Walgreens, Alignment rolling out co-branded Medicare Advantage plans

Photo: Marko Geber/Getty Images

Walgreens and Alignment Healthcare have signed an agreement to offer new $0-premium co-branded Medicare Advantage plans in select markets throughout Arizona, California, Florida and Texas starting January 1, 2024.

This will reach about 1.6 million Medicare-eligible adults, pending regulatory approvals, the companies said.

Dawn Maroney, president, markets of Alignment Healthcare, and CEO of Alignment Health Plan, said the goal is to deliver better access, and to make it more convenient and cost-effective for seniors to get their medicine.

WHAT'S THE IMPACT?

Members who enroll in one of the co-branded plans will be able to use their over-the-counter benefits at Walgreens or online through a mail-order provider. The plans offer comprehensive medical and prescription drug coverage including a $0 copay on more than 10,000 prescription drugs at Walgreens and other in-network pharmacies.

All Alignment Health Plan members have access to Alignment's 24/7 ACCESS On-Demand Concierge, a dedicated 24/7 concierge team, to answer health-related questions, schedule medical appointments and arrange transportation.

Walgreens operates nearly 9,000 retail locations across the U.S., Puerto Rico, and the U.S. Virgin Islands, serving nearly 10 million customers. Alignment Healthcare offers MA plans and benefits through Alignment Health Plan across Arizona, California, Florida, Nevada, North Carolina and Texas.

The Walgreens co-branded plans will be offered through Alignment Health Plan as an HMO or HMO point-of-service plan in 10 counties across four of the six states: Maricopa, Pima and Santa Cruz counties in Arizona; Fresno, Madera and Merced counties in California; Clay and Duval counties in Florida; and El Paso and Hudspeth counties in Texas.

Medicare-eligible adults can select plans during the Medicare enrollment period from October 15 through December 7, for plan benefits starting January 1.

THE LARGER TREND

The Centers for Medicare and Medicaid Services has released the Medicare Advantage, Part C and Medicare Part D Star Ratings that rank MA plans by the quality of health and drug services received by consumers. Thirty-one contracts for both Medicare Advantage and the Part D drug plan earned 5 stars, compared to 57 in 2023.

Walgreens Boots Alliance has plans to cut over $1 billion in 2024 and to shutter 60 healthcare clinics in unprofitable markets. The company reported fourth quarter operating losses of $450 million, compared to $822 million operating losses during the fourth quarter of 2022.

Medicare Advantage has steadily grown in popularity, and now covers slightly more than half of all Medicare beneficiaries. One of the drivers of this growth has been people switching from traditional Medicare, especially younger and healthier patients.

Switching from fee-for-service Medicare to MA more than tripled between 2006 and 2022, whereas switching from MA to fee-for-service Medicare decreased, a trend that started to gain steam around 2019.

Federal spending on bonus payments to insurance companies that offer Medicare Advantage plans will reach at least $12.8 billion this year, according to a new KFF analysis. That's a nearly 30% increase from 2022, and more than quadruple the spending in 2015.

Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com