Industry
CMS Releases 2027 Medicare Advantage Star Ratings, Humana Gains
CMS has published 2027 Medicare Advantage star ratings, with Humana emerging as the biggest winner among insurers. Nearly 71% of Medicare Advantage enrollees are in plans rated four stars or higher, a threshold that triggers quality bonus payments totaling $13 billion annually industry-wide. The 2027 ratings will determine bonus payouts in 2028. Alignment Healthcare has already threatened litigation after its ratings were downgraded, reflecting growing insurer pushback against CMS's star rating methodology amid broader uncertainty over how quality measures are calculated.
Why it mattersStar rating shifts directly reallocate billions in CMS bonus revenue among Medicare Advantage insurers and are increasingly contested through litigation, creating financial and legal uncertainty for plans tied to Medicaid-MA dual-eligible products.
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