Humana Loses Medicare Advantage Stars Lawsuit for a Second Time

Humana Loses Second Lawsuit to Reverse Medicare Bonus Cuts

Humana Inc. lost a lawsuit seeking to undo cuts to the bonus payments it receives from the federal Medicare insurance program, threatening billions of dollars in potential revenue.

Humana loses Medicare Advantage stars lawsuit for a second time

A federal judge ruled in favor of the CMS on Tuesday, one day before the start of Medicare open enrollment. A spokesperson for Humana said the insurer is considering “all available legal options.”

Humana Hit Hard: Judge Upholds Medicare Advantage Star Cut, Stock Slides

Lawsuit Outcome and Court Ruling Humana (the second‐largest Medicare Advantage insurer) sued CMS in July after its star rating unexpectedly plunged. The insurer argued that CMS unfairly flagged three interpreter calls as failures (with no callback allowed), causing a 4.5-to-3.5 star drop reuters.com healthcaredive.com. On Oct. 14, U.S. District Judge Reed O’Connor (Northern Texas) rejected Humana’s arguments reuters.com. He found that CMS had ac…