Carriers & the market
Medicare Advantage Insurers Got a Short Window to Revise 2027 Plans After Star Ratings Were Corrected
After court-driven star ratings recalculations gave some plans higher quality bonus payments, CMS gave eligible insurers until early August to update the bids that will determine what benefits and premiums enrollees see when open enrollment begins in October.
By the Goodsurance editorial teamJuly 24, 2026
As part of its July 28, 2026 contract year 2027 announcement, CMS provided formal guidance on a bid resubmission opportunity tied to the ongoing Medicare Advantage star ratings litigation. In May 2026, a federal court ruled that 20 measures CMS used in its 2026 star ratings calculation were unlawful, finding that 10 relied on data sources the Medicare Act does not authorize and that 10 were added without required notice-and-comment rulemaking. CMS responded in June 2026 by recalculating ratings for affected plans using only the three data sources authorized by statute: HEDIS measures, Health Outcomes Survey data, and Consumer Assessment of Healthcare Providers and Systems survey results. Some plans received higher recalculated ratings, translating into higher quality bonus payments. CMS then allowed those plans to revise their 2027 bids, since higher bonus income could support richer benefits or lower premiums. Eligible Medicare Advantage plans offering prescription drug coverage had from July 28 until August 6, 2026 to complete a rebate reallocation reflecting the updated bonus amounts. CMS held plans harmless: if a recalculated rating was lower than the original, the plan kept the higher original figure for bonus purposes. Beneficiaries will see the results when the Medicare Plan Finder is updated ahead of the October 15 annual enrollment period.
Medicare Advantage insurers whose star ratings were corrected upward could revise their 2027 plans, potentially improving what you see this fall.
In plain words
Courts found problems with how Medicare Advantage star ratings were set. CMS recalculated scores for affected plans. Some plans got higher ratings, meaning more government bonus money. CMS gave those insurers a short window, until August 6, to update their 2027 plan designs with that extra money. Plans with more bonus funds may offer better benefits or lower costs in 2027. Beneficiaries will see the final results in the Medicare Plan Finder when fall open enrollment starts October 15.
Understand the basics first
Source: CMS
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