Alignment Healthcare, Inc. (NASDAQ:ALHC) Q3 2023 Earnings Call Transcript

And so, I feel good about the initiatives we’re undertaking at CAPS, but I got to tell you, with what I have seen thus far in terms of all the other measures, and we’re basically tracking numerators and denominators for every single measure on a daily basis so that we can ensure that gaps get closed on a daily basis. And I sit in on a lot of these conversations, so I see it live. I’m very comfortable we’re going to be four stars or more, and really I’m pushing people to get higher. That’s kind of the mode that we’re in.

Whit Mayo: Okay, good. That’s helpful. And second question, maybe just an update on broker strategy. I know you guys have really tried this year to tie up tighter with a number of brokers. I don’t know, market like Texas or something kind of comes to mind. Just feedback, feeling better or worse after seeing other plan offerings that are out there, how do you feel about the progress you’re making?

John Kao: Yes, a lot of tailwinds. And again, it gets back to some of the just kind of comparative benefit advantages that we have that I think are a result of what I said earlier, tailwinds with respect to stars and tailwinds with respect to V28. It all manifests itself in your product strategy, and we have very strong products. If you have very strong products, and you have the operational sales control that I think we have in place now with respect to distribution, we’re getting very, very good results from the broker community. And the quality of the brokers, the compliance of the brokers has been very good. We need five-star brokers. If you’re not a five-star broker as measured by kind of CTMs and just general satisfaction, you’re not going to work with us.

It’s really just implementing and enforcing that. So I’m very happy with that. I would also really shout out our sales leadership and sales operations teams have done a very good job this year. And it’s just, it’s at a level of just kind of organization and control and visibility and transparent, all of its very, very good. So, again, I’m very optimistic about that. And again, I like that shows in the first couple of weeks of AEP. And that momentum, as I keep asking every day is that momentum continuing? And people are saying, yes. So, we’ll see what happens, but so far so good.

Whit Mayo: Okay. Thanks, guys.

Operator: Thank you. And I show our next question comes from the line of Jessica Tassan from Piper Sandler. Please go ahead.

Jessica Tassan: Hi, guys. Thanks for taking the question. So, I wanted to ask just, we know alignment was kind of first on the debit card supplemental benefits. Can you just discuss any areas of innovation for 2024? And just what would you expect the member or how would you expect membership mixed shift as a result of that supplemental benefit innovation?

John Kao: Yes. Hey, Jess, it’s John. No, we’re pretty excited about a couple of announcements that we’ve made. One is with Walgreens. We’ve got some co-branded plans and select markets with Walgreens. That is going exceedingly well. The brand name is helping us a lot. The brokers love it. And then, the other one I would call out is Instacart, which is very, very innovative. And we’re looking to deepen relationships with them across more geographies. But kind of introducing Instacart as a primary grocery benefit is very innovative. And we have bulked up some of our resources and our member experience teams to ensure that we can navigate and help our members through that. And so far, the early indications are very positive. People love it.