Clover Health Secures 4.5-Star Medicare Rating for 97% of Members After Court Order
CLOV has more than doubled off its 52-week low of $1.58 on elevated volume (2.3× avg).
Summary
Clover Health's primary Medicare plan, covering over 97% of its members, has been upgraded to a 4.5-star rating by CMS following a successful lawsuit, significantly boosting its future revenue prospects.
Key Events · Corporate Governance and Compliance · CLOV
-
Major Star Rating Upgrade
CMS has recalculated Clover's 2026 Star Rating for Contract H5141 (PPO plan), which covers over 97% of its members, from 3.5 stars to 4.5 stars.
-
Court-Ordered Recalculation
The upgrade was mandated by a U.S. District Court, which granted summary judgment to Clover and ordered CMS to recalculate the rating.
-
Significant Financial Impact
The higher 4.5-star rating directly impacts Payment Year 2027, leading to increased payments from CMS and improved marketability for the company's primary plan.
Analysis · CLOV · Finance
Clover Health's primary Medicare plan, covering over 97% of its members, has been upgraded from a 3.5-star to a 4.5-star rating by the Centers for Medicare & Medicaid Services (CMS). This significant upgrade, which impacts Payment Year 2027, resulted from a successful lawsuit where a U.S. District Court ordered CMS to recalculate the rating. A higher Star Rating directly translates to increased payments from CMS and enhances the company's ability to attract and retain members, providing a substantial boost to future revenue. This positive development builds on the company's recent achievement of its first-ever positive GAAP Net Income in Q1 2026 and comes as the stock is trading near its 52-week high, reflecting strong operational momentum.
At the time of this filing, CLOV was trading at $4.24 on NASDAQ in the Finance sector, with a market capitalization of approximately $2.3B. The 52-week trading range was $1.58 to $4.44. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.