Alignment Health Swings to $8.05 Million Loss as Medicare Advantage Costs Stay High

Alignment Health swung to an $8.05 million net loss, or 4 cents a share, for the third quarter of 2026 as medical costs in its Medicare Advantage plans stayed high, the company said October 29, 2026. Forbes reported the results. The loss compares with net income of $3.7 million, or two cents a share, in the year-ago quarter.

Alignment Health's Medical Benefits Ratio Hits 89.5%

Alignment Health is a publicly traded Medicare Advantage insurer that serves seniors in Arizona, California, Nevada, North Carolina and Texas. The company's medical benefits ratio, the share of premium revenue spent on medical costs, reached 89.5%, an increase of about 240 basis points from a year earlier.

Alignment attributed the ratio to previously expected changes in Part D seasonality and the timing of clinical investments, along with higher costs from elevated appeals and disputes and increased costs in catastrophic cases and skilled nursing categories. Management lowered its profit outlook for the rest of the year.

"Our third-quarter membership and revenue growth demonstrate continued demand for Alignment's products and services, while medical trends ran higher than expected," said chairman and chief executive officer John Kao. "We are taking a prudent approach to the fourth quarter and lowering our outlook based on current headwinds."

Revenue rose nearly 37% to $1.36 billion, and health plan membership grew 31% to 301,200, the company said.

Alignment Health's Membership and Revenue Records

According to akta.pro company records, Alignment Health reported membership of approximately 284,800 as of the first quarter of 2026, representing 30.9% year-over-year growth. The same records list full-year 2025 revenue of $3.95 billion, a 46.1% increase over the previous year, and a total funding figure of $696.1 million, with the last round dated November 15, 2024.

Legal Inquiries Preceded the Earnings Report

Kahn Swick & Foti, LLC initiated an investigation into Alignment Healthcare's officers and directors in October 2026, according to FinancialContent Business Page. Bronstein, Gewirtz & Grossman, LLC said the same month that it was investigating potential securities claims against the company and urged investors to assist, The future of trading reported. Needham & Company began coverage of Alignment Healthcare with a hold rating on October 28, 2026, MarketBeat reported.

Alignment Health's 2027 Medicare Advantage Expansion

Alignment Health Plan announced expansion into Cabarrus, Gaston, Mecklenburg and Rowan counties for 2027 Medicare Advantage coverage, bringing access to more than 295,000 additional Medicare beneficiaries across 20 North Carolina counties, Stock Titan reported. The company also said its Central Health Harmony Medicare Advantage plan in Los Angeles and Orange counties will launch on January 1, 2027.