CMS is terminating Chicago-based Zing Health's Medicare Advantage prescription drug plan at the end of 2024 following three consecutive years of star ratings below three stars.
In addition to the termination of the Part D contract, the agency is imposing "intermediate sanctions" to suspend all enrollment and marketing activities for the plan, effective Jan. 12.
The sanctions "will remain in effect until CMS is satisfied that the deficiencies that are the basis for the sanction determination have been corrected and are not likely to recur," CMS wrote.
Zing Health does have the opportunity to appeal.
Zing was founded by Health2047, a venture fund founded by the American Medical Association. The Part D plan has been in operation since January 2020. It received a 2.5-star rating in 2022, 2023 and 2024.