CVS Well being’s working will take as much as a $1 billion hit in 2024 as a result of low Medicare Benefit star scores, the corporate mentioned in a Securities and Change Fee (SEC) submitting at the moment.

Simply 21% of the folks within the firm’s Medicare Benefit plans have been in plans with 2023 star ranking of 4.0 or higher in contrast with 87% within the 2022 star scores, the SEC filings mentioned.

The Facilities of Medicare and Medicaid Companies (CMS) makes use of its star scores to find out which Medicare Benefit plans qualify for high quality bonuses. Plans with a ranking of 4.0 or extra can obtain the standard bonuses to their premiums

The CVS’ 2024 working earnings is affected by the 2023 scores as a result of CMS makes use of the 2023 scores to find out eligibility for the 2024 bonuses.

Fashionable Healthcare was the primary to report on the SEC submitting.

The star scores are primarily based on measurements of Medicare Benefit’s protection of preventive care and power illness administration in addition to buyer satisfaction.

Within the SEC submitting, CVS mentioned the principle driver of the precipitous drop in members lined with plans eligible for bonus funds was a 1-star lower within the firm’s Aetna Nationwide most popular supplier group.