Alignment Healthcare (ALHC) UBS Global Healthcare Conference 2024 summary

Industry outlook and structural changes

• Success in Medicare Advantage will require strong population health management and care delivery culture.

• Emphasis is shifting from risk transfer to internal risk management and operational excellence.

• Regulatory changes like V28, Tukey on stars, and the Health Equity Index will shape future performance.

• CMS aims to maintain sector fundamentals: quality care, good experience, and affordability.

• The sector is expected to adjust to these new requirements and return to core principles.

Growth, margin, and competitive positioning

• Growth target of at least 20% remains on track, with a 2025 focus on margin expansion.

• Stars and V28 changes are expected to provide tailwinds through 2028, especially in California.

• Margin and growth balance will continue, with 2026 seen as a strong growth opportunity.

• Expansion plans include deepening presence in California and other states, with new market entries likely in 2027.

• Operational scalability and automation are key to supporting future growth.

Regulatory and policy environment

• Health Equity Index will become a major factor in stars and payment, benefiting those with high low-income/disabled membership.

• Industry is shifting toward SNP plans to align with Health Equity Index incentives.

• Ongoing regulatory uncertainty exists, but a strong operational foundation provides resilience.

• Administration is expected to remain MA-friendly, supporting sector growth.