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

The Centers for Medicare and Medicaid Services (CMS) recalculated the 2026 Medicare Advantage star ratings this week, following a new government memo. This recalculation was initiated due to ongoing legal challenges from the health insurance industry, which has filed numerous lawsuits against CMS over lower star ratings that impact eligibility for taxpayer-funded bonuses. In 2022, CMS was compelled to redo the star ratings for Medicare Advantage plans after federal judges ruled the government's initial calculations were flawed. Medicare Advantage plans achieving a minimum of four out of five stars are eligible for bonus payments. These bonuses have significantly increased, reaching $16 billion this year, a figure that has doubled since 2020 and is nearly equivalent to the entire budget of the Centers for Disease Control and Prevention. The repeated recalculations introduce increased volatility into the Medicare Advantage star rating program.