Clover Health ‘loses big’ in CMS star ratings, says Leerink

Leerink analyst Whit Mayo says Clover Health (CLOV) “loses big” in in the final star ratings released last night by the Centers for Medicare and Medicaid Services. Alignment Healthcare (ALHC) has 100% of its members in four star-plus plans, UnitedHealth (UNH) has 79% and Elevance Health (ELV) improved to 55%, the analyst tells investors in a research note. Clover, however, lost its four-star rating in its largest contract which holds 97% of its members, Leerink points out. The firm estimates this could be a $50M headwind based on today’s membership, which would wipe out all EBITDA compared to the company’s 2025 earnings. Shares of Clover Health are up 2% to $2.73 in morning trading.