STAT+: Federal judge tosses Blue Cross Blue Shield of Louisiana lawsuit, another loss for Medicare Advantage insurers

A federal judge has dismissed a case brought by Blue Cross Blue Shield of Louisiana, criticizing the health insurance company for potential “gamesmanship” of the federal Medicare Advantage star ratings system.

The decision marks another loss for the Medicare Advantage industry, which has aggressively sued the federal government in an attempt to overturn reduced quality ratings and retain billions of dollars in taxpayer-funded bonuses. 

Health insurers felt emboldened to sue the government for higher 2025 star ratings after a judge ordered the government to recalculate lower star ratings that were rolled out in 2024. UnitedHealth Group, the largest Medicare Advantage insurer in the country, was the first to sue over 2025 ratings — and won, with the Centers for Medicare and Medicaid Services backing off the case.

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