Alignment Healthcare's largest California Medicare Advantage contract cut to 3.5 stars

 

 as JPMorgan, KeyBanc slash price targets and William Blair downgrades

• H3815 HMO Medicare Advantage contract, covering about 81% of members, cut from 4 to 3.5 stars in 2027 CMS ratings.
• Lower star rating jeopardizes eligibility for 2028 quality bonus payments on the largest California Medicare Advantage contract.
• JPMorgan cut its Alignment Healthcare price target to $10 today following the CMS downgrade of the key California contract.
• KeyBanc reduced its Alignment Healthcare price target to $12 today after the California Medicare Advantage contract received a 3.5-star rating.
• William Blair downgraded Alignment Healthcare to Market Perform today following the CMS downgrade of its key California Medicare Advantage contract.
• Alignment Healthcare plans to challenge the 3.5-Star rating through available administrative and legal remedies.
• Six of seven Medicare Advantage contracts earned 4 Stars or higher in CMS 2027 ratings despite the largest contract downgrade.

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