Humana loses Medicare Advantage stars lawsuit for a second time

Core Insights - Humana's challenge against its 3.5 star rating from CMS was dismissed by a federal judge, affirming the legality of CMS's no-callbacks policy for interpreter availability tests [5][8] - Analysts predict that Humana could face a revenue loss exceeding $1 billion next year due to the impact of the star rating on bonuses and competitive positioning in the Medicare Advantage market [6] - Humana expressed disappointment with the court's ruling and indicated intentions to explore all legal options to ensure the accuracy and integrity of CMS's star ratings [7][8] Group 1 - The CMS rates Medicare Advantage plans on a 1 to 5 star scale based on various quality metrics, including the availability of foreign language interpreters [3] - Humana's initial lawsuit was dismissed because it did not exhaust administrative appeals with CMS before seeking judicial review [5] - The court's ruling means Humana cannot refile the lawsuit, although an appeal is still possible [8] Group 2 - The star ratings are crucial for Medicare Advantage plans as they directly influence revenue through bonuses and competitive advantages [6] - Humana's spokesperson emphasized the company's commitment to improving its star ratings and returning to top quartile performance [6] - The ruling reinforces the importance of consistent and accurate evaluations of Medicare Advantage plan quality for beneficiaries [7]