 cents a share compared to the a loss of $47.8 million, or 27 cents in the year-ago period. For the year, Alignment Health lost $149.3 million compared to a loss of more than $195 million in all of 2021.
Alignment remains optimistic about the future, issuing new projections showing the outlook for health plan membership for the first quarter of this year at more than 109,000. “As we approach the company’s 10-year anniversary, we’re confident that strategic investments in our people and technology will continue to drive meaningful improvements in the health and quality of life of all those we serve,” Kao said.
Alignment’s growth in Medicare Advantage is important given it is competing with much larger players like UnitedHealth Group, CVS Health’s Aetna health insurance unit, Humana and an array of Blue Cross and Blue Shield plans. Furthermore, there have been reports lately showing Medicare Advantage enrollment may be slowing and some plans are losing members.
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.