Alignment Healthcare Inc. v. HHS

CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 14, 2026
Docket25-5239
StatusPublished

This text of Alignment Healthcare Inc. v. HHS (Alignment Healthcare Inc. v. HHS) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alignment Healthcare Inc. v. HHS, (D.C. Cir. 2026).

Opinion

United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued February 2, 2026 Decided July 14, 2026

No. 25-5239

ALIGNMENT HEALTHCARE INC., APPELLANT

v.

UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES, ET AL., APPELLEES

Appeal from the United States District Court for the District of Columbia (No. 1:25-cv-00074)

Michael B. Kimberly argued the cause for appellant. With him on the briefs was Edward A. Day.

Jack Starcher, Attorney, U.S. Department of Justice, argued the cause for appellees. With him on the brief were Brett A. Shumate, Assistant Attorney General, and Courtney L. Dixon, Attorney.

Before: SRINIVASAN, Chief Judge, KATSAS, Circuit Judge, and ROGERS, Senior Circuit Judge.

Opinion for the Court by Senior Circuit Judge ROGERS. 2 ROGERS, Senior Circuit Judge: Alignment Healthcare is a health insurance company that offers Medicare Advantage plans, which are funded and regulated by the Centers for Medicare & Medicaid Services (“CMS”), in the Department of Health and Human Services, 42 U.S.C. § 1395kk(a) (2024). Medicare Advantage plans are subject to a rating system in which they are evaluated based on several metrics, including an annual survey of enrollees. Id. § 1395w-23(o)(4)(A). In September 2024, Alignment contacted CMS claiming that the ratings for two of its plans were inaccurate because some Spanish-speaking customers received surveys in English, contrary to Alignment’s request of their preference. After examining the response data and consulting the survey vendor, CMS denied Alignment’s request to disregard the survey results. Alignment challenged that decision pursuant to the Administrative Procedure Act (“APA”), and the district court granted summary judgment in relevant part for CMS.

On appeal, Alignment contends the refusal to discard survey data infected by a clear survey administration error was arbitrary and capricious because the refusal to enforce the CMS protocols treated Alignment differently from other Medicare Advantage plan sponsors whose ratings scores relied on properly administered surveys. Appellant’s Br. at 25. This court affirms. Even if CMS protocols made Alignment’s request to distribute Spanish-language questionnaires binding on the vendor, Alignment fails to establish that its request was disregarded. Similarly, to the extent Alignment challenges the adequacy of CMS’s action or explanation, that challenge fails because CMS examined Alignment’s concerns and explained why there was no indication of survey administration error. 3 I.

The Medicare Act, 42 U.S.C. § 1395 et seq., requires health insurance for individuals who are over the age of 65 or who have certain disabilities. Under Medicare Parts A and B, CMS acts as the insurer, paying healthcare providers directly for beneficiaries’ medical services. UnitedHealthcare Ins. Co. v. Becerra, 16 F.4th 867, 872 (D.C. Cir. 2021); see 42 U.S.C. § 1395c–1395i-6 (Part A); id. § 1395j–1395w-6 (Part B). Medicare Part C allows beneficiaries to receive health insurance through private Medicare Advantage plans, see id. § 1395w-22(a), administered by private health insurers, which contract with CMS to provide coverage in particular areas of the United States. Id. § 1395w-21(b). The insurance providers receive monthly payments from CMS to provide coverage for each beneficiary. Id. § 1395w-23(a)(1).

A.

Medicare Advantage contracts, which include one or more Medicare Advantage plans, id. § 1395w-27(a), are subject to a five-star rating system. Id. § 1395w-23(o)(4)(A). The ratings assist beneficiaries in choosing plans and are also used in calculating the monthly funding received by the insurance providers. Id. § 1395w-24(b)(1)(C)(v). To prepare the ratings, CMS evaluates data from a range of sources, including the Consumer Assessment of Healthcare Providers & Systems (hereinafter, “the survey”). See 42 C.F.R. § 422.166. The survey is based on information from a sample of enrollees in each Medicare Advantage plan about their experiences. Medicare Advantage contracts with at least 600 enrollees are required to use CMS-approved vendors to administer the survey.

CMS requirements for survey administration are set forth in the Quality Assurance Protocols & Technical Specifications, 4 V14.1 (Nov. 2023) (hereinafter, “Protocols”). The Protocols include several requirements regarding survey administration in Spanish, including that “Spanish language questionnaires must be made available to all Spanish-speaking enrollees (in web, mail, and telephone administration).” Id. at 50. When administering the survey by mail, vendors must include a “pre- notification letter” advising of the survey, and this letter must be printed in English on one side and Spanish on the other. Id. at 33–34. When administering the survey online, vendors are “required to administer the web survey in English and Spanish,” id. at 27, with recipients able to choose between English or Spanish upon initiating the survey, id. at 30. The survey vendor, in turn, “may” use a variety of additional strategies “at the request” of the insurance provider in distributing the survey in non-English languages. Id. at 50. Such strategies include sending “web survey invitations in Spanish only to enrollees known to prefer Spanish” and “a Spanish language questionnaire only in all mailings of the survey to enrollees known to prefer Spanish” or mailing questionnaires in both Spanish and English. Id. at 50–51.

To conduct the survey, CMS compiles a random sample of enrollees from a Medicare Advantage contract. Id. at 17. Excluded from the sample are those who fail to meet certain criteria, such as individuals who have not been continuously enrolled in the plan for six months. Id. CMS provides the sample file of enrollees to the vendor, including “mailing addresses of enrollees for whom addresses are available” in CMS’s Integrated Data Repository. Id. at 17–18. Before mailing survey materials, “vendors must use commercial tools, such as the [National Change of Address] database, to update addresses provided by CMS for sampled enrollees and to standardize addresses to conform to U.S. Postal Service formats.” Id. at 40. Throughout the administration of the survey, vendors must “maintain the confidentiality of enrollees 5 and may not provide contracts/plans with the names of enrollees selected for the survey or any other enrollee information that could be used to identify an individual sampled enrollee.” Id. at 50.

After the vendors administer the survey, CMS provides two plan preview periods. 42 C.F.R. § 422.166(h)(2). In the first period, insurance providers can “review the methodology and their posted numeric data for each measure.” 83 Fed. Reg. 16,440, 16,588 (Apr. 16, 2018). In the second period, insurance providers can review “any revisions made as a result of the first plan preview” and their “preliminary Star Ratings.” Id. Insurance providers can send comments to CMS by email following this review. CMS Mem. at 3 (Oct. 26, 2023).

B.

On September 13, 2024, Alignment contacted CMS to dispute the preliminary ratings in the second preview period for two of its contracts (Nos. H3443 and H3815). Email at 27–28 (Sept. 13, 2024).

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Alignment Healthcare Inc. v. HHS, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alignment-healthcare-inc-v-hhs-cadc-2026.