CMS is terminating Park Ridge, Ill.-based Clear Spring's Medicare prescription drug plan at the end of 2024 following three consecutive years of star ratings below three stars.
"Clear Spring has had notice of its insufficient Part D summary star ratings and a reasonable opportunity to correct this deficiency by improving its star rating performance, which it failed to do," CMS wrote to CEO Art Carlos Oct. 13.
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 Oct. 29.
"The sanction will remain in effect until CMS is satisfied that Clear Spring has corrected the causes of the violations which form the basis for the sanction and the violations are not likely to recur," CMS wrote.
Clear Spring does have the opportunity to appeal.
Clear Spring is owned by financial services company Group 1001 and also offers Medicare Advantage and D-SNP plans. The Part D plan has been in operation since January 2020. It received a 2-star rating in 2022 and a 1.5 star rating in 2023 and 2024.