Dive Brief:

Elevance has lost a legal bid to improve its Medicare Advantage quality ratings for 2025.

On Monday, a Texas federal judge threw out the insurer’s suit and offered a biting indictment of Elevance’s legal argument, saying it relied on distorted math.

The lower star ratings will cost Elevance at least $375 million in bonus payments and rebates.

Dive Insight:

Regulators determine star ratings through a complex series of calculations to tally up dozens of metrics related to access, plan communication, patient experience and outcomes, and more. The scores, which run from one to five stars, are meant to reflect plan quality and help seniors shop between plans.

They also translate to earnings from the privatized Medicare program, which causes insurers to be highly protective o

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