Alignment Healthcare sinks after key Medicare contract downgrade
-13.38% to $7.54 from $8.71
What moved ALHC
- Alignment’s largest Medicare Advantage contract, covering roughly 81% of its membership and based in California, was downgraded to 3.5 stars from 4 in CMS’s 2027 Star Ratings.
- Shares fell more than 20% on the news.
- The company said six of its seven eligible Medicare Advantage contracts earned 4 stars or higher, including three at 4.5 stars, and that it intends to pursue “all available administrative remedies” to contest the downgraded contract.
- The newly published ratings will primarily affect quality bonus payments in 2028.
Sources: Yahoo Finance · GlobeNewswire