Judge Upholds Medicare Star Rating Against Elevance Health's Challenge
A federal judge in Texas ruled against Elevance Health's challenge of the U.S. government's Medicare star ratings for some of its plans. Elevance argued improper rounding cost it $375 million, but the judge supported the U.S. Department of Health and Human Services' calculations.
A federal judge in Texas has dismissed Elevance Health's lawsuit challenging the U.S. government's calculation of star ratings for its Medicare plans. Elevance contended that faulty rounding led to significant financial losses, but the court upheld the process used by the U.S. Department of Health and Human Services.
Judge Mark Pittman ruled in favor of the government, stating that Elevance failed to demonstrate major errors in the agency's rating calculations. Elevance Health, overseeing companies like Anthem Blue Cross, alleged that its contract was improperly assigned a lower star rating, costing it an estimated $375 million.
The U.S. Centers for Medicare & Medicaid Services issues star ratings to guide beneficiaries in choosing plans, with higher-rated plans receiving more substantial payments. Elevance's case was among several from insurers after 2025 ratings were published, spotlighting the contentious nature of the ranking system.
(With inputs from agencies.)
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