Medicare Advantage insurer Alignment Healthcare (ALHC 0.82%) stock ensured gains for its stockholders over the trading week. The company's shares rose by almost 8% over the five trading days, according to data compiled by S&P Global Market Intelligence. The impetus behind this gravity-defying move was a deal the company agreed with a major pharmacy chain operator.
Alignment and Walgreens team up for new Medicare Advantage plans
Alignment's partner in the arrangement is Walgreens Boots Alliance (WBA +0.00%). Under the terms of the deal, the two companies will together offer $0-premium Medicare Advantage plans in select markets in four large states -- California, Texas, Florida, and Arizona. According to Alignment, the potential number of people eligible for such plans in those markets is roughly 1.6 million.
The insurer added that it and Walgreens will begin offering the plans on Jan. 1.
Enrollees in the co-branded policies will be able to use their benefits when visiting a Walgreens in person, or ordering online from that company's web portal. All told, there are almost 9,000 Walgreens retail locations in the U.S., Puerto Rico, and the U.S. Virgin Islands. It is unclear how many of these stores are situated in the initial target markets for the Medicare Advantage partnership.
NASDAQ: ALHC
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A deal that looks like a clear win
In the press release trumpeting the arrangement, Alignment quoted the CEO of its Alignment Health Plan unit Dawn Maroney as saying that "Together, we'll deliver a new level of access ‒ one that makes it easy, convenient and cost-effective for seniors to get the medicine they need and the high-quality service they deserve."
While the company did not provide any financial specifics of the Walgreens deal, it looks sure to be a boon for its business to be in such a partnership, even if the initial rollout is somewhat limited.
