Alignment Healthcare Thursday reported a $24 million loss in its second quarter as the provider of Medicare Advantage coverage to seniors reaped a 56% increase in health plan members that beat Wall Street analysts’ expectations.
Alignment ended the second quarter with 175,100 members, which was a 56 percent increase compared to the year-ago period. That boosted total second quarter revenue 47 percent to $681.3 million.
The revenue increase comes amid an intensely competitive market as the number of seniors enrolling in private Medicare Advantage plans hits an all-time high with more than half of eligible beneficiaries signing up for such privatized coverage. Meanwhile, Medicare Advantage plans have been struggling this year as seniors with a pent up need for healthcare services following the Covid-19 pandemic seek care and submit claims to their health insurers.
Like its larger rivals in the Medicare Advantage business, Alignment’s medical expenses were way up to $605 million in the second quarter compared to $410 million in the year-ago period.
The higher medical expenses once again kept Alignment from turning its first profit since the company was founded in 2013 with the company reporting a second quarter loss of $24 million, or 13 cents a share, compared to a loss of $28.4 million, or 15 cents a share in the second quarter of 2023.
Alignment, which became publicly traded on the Nasdaq in 2021, has yet to project exactly when the company will be profitable, but a company spokeswoman said they “are focused on profitability in 2025.”
“Alignment Healthcare is doing Medicare Advantage right and it shows ‒ in our industry-leading membership growth and our revenue growth again this quarter,” Alignment Healthcare founder and chief executive officer John Kao, founder and CEO. “We are thriving in our category with a model built toward long-term, sustained growth as we serve more seniors nationwide, and we’ll continue to make key investments to enhance our member experience, clinical outcomes and medical cost management.”
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