Medicare Advantage Insurer Sues HHS Over Quality Ratings Drop

A Medicare Advantage insurer sued the Biden administration over allegations its quality rating was reduced due to errors made by the federal government and its contractors.

The complaint filed Jan. 10 in the US District Court for the District of Columbia claims the Centers for Medicare & Medicaid Services and its contractors made several “significant” mistakes when handling California-based Alignment Healthcare’s data that eventually led to a marked drop in the company’s “star rating.”

Star ratings, which range from one to five stars, play a crucial role for Medicare Advantage insurers. Higher ratings allow plans to receive bonuses and enroll ...