Insurance
Alignment Healthcare sues CMS over 2027 Medicare Advantage star ratings
Alignment says its 2027 ratings could cost it more than $200 million in payments in 2028.
Alignment Healthcare sued CMS, alleging the agency used 10 contested measures to calculate its 2027 Medicare Advantage star ratings without adopting them through regulation. According to the complaint, Alignment asked CMS on Oct. 6 to calculate its ratings without those measures. CMS denied the request on Oct. 7, before releasing the ratings Oct. 8.
Healthcare Dive reported that the share of Alignment members in plans rated at least 4 stars fell from 98% in 2026 to 25% in 2027. The complaint says the drop is set to cost the insurer more than $200 million in payments in 2028. Alignment argues CMS violated the Administrative Procedure Act. CMS did not respond to a request for comment, Healthcare Dive reported.
