Alignment Healthcare is expanding deeper into
the potentially lucrative California market to sell its Medicare Advantage
plans to seniors.
Alignment, which already sells Medicare Advantage coverage in
California, North Carolina and Florida, said Tuesday it is “doubling its
California footprint with expansion into eight greater Sacramento and Bay Area
counties, where more than 862,000 Medicare recipients live.”
The privately held health insurance company,
known for its connections to high-ranking former U.S. health policymakers,
reported $703.5 million in revenue for the 12-month period that ended June
30. And executives say eclipsing $1 billion in sales is the target for the
coming year.
Medicare Advantage plans provide extra
benefits and services to seniors, such as disease management and nurse help
hotlines, as well as some plans providing vision and dental care.
But the Centers for Medicare & Medicaid
Services (CMS) has changed the rules for Medicare Advantage plans to allow them
to cover more supplemental health benefits in part to better coordinate care
and make sure seniors get lower cost benefits upfront before getting sick,
which could cost taxpayers more in the long run.
“For 2020, we are expanding our plan offerings
beyond the core benefits around prescription drugs and round-the-clock
concierge service that our members have come to expect from Alignment,” Alignment Healthcare chief executive John Kao said.
“In 2020, we have added benefits designed to address social factors such as
food instability and loneliness that directly impact health outcomes. Doing so
is an integral part of our mission to solve for critical gaps in health care
and coordinate the best care possible for our members.”
Alignment touts its ties to former CMS
administrators Dr. Mark McClellan, who
served in the George W. Bush administration, and Andy Slavitt who
worked in the Barack Obama administration. Having ties to Republicans and
Democrats mirrors the bipartisan support that Medicare Advantage has had and
continues to today even as some Democrats running for President in 2020 tout
versions of an expanded Medicare program that would end the private insurer’s
role in administering health benefits.
But for now, Medicare Advantage growth is
taking off and health insurers including Anthem, CVS Health’s Aetna health
insurance unit, Cigna, Humana and UnitedHealth Group are expanding sales of
Medicare Advantage plans into new states, counties and regions.
Meanwhile, smaller companies like Alignment,
several startups and new entrants including Bright
Health and medical care provider plans are also expanding while
some companies like Oscar Health, best known for sales
of individual Obamacare coverage, are going to be selling
Medicare Advantage for the first time in 2020.
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