CMS Improves Star Ratings to 3.5 Stars for Clover Health PPO Medicare Advantage Plans for 2025 Payment Year
June 14 2024 - 9:00AM
Clover Health Investments, Corp. (NASDAQ: CLOV) (“Clover,” “Clover
Health” or the “Company”), a physician enablement technology
company committed to bringing access to great healthcare to
everyone on Medicare, today announced that the Centers for Medicare
and Medicaid Services (“CMS”) has recalculated the 2024 Star
Ratings of Clover Health’s PPO Medicare Advantage (“MA”) plans for
the 2025 payment year, and has increased the rating by 0.5 Stars,
to a revised rating of 3.5 Stars, from the original rating of 3
Stars. Currently, over 95% of Clover’s Medicare Advantage
membership is served through its PPO plans.
“We are very pleased CMS has recalculated and improved our Star
rating for the 2025 payment year,” said Andrew Toy, Chief Executive
Officer of Clover Health. "This new development is a testament to
the high quality of our MA plans and makes me incredibly optimistic
about our go-forward strategy, including our ability to maintain
the foundation of strong financial performance we have built over
the last year, while bolstering our ability to further scale our
Insurance line of business via a strong product offering. Most
importantly, an increased Star rating allows us to improve the
benefits our members receive, which is always our priority.”
“We had previously communicated and planned to operate with a
3.0 Star rating for our PPO plans for 2025. This recalculation to
3.5 Stars significantly improves our financial outlook for next
year. We believe the improvement provides us with the opportunity
to accelerate our membership growth while maintaining and growing
profitability,” said Peter Kuipers, Chief Financial Officer of
Clover Health.
Today’s announcement relates to the 2022 measurement year, which
corresponds to the 2025 payment year, for Clover Health’s PPO MA
plans. Every year, Medicare evaluates plans based on a 5-star
rating system.
About Clover Health:Clover Health (Nasdaq:
CLOV) is a physician enablement technology company committed to
bringing access to great healthcare to everyone on Medicare. This
includes a health equity-based focus on seniors who have
historically lacked access to affordable, high-quality healthcare.
Our strategy is powered by our software platform, Clover Assistant,
which is designed to aggregate patient data from across the
healthcare ecosystem to support clinical decision-making and
improve health outcomes through the early identification and
management of chronic disease.
Forward-Looking Statements:Please note that
this press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements include statements regarding future
events and Clover Health’s future results of operations, financial
position, business strategy and future plans. Forward-looking
statements are not guarantees of future performance, and you are
cautioned not to place undue reliance on such statements. In some
cases, you can identify forward looking statements because they
contain words such as “may,” “will,” “should,” “expects,” “plans,”
“anticipates,” “going to,” “can,” “could,” “should,” “would,”
“intends,” “target,” “projects,” “contemplates,” “believes,”
“estimates,” “predicts,” “potential,” “outlook,” “forecast,”
“guidance,” “objective,” “plan,” “seek,” “grow,” “target,” “if,”
“continue” or the negative of these words or other similar terms or
expressions that concern Clover Health’s expectations, strategy,
priorities, plans or intentions. Forward-looking statements in this
press release include, but are not limited to, the anticipated
benefits associated with CMS’s recalculation of the 2025 payment
year Star ratings of Clover Health’s PPO MA plans from 3 Stars to
3.5 Stars, as well as our expectations related to Clover Health’s
profitability, liquidity, future performance, future operations and
future results. These statements are subject to known and unknown
risks, uncertainties and other factors that may cause Clover
Health’s actual results, levels of activity, performance or
achievements to differ materially from results expressed or implied
in this press release. Additional information concerning these and
other risk factors is contained in Clover Health’s most recent
Annual Report on Form 10-K, filed with the Securities and Exchange
Commission (the “SEC”) on March 14, 2024, and in our subsequent
filings with the SEC, in each case where relevant, including the
Risk Factors sections therein, and in its other filings with the
SEC. The forward-looking statements included in this press release
are made as of the date hereof. Except as required by law, Clover
Health undertakes no obligation to update any of these
forward-looking statements after the date of this press release or
to conform these statements to actual results or revised
expectations.
Investor Relations Contact:Ryan
Schmidtinvestors@cloverhealth.com
Press Contact:Andrew
Still-Baxterpress@cloverhealth.com
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