'Cut points' for 2027 Medicare Advantage plans look neutral to positive, analysts say

** Analysts, citing published data in a LinkedIn post, said criteria for Medicare plans to earn bonus payments look neutral to positive for U.S. health insurers

** The post refers to Centers for Medicare and Medicaid Services' cut points which are thresholds used to determine "Star", or quality ratings, for Medicare Advantage plans

** According to Mizuho, most of the cut-point changes that made targets harder affected lower-weight measures, which carry less influence in the overall Star ratings calculation

** However, Leerink says the changes remain challenging, and views UnitedHealth UNH.N as facing the biggest hurdle

** UNH shares fell 2%, CVS Health CVS.N, Cigna CI.N, Elevance ELV.N and Humana HUM.N fell marginally

** Preliminary data indicate that about 50% of 2027 cut points increased from 2026, about 33% were unchanged and roughly 20% decreased, says Guggenheim

** The brokerage says for 2026 about 60% of cut points became harder, 25% stayed the same and 15% got easier

** Star ratings sway enrollees' choice of plan and affect government's reimbursement levels

** CMS did not immediately respond to a Reuters request for comment