CMS announced a redo of the Medicare Advantage star ratings system, according to Modern Healthcare reporting on July 22, 2026. The changes to how plans are scored on quality metrics are expected to lift ratings for major insurers and reduce financial penalties tied to low scores.
CMS Stars Redo Lifts Medicare Advantage Insurers—Rating System Overhaul Favors UnitedHealth, Humana, Anthem
Medicare Advantage rating changes improve insurer scores and reduce quality penalties, boosting earnings for major carriers.

| Ticker | Company | 1-year change |
|---|---|---|
| UNH | UnitedHealth | +20.3% |
CMS's Medicare Advantage stars redo favors UnitedHealth, Humana, and Anthem—and reduces quality penalties for major insurers.
Who cashes in: UnitedHealth Group UNH, Humana HUM, and Anthem (ANTM)—the three largest Medicare Advantage insurers—benefit from improved star ratings, which reduce quality-based payment penalties and improve plan competitiveness. Higher ratings attract more enrollees and support premium pricing. Smaller regional Medicare Advantage plans also benefit if the new methodology is less punitive. Pharmacy benefit managers and care management vendors working with these insurers gain from expanded plan enrollment.
Who's exposed: Medicare beneficiaries may face higher premiums or reduced benefits if insurers use improved ratings to justify price increases. CMS faces potential criticism if the rating changes are perceived as favoring large insurers over smaller competitors or beneficiaries. Insurers with historically poor quality scores may still lag competitors even with the new methodology, losing market share.
What to watch next: UNH, HUM, and ANTM quarterly earnings for Medicare Advantage enrollment and margin guidance, CMS's final star ratings for 2027, and any beneficiary complaints about premium increases or benefit reductions. Competitor commentary on competitive positioning will signal market impact.
Source: original report ↗
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