• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
MedicareWire

MedicareWire

Best Medicare plan, cost, and enrollment tools for seniors.

Speak with a Licensed Advisor[1]

1-855-728-0510 (TTY 711)

Mon-Sun, 8am to 11pm EST

  • Medicare Advantage
  • Special Needs
  • Medigap
  • Medicare Part D
  • More➲
    • Senior Dental Plans
    • Medicare Mistakes
    • What Does Medicare Cover?
    • Important Resources
    • Frequently Asked Questions
    • Medicare Glossary

Medicare Star Ratings: What They Mean & How to Use Them

by David Bynon, April 9, 2021

Medicare Star Ratings

Have you ever wondered what the Centers for Medicare and Medicaid Services (CMS) star ratings mean and how to use them to choose a health plan? In this MedicareWire article, we’ll cover what you need to know and explain how we use the CMS 5-star rating system to help you choose a plan with the quality of care you deserve.

We’ll answer the following top questions and many more:

Medicare's 5-star rating system gives beneficiaries, as well as the general public, a final grade that represents multiple grading factors. Each type of plan (e.g., Medicare Advantage or Medicare Part D) and each type of provider (e.g., hospital, nursing home, etc.) have different factors that Medicare analyzes to create the final grade. The end result is a 5-star score that helps beneficiaries understand the quality of care they can expect to receive from a plan or provider. Read the full article here.

CMS rates all Medicare plans annually on a scale of 1 to 5, with a 5-star rating being the highest score. More stars indicate better performance and quality (5 = Excellent, 4 = Good, 3 = Average, 2 = Below Average, 1 = Poor). Read more about the Medicare 5-Star Rating System, and how to use it, here.

Yes. Each year, the insurance companies are required to self-report on each of their contracts. Learn more about what the 5-star ratings on Medicare Advantage and Medicare prescription drug plans mean in this article.

MedicareWire publishes the star ratings for all plans in its Medicare Advantage plan directory, Medicare Part D plan directory, and Medicare Advantage Special Needs Plan directory. You can also find star ratings on Medicare’s own plan finder tool. MedicareWire also offers free downloads of plan benefits and copayment schedules for every plan. Click the plan type you need in our menu here.

What are the Medicare Star Ratings?

When Medicare Part DMedicare Part D plans are an option Medicare beneficiaries can use to get prescription drug coverage. Part D plans provide cost-sharing on covered medications in four different phases: deductible, initial coverage, coverage gap, and catastrophic. Each... (prescription drug plans) and Medicare Part CMedicare Part C is Medicare's private health plan option. Also known as Medicare Advantage, Medicare Part C plans are a type of Medicare health plan offered by companies that contract with Medicare to provide all... (Advantage plans) were signed into law in 2003, CMS created a complex quality of care measurement system to grade all private health plans. CMS uses the same type of grading system to measure the performance of its healthcare providers.

The benefit of the CMS grading system is that it rolls up many measurements into a single final grade. This final grade allows us, Medicare beneficiaries, to compare health plans at-a-glance.

Here’s what each star means:

  • 5-Stars (★★★★★): Excellent
  • 4-Stars (★★★★): Good
  • 3-Stars (★★★): Average
  • 2-Stars (★★): Below Average
  • 1-Star   (★): Poor

What are the Medicare 5-Star Measures?

CMS reviews the performance of all health plans annually and issues new star ratings each October in time for the Annual Election Period (AEP). So, if you choose a 4-star plan last year, it may only be a 3-star plan this year. Plan ratings change from year to year.

CMS rates Medicare Advantage plansMedicare Advantage (MA), also known as Medicare Part C, are health plans from private insurance companies that are available to people eligible for Original Medicare (Medicare Part A and Medicare Part B)., including Special Needs Plans (SNP), based on how well they performed in the previous year. They use five different rating categories to get to an overall star rating:

  1. Staying healthy: screenings, tests, and vaccines
  2. Managing chronic (long-term) conditions
  3. Plan responsiveness and care
  4. Member complaints, problems getting services, and choosing to leave the plan
  5. Health plan customer service

CMS rates its Part D plans based on their performance in four different categories:

  1. Drug plan customer service
  2. Member complaints, problems getting services, and choosing to leave the plan
  3. Member experience with the drug plan
  4. Drug pricing and patient safety

IMPORTANT: A plan’s star rating is just one of many factors you should consider when choosing a health plan. Also, take into consideration a plan’s coverage and costs. For instance, if you are considering a Medicare Advantage plan, be sure the plan’s copaysA copayment, also known as a copay, is a set dollar amount you are required to pay for a medical service. work for your health needs. This is particularly important if you have one or more chronic conditions. MedicareWireMedicareWire is a Medicare insurance consulting agency. We founded MedicareWire after seeing and hearing how confusing and frustrating it is to find, understand, and choose a plan. Our services are free to the consumer. helps by offering a downloadable summary of benefits on each plan page.

What is the Purpose of the Star Ratings System?

The Medicare star rating system has several purposes. For the Medicare beneficiaryA person who has health care insurance through the Medicare or Medicaid programs., the rating system assists with health insurance and provider selection (i.e., is this plan bad or good?). For the plan providers (i.e., HMO and PPO organizations), the rating system helps them understand overall plan member satisfaction. A plan’s performance also determines the payments they receive from Medicare. For instance, 5-star plans are compensated more.

For healthcare providers, the quality measures help identify potential patient safety issues. For the Centers for Medicare and MedicaidMedicaid is a public health insurance program that provides health care coverage to low-income families and individuals in the United States. Services, the ratings identify which contracts to sanction for poor performance.

Are you wondering if Original MedicareOriginal Medicare is private fee-for-service health insurance for people on Medicare. It has two parts. Part A is hospital coverage. Part B is medical coverage. is measured by the same 5-star system? Unfortunately, this wouldn’t be practical or even meaningful, as Original Medicare is a Private Fee-for-Service (PFFS) system. There’s no way to assess plan quality with Original Medicare because it isn’t a plan and has no way to track wellness. However, MedicareWire has created its own 5-star reviews for Medigap plans.

Do Medicare Plans Have To Provide Star Ratings?

Yes. Every Medicare-approved plan has a unique contract ID. Each year, the insurance companies are required to self-report on each of their contracts. For Medicare Advantage plans that include Part D, there are 45 different measures that get sent to CMS. Each of these measures is rolled up into the nine major categories listed above.

Where Can I Find CMS Star Ratings?

If you’re wondering, “Where can I find the most recent Medicare star ratings?”, MedicareWire publishes the star ratings for all plans in its Medicare Advantage plan directory (here), Medicare Part D plan directory (found here), and Medicare Advantage Special Needs Plan directory (on this page). You can also find star ratings on Medicare’s own plan finder tool.

What is the Medicare 5-Star Special Enrollment Period?

Special Enrollment Periods (SEPs) allow beneficiaries to switch their Medicare Part D or Medicare Advantage plan outside of the Annual Election Period. One of the SEPs is for 5-star plans.

CMS uses the quality rating data gathered from the previous year to determine a Medicare Part D or Medicare Advantage plan’s quality rating for the new year. Those plans with a 5-star score have the ability to get additional plan members.

Who is eligible for this SEP?

  • Beneficiaries enrolled in any Medicare Advantage or Medicare Part D plan (including those that already have a 5-star plan)
  • Beneficiaries currently enrolled in Original Medicare and meet the eligibility requirements for Medicare Advantage

When can I use the 5-star SEP?

According to Medicare:

If a Medicare Advantage Plan, Medicare drug plan, or Medicare Cost Plan with a 5-star rating is available in your area, you can use the 5-star Special Enrollment Period to switch from your current Medicare plan to a Medicare plan with a “5-star” quality rating. You can use this Special Enrollment Period only once between December 8 and November 30.

Enrollments from January to November are effective the month following the enrollment request.

When Does the Star Rating Cliff Occur?

If you are an actuary, you might be wondering about the progression from performance to the actual star rating. The first year that a plan can receive a rating from CMS is three years after the performance data is submitted. For instance, a plan that is first available in 2021 may have its initial star rating no sooner than 2023, which will affect payments to the plan in 2023.

More Information About The CMS Stars System

Most of the information above talks about the star rating system in relation to Medicare health plans. The rating system for plans is relatively straightforward. This isn’t the case for healthcare providers. Each type of healthcare provider (e.g., hospital, nursing home, home health agency, etc.) has its own measurement system.

Data sources used to measure the healthcare provider performance include:

Clinical quality standards: 

  • Health Effectiveness Data and Information Set (HEDIS®)
  • Pharmacy Data (Prescription Drug Event-PDE), which includes medication adherence
  • Laboratory data
  • Health Outcome Survey (HOS) data (http://www.hosonline.org/Content/Default.aspx)

Member experience, satisfaction, and complaints with Plan:

  • Consumer Assessment of Healthcare Providers and Systems (CAHPS®) (https://cahps.ahrq.gov/about-cahps/index.html)
  • Medicare Advantage (MA) and Prescription Drug Plan (PBP) CAHPS (http://cms.gov/Research-Statistics-Data-andSystems/Research/CAHPS/mcahps.html)
  • Complaint Tracking Module
  • Grievances and Appeals

Administrative performance and compliance standards §

  • CMS Audits
  • Pharmacy (Part D) drug safety and drug pricing accuracy
  • Customer Care Performance

Call 1-855-728-0510 (TTY 711) for plan assistance.

If you qualify for Medicare and don't know where to start, MedicareEnrollment.com, an independent HealthCompare insurance broker, has licensed agents who can help you with your Medicare enrollment options.

Citations & References

medicare.gov

  • Find a Medicare plan
    https://www.medicare.gov/plan-compare/
  • Find a Medicare plan
    https://www.medicare.gov/find-a-plan/staticpages/rating/planrating-help.aspx
  • Medicare.gov: the official U.S. government site for Medicare | Medicare
    https://www.medicare.gov/

cms.gov

  • Program history https://www.cms.gov/About-CMS/Agency-Information/History
  • Five-Star Quality Rating System | CMS
    https://www.cms.gov/Medicare/Provider-Enrollment-and-Certification/Certificat…
  • https://www.cms.gov/Medicare/Prescription-Drug-Coverage/PrescriptionDrugCovGe…
  • CMS 1696 | CMS
    http://www.cms.gov/Medicare/CMS-Forms/CMS-Forms/CMS-Forms-Items/CMS012207.htm…

 

Filed Under: Medicare Part C, Medicare Prescription Drug Plans Tagged With: Medicare Advantage, Original Medicare

More Posts from this Category

Primary Sidebar

Top 10 Medicare Mistakes in 2023

  • Thinking It’s Free!
  • Forgetting to Sign Up at Age 65
  • Not Signing Up If You Are Still Working
  • Joining an MA Plan if You Have Chronic Health Conditions
  • Getting the Same Plan as Your Spouse
  • Not Leveraging Assistance Programs
  • Choosing the Wrong Medigap Plan
  • Not Reviewing & Understanding Your Coverage
  • Going Out-of-Network in Your MA Plan
  • Costly Financial Moves when You Retire

Latest Blog Posts

Why Can You be Denied a Medicare Supplement Plan?

Medicare Plan N vs Plan G: Which Supplement is Best for You?

How Does the Plan K Medicare Supplement Work?

9 Facts About High Deductible Plan G and How it Works

Medicare Supplement (Medigap) Plans: Coverage, Costs And Eligibility

Is Plan F Still Available in 2023?

What is the Cheapest Medicare Option?

Paying for Drugs When You Have a Medigap Plan

What Does Medicare Part B Excess Charges Mean?

What is Medicare Supplement Plan N and How Does it Compare?

Footer

About MedicareWire

  • About
  • Contact
  • Code of Conduct
  • MCMG Compliance
  • Privacy
  • California Consumer Privacy
  • Disclosure
  • Personally Identifiable Health Information

[1] Licensed Sales Agent

Licensed sales agent (“advisor”) services are provided by HealthCompare Insurance Services, Inc., MedicareWire’s trusted partner. Online enrollment services are provided by MedicareEnrollment.com, a HealthCompare affiliate. Read our full sales agent disclosure.

[2] Trademark Notice

MedicareWire uses legal U.S. trademarks to identify and describe Medicare and other insurance products for shoppers. See our full trademark use disclosure.

Medicare Plan Directories

  • Medicare Advantage
  • Special Needs Plans
  • Medigap Plans
  • Medicare Part D
  • Senior Dental Plans

Copyright © 2023 MedicareWire.com - All Rights Reserved
101 W Goodwin St #2487, Prescott, AZ 86302

MedicareWire.com is a non-government website and is not endorsed by the Centers for Medicare & Medicaid Services (CMS) or any other government agency. For official government information, please visit Medicare.gov (1-800-MEDICARE). By using MedicareWire.com you agree to our Terms of Service and Privacy Policy.

Get a FREE Medigap Rate Analysis... and Save!


We'll save you money with a FREE Medicare Supplement insurance rate analysis!

The only way to know if you are getting the best deal on your Medicare Supplement insurance is to see all rates from all insurance carriers. That's what we'll send you when you fill out the form below. We won't spam you, call you, or sell your information. That's a promise!

Complete this form and we'll email your free report in 1 business day or less.

  • This field is for validation purposes and should be left unchanged.