Elevance Health asked a court to overturn a CMS decision it says cost the insurer about $115 million in Medicare Advantage quality bonus payments.
The suit alleges CMS recalculated Clover Health's finalized Star Ratings after finding an error, while denying other insurers the same relief and creating an uneven competitive field.
Star Ratings drive bonus payments, rebate funding, marketing strength and enrollment, so the case could reshape competitive positioning across Medicare Advantage plans.
More than $13 billion in Medicare Advantage quality bonuses is expected this year, and a ruling for Elevance could force CMS to revisit its ratings process across the industry.