UnitedHealth Medicare Advantage Star Ratings Recalculated After Court Order
New York, NY - The Centers for Medicare and Medicaid Services (CMS) reversed course on Friday, withdrawing its appeal of a court order requiring the agency to recalculate UnitedHealth Group's Medicare Advantage star ratings. The insurer had previously stated that the lowered ratings could cost millions of dollars in lost customers.
CMS did not provide a reason for the withdrawal, leaving it unclear if the move signals a policy shift under the new Trump administration. The agency declined to comment, citing a pause on public communications by health agencies imposed by the administration.
The lawsuit stemmed from UnitedHealth's Medicare Advantage plans, privately administered health insurance options for seniors and some Americans with disabilities. CMS assigns star ratings from one to five to help consumers make informed choices about plans.
UnitedHealth alleged that several of its Medicare Advantage plans lost half a star due to a failed call from a CMS test caller seeking a foreign language interpreter. The insurer argued that CMS acted arbitrarily by penalizing the star ratings based on a single call and that the caller's error prevented a successful connection with a representative.
A Texas federal judge ruled in UnitedHealth's favor in November, ordering CMS to recalculate the star ratings. Other insurers, such as Elevance, Centene, and Humana, have also filed lawsuits over alleged unfair star ratings. CMS has previously recalculated ratings for Elevance and non-profit SCAN Health Plans after losing court rulings.
UnitedHealth Group stocks experienced a modest rise of approximately 0.6% following the news.