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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 AHIP Publishes New Analysis To Support MA Health plan trade group AHIP published a study championing the value of Medicare Advantage (MA). Main points of the study include: #medicareadvantage #quality https://ahiporg-production.s3.amazonaws.com/documents/202604_AHIP_1P_MA_Affordability4149.pdf — Marc S. Ryan

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 340B RFI Comments The Health Resources and Service Administration solicited input on its next try at a 340B reform pilot and

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

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

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 Employer Relief On GLP-1s Could Come Employers and health systems have struggled with rising costs of GLP-1s in their employee health plans, but relief could be on the way with the introduction of cheaper pill versions and drug price reductions negotiated by President Trump. #glp1s #weightlossdrugs #employercoverage   https://www.beckerspayer.com/payer/employers-glp-1-coverage-dilemma-grows Humana and Cost Plus Drug Team Up Humana’s CenterWell Pharmacy and Mark Cuban’s Cost Plus Drugs have partnered on creating new end-to-end employer prescription solutions. CenterWell Pharmacy becomes an

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: 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 Med Supp Premiums Surging Complaints that Medicare Supplement or Medigap

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