Alignment Healthcare reported an $11.5 million loss in the second quarter as the startup provider of privatized Medicare Advantage coverage continues to grow.
Alignment’s loss of $11.58 million, or 6 cents a share, compared with $44.7 million, or 25 cents in the prior period. Meanwhile, total revenue rose nearly 19% to $366.5 million in the second quarter ended June 30 from $308.9 million a year ago as the company continues to grow in the competitive benefits industry health in older adults in the US.
“Alignment Healthcare’s strong performance in the second quarter demonstrates the repeatability of our model and led to one of our best quarters since the company went public,” said Alignment Healthcare Founder and CEO John Kao. “The quarter marks our lowest medical benefits ratio since IPO, where we once again beat guidance across four key performance indicators: membership, revenue, adjusted gross profit and adjusted EBITDA.”
The earnings report comes less than two months after Alignment announced plans to expand into two new markets by 2023, launching Medicare Advantage in Florida and Texas.
Alignment, which went public last year in the popular and competitive Medicare Advantage business, said in June that its expansion into Florida and Texas will also include plans to launch “in additional counties in the four states where it currently operates.” Alignment already sells Medicare Advantage in four states: Arizona, California, Nevada and North Carolina.
Medicare Advantage plans — owned by some of the biggest names in health insurance, including UnitedHealth Group, CVS Health’s Aetna, Humana, Cigna and Elevance Health — contract with the federal government to provide seniors with extra benefits and services, such as managing disease and nurse helplines with some also offering vision, dental care and wellness programs. And in recent years, Cents for Medicare & Medicaid Services has allowed Medicare Advantage plans to cover more supplemental benefits, increasing their popularity among seniors and attracting investment and capital to a range of companies, including startups like Alignment.
Alignment ended the second quarter with health plan enrollments of 95,900, which was up 13% compared to last year’s period.