JPM 2025: Alignment reaffirms Medicare Advantage goals

Alignment Health remains committed to balancing margin expansion with membership growth this year, executives told investors Wednesday during the first of two health insurer presentations at the J.P. Morgan Healthcare Conference.

"We're never going to swing to a growth at all-cost mentality,” Chief Financial Officer Thomas Freeman said. “At the same time, we're not going to shoot for a profitability at all-cost mentality either."

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The company, which operates Medicare Advantage insurer Alignment Healthcare, expects to grow its membership this year to reach up to 231,000 people, the company said in a news release Monday. The company has already seen outsized growth with about 209,900 total members enrolled at the beginning of this month. That's a 35% year-over-year increase, according to the release.

Alignment Healthcare's ability to maintain high star ratings as others struggle for top scores enables it to capture rival companies’ members, Freeman said. This strategy will help the insurer achieve its margin and membership goals over the next several years, he added.

Executives also said utilization remained within expectations, though utilization trends have spooked some other insurers over the past year and half as more older adults seek care. The company did continue to see pressure on supplemental benefits during the fourth quarter, the executives said.

When asked how the incoming Trump administration might influence Medicare Advantage regulations, CEO John Kao said he expects a more favorable environment for Alignment Healthcare and similar players.