SAN FRANCISCO—Even as bigger players retreat from certain Medicare Advantage (MA) markets, Alignment Healthcare is charting the course for future growth with a simple mantra: Focus on the senior.
CEO John Kao said during a session at the 2026 J.P. Morgan Healthcare Conference on Wednesday that the company's membership has grown "tremendously" within that mindset. The insurer announced earlier this week that its membership reached 275,000 as of Jan. 1, 31% growth year over year following the annual enrollment period.
Alignment expects membership of between 290,000 and 296,000 at the end of 2026, according to the announcement.
Kao said the key is to align incentives across stakeholders in the MA member's journey—the plan, providers, insurance brokers and even the Centers for Medicare & Medicaid Services (CMS)—around that goal of serving the needs of seniors.
Alignment also said Monday that it expects earnings before interest, taxes, depreciation and amortization for 2026 to land at about $145 million, within its set guidance range for the year.
Kao said the alignment the team seeks extends to its investors and shareholders, as, when healthcare players "do the right thing, everyone wins."
"The answer is serving the senior," he said. "The shareholders will benefit from that. You will all generate good returns because we collectively are serving that senior."
Alignment's focused approach is also paying off in outcomes, the company said, with 100% of its members enrolled in MA plans with at least four stars. The CMS has changed the methodology it uses to calculate the star ratings, which has resulted in performance for many insurers decreasing dramatically.
The star ratings are critical in calculating bonus payments through the program, so a steep decline carries financial implications for the insurer alongside concerns about the quality of care for members.
Continuing to grow in a disciplined manner feeds back into the care improvements as it allows Alignment to invest in supplemental benefits and other options that boosts members' experiences and outcomes.
"If we keep doing that, we can afford to invest in products," Kao said.