Alignment Healthcare (ALHC) investor relations material

Star ratings and quality initiatives

• Achieved 100% of members in four-star or higher plans, with raw scores improving due to conservative cut point strategies and targeted CAHPS score initiatives.

• Efforts to improve access to care and care coordination led to higher CAHPS scores.

• More cushion above the four-star threshold this year, reducing risk of falling below.

• Aggressive cut points are seen as leveling the playing field, ensuring only high-quality plans achieve top ratings.

• Two five-star plans in North Carolina and Nevada, with ongoing efforts to expand this status.

Medical management and operational improvements

• De-delegation of certain administrative functions from IPAs led to better control, lower admissions per thousand, and improved care coordination.

• Admissions per thousand consistently world-class, with recent figures at 140, outperforming industry benchmarks.

• Acute and institutional care management strategies are expected to further reduce readmission rates and improve outcomes.

• Care Anywhere program and proactive transitions to high-quality SNFs and rehab facilities are key to ongoing improvements.

Financial outlook and growth strategy

• Confident in 2025 outlook, with guidance for 2026 to be provided in February; focus remains on delivering on commitments.

• Benefits designed for margin focus, with discipline in growth and margin expansion prioritized for 2026.

• Long-term growth target of 20% maintained, with infrastructure in place to support rapid expansion.

• Path to $5–6 billion in revenue over three years, with a five-year goal of $10 billion and 600,000 members; potential for $15–20 billion long-term.

• Free cash flow positive a year ahead of schedule, supporting reinvestment and expansion into new markets.