How insurance upstart Alignment kept medical costs in check while Medicare Advantage plans struggled
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High medical costs ate away at the profits of big Medicare Advantage insurers CVS Health and Humana in the first quarter of 2024, but upstart insurer Alignment Health came away largely intact.
California-based Alignment, which primarily serves seniors enrolled in the private alternative to the traditional Medicare program, said its membership soared by more than 50% in the first three months of the year over the same time in 2023. Despite the influx of new members, Alignment managed to keep its members’ medical spending in check. Alignment’s shares jumped 26% on Friday after it reported its results Thursday evening.
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