CVS Well being’s working will take as much as a $1 billion hit in 2024 as a result of low Medicare Benefit star rankings, the corporate mentioned in a Securities and Alternate Fee (SEC) submitting at present.
Simply 21% of the individuals within the firm’s Medicare Benefit plans had been in plans with 2023 star ranking of 4.0 or better in contrast with 87% within the 2022 star rankings, the SEC filings mentioned.
The Facilities of Medicare and Medicaid Companies (CMS) makes use of its star rankings to find out which Medicare Benefit plans qualify for high quality bonuses. Plans with a ranking of 4.0 or extra can obtain the standard bonuses to their premiums
The CVS’ 2024 working revenue is affected by the 2023 rankings as a result of CMS makes use of the 2023 rankings to find out eligibility for the 2024 bonuses.
Fashionable Healthcare was the primary to report on the SEC submitting.
The star rankings are based mostly on measurements of Medicare Benefit’s protection of preventive care and power illness administration in addition to buyer satisfaction.
Within the SEC submitting, CVS mentioned the primary driver of the precipitous drop in members lined with plans eligible for bonus funds was a 1-star lower within the firm’s Aetna Nationwide most popular supplier group.