Judge dismisses Blue Cross Blue Shield of Louisiana lawsuit over star ratings

Bob Herman covers health insurance, government programs, hospitals, physicians, and other providers — reporting on how money influences those businesses and shapes what we all pay for care. He is also the author of the Health Care Inc. newsletter. You can reach Bob on Signal at bobjherman.09.

A federal judge has dismissed a case brought by Blue Cross Blue Shield of Louisiana, criticizing the health insurance company for potential “gamesmanship” of the federal Medicare Advantage star ratings system.

The decision marks another loss for the Medicare Advantage industry, which has aggressively sued the federal government in an attempt to overturn reduced quality ratings and retain billions of dollars in taxpayer-funded bonuses. 

Health insurers felt emboldened to sue the government for higher 2025 star ratings after a judge ordered the government to recalculate lower star ratings that were rolled out in 2024. UnitedHealth Group, the largest Medicare Advantage insurer in the country, was the first to sue over 2025 ratings — and won, with the Centers for Medicare and Medicaid Services backing off the case.