Federal Court Orders CMS to Recalculate Medicare Advantage Star Ratings After Clover Health Victory
By
Jesse Coleman
Summary
A federal court ruling in favor of Clover Health has forced CMS to recalculate its 2026 Medicare Advantage Star Ratings, with broader implications for the entire MA program. The U.S. District Court for the Southern District of Georgia found that CMS improperly included twenty measures in Clover's rating calculation, ten of which relied on data sources not authorized by Congress. The decision challenges CMS's long-standing practice of using "encounter data" alongside traditional "chart review" data, potentially affecting how all MA plans are rated. The ruling could lead to significant changes in Star Ratings methodology, impacting quality bonus payments, plan rankings, and beneficiary choices across the Medicare Advantage marketplace.
Source
Key quotes
· 3 pulledThe court held that CMS improperly included twenty measures in Clover's 2026 Star Rating calculation, finding that ten measures relied upon data sources that Congress had not authorized
A recent federal court decision in favor of Clover Health has quickly evolved from an insurer-specific dispute into one of the most significant Medicare Advantage ('MA') regulatory developments in recent years
The decision challenges CMS's long-standing practice of using 'encounter data' alongside traditional 'chart review' data, potentially affecting how all MA plans are rated
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