Legal
D.C. Circuit Upholds CMS Authority to Retain MA Survey Data in Star Ratings
On July 14, 2026, the D.C. Circuit Court of Appeals affirmed a district court ruling that upheld CMS's decision to retain survey data used in Medicare Advantage star ratings, rejecting Alignment Healthcare's challenge that the agency acted arbitrarily by refusing to discard the data. The decision reinforces CMS's discretion in administering the star ratings methodology and handling plan-specific data challenges. While this case involves Medicare Advantage rather than Medicaid managed care, it establishes precedent for CMS's authority over survey-based quality measurement systems that parallel those used in Medicaid managed care quality rating systems in multiple states.
Why it mattersThe ruling strengthens CMS's authority to maintain survey data integrity in quality rating systems, directly relevant to Medicaid managed care plans subject to similar CAHPS-based quality measures and state-level star rating programs that mirror MA methodology.