STAT+: Medicare Advantage star ratings trigger new bonuses, and uncertainty — SkimNews
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- Humana emerged as the biggest winner in the federal government's newly released 2027 Medicare Advantage star quality ratings, according to CMS data.
- Alignment Healthcare has already threatened to sue the government after its star ratings were downgraded — a response now described as common among insurers unhappy with their grades.
- Medicare Advantage plans rated at least four out of five stars trigger bonus payments that total $13 billion annually across the industry.
- Nearly 71% of Medicare Advantage enrollees are currently in a plan rated four stars or higher, per the Centers for Medicare and Medicaid Services.
- Ratings assigned for 2027 will trigger the corresponding bonus payouts in 2028, creating a built-in two-year lag between assessment and reward.
Why it matters: With $13 billion in annual bonuses tied to star ratings and lawsuits now a routine response from downgraded insurers, the Medicare Advantage quality system has become a high-stakes legal battleground — Humana's gains and Alignment Healthcare's threatened suit show how much revenue rides on grades the industry is increasingly willing to fight in court.
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