Overview
- A federal judge ordered CMS to recalculate Clover’s plan score on May 29, and CMS formally notified Clover on June 9 that Contract H5141 had been revised to 4.5 stars.
- The revised rating applies to Contract H5141, Clover’s PPO Medicare Advantage plan that covers roughly 97% of the company’s members.
- A 4.5 score changes Clover’s 2027 payment profile because CMS ties higher star ratings to larger reimbursement adjustments and eligibility for quality bonus payments that the company says amount to millions.
- Investors reacted immediately: Clover shares jumped about 14%, hitting an intraday peak near $5.14 and closing at $4.89, while analysts pointed to the ruling plus improving Q1 fundamentals as reasons to raise optimism.
- Medicare star ratings directly affect plan revenue and market competitiveness, so this court-driven revision could alter Clover’s growth path and set a precedent for judicial review of CMS rating methods.