What Happened?
Shares of health insurance company Clover Health (NASDAQ: CLOV) jumped 10.7% in the pre-market session after the company announced that the Centers for Medicare & Medicaid Services awarded its PPO Medicare Advantage plans a 5-Star rating and its HMO Medicare Advantage plan a 4.5-Star rating for 2027.
Clover Health stated that the new ratings will impact payment year 2028 and allow year-round enrollment for its PPO plans. TipRanks reported that the 5-Star status for the PPO plans was calculated by CMS excluding 20 disputed measures pursuant to a May 27, 2026 court decision that is on appeal. Achieving the highest rating provides a major operational boost for the insurer, as 5-Star plans secure federal quality bonus benchmarks and continuous member recruitment advantages over competitors.
After the initial pop, the shares cooled down to $4.81, up 5% from the previous close.
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What Is The Market Telling Us
Clover Health’s shares are extremely volatile and have had 40 moves greater than 5% over the last year. But moves this big are rare even for Clover Health and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 24 days ago when the stock dropped 4.8% on the news that bipartisan lawmakers introduced the Protecting Approved Care Act, legislation aimed at reforming prior authorization and payment rules in Medicare Advantage plans.
Clover Health is up 99.5% since the beginning of the year, but at $4.81 per share, it is still trading 11.1% below its 52-week high of $5.41 from June 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Clover Health’s shares 5 years ago would now be looking at only $596.65.
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