Medicare Star Ratings
The Medicare star rating system assesses the quality of Medicare Advantage and Medicare Part D prescription drug plans based on several categories, including customer service and access to preventive care. You can use these ratings to find high-quality private Medicare plans in your area.
- Written by Lamia Chowdhury
Lamia Chowdhury is a financial content editor for RetireGuide and has over three years of marketing experience in the finance industry. She has written copy for both digital and print pieces ranging from blogs, radio scripts and search ads to billboards, brochures, mailers and more.Read More
- Edited BySavannah Pittle
Senior Financial Editor
Savannah Pittle is a professional writer and content editor with over 16 years of professional experience across multiple industries. She has ghostwritten for entrepreneurs and industry leaders and been published in mediums such as The Huffington Post, Southern Living and Interior Appeal Magazine.Read More
- Financially Reviewed ByBrian Hickey, CLU®, CLTC®, FLMI
Brian Hickey, CLU®, CLTC®, FLMI
Vice President of Insuractive
Brian Hickey is vice president of Insuractive, an Omaha-based company providing direct-to-consumer Medicare plans, life insurance and wealth protection to individuals. With 24 years’ experiencein Medicare, long-term care, life insurance and wealth protection, Brian leads and develops Insuractive’s strategic initiatives with a focus on direct-to-consumeroptions for insurance information and solutions.Read More
- Published: February 9, 2022
- Updated: January 17, 2023
- 6 min read time
- This page features 7 Cited Research Articles
- Edited By
What Are Medicare Star Ratings?
Medicare star ratings are an objective way for consumers to compare private Medicare Advantage plans and Medicare Part D prescription drug plans based on quality and performance.
Each plan receives a rating — weighted by enrollment numbers — between 1 and 5 stars, with 1 being poor and 5 being excellent. Medicare quality star ratings are assigned at the contract level instead of for each individual plan. Most contracts cover multiple plans.
The U.S. Centers for Medicare & Medicaid Services (CMS) implemented the star rating system in 2008 to help potential enrollees compare plans available in their area while encouraging plan providers to continuously improve quality.
High-performing plans receive extra money from the federal government, further incentivizing companies to improve service and expand offerings.
The Affordable Care Act (ACA) created financial bonus payments for Medicare Advantage and Part D plans that receive at least four stars. These bonuses can provide a 5% to 10% increase in funding.
Private plans without star ratings (due to low enrollment or being too new) also receive bonus payments, but at a lower rate of 3.5%.
Private companies are encouraged to use these federal bonuses to reduce out-of-pocket costs for beneficiaries and to offer additional supplemental benefits.
CMS Star Ratings for 2022
The overall star ratings for Medicare Advantage prescription drug plans (MA-PD) have improved in recent years. According to CMS, about 68% of MA-PD plans earned four stars or higher in 2022 — a 19% increase from 2021.
|Contract Name||Parent Organization||Enrollees as of 10/2021||5 Stars (2021)||5 Stars (2022)|
|Sierra Health & Life Insurance Company, Inc.||UnitedHealth Group, Inc.||1,524,329||No||Yes|
|Kaiser Foundation HP, Inc.||Kaiser Foundation Health Plan, Inc.||1,295,548||Yes||Yes|
|HealthSpring of Florida, Inc.||Cigna||61,020||Yes||Yes|
|Blue Care Network of Michigan||Blue Cross Blue Shield of Michigan Mutual Ins. Co.||91,548||No||Yes|
|CarePlus Health Plans, Inc.||Humana Inc.||196,637||Yes||Yes|
|Aetna Health Inc. (ME)||CVS Health Corporation||14,070||No||Yes|
On the other hand, scores for Medicare Advantage plans without prescription drug coverage (MA-only plans) declined for most measures, with the size of decline varying between each measure.
Medicare Part D prescription drug plans earned an average star rating of 3.70 in 2022.
When Does CMS Issue Star Ratings?
CMS releases star ratings annually to reflect on beneficiaries’ experiences with Medicare Advantage and Part D prescription plans. Ratings are typically updated in early October every year before open enrollment kicks off on October 15.
If you are looking to switch plans during the open enrollment period, be sure to review star ratings to make an informed decision.
What Do Medicare Star Ratings Measure?
Medicare Advantage plans and Part D plans are measured differently within the star rating system. But each plan rates various measures within the following categories:
- Staying Healthy
- How accessible are preventative services that keep members healthy, like flu shots and screenings?
- Member Complaints and Performance
- How often do members file complaints or face issues getting services?
- Member Experience
- How easy is it for members to get the care they need, fill prescriptions and see specialists?
- Customer Service
- How efficient are call center services? How quickly does the plan provider process appeals and new enrollments?
- Managing Chronic Conditions
- How effectively do plans coordinate care? How often do members receive services related to long-term health conditions?
Certain measures within each category are weighted differently. For example, the highest weighted group includes improvement measures, such as how much the contract’s overall star rating improved or declined from the previous year.
CMS uses administrative data, contractor data and information from member satisfaction surveys to assess performance and assign star ratings.
How To Find a 5-Star CMS Health Plan
You can use CMS’s plan finder tool or call 1-800-MEDICARE to compare ratings and find the best plans in your area. Since plan quality ratings are updated every year, be sure to check the most up-to-date ratings for a more accurate comparison.
CMS star ratings cover hospitals and nursing homes as well, so you can confidently choose a plan and facility that best suits your individual needs.
Medicare Advantage Plans
Within the five overarching categories used to create a star rating, CMS scores Medicare Advantage plans based on 28 unique quality and performance measures. These measures include customer service, number of complaints about the plan, appeal decision timeliness and the rating of health care quality.
In 2021, more than 80% of MA-PD enrollees were in plans that received a 4-star or higher rating. By 2022, that figure rose to 90% and Medicare Advantage plans scored higher for patient experience measures than in previous years.
Medicare Part D Prescription Drug Plans
A total of 74 MA-PD contracts and 10 Medicare Part D prescription drug plan contracts earned a 5-star rating in 2022.
The rating for Medicare Part D prescription drug plans is based on 12 measures. Among these measures are the number of complaints about the plan, whether or not members are getting the prescription drugs they need and how many members chose to leave the plan last year.
According to CMS, if a Medicare Part D prescription drug plan has been in the program for over 10 years, it’s likely to have four or more stars.
Nursing homes with 5-star ratings are considered to provide exceptional care and quality. CMS provides one overall rating for each nursing home, as well as separate ratings based on health inspections, staffing and quality measures.
Health inspections are rated based on the three most recent health inspections resulting from complaints.
The staffing rating is determined by the average number of hours the nursing staff cares for each resident — depending on the level of care needed.
The quality measure rating is an overall score based on 15 different physical and clinical measures taken for nursing home residents.
You can access CMS’s Care Compare tool to find and compare nursing homes based on location.
CMS also works collaboratively with hospitals nationwide to report on the quality of performance offered to patients. The overall hospital star rating is based on a summary of data collected from seven measures: mortality, hospital readmission, safety of care, patient experience, timeliness of care, effectiveness of care and efficient use of medical imaging.
A total of 455 hospitals, or 13.56% of hospitals nationwide, received a 5-star rating in 2021.
What Is the 5-Star Special Enrollment Period?
The 5-star special enrollment period allows you a one-time opportunity to switch to a 5-star plan in your service area between December 8 and November 30.
- 5-Star Medicare Advantage-only plan
- 5-star Medicare Advantage plan with prescription drug coverage
- 5-star Medicare Part D prescription drug plan
- 5-star Medicare cost plan
If you are currently enrolled in a 5-star plan, you can also switch to a different 5-star plan during this special enrollment period.
Once you sign up for a new plan, your benefits will begin the first day of the month following the month of which the plan received your enrollment request.
7 Cited Research Articles
- U.S. Centers for Medicare & Medicaid Services. (2022). 5-star special enrollment period. Retrieved from https://www.medicare.gov/sign-upchange-plans/when-can-i-join-a-health-or-drug-plan/5-star-special-enrollment-period
- U.S. Centers for Medicare & Medicaid Services. (2022). Overall Star Rating For Hospitals. Retrieved from https://www.medicare.gov/care-compare/resources/hospital/overall-star-rating
- U.S. Centers for Medicare & Medicaid Services. (2021, October 8). CMS Releases 2022 Medicare Advantage and Part D Star Ratings to Help Medicare Beneficiaries Compare Plans. Retrieved from https://www.cms.gov/newsroom/press-releases/cms-releases-2022-medicare-advantage-and-part-d-star-ratings-help-medicare-beneficiaries-compare
- U.S. Centers for Medicare & Medicaid Services. (2021, October 8). Fact Sheet 2022 Part C and Part D Ratings. Retrieved from https://www.cms.gov/files/document/2022-star-ratings-fact-sheet1082021.pdf
- Shah, S. and Sun, E. (2021, February 4). Rating The Medicare Advantage Star Ratings—Improving The Status Quo. Retrieved from https://www.healthaffairs.org/do/10.1377/forefront.20210128.803030/full/
- U.S. Centers for Medicare & Medicaid Services. (2019, October 1). Medicare 2020 Part C & D Star Ratings Technical Notes. Retrieved from https://www.cms.gov/Medicare/Prescription-Drug-Coverage/PrescriptionDrugCovGenIn/Downloads/Star-Ratings-Technical-Notes-Oct-10-2019.pdf
- Iowa SHIP. (n.d.). 5-Star Enrollment Period. Retrieved from https://shiip.iowa.gov/sites/default/files/2020-04/5-StarPlanRating.pdf
Calling this number connects you to one of our trusted partners.
If you're interested in help navigating your options, a representative will provide you with a free, no-obligation consultation.
Our partners are committed to excellent customer service. They can match you with a qualified professional for your unique objectives.
We/Our Partners do not offer every plan available in your area. Any information provided is limited to those plans offered in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.888-694-0290