CENTENE CORP

CVS Health is suing the federal government to challenge its 2027 Medicare Advantage star ratings, aiming to avert a potential revenue loss exceeding $2 billion due to declining quality scores. The lawsuit argues that the CMS used illegal methodology and improperly adopted measures to calculate the ratings. CVS joins at least four other insurers in similar lawsuits, all citing a previous ruling that found CMS measures for 2026 scores to be illegal.

After a buoyant third quarter, Centene now thinks its Medicare business will break even one year ahead of schedule. Staffing cuts saddled the insurer with severance spending, but should help margins in 2027.

The St. Louis-based insurer is adding onto a growing pile of lawsuits from insurers trying to get their quality scores recalculated — and nab hundreds of millions of dollars in extra payments as a result.