The Centers for Medicare & Medicaid Services released its 2027 Star Ratings, assigning Alignment Healthcare’s primary California HMO contract (H3815) a 3.5-Star rating, down from 4.0 Stars in the prior year. This plan serves approximately 75% of the company's membership. The decline is attributed to higher industry cut points and declines in specific Health Outcomes Survey and Part D measures. While the ratings will not affect fiscal years 2026 or 2027 revenue, they will impact quality bonus payments for fiscal year 2028. Alignment intends to pursue administrative appeals and litigation regarding CMS calculations. The company operates in the Medicare Advantage health insurance industry.
