
CMS’ TukeyGate: Lawsuit Decision Threatens To Unravel Much of Medicare Advantage Star Scoring in 2024 and 2025 and Next Year’s Bids And Benefits
A bombshell legal decision this week from a federal district judge threatens to unravel much of the Centers for Medicare and Medicaid Services (CMS) Star process. CMS may have to revisit 2024 Star ratings across the Medicare Advantage (MA) industry, pay out several hundred million more in bonuses, and revisit the bids and benefit designs already in flight for next calendar year. The entire issue is a bit arcane, so let’s break it down here and then get to the implications. The lawsuit and decision Scan Group, a prominent and highly successful non-profit MA plan based in California and serving a number of western states, has successfully won a challenge in a federal district court on its Star ratings for 2024. The case centers on the introduction of the Tukey outlier formula that CMS implemented beginning with the 2024 ratings. The court decision said CMS violated the Administrative Procedures Act