CMS Recalculates 2026 Medicare Advantage Star Ratings After Court Found Prior Errors

Federal officials have recalculated the quality ratings for 2026 Medicare Advantage plans, a new government memo shows. The decision followed another legal challenge from the health insurance industry. Medicare Advantage plans that receive four out of five stars or better qualify for bonus payments.

Those payments reached $16 billion this year, nearly matching the entire budget of the Centers for Disease Control and Prevention and double the amount paid in 2020. Health insurance companies have filed repeated lawsuits against the Centers for Medicare and Medicaid Services over lower star ratings that threatened their bonuses. Some insurers lost their cases, while a few prevailed.

Two years ago, CMS had to redo Medicare Advantage star ratings after federal judges ruled the government had made errors in its original calculations. The latest recalculation adds further volatility to a program already marked by ongoing litigation between insurers and regulators.