Elevance Health sues CMS over Medicare Advantage star rating recalculation, contests $115M payment impact

Elevance Health, parent of Anthem and numerous Blue Cross Blue Shield plans, filed a lawsuit against CMS challenging a recalculation of its 2025 Medicare Advantage star ratings. The change dropped Elevance's overall star rating, which directly impacts the quality bonus payments the insurer receives. Elevance contends the recalculation was arbitrary and could cost the company approximately $115 million. For practices contracting with Elevance's MA plans, this lawsuit highlights the financial volatility insurers face under the star rating system. While not a direct payment change for providers, it underscores the payer-side pressures that can influence network stability and contract negotiations. The case is pending.