Clover Health (CLOV) shares jumped over 10% in pre-market trading. The stock extended gains following an 18.9% rise the previous day.
A federal court ruled in favor of Clover Health against the Centers for Medicare & Medicaid Services (CMS). Following a May 29 court order, CMS recalculated the 2026 Star Rating for Clover’s main PPO plan. The rating for the PPO plan increased from 3.5 to 4.5 Stars.
This PPO plan covers over 97% of the company’s members. The upgrade directly affects government reimbursement rates for the 2027 payment year. Clover Health’s smaller HMO plan remains at a 4.0 Star rating.