Shares of Clover Health Corp (NASDAQ: CLOV), a provider of Medicare Advantage plans in the United States, soared over 10% on Wednesday, likely buoyed by the company's recent achievement of higher Medicare star ratings from the Centers for Medicare and Medicaid Services (CMS).
According to the news, Clover Health's PPO Medicare Advantage plans received a 4-Star rating for 2025, which will positively impact its payments in 2026. Additionally, the company's HMO Medicare Advantage plan received a 3.5-Star rating. Given that over 95% of Clover Health's Medicare Advantage membership utilizes its PPO plans, the improved ratings could significantly benefit the company's future performance.
The higher star ratings reflect Clover Health's exceptional outcomes across various criteria, including medication adherence, preventive screenings, and chronic disease management. Notably, the company scored an impressive 4.94 out of 5 Stars on the Healthcare Effectiveness Data and Information Set (HEDIS), which measures the effectiveness of plans in delivering quality care.
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