Alignment Healthcare, Inc. · NASDAQ:ALHC
Alignment Healthcare — J.P. Morgan Healthcare Conference 2025
15 slides from Alignment Healthcare's conference presentation, Jan 13, 2025
Slide 1: Medicare Advantage Done Right: A New Era of Aging
1 Medicare Advantage Done Right A NEW ERA OF AGING © 2025 Alignment Healthcare USA, LLC. All Rights Reserved. Alignment Healthcare is a registered trademark with the U.S. Patent and Trademark Office.
Slide 2: Legal Disclaimer
2 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 199
Slide 3: Breakout 2024 Execution Creates Foundation to Scale in 2025 & Beyond
3 Breakout 2024 Execution Creates Foundation to Scale in 2025 & Beyond 2024 Scale and Momentum • 185,000 members implying 55% membership growth YoY1 • 340 basis point improvement in adj. SG&A ratio1,2 • $33M adj. EBITDA improvement YoY1 • Achieved 98% of members in plans rated 4 stars or above for r
Slide 4: Founded through Personal Experience & Built through Lessons Learned
4 Founded through Personal Experience & Built through Lessons Learned • John’s mother suffered a heart attack and was hospitalized • He witnessed firsthand how difficult it was to navigate the health care system and its impact on patient health and recovery • This led John to found Alignment with th
Slide 5: A Differentiated Approach to Medicare Advantage
5 A Differentiated Approach to Medicare Advantage Commitment to clinical excellence: investing in employed clinical resources to provide more care to high-risk seniors Managing risk and caring for seniors is our core competency: preference to assume financial risk and upside instead of globally capp
Slide 6: This is How We Win: The Virtuous Cycle
6 This is How We Win: The Virtuous Cycle – Doing Well by Doing Good High Quality and Low Cost Create Durable Competitive Advantages S E R VI CE DELIVERY & RETENTION S U S TA IN A B L E G R O W TH H IG H Q U A L IT Y, LO W C O S T ACTIONABLE D ATA COMPETITIVE BENEFITS • Alignment Virtual Application
Slide 7: Care Anywhere focus on high-risk members
7 74% MEMBERSHIP 5% INSTITUTIONAL CLAIMS 7% MEMBERSHIP 19% INSTITUTIONAL CLAIMS 7% MEMBERSHIP 1% INSTITUTIONAL CLAIMS HEALTHY PRE-CHRONICHEALTHY UTILIZER Notes: 1. Based on at-risk members 2. Based on encounter data 3. Based on Care Anywhere eligible & enrolled members with an “Extreme” risk score.
Slide 8: Alignment Delivers Industry-Leading Results
8 Quality >80 Care Anywhere NPS 4.9 Google Rating1 98% of Members in 4+ Star Rated Plans2 1.9% Auth. Denial Rate3: Providing Care & Preventing Fraud, Waste, Abuse Alignment Delivers Industry-Leading Results Sales 30% 5-Year Membership CAGR5 >80% of Gross Sales Through Plan Switchers Retention 47% Lo
Slide 9: Case Study: Virtuous Cycle in Action
9 Case Study: Virtuous Cycle in Action 2 Product Investment $0 $50 $100 $150 $200 $250 $300 2018 2019 2020 2021 2022 2023 2024 Average Rebate Value ($ pmpm) 3 Membership Growth 1 Medical Outcomes • Initial Entry: Members who were paneled to doctors affiliated with the IPA were extremely complex (70%
Slide 10: Our Model Enables Us to Manage Costs while Growing Quickly
10 Our Model Enables Us to Manage Costs while Growing Quickly Notes: 1. Alignment MBR reflects adj. MBR excluding ACO REACH. MBR metrics for peers represent the most comparable reported measure to an individual MA MBR. YoY membership comparisons exclude the impact of acquired membership. • Alignment
Slide 11: Alignment Clinical Model Benefits All Stakeholders
11 Alignment Clinical Model Benefits All Stakeholders • Improved health outcomes through the targeted provision of care by Alignment’s Care Anywhere clinical team • Supplemental benefits that address underlying health conditions and completement a wide range of senior lifestyle needs • Additional re
Slide 12: Continued AEP Growth Momentum
12 Continued AEP Growth Momentum Strong AEP Establishes Foundation for Year-End 2025 Membership Guidance Range of 225,000 to 231,000 155,500 209,900 01/01/2024 01/01/2025 Durable Growth Momentum Supported by Medical Management Capabilities Growth Through Plan Switchers Demonstrates Differentiated Va
Slide 13: Increasing Stars Advantages Extends Strong Growth Position
13 100% 94% 92% 98% 89% 74% 79% 64% 2022 2023 2024 2025 ALHC Industry Increasing Stars Advantages Extends Strong Growth Position Alignment members in 4+ star plans is increasing from 92% to 98% while the industry is declining from 79% to 64% in PY 2026 ALHC California Performance 100% 96% 95% 100% 9
Slide 14: Embedded Gross Margin Potential
14 Embedded Gross Margin Potential Historical Margin Improvement Trajectory Provides Strong Visibility into Embedded Earnings Potential Notes: 1. Reflects Part C gross margin only. ALHC At-Risk data reflects 2014- July 2024 dates-of-service. Claims paid through November 2024. Based on continuous At-
Slide 15: Strategic Decisions and Execution Converging to Drive Long-Term Success
15 Strong 2024 and 2025 growth adds enterprise scale and operating leverage Multi-Year Runway of Opportunity Disciplined bids lays foundation for margin expansion in 2025 Widening competitive advantage versus incumbents heading into 2026 (stars, final phase-in of risk model changes) Continue to inve
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