The Centers for Medicare & Medicaid Services recalculated the rating for Clover’s PPO Medicare Advantage plan after the company contested a prior 3.5-star designation last month. This government metric serves as a critical benchmark for the quality and clinical outcomes of the provider's coverage, which currently serves more than 97% of the company's total membership.
In section Market Quotes
Clover Health Shares Surge Following Star Rating Upgrade
Clover Health Investments shares soared 19% to $5.12 on Wednesday after federal regulators retroactively upgraded the company’s primary healthcare plan to a 4.5-star rating. The shift arrives on the heels of a successful legal challenge filed by the firm against the Centers for Medicare & Medicaid Services regarding a previous assessment.
Investors responded sharply to the news, extending a rally that has seen the stock price double since the beginning of the year. The upgrade provides the healthcare and technology firm with significant regulatory momentum as it continues to expand its footprint in the Medicare Advantage market.
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