Some health insurers rise after CMS proposed rule on Medicare Advantage star ratings system

Shares of health insurer Humana HUM.N rise 1.7% to $241.89, UnitedHealth UNH.N up 1.3% at $330.26

Centers for Medicare & Medicaid Services proposed updates to the Medicare Advantage (MA) and Medicare Part D prescription drug programs

The proposed rule includes major enhancements to the quality or star ratings system

Beginning in the 2027 measurement year, CMS proposes to streamline Star Ratings by removing measures focused on administrative processes or that do not convey variability in quality among plans

The 12 measures to potentially be removed are Process Measures focused on the administration of the plan such as call centers, complaints, and members choosing to leave the plan

We view this as a positive for the industry given the volatility of the call center measures, brokerage Mizuho says

Also proposes that the Excellent Health Outcomes for All award, known previously as the Health Equity Index award, not be counted toward the 2027 star ratings calculations