Medicare Advantage plans that receive four out of five stars or better get bonus payments, which have ballooned to $16 billion this year.
CMS recalculated 2026 Medicare Advantage ratings after insurers won lawsuits; bonuses hit $16B, doubling from 2020 levels. Recurring legal-driven recalculations force MA plans into continuous compliance and budgeting adjustments, destabilizing long-term operational planning.
Insurers have lobbed constant legal challenges at $16 billion MA star rating system
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By Bob HermanJune 18, 2026
Business of Health Care Reporter
Bob covers the money in health care, focusing on health insurance and hospitals. His stories delve into Medicare Advantage, opaque prescription drug benefits, and how much executives actually make. He is also the author of the Health Care Inc. newsletter. You can reach Bob on Signal at bobjherman.09.
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