Medicare Advantage Star Ratings Fall for Second Consecutive Year

The average star ratings for Medicare Advantage and Medicare Part D prescription drug plans fell for the second year in a row to 4.04 and 3.11 stars, respectively, CMS data revealed.

The star rating system uses a five-star scale to measure the quality of Medicare Advantage and Part D plans, with one being the lowest and five being the highest score. The score primarily reflects performance on consumer satisfaction and care quality measures.

The methodology for 2024 star ratings changed slightly with the addition of two new Part C measures on care transitions and follow-up care, the removal of a diabetes care Part C measure, and the introduction of an outlier deletion.

The average 2024 star rating for Medicare Advantage plans with prescription drug coverage was 4.04, compared to 4.14 in 2023.

Around 42 percent of Medicare Advantage-prescription drug contracts (229 contracts) earned four stars or higher, down from 51 percent last year. Almost three-quarters (74 percent) of beneficiaries are enrolled in plans that received four or more stars in 2024.

The average 2024 star rating for Part D plans was 3.11 compared to 3.25 in 2023. Around 27 percent of prescription drug plans (13 contracts) that will be active in 2024 earned four or more stars, representing 2 percent of Part D beneficiaries.

A total of 36 contracts earned five stars and received a high-performing icon on the Medicare Plan Finder, 31 of which were Medicare Advantage-prescription drug contracts, three were 1876 Cost Contracts, and two were Part D plans. Eleven of the contracts that received the high-performing icon in 2024 did not receive it in 2023, CMS noted.

Six contracts received a low-performing icon, indicating that they’ve received a rating lower than three stars for three years in a row. This number increased from just one contract in 2023.

Almost 23 percent of Medicare Advantage-prescription drug contracts and 14 percent of Part D contracts earned four stars in 2024. On the other hand, nearly a third of Medicare Advantage plans and 52 percent of Part D plans earned three stars or less.

Non-profit organizations were more likely to earn higher star ratings than for-profit organizations. Over half (56 percent) of non-profit Medicare Advantage plans earned four stars or more compared to 36 percent of for-profit plans. Among Part D plans, 50 percent of non-profit plans received four stars or more compared to 14 percent of for-profit plans.

Additionally, higher star ratings were more common among contracts with more experience in the Medicare Advantage program. For example, Medicare Advantage plans with ten or more years in the program were more likely to have four or more stars compared to contracts with less than five years of participation.

The Part C measure that earned the highest average rating was the Call Center – Foreign Language Interpreter and TTY Availability measure, receiving 4.3 stars. Among Part D measures for Medicare Advantage and prescription drug plans, Complaints about the Plan received the highest average rating of 3.9 stars for both contract types.

With the Medicare open enrollment period lasting until December 7, 2023, consumers can use the Medicare Advantage star ratings to help inform their plan selections for 2024.