ByBruce Japsen,
Senior Contributor.
Alignment Healthcare reported its second consecutive profitable quarter as a publicly trade company in part by managing medical expenses better than many of its rivals who sell Medicare Advantage coverage to older adults.
Alignment, which reported third quarter net income of $3.7 million, watched its medical benefit ratio, which is the percentage of premium revenue that goes toward medical costs, drop to 87.2%. That compares to a medical benefits ratio of 88.4% in the year-ago quarter.
The improving financial performance of Alignment, which reported its first-ever net income earlier this year in the company’s second quarter, comes as rival health insurance companies, particularly those with Medicare Advantage business, struggle to control their costs. Medicare Advantage plans contract with the federal government to provide traditional coverage available in traditional Medicare plus extra benefits and services to seniors, such as disease management and nurse help hotlines with some also offering vision, dental care and wellness programs.
