Alignment Healthcare (NASDAQ: ALHC) Increasingly Scrutinized Over H3815 Cut Points And CMS Bonus Eligibility - HBSS
Key Highlights
- ➤Alignment Healthcare (ALHC) H3815 rating cut to 3.5 Stars for 2027
- ➤H3815 serves 75% of Alignment’s combined health plan membership
- ➤H3815 became ineligible for CMS quality bonus payments for fiscal 2028
- ➤ALHC shares fell 13% to $7.55, reaching a 52-week low
- ➤Shares declined roughly 59%, wiping out over $2.2 billion market capitalization
Expert Statements
John Kao, CEO of Alignment Healthcare
“I feel good about our position.”
John Kao, CEO of Alignment Healthcare
“I cannot talk about it at all[.]”
Reed Kathrein, Hagens Berman partner
“We are investigating when Alignment management knew it should not feel good about cut points and whether they were sufficiently transparent eligibility for CMS bonus payments”
SAN FRANCISCO, Oct. 14, 2026 (GLOBE NEWSWIRE) -- On October 9, 2026, investors Alignment Healthcare, Inc. (NASDAQ: ALHC) saw the price of their shares slide another 13% to close at $7.55, reaching a 52 week low, after the Centers for Medicare & Medicaid Services (“CMS”) lowered its 2027 4.0 Star Rating to a 3.5 Star Rating for Alignment’s California HMO health plan contract (“H3815”), which serves 75% of Alignment’s health plan membership.
The revelations follow growing investor concerns over H3815’s performance during CMS’ measurement period, including “cut points” established by CMS to assess H3815’s Star Rating.
Get started
Create a free account to read the full story.