CVS, Alignment Healthcare big winners from Medicare quality ratings, Stephens says

Allied Healthcare Products

11/10/2024 12:30

** Brokerage Stephens says CVS Health  CVS.N  and Alignment
Healthcare  ALHC.O  are slated to be beneficiaries from the
Medicare Advantage 'star ratings' for 2025, which were reported
late on Thursday  
    ** Stephens says ALHC and CVS have highest percentage of 4+
STAR-rated enrollees, at ~95% in 2024 for ALHC and ~87% for CVS
    ** The Centers for Medicare & Medicaid Services scores
health plans between one to five stars, with five being the
highest performing, and the rating affects bonus payments to
insurers 
    ** Brokerage Jefferies says ratings for Humana's  HUM.N 
plans match the company's previous disclosure but issues go
beyond the previously addressed call center problems
    ** Brokerage says members in Elevance's  ELV.N  plans rated
4+ fell 10% while those in Centene's  CNC.N  plans rated 3.5+ 
rose to 45% from 19% last year 
    ** Jefferies says UnitedHealth  UNH.N  faces a 9% year over
year drop in membership for 4+ star contracts 
    ** Up to last close, stock of CVS down 15.3%, UNH up 13.5%,
HUM down 45.1%, ALHC up 31.4%, CNC down 3.5% and ELV up 4.4% YTD

    

 (Reporting by Christy Santhosh)
 ((Christy.Santhosh@thomsonreuters.com))