Alignment Healthcare, Inc. · NASDAQ:ALHC
Alignment Healthcare — Corporate Update (January 2024)
17 slides from Alignment Healthcare's corporate update, Jan 8, 2024
Slide 1: Delivering a Breakthrough Year: A New Era of Aging
DELIVERING A BREAKTHROUGH YEAR A NEW ERA OF AGING © 2024 Alignment Healthcare USA, LLC. All Rights Reserved. Alignment Healthcare is a registered trademark with the U.S. Patent and Trademark Office. Exhibit 99.1
Slide 2: Legal Disclaimer
Legal Disclaimer Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995,
Slide 3: Establishing a New Paradigm: Exceptional 2024 AEP Results
Establishing a New Paradigm Exceptional 2024 AEP Results ~155,500 health plan members as of Jan. 1, 2024 (YoY net membership adds of 47,200 implies 44% YoY growth) Increasing market share with 82% of growth from plan switchers California markets comprise 86% of AEP sales Investments in AVA, network,
Slide 4: Product and Network Control: MA Platform Enables Virtuous Cycle
Curated Products tailored to senior lifestyles High-quality provider networks Concierge-level support for a premium member experience Improve health outcomes through AVA insights and Care Anywhere clinical intervention Medical savings result from lowering avoidable costs Reinvestment into superior p
Slide 5: Purpose-Built Medicare Advantage Platform Company
Purpose-Built Medicare Advantage Platform Company DRIVES SUSTAINABLE GROWTH PERSONALIZED CARE SUPERIOR EXPERIENCE AND ENGAGEMENT RICHEST COVERAGE AND BENEFITS HIGH-QUALITY, LOW-COST CARE 1 2 3 4 5 AVA Technology Developed deeper provider relationships Bolstered 24/7 concierge services Addressed memb
Slide 6: AVA Platform Performance Management
Creates Visibility, Control, and Durability Across Value Drivers Required for Success AVA Platform Performance Management Real-time outcome tracking and performance measurement across value drivers Unified Data Platform Actionable Data and Insights | Accurate, Timely, Complete Core Infrastructure Ap
Slide 7: Care Anywhere Care Model by Member Segment
74% MEMBERSHIP 5% INSTITUTIONAL CLAIMS 7% MEMBERSHIP 19% INSTITUTIONAL CLAIMS 7% MEMBERSHIP 1% INSTITUTIONAL CLAIMS HEALTHY PRE-CHRONIC HEALTHY UTILIZER Notes: Based on at-risk members, Aug 2022 - Jul 2023 dates of service. Based on October 2022 to September 2023 encounter data. Estimated number of
Slide 8: Early Identification by AVA & Proactive Engagement by Care Anywhere
Early Identification by AVA & Proactive Engagement by Care Anywhere Notes: Care Anywhere eligible and enrolled members as of January 2020 through July 2022. Average changes in expenses 12-months before and after date of eligibility or enrollment. Includes members with at least 12 months of “pre” and
Slide 9: Continuous Improvements to AVA Across Value Drivers
Key Value Drivers Continuous Improvements to AVA Across Value Drivers IPO March 2021 Panel Management October 2021 Eligibility and Benefits August 2022 Utilization Management August 2022 Sales Retention Stars Risk Code Completion Utilization OpEx Leverage Broker Intelligence January 2023 Today Janua
Slide 10: Leading with Outstanding Quality
Leading with Outstanding Quality >90% of Members in 4+ Star Plans Replicating Results in New Markets Delivering a Premium Member Experience Materializing Higher Member Retention >60 NPS | 4.9 Star Google Rating 4.5 Star Rating in NC and NV 40% Lower Voluntary Disenrollment vs. Industry Alignment has
Slide 11: Our Durable Growth Engine is Just Getting Started
Our Durable Growth Engine is Just Getting Started 155,500 Health Plan Seniors as of Jan. 1, 2024 ~30% mix of dual-eligible & C-SNP 53 Markets Across CA, NC, NV, AZ, TX, FL >1,500 Employees >400 Clinical + Tech Employees Notes: Health plan membership excludes members in RBO and excludes ACO REACH mem
Slide 12: Successful Execution of Operational Initiatives
Retention and Member Experience: Insourced call center and improved supplemental benefit vendor management Sales Operations: Hired key sales personnel and improved local sales activities Product Leadership: Enhanced market-level bid tactics and simplified benefits Durable and Aligned Networks: Accel
Slide 13: Industry-Leading 2024 Growth
Industry-Leading 2024 Growth Notes: Calculated as the number of members disenrolling as of January 2024, divided by the total number of unique members +44% Membership Growth Percentage of 2024 AEP Sales by Prior Enrollment Status 82% of Sales from Competing Plans Curated Products, Sales Execution an
Slide 14: AEP Growth Supports 2024 Adjusted EBITDA Breakeven Target
Notes: 2024 vs 2023, weighted by Alignment’s estimated January 1 membership by plan ID Weighted average of full-year 2021 to 2023, excludes stock-based compensation and depreciation embedded in medical expense Calculated as adjusted selling, general and administrative expenses divided by total reven
Slide 15: Continuous Cohort MBR Improvement Opportunities
Consistently improving at-risk MBRs over time across vintages Efficacy of operating model demonstrated across cohorts consisting of different mixes of members by product, market and provider group … Combined with Continuous Cohort MBR Improvement Opportunities Notes: ALHC At-Risk data reflects 2014-
Slide 16: Widening Stars Advantage in 2025
2022 2023 2024 2023 2024 2025 Widening Stars Advantage in 2025 Notes: Membership data as of December of each year Percentage of Competitor California Membership in Plans Rated 4 Stars or Greater 1 Rating Year Payment Year Supports California Growth Outlook 100% for Total Company 94% for Total Compan
Slide 17: Delivering A Breakthrough Year
Disruptive, purpose-built Medicare Advantage platform Delivering A Breakthrough Year Investments in operations and AVA accelerating our virtuous cycle Durable growth supports 2024 Adjusted EBITDA breakeven target Widening competitive advantage versus incumbents (Stars, Risk Adjustment) Favorable 202
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