The Centers for Medicare & Medicaid Services assigned the lower rating to the company’s H3815 HMO contract, a decision that prompted an immediate market reaction. Despite closing the regular session at $8.71, the stock plummeted to $6.90 following the announcement, extending a year-to-date decline that has seen the firm’s valuation drop by 56%.

Alignment Health Plan CEO Dawn Maroney rejected the findings, arguing that the score fails to account for the contract's historical performance regarding clinical outcomes and member experience. While the company maintains that its broader strategy remains intact, management plans to contest the methodology used by federal regulators. Notably, the firm’s other six eligible Medicare Advantage contracts retained high marks, with three plans securing 4.5-star ratings.