
Medicare Advantage and Medicare Part D prescription drug plans have experienced a second consecutive year of declining average star ratings, according to CMS data. The 2024 ratings stand at 4.04 and 3.11 stars, respectively, reflecting changes in methodology and performance measures. Notably, the percentage of contracts receiving four stars or higher has decreased, affecting plan choices for beneficiaries. Non-profit organizations outperformed for-profits, and experience in the Medicare Advantage program correlated with higher ratings. These ratings will significantly impact healthcare plan decisions during the ongoing Medicare open enrollment period until December 7, 2023.
In the latest data released by CMS, it has been revealed that Medicare Advantage and Medicare Part D prescription drug plans have experienced a decrease in their average star ratings for the second year in a row. The 2024 star ratings for these plans stand at 4.04 and 3.11 stars, respectively.
The star rating system, which employs a five-star scale to assess the quality of Medicare Advantage and Part D plans, with one being the lowest and five being the highest score, has seen a shift. This rating primarily reflects performance in terms of consumer satisfaction and care quality measures.
In the methodology for the 2024 star ratings, there were a few alterations, including the introduction of two new Part C measures focusing 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 dropped to 4.04 from the previous year’s 4.14. Furthermore, around 42 percent of Medicare Advantage-prescription drug contracts (229 contracts) achieved four stars or higher, compared to 51 percent the previous year. Impressively, 74 percent of beneficiaries are now enrolled in plans that received four or more stars in 2024.
The average 2024 star rating for Part D plans also fell to 3.11 from 3.25 in 2023. Only 27 percent of prescription drug plans (13 contracts) that will be active in 2024 earned four or more stars, representing a mere 2 percent of Part D beneficiaries.
Of note, 36 contracts managed to secure a five-star rating and received a high-performing icon on the Medicare Plan Finder. Among these, 31 were Medicare Advantage-prescription drug contracts, three were 1876 Cost Contracts, and two were Part D plans. It’s worth mentioning that eleven of the contracts that received the high-performing icon in 2024 had not received it in the previous year.
On the flip side, six contracts were awarded a low-performing icon, signaling that they had received a rating lower than three stars for three consecutive years. This number is a significant increase from just one contract in 2023.
In terms of individual contracts, nearly 23 percent of Medicare Advantage-prescription drug contracts and 14 percent of Part D contracts earned four stars in 2024. Conversely, nearly a third of Medicare Advantage plans and 52 percent of Part D plans received three stars or less.
Interestingly, non-profit organizations fared better in terms of star ratings than for-profit organizations. Over half (56 percent) of non-profit Medicare Advantage plans received four stars or more, while only 36 percent of for-profit plans achieved the same. Among Part D plans, 50 percent of non-profit plans received four stars or more compared to just 14 percent of for-profit plans.
Additionally, higher star ratings were more prevalent among contracts with greater experience in the Medicare Advantage program. For instance, Medicare Advantage plans with ten or more years in the program were more likely to receive four or more stars compared to contracts with less than five years of participation.
Among the various measures used, the Call Center – Foreign Language Interpreter and TTY Availability measure garnered the highest average rating at 4.3 stars for Part C. For Part D measures in both Medicare Advantage and prescription drug plans, Complaints about the Plan received the highest average rating, standing at 3.9 stars for both contract types.
With the Medicare open enrollment period continuing until December 7, 2023, consumers are encouraged to consider these Medicare Advantage star ratings when making their plan selections for 2024.