STAT+: Elevance sues government over $115 million tied to Medicare Advantage star ratings

STAT PlusBreaking News Elevance sues government over $115 million tied to Medicare Advantage star ratings CMS’ recalculation of quality ratings wasn’t consistent with a recent court ruling, Elevance said Manage alerts for this article Email this article Share this article By Bob HermanJuly 2, 2026 Bob Herman is the author of Health Care Inc., an award-winning weekly newsletter about the business of health and medicine. 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. Elevance Health has sued the U.S. government, alleging that federal efforts to recalculate its Medicare Advantage quality ratings didn’t align with a recent court ruling, costing the health insurer $115 million. The lawsuit, filed Wednesday in U.S. District Court for the Southern District of Georgia, represents a new tier of drama in the Medicare Advantage program, which is the alternative to traditional Medicare that is run by private insurers. Advertisement The suit centers on star ratings, which are supposed to measure the quality of a health plan’s care and customer service. Plans that meet certain quality thresholds get extra taxpayer-funded bonuses and rebates. STAT+ Exclusive Story Already have an account? Log in This article is exclusive to STAT+ subscribers Unlock this article — plus in-depth analysis, newsletters, premium events, and news alerts. 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, legal, medicare advantage, Policy, 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 Unpacking the business — and secretive inner workings — of the U.S. health care industry Recommended Biotech June 30, 2026 STAT Plus: Anthropic releases Claude Science, a product aimed at researchers, the pharma industry Insurance June 29, 2026 STAT Plus: 26 states sue to block Medicaid work requirements Advertisement Health June 29, 2026 STAT Plus: Longevity, wellness physicians named to panel advising FDA on peptides Pharma June 25, 2026 STAT Plus: Democrats press White House on who got special access to Eli Lilly’s new obesity drug Business June 24, 2026 STAT Plus: U.S. health spending rose sharply in 2025, thanks to GLP-1 use and more care Subscriber Picks