Blue Cross and Blue Shield of Massachusetts and its HMO subsidiary are set to lose out on tens of millions of dollars in bonus payments after a federal court denied its Medicare quality rating challenge.
Judge Trevor McFadden from the US District Court for the District of Columbia on Monday denied the insurance giant’s argument that its Medicare Advantage star rating was arbitrarily reduced in violation of federal regulations.
Star ratings, which range from one to five stars, play a crucial role for Medicare Advantage insurers. Higher ratings allow plans to receive bonuses and enroll more members, while poor ratings ...