(Reuters) – The Centers for Medicare & Medicaid Services said in a memo on Thursday it will recalculate the quality ratings of Medicare Advantage plans for people aged 65 years and above, which would likely increase the bonus payments for insurers.
UnitedHealth, Humana and other insurers offer Medicare Advantage plans under which they are paid a set rate by the government to manage healthcare for people aged 65 and older or with disabilities.
An increase in bonus payments would be a relief to health insurers who are already struggling with high medical costs and lower-than-expected rates for next year.
CMS notified insurers of its decision to recalculate the star ratings, which determine the reimbursement levels and can sway enrollees in choosing their plans.
Insurers SCAN Health Plan and Elevance Health had filed two lawsuits over improperly calculated star ratings. Both insurers won their challenges last week.
A decision on whether to appeal those judgments has not yet been reached, a CMS spokesperson said.
The news was first reported by the Wall Street Journal late on Thursday, citing people familiar with the matter.
(Reporting by Sriparna Roy in Bengaluru; Editing by Krishna Chandra Eluri)
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