Clover Health Investments Corp. (NASDAQ:CLOV) shares are extending yesterday’s 18.9% surge Thursday, after a court-ordered Medicare Star Rating upgrade jumped its PPO plan from 3.5 to 4.5 Stars.
- Clover stock is at critical resistance. What’s behind CLOV new highs?
The Legal Win
According to an SEC filing, on May 29, the United States District Court for the Southern District of Georgia entered final judgment in Clover Insurance Co. v. U.S. Department of Health and Human Services, granting summary judgment in part for Clover Insurance Company, a subsidiary of Clover Health. The court set aside Clover’s 2026 3.5 Star Rating for Contract H5141 and ordered the Centers for Medicare & Medicaid Services to recalculate Clover’s 2026 Star Rating.
On June 9, CMS informed Clover that it had recalculated the rating to 4.5 Stars and instructed the company to submit alternate bids at that level. The upgraded rating applies to Clover’s PPO plan, Contract H5141, which covers more than 97% of the company’s members. Clover’s HMO plan’s 2026 Star Rating was not subject to the litigation and remains at 4.0 Stars.
Why It Matters
The Star Rating upgrade is significant because Medicare Star Ratings directly impact the reimbursement rates Clover receives from CMS for Payment Year 2027. A jump from 3.5 to 4.5 Stars means meaningfully higher payments from the government — improving the company’s revenue outlook at a time when it is targeting its first-ever full year of net income profitability in 2026.
Clover Shares Surge
CLOV Price Action: At the time of publication, Clover shares are trading 4.29% higher at $5.10, according to data from Benzinga Pro.
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