STAT+: CMS recalculates Medicare Advantage star ratings again, adding more volatility to program

STAT PlusBusiness CMS recalculates Medicare Advantage star ratings again, adding more volatility to program Insurers have lobbed constant legal challenges at $16 billion MA star rating system Manage alerts for this article Email this article Share this article By Bob HermanJune 18, 2026 Business of Health Care Reporter Bob Herman[email protected]Bob covers the money in health care, focusing on health insurance and hospitals. His stories delve into Medicare Advantage, opaque prescription drug benefits, and how much executives actually make. He is also the author of the Health Care Inc. newsletter. You can reach Bob on Signal at bobjherman.09. Federal officials have recalculated the quality ratings for 2026 Medicare Advantage plans, a new government memo shows. The consequential decision was prompted by yet another legal action from the health insurance industry. Over the past few years, health insurance companies that sell Medicare Advantage plans have inundated the Centers for Medicare and Medicaid Services with lawsuits that challenged their lower star ratings, which jeopardized taxpayer-funded bonuses. Many insurers have lost their cases, but a handful have won. Two years ago, CMS had to redo Medicare Advantage star ratings after federal judges said the government erred with its original calculations.Advertisement Medicare Advantage plans that get at least four out of five stars get bonus payments. Those bonuses have ballooned to $16 billion this year — almost the entire budget of the Centers for Disease Control and Prevention and an amount that has doubled since 2020. STAT+ Exclusive Story Already have an account? Log in This article is exclusive to STAT+ subscribers Unlock this article — plus daily market-moving biopharma analysis — by subscribing to STAT+. Already have an account? Log in Monthly $39 Totals $468 per year $39/month Get Started Totals $468 per year Starter $30 for 3 months, then $399/year $30 for 3 months Get Started Then $399/year Annual $399 Save 15% $399/year Get Started Save 15% 11+ Users Custom Savings start at 25%! Request A Quote Request A Quote Savings start at 25%! 2-10 Users $300 Annually per user $300/year Get Started $300 Annually per user View All Plans To read the rest of this story subscribe to STAT+. Subscribe Log In CMS, Health insurance, Medicare, medicare advantage, STAT+ Submit a correction requestReprints Bob Herman Business of Health Care Reporter Bob covers the money in health care, focusing on health insurance and hospitals. His stories delve into Medicare Advantage, opaque prescription drug benefits, and how much executives actually make. He is also the author of the Health Care Inc. newsletter. You can reach Bob on Signal at bobjherman.09. Newsletter Understand how science, health policy, and medicine shape the world every day Recommended The Readout June 18, 2026 STAT Plus: Cambrian’s experimental longevity drug mimics exercise Business June 17, 2026 STAT Plus: DOJ’s swift win in OhioHealth case should have hospitals studying their contracts, experts say Advertisement Business June 17, 2026 Luigi Mangione will assert psychiatric defense in murder case in UnitedHealthcare CEO’s killing The Readout June 17, 2026 STAT Plus: FDA appears open to Moderna’s flu vaccine ahead of adcomm The Readout June 16, 2026 STAT Plus: ARCH-launched Neumora stops depression program Subscriber Picks