Shares of Clover Health Corp. (NASDAQ: CLOV) surged by nearly 6% on Thursday, propelled by positive developments related to its Medicare Advantage plans and benchmark rates from the Centers for Medicare & Medicaid Services (CMS).

For the 2025 plan year, CMS awarded Clover Health's Medicare Advantage PPO plans a coveted 4-star quality rating, while its HMO plans received a respectable 3.5-star rating. These high ratings are expected to significantly boost Clover Health's competitiveness and ability to attract and retain Medicare Advantage enrollees, a key driver of growth for the company.

Furthermore, Clover Health announced that its 4-star rating for its PPO contract will lead to a general 5% increase in benchmark payment rates for the 2026 plan year. This increase in benchmark rates, which are used to determine Medicare Advantage plan reimbursements from CMS, is expected to directly translate into higher revenues for the company.