CLOVER HEALTH INVESTMENTS, CORP. /DE 8-K

What Happened

• On May 29, 2026, the U.S. District Court for the Southern District of Georgia entered final judgment in Clover Insurance Co. v. HHS (No. 2:25-CV-142), setting aside Clover’s 2026 3.5 Star Rating for Contract H5141 and directing CMS to recalculate the rating consistent with the order.
• On June 9, 2026, CMS notified Clover that it had recalculated Clover’s 2026 Star Rating to 4.5 Stars and instructed Clover to submit alternate bids at 4.5 Stars. The 4.5 Star rating applies to Contract H5141 (the PPO plan) and covers over 97% of Clover’s members. Clover’s HMO plan (Contract H8010) remains at 4.0 Stars. The star rating affects Payment Year 2027.

Key Details

• Court decision: May 29, 2026 — final judgment in Southern District of Georgia (Clover Insurance Co. v. HHS, 2:25-CV-142).
• CMS action: June 9, 2026 — recalculation to 4.5 Stars and instruction to submit alternate bids at 4.5.
• Scope: 4.5 Stars applies to Contract H5141 (PPO), covering >97% of Clover members; HMO Contract H8010 stays at 4.0.
• Filing: Form 8-K signed June 10, 2026 by Interim CFO Clay Thornton.

Why It Matters

• Star ratings are used by CMS to adjust payments and influence beneficiary enrollment decisions; a move from 3.5 to 4.5 for the PPO that covers most members is a material operational factor for Payment Year 2027.
• Investors should note CMS has formally instructed Clover to resubmit bids at the higher rating, which could affect Clover’s government reimbursements and competitive position, though the filing does not quantify any dollar impact.