Clover Health Corp (CLOV) shares surged in pre-market trading on October 11, 2024, following positive developments related to its Medicare Advantage plans and benchmark rates.
The company's Medicare Advantage PPO plans earned a coveted 4-star rating for the 2025 plan year, outperforming larger rivals like Humana. This high rating is expected to boost Clover Health's ability to attract and retain Medicare Advantage enrollees, a key driver of growth for the company.
Furthermore, Clover Health announced that due to its PPO contract receiving a 4.0-star rating, it expects a general 5% increase in benchmark rates for the 2026 payment year. This increase in benchmark rates is expected to translate into higher revenues for the company, providing a direct financial benefit from its strong quality rating.
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