Alignment Healthcare (ALHC, Financials) shares rose 12.7% to $13.39 on Monday at 2:54 p.m. GMT-5. About 209,900 Medicare Advantage customers joined on Jan. 1, a 35% year-over-year increase, the company said; the news led to the sharp increase in ALHC's price. Alignment Healthcare expects membership to reach 225,000–231,000 by 2025, up 22% to 25% from its prior prediction.
The business reaffirmed its hope in reaching its $40 million adjusted EBITDA goal. Alignment Healthcare stated in the release that updated guidance for 2025 will be revealed during the fourth-quarter 2024 earnings call.
Effective immediately, Alignment Healthcare announced Dawn Maroney has been elevated to President. Previously President of Markets and CEO of Alignment Health Plan, Maroney will supervise activities across all markets. Alignment Healthcare credits her leadership with driving operational initiatives and enrollment increase.
Alignment Healthcare noted in its statement various successes, including 98% of members enrolled in plans rated 4 stars or above by the Centers for Medicare & Medicaid Services for 2025. With nine plans throughout the country, the firm maintained a 5-star CMS rating for North Carolina and Nevada HMO plans for the third straight year. Aligning got 4.5 ratings for its California PPO plan and 4 stars for its California HMO plan, therefore marking the ninth consecutive year the HMO has maintained 4 stars or above.
Previously given on Oct. 29, 2024, Alignment Healthcare reiterated its 2024 forecast for membership, income, adjusted gross profit, and adjusted EBITDA. A non-GAAP metric, adjusted EBITDA leaves out things like restructuring expenses and equity-based pay, the business stated in its statement.
