The U.S. Centers for Medicare and Medicaid Services (CMS) has withdrawn its appeal of a court order that could impact UnitedHealth’s Medicare Advantage plans’ ratings. The agency, which previously posted notices of the appeal just three days earlier, did not provide reasons for the withdrawal. It remains unclear if this decision is part of broader policy changes under President Donald Trump’s administration, which has paused communications from health agencies following CMS recalculations.
UnitedHealth did not immediately respond to requests for comment. The case centers on UnitedHealth losing star ratings due to a lost customer base and financial penalties, according to the lawsuit filed by the insurer. CMS had docked some plans half a star based on an unsuccessful test call involving a foreign language interpreter, which UnitedHealth accused of being arbitrary.
A Texas federal judge recently recalculated the plans’ ratings after agreeing with CMS’ decision. Other insurers, including Elevance, Centene, and Humana, have also sued CMS over what they claim as unfair rating practices. CMS previously recalculated star ratings for other insurers after losing court rulings in similar cases.
UnitedHealth Group shares rose slightly, up about 0.6%, to $532.86, following the court developments. The situation underscores growing tensions between private health insurers and CMS over its handling of Medicare Advantage plans.
Source: https://www.reuters.com/legal/us-drops-appeal-case-over-unitedhealth-medicare-plans-rating-2025-01-24