Medicare Update: Major Insurer Sues Trump Admin Over Star Ratings
Alignment Healthcare filed a lawsuit against the Centers for Medicare & Medicaid Services (CMS) in federal court.
Alignment Healthcare, a major Medicare Advantage insurer, has filed a lawsuit against the Trump administration over its 2027 star ratings calculation. The company argues that the Centers for Medicare & Medicaid Services (CMS) unlawfully used measures not properly established through the rulemaking process. The dispute centers on whether CMS violated the Administrative Procedure Act by not following proper rulemaking procedures for the disputed measures.
If successful, the lawsuit could result in millions of dollars in financial consequences for Alignment, as lower star ratings could lead to reduced payments for the insurer. The lawsuit questions the fairness and accuracy of CMS's evaluation process and whether it adequately reflects the quality of care beneficiaries receive.
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