Straight-A students still bristle at the one grade they believe was marked wrong. That is the mood at Alignment Healthcare, Inc. (NASDAQ: ALHC), which announced strong results in the Centers for Medicare & Medicaid Services’ 2027 Medicare Advantage Star Ratings, and in the same breath signaled a fight over one score it says misses the mark.

The Winning Numbers

Six of the company’s seven eligible MA contracts earned 4 Stars or higher. Three of those plans achieved an overall 4.5-Star Rating. The high performers span Arizona, California, Nevada, North Carolina and Texas, which Alignment said reflects its ability to deliver high-quality, coordinated and culturally responsive care across diverse communities and markets.

The One Rating Alignment Is Contesting

The company’s California H3815 HMO contract received 3.5 Stars for 2027. Alignment believes that rating does not accurately reflect the contract’s longstanding performance on evidence-based measures of quality, clinical outcomes and member experience.

A Framework Under Fire

CMS released the 2027 Star Ratings amid ongoing legal and policy concerns about the methodologies used to evaluate MA plan performance. Across the industry, many stakeholders question whether the framework consistently and accurately reflects care quality, member experience and clinical outcomes. Alignment said its results demonstrate the strength of its differentiated care model despite that environment.

The CEO Draws a Line

“We strongly support measuring quality and holding health plans accountable for results, because seniors deserve clear and meaningful information when choosing coverage,” said Dawn Maroney, president of Alignment Health and CEO of Alignment Health Plan. “But quality measurement only works when the methodology is accurate. We believe the current Star Ratings framework has drifted too far from that goal and no longer consistently reflects quality, outcomes and member experiences.”

Strength Across the Board

Alignment said it continues to perform strongly on measures of healthcare quality, care coordination, member experience and customer service, and maintained strong performance across numerous clinical and service measures evaluated under the program.

Heading Toward a Legal Fight

“Alignment is a high-performing organization with a differentiated care model, strong clinical outcomes and a deep commitment to the seniors we serve,” Maroney added. “We believe the 2027 rating for our H3815 contract is inconsistent with that performance and other key indicators of quality. We intend to pursue all available administrative remedies and to litigate the measures and methodologies we believe warrant review. At the same time, our strategy remains unchanged, and we remain confident in our ability to deliver exceptional care and return our California HMO contract to at least a 4-Star Rating.”

How the Star System Works

Each year, CMS publishes the Medicare Advantage (Part C) and Medicare Part D Star Ratings on Medicare.gov. The five-star system evaluates plan performance using member feedback, healthcare quality indicators, customer service metrics and other clinical performance measures.

About the Company

Alignment Health, a consumer brand of Alignment Healthcare, describes itself as championing a new path in senior care that empowers members to age well. Based in California, it partners with trusted local providers to deliver coordinated care through its customized care model, 24/7 concierge care team and purpose-built technology, AVA®. Its core values include leading with a serving heart and putting the senior first.

Forward-Looking Risks

The company cautioned that forward-looking statements are subject to risks and uncertainties. Those include its ability to attract members and enter new markets, to achieve or maintain high plan ratings, including returning H3815 to a 4.0-Star rating in future years, and to maintain provider relationships. Other risks include being a government contractor, potential federal cuts to MA funding, regulatory changes, indebtedness, market conditions, litigation or security incidents, and labor shortages and costs. Further detail appears in its annual report on Form 10-K for the year ended Dec. 31, 2025.

For Alignment, the 2027 ratings are a split decision: a strong showing across most of its footprint, and one California contract it now plans to take to court.