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Alignment Posts Q1 2026 Profit

Medicare Advantage (MA) plan Alignment Healthcare reported Q1 2026 revenue of $1.2 billion, a 33% increase from Q1 2025. MA membership reached 284,800 at the end of Q1, up 30.9% from Q1 2025. The insurer posted net income of $11.4 million, compared to a net loss of $9.4 million in Q1 2025. The company’s medical loss ratio (MLR) was 88.2%. The company raised its guidance for the year.

#medicareadvantage #alignment #margins

https://www.beckerspayer.com/payer/medicare-advantage/alignment-posts-11m-profit-in-q1

Cigna Beats The Street; Will Exit Exchanges

The Cigna Group beat The Street on both earnings and revenue in Q1 2026, posting $1.65 billion in profit. That’s up from $1.3 billion in Q1 2025. Revenues in the quarter were $68.5 billion, up from $65.5 billion haul in Q1 2025. Cigna’s medical loss ratio (MLR) decreased from 82.2% to 79.8%. Cigna is predominantly commercial.

But Cigna will exit the individual market for the 2027 plan year given troubles with membership and risk. And the company is likely to sell its company EviCore, which specializes in prior authorization services. Its Express Script PBM revenue was down given the transition to net pricing.

Additional articles: https://www.fiercehealthcare.com/payers/cigna-posts-165b-profit-q1-earnings-beat and https://www.modernhealthcare.com/insurance/mh-cigna-aca-exchanges-2027/ and https://www.healthcaredive.com/news/cigna-exit-aca-exchanges-despite-q1-2026-profit-growth-ci/818873/ and https://www.beckerspayer.com/financial/cigna-to-exit-aca-individual-business-posts-1-65b-q1-profit/

(Some articles may require a subscription.)

#healthplans #margins #cigna

https://www.modernhealthcare.com/insurance/mh-cigna-earnings-outlook-evernorth-health

Another Model Deadline Extended

The Centers for Medicare & Medicaid Services (CMS) is extending the application deadline for drug manufacturers to apply to the GENErating cost Reductions fOr U.S. Medicaid (GENEROUS) Model. The deadline was extended by the agency to June 11 from April 30. CMS says the reason was due to overwhelming interest from prescription drug manufacturers. However, it cites that more time will help small to mid-sized firms to join. Participation agreement deadlines will be extended from June 30 to July 17. CMS is also extending the deadline for states to apply to the GENEROUS model from July 31 to September 10 and to finalize participation agreements from August 31 to September 30.

The program intends to have the federal government negotiate with drug makers to obtain a most-favored-nation (MFN) price. MFN drug pricing is also being set up in Medicare under the GLOBE and GUARD models.

Read my blog Monday on potholes at CMS with reform models: https://www.healthcarelabyrinth.com/cms-reform-models-hitting-some-potholes/

#drugpricing #trump #mfn

https://www.cms.gov/newsroom/news-alert/cms-extends-deadlines-generous-model-applications-drug-manufacturers-states

Site Neutral Stunner On Capitol Hill

Health system CEOs faced a grilling on a range of hospital issues today on Capitol Hill, but in a stunning turn of events the executives said that they are willing to discuss reasonable changes to their long-standing opposition to site neural payments in Medicare.

Under site neutral, the same services at all locations are paid the same rate, which would drop hospital payments dramatically. What emerged was some consensus on moves to site neutral that would recognize hospital differences in some cases and changes that might be phased in so as not to undermine finances at health systems.

Lawmakers, mostly on the GOP side, otherwise accused health systems of driving high costs and reducing competition. Democrats focused on the cuts in the One Big Beautiful Bill (OBBBA).

The Trump administration finalized another small step on site neutrality, but Capitol Hill has always been stymied by a strong hospital lobby opposition. It was truly a watershed event.

Additional articles: https://www.fiercehealthcare.com/providers/capitol-hill-health-system-ceos-agree-rational-reworking-site-neutral-payments and https://thehill.com/homenews/house/5853987-gop-hearing-hospital-costs/

(Some articles may require a subscription.)

#hospitals #antitrust #mergers #acquisitions #siteneutral

https://www.modernhealthcare.com/politics-regulation/mh-congress-hca-commonspirit-new-york-presbyterian-ceos

Health Plan CEO Comp Drops Slightly

Health insurance CEO pay dipped slightly in 2025 as companies struggled financially. CEO comp dropped at Centene, Cigna and Molina Healthcare and rose at UnitedHealth Group, Elevance Health, Aetna parent company CVS Health, Humana, Alignment Health and Oscar Health.

The average compensation package for the nine CEOs was $16.7 million in 2025, down less than 2% from 2024.

(Article may require a subscription.)

#compensation #healthplans

https://www.modernhealthcare.com/insurance/mh-insurance-ceo-compensation-2025-unitedhealth-humana

Health Plans Continue Prior Authorization Reforms

Two insurance lobbies, AHIP and the Blue Cross Blue Shield Association, said that leading health plans continue to make significant progress to adopt a standardized approach for providers submitting electronic prior authorization (PA) requests for the majority of medical services. About 88% of Aetna’s prior authorizations already adhere to the standards, with UnitedHealthcare and Cigna saying their standards will apply to more than 70% of their PA volume by the end of the year.

Key reforms include reducing the number of services subject to prior authorization as well.

In addition, lawmakers proposed bipartisan legislation aimed at strengthening Medicare Advantage (MA) plan oversight to ensure seniors receive timely and high-quality care. The bill aims to address barriers to coverage and treatment, including:

• Strengthening oversight and accountability for plans failing to meet compliance standards
• Increasing transparency and streamline prior authorization processes
• Aligning coverage criteria with traditional Medicare
• Reducing administrative burdens through real-time, automated systems 
• Expanding access to post-acute care providers

Additional articles: https://www.fiercehealthcare.com/payers/unitedhealthcare-aetna-tout-progress-standardize-prior-authorization-part-industry-wide and https://www.modernhealthcare.com/insurance/mh-cigna-humana-prior-authorization-standardized-requirements/

(Some articles may require a subscription.)

#healthplans #priorauthorization #providers

https://www.fiercehealthcare.com/regulatory/lawmakers-introduce-bipartisan-legislation-improve-access-quality-care-medicare

Paragon Urges Hospital Payment Reform

The influential Paragon Institute, which influenced the One Big Beautiful Bill Act (OBBBA) and no extension of Exchange enhanced subsidies, has issued a new report challenging hospitals’ views on their finances and advocating payment reform.

About one third of over $5 trillion each year is spent on hospital care and Paragon notes that hospitals are a key factor in driving premiums given major cost hikes annually. It notes that since 2000 hospital prices have risen three times faster than inflation and double wage growth. It says government policies inflate and distort hospital prices as well as encourage consolidations and physician acquisition. It argues hospitals can make money at Medicare rates and hospitals have had strong positive margins. It calls attention to the success of some hospitals with large government program patient loads.

Paragon proposes a number of reforms below. Hospital groups took issue with the financial characterizations as well as proposals. But reform appears to be fermenting in Congress.

The proposed reforms include:

• Site-neutral payments in Medicare
• Medicare rate setting based on Medicare Advantage price transparency data
• Further Medicaid provider tax and state-directed payment restrictions
• Oversight of hospital supplemental payments
• Development of a comprehensive inventory of federal hospital payments
• Better targeting of 340B net savings to in-need entities or individual patients directly
• Repeal of state’s certificate of need laws
• Repeal of restriction on reimbursement to new physician-owned hospitals
• Increased oversight of hospitals’ compliance with tax rules
• Increased enforcement of hospital and insurer price transparency
• Removal of uncompensated care payments from Medicare and moving to targeted payments based on share of charity care and non-Medicare bad debt
• Elimination of the current graduate medical education (GME) funding formula in favor of discretionary grants

Additional article: https://paragoninstitute.org/private-health/the-hospital-cost-crisis-how-government-policies-drive-consolidation-undermine-competition-and-fuel-soaring-prices/?nab=0

#hospitals #siteneutral #payments

https://www.fiercehealthcare.com/providers/conservative-think-tank-paragon-health-calls-its-shots-hospital-policy-reform

Elevance Beats The Street

Elevance Health beat Wall Street expectations for Q1 2026 and raised its full-year guidance. It has instituted a performance improvement and turnaround program and is managing medical costs. The company reported $1.8 billion in Q1, down 19.2% from $2.2 billion in the prior-year quarter.

Revenue in the quarter was $50.2 billion, up 2.6% from Q1 2025. Elevance had a $1.76 billion profit in Q1, down 19.4% year over year.

It continues to have struggles in Medicare Advantage (MA) and Medicaid. On MA, it faces a potential exposure over risk adjustment of up to $1.5 billion. On Exchanges, it reports that more and more are choosing cheaper Bronze plans due to premium hikes and enhanced subsidy expiration.

Elevance also says it will invest $1 billion in digital and AI capabilities.

Additional articles: https://www.modernhealthcare.com/insurance/mh-elevance-health-earnings-stock-price/ and https://www.beckerspayer.com/virtual-care/inside-elevances-1b-ai-investment/ and https://www.beckerspayer.com/financial/elevance-reports-1-76b-profit-in-q1/ and https://www.fiercehealthcare.com/payers/elevance-health-raises-2026-outlook-it-posts-18b-q1-profit

(Some articles may require a subscription.)

#elevancehealth #healthplans #margins #medicareadvantage #exchanges #aca #medicaid

https://www.healthcaredive.com/news/elevance-raise-2026-profit-outlook-cms-medicare-advantage-payout/818122

— Marc S. Ryan

GLP-1 BALANCE Model On Hold

The Trump administration’s effort to bring GLP-1 drugs for the obese to Medicare, BALANCE, is on hold. The Centers for Medicare and Medicaid Services (CMS) planned to negotiate lower GLP-1 prices for Medicaid and Medicare Part D coverage and have health plans and pharmacy benefits managers (PBMs) agree to offer the drugs in the programs. But too few applicants applied to participate, likely due to costs and risk. Critical mass in Part D, covering 80% of Part D enrollment, was not met. The Medicaid portion of the pilot will still move forward. In Medicare, to gather necessary data, CMS now plans on funding coverage via the temporary BRIDGE pilot through the end of 2027 before proceeding again with BALANCE.

At the same time, UnitedHealthcare said it was hoping to participate in both the BRIDGE program in 2026 and in BALANCE.

Additional articles: https://www.beckershospitalreview.com/glp-1s/cms-pauses-weight-loss-balance-model-indefinitely-for-medicare/ and https://www.beckerspayer.com/payer/medicare-advantage/unitedhealthcare-eyes-cms-balance-glp-1-model/

(Some articles may require a subscription.)

#glp1s #weightlossdrugs #drugpricing #medicare #partd #medicareadvantage #pdp #medicaid #managedcare

https://www.modernhealthcare.com/politics-regulation/mh-medicare-glp-1-weight-loss-coverage

United To End Most PAs On Rural Hospitals

Responding to the rural health crisis and its own bad PR, UnitedHealthcare says it will exempt rural hospitals from most prior authorizations. This will apply across all lines of business. United will also accelerate payments by up to 50% for about 1,500 rural hospitals and all critical access hospitals across the country.

Additional article: https://www.beckerspayer.com/payer/unitedhealthcare-pares-back-prior-authorizations-speeds-up-payments-for-rural-providers/

#unitedhealthcare #priorauthoriztaion #ruralhealthcare

https://www.fiercehealthcare.com/payers/unitedhealthcare-unveils-pilot-accelerate-payments-rural-hospitals