Alignment says federal court rules in its favor in CMS legal challenge

Alignment Healthcare (ALHC) announced that a federal court ruled in its favor on June 9 in a legal challenge against the Centers for Medicare & Medicaid Services, resulting in an increase in its Arizona HMO 2025 star rating from 3.5 to 4 stars. As a result of the decision, 100% of Alignment’s Medicare Advantage members are now enrolled in plans rated 4 stars or higher. “This decision affirms the quality of care we deliver and recognizes the importance of accuracy and fairness in the Medicare Advantage Star Ratings program,” said John Kao, founder and CEO of Alignment Healthcare. “Our Arizona members can now have even greater confidence that they are enrolled in one of the highest-quality plans available in the state.” The Star Ratings program evaluates Medicare Advantage plans on a 5-star scale every year across several quality measures, including preventive care, chronic disease management, customer service and member satisfaction. Plans that earn 4 stars or higher qualify for bonus payments from CMS, which are reinvested to improve member benefits and services.