Medicare Advantage star ratings fall
Medicare administrators released Medicare Advantage plan star ratings Thursday, revealing the average rating for the private plans has fallen compared to last year.
Why it matters: The Medicare enrollment period kicks off Oct. 15 and roughly half of the 59 million eligible Medicare beneficiaries are expected to enroll in private Medicare plans.
- The ratings, which are based on 38 performance and quality measures, are meant to guide seniors to the highest-performing plans — but can also have a big financial impact on insurers.
State of play: According to CMS, the average rating across all plans is 4.15 out of a possible 5 stars for next year. That's down from 4.37 in 2022 and 4.16 in 2020.
Between the lines: Ratings were expected to fall this year as CMS dropped relaxed pandemic-era criteria, Modern Healthcare reported.
- That includes scores that are more heavily weighted to consumer satisfaction, which could be problematic for many plans.
- The stars can also affect whether plans can be marketed throughout the year, rather than only during open enrollment, per Modern.
- Analysts have predicted the ratings changes could cause an $800 million impact on plans, per an analysis by McKinsey and Co.