Alignment Healthcare, a fast-growing health plan for seniors, is expanding into two new markets for 2023, launching Medicare Advantage in Florida and Texas.
Alignment, which became publicly-traded company last year in the popular and competitive Medicare Advantage business, Wednesday said its expansion to Florida and Texas will also include launching plans “into additional counties within the four states where it currently operates.” Alignment already sells Medicare Advantage in four states: Arizona, California, Nevada and North Carolina.
The market potential in Florida and Texas is large and growing. Alignment said its additional expansions, which still have to be approved by regulators, will “reach an additional 1.1 million Medicare-eligible seniors, resulting in total of 8.2 million Medicare-eligible seniors across 52 counties in six states in 2023.” If approved, seniors will be able to choose Alignment’s various health plan options for the 2023 plan year during the open enrollment period that begins Oct. 15 of this year.
“A quarter of our nation’s seniors live in California, Florida and Texas,” said Alignment founder and chief executive officer John Kao. “At a time when both the number and needs of seniors are on the rise, it is critical that we bring our model to more people and accelerate our positive impact on senior care in this country.”
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.
Alignment earlier this year said health plan membership as of Dec. 31, 2021, was up 26% to 86,100 year over year. That helped total revenue rise 23% to $298.3 million in the fourth quarter of last year compared to the year-ago period. Alignment releases second quarter 2022 earnings Aug. 4.
“Too many seniors remain vulnerable without the care coordination and personalized attention they so desperately need,” Kao said. “Putting the senior first is at the heart of our model and our growth strategy. We believe that our data-driven approach has the potential to improve the quality of our members’ lifestyle and healthcare experience across all geographies.”