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Early Medicare Advantage stars data bodes well for UnitedHealth
UnitedHealthUnitedHealth(US:UNH) Yahoo Financeยท2025-09-09 10:43

Core Insights - The CMS rates Medicare Advantage (MA) plans from one to five stars, impacting insurers' revenue and competitiveness in the market [3][4] - Insurers are dissatisfied with changes to the star ratings methodology that could lower average scores for 2025, making it harder to achieve four-star ratings [4] - UnitedHealth expects approximately 78% of its MA members to be in plans rated four stars or above for the upcoming year, which is consistent with historical performance [5][6] Industry Impact - The changes in star ratings methodology have led to multiple insurers suing the government for recalculating their ratings, reflecting the high stakes involved with billions of dollars in payments [4] - UnitedHealth's stock rose about 9% following the disclosure of its early results, indicating positive investor sentiment despite concerns over stricter thresholds for star ratings [6] - The performance of UnitedHealth's plans is seen as a positive sign for other managed care companies in the MA sector, many of which have struggled with the new rating standards [6]