CMS May Let Helped 2027 Contracts Be Rebid Post CLOV Stars Lawsuit

Research evidence excerpt

CMS May Let Helped 2027 Contracts Be Rebid Post CLOV Stars Lawsuit

Global Research INDUSTRY UPDATE

June 10, 2026

■Managed Care CMS May Let Helped 2027 Contracts Be Rebid

Post CLOV Stars Lawsuit

TD SECURITIES (USA) LLC - WASHINGTON THE TD COWEN INSIGHT

RESEARCH GROUP - USA

CLOV 8-K confirms CMS recalculated their 2026 stars (2027 payment) on pertinent contractMACRO POLICY

and is allowing them to rebid. Per CMS decisions after the Tukey lawsuit, we expect an HPMS

Molly T. Turco memo in the coming days announcing CMS is recalculating all stars and allowing contracts

202 868 5309

with stars increases to be rebid. Next steps for 2027 stars (for 2028 payment) and future policy

molly.turco@tdsecurities.com

still unclear.

TD SECURITIES (USA) LLC

EQUITY RESEARCH What Is Happening

Ryan Langston Clover Health announced via 8-k that the District Court ruled in part in their favor (CLOV,

646 562 1418 $4, Not Covered), setting aside its previously assigned 2026 MA Star Rating of 3.5 stars for

ryan.langston@tdsecurities.com its core PPO contract (H5141, 97% membership) and requiring CMS to recalculate the rating

for Payment Year 2027. Following this order, CMS informed CLOV on June 9 that it raisedChristian Borgmeyer, CFA

646 562 1430 the rating to 4.5 stars and instructed CLOV to resubmit a bid reflecting the higher score.

christian.borgmeyer@tdsecurities.com The company’s HMO plan (H8010) remains unchanged at 4.0 stars and was not part of the

litigation.

William Spivack

202 868 5302 Our View (Turco)

william.spivack@tdsecurities.com

■As discussed HERE, we think CMS is likely to recalculate Stars for all contracts with a hold

Gary Taylor harmless for 2026 stars (2027 payment) like they did after the Tukey ruling in June 2024.

646 562 1450