Zing Health Alleges Reputational Harm, Seeks Amends From CMS for 2024 Star Ratings

As insurers await the October release of the 2025 Star Ratings, Chicago-based insurer Zing Health is pursuing a lawsuit stemming from CMS’s calculation of the 2024 Star Ratings, which prompted an unprecedented redo and resubmission of 2025 bids. Based on the third year of poor performance from that initial calculation, CMS in December 2023 informed Zing that it intended to terminate its Medicare Advantage Prescription Drug (MA-PD) contract serving approximately 3,000 enrollees at the end of this year. Although termination was avoided when CMS recalculated the 2024 Star Ratings, the insurer has a few demands of CMS for the “irreparable harm” caused by its initial calculation.

In March, the insurer filed a lawsuit in the District Court for the District of Columbia (Zing Health, Inc. v. HHS et al., Case No. 1:24-cv-855) that alleged CMS violated the Administrative Procedure Act with an “erroneous calculation” that produced the “catastrophic” result of enrollment sanctions and termination for Zing. According to a recent HHS filing in the case, Zing had previously requested an administrative hearing to challenge its termination and intermediate sanctions.

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