Alignment Healthcare: BofA Conference Takes: No major adjustment to risk adjustment?

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Alignment Healthcare: BofA Conference Takes: No major adjustment to risk adjustment?

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Alignment Healthcare

BofA Conference Takes: No major

adjustment to risk adjustment?

Reiterate Rating: BUY | PO: 25.00 USD | Price: 18.21 USD

Positive tone on trend and change of tone on risk adj. 13 May 2026

We sat down with the leadership team from Alignment Healthcare (ALHC) including John Equity

Kao, Founder & CEO as well as Jim Head, CFO. The most interesting commentary came

Craig Jones

around risk adjustment. ALHC spent the week in DC and now thinks that CMS thinks that Research Analyst

making a significant overhaul to risk adjustment may not be possible under its current BofAS craig.jones3@bofa.com

time constraints. This is in contrast to prior commentary ALHC made around expecting

Kevin Fischbeck, CFA

major changes coming in the 2028 technical notice this Fall. Additionally, ALHC sees Research Analyst

trend stability, which is in line with peer commentary, and expects to accelerate growth BofAS kevin.fischbeck@bofa.com

outside of CA in 2027. While some have historically questioned ALHC’s ability to Joanna Gajuk

translate its model outside of CA, ALHC actually sees it as a margin accretive Research Analyst

opportunity as it will be able to capture margin the CA IPAs currently capture. We remain BofASjoanna.gajuk@bofa.com

Buy rated as ALHC continues to take market share and expand margins with its superior Joaquin Arriagada Martinez

MA model. Research Analyst

BofAS

Next gen risk adjustment model unlikely in near term joaquin.arriagadamartinez@bofa.com Katie FitzGerald

ALHC spent the last week in DC and came away less convinced CMS would be able to Research Analyst