Humana Battles Medicare Star Ratings in Federal Court

Humana has filed a lawsuit challenging the reduction in its Medicare star ratings by the U.S. government, arguing that the lower ratings could result in the loss of customers and billions in bonus payments. The lawsuit follows a previous dismissal on technical grounds. Now, Humana claims it has exhausted all procedural options.

On Monday, health insurer Humana launched a fresh legal battle against the U.S. government's downgrade of its star ratings for Medicare plans. This follows an earlier lawsuit that was dismissed due to procedural issues.

Filed in a federal court in Fort Worth, Texas, Humana's lawsuit claims that the reduction in ratings poses a significant financial risk by potentially costing the company billions in bonus payments. These funds are crucial for lowering premiums and enhancing benefits for customers. U.S. District Judge Reed O'Connor previously dismissed similar claims, citing that Humana had not fully pursued out-of-court remedies.

The new lawsuit indicates that Humana has completed the required administrative appeals, granting it the right to pursue this legal action. The star ratings system, managed by the U.S. Department of Health and Human Services, impacts billions of dollars and affects how Medicare Advantage plans are administered. CMS's recent star ratings, finalized for 2025, are under scrutiny as Humana seeks recalculations to potentially improve its standing.

(With inputs from agencies.)