'Cut points' for 2027 Medicare Advantage plans look neutral to positive, analysts say

Cigna group

09/09/2026 22:55

Updates
** Analysts, citing published data in a LinkedIn post, said criteria for Medicare plans to earn bonus payments look neutral to positive for U.S. health insurers
** The post refers to Centers for Medicare and Medicaid Services' cut points which are thresholds used to determine "Star", or quality ratings, for Medicare Advantage plans
** According to Mizuho, most of the cut-point changes that made targets harder affected lower-weight measures, which carry less influence in the overall Star ratings calculation
** Brokerage TD Cowen says the cut-point changes appear neutral to favorable for Humana's HUM.N largest Medicare Advantage contract, giving the insurer a somewhat clearer path to an upgrade to 4-star rating
** However, Leerink says the changes remain challenging, and views UnitedHealth UNH.N as facing the biggest hurdle
** Preliminary data indicate that about 50% of 2027 cut points increased from 2026, about 33% were unchanged and roughly 20% decreased, says Guggenheim 
** The brokerage says for 2026 about 60% of cut points became harder, 25% stayed the same and 15% got easier
** Star ratings range from 1 to 5, with 5 denoting the highest performance
    ** It influences enrollees' plan choices as well as government reimbursement levels
** CMS did not immediately respond to a Reuters request for comment

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