Medicare Blog

what are different rating systems for medicare prescription drug plans

by Mariam Walsh Published 2 years ago Updated 1 year ago

Medicare Advantage with prescription drug coverage (MA-PD) contracts are rated on up to 45 unique quality and performance measures; MA-only contracts (without prescription drug coverage) are rated on up to 33 measures; and stand-alone PDP contracts are rated on up to 14 measures.

Plans are rated on a one-to-five scale, with one star representing poor performance and five stars representing excellent performance. Star Ratings are released annually and reflect the experiences of people enrolled in Medicare Advantage and Part D prescription drug plans.Oct 8, 2021

Full Answer

How are Medicare Advantage and prescription drug plans rated?

The system rates Medicare Advantage  (MA) and Prescription Drug (PDPs or Part D) plans on a 5-star scale with 1 being the lowest and 5 being the highest score. Measurements focus on health plan quality based on measurements of customer satisfaction and quality of care the plan delivers.

How do Medicare ratings compare health plans?

So when you’re considering a new Medicare plan, it’s a good idea to review Medicare’s ratings to compare health plans. The ratings are updated every fall. And the more stars, the higher the rating. Medicare’s Plan Finder lets you search for health plans in your area and see how they're rated.

What is the Medicare star rating system?

That's when the Centers for Medicare & Medicaid Services (CMS) first rolled out the star rating system. The way the star rating system works is simple. It's a scale of one to five stars, with one star being the worst quality, three being average, and five stars the highest-quality plan.

How does the CMS rate Medicare plans?

The Centers for Medicare & Medicaid Services (CMS) updates ratings for Medicare plans every fall. The CMS rates each plan on up to 40 different factors such as ease of filling a prescription or coordination of healthcare services to give you an idea of how good the plan is.

What is the Medicare star rating system?

Medicare uses a Star Rating System to measure how well Medicare Advantage and Part D plans perform. Medicare scores how well plans perform in several categories, including quality of care and customer service. Ratings range from one to five stars, with five being the highest and one being the lowest.

What does a CMS 5-Star rating mean?

Nursing homes with 5 stars are considered to have much above average quality and nursing homes with 1 star are considered to have quality much below average.

What are the four main categories of stars ratings measures?

More stars indicate better performance and quality:5-star rating: Excellent.4-star rating: Above Average.3-star rating: Average.2-star rating: Below Average.1-star rating: Poor.

What is devoted star rating?

For 2022, Devoted Health (H1290) received the. following Star Ratings from Medicare: Overall Star Rating: ★★★★

How many categories are considered in the CMS Star Rating calculation?

Ratings for each domain and the overall rating range from 1 star to 5 stars, with more stars indicating higher quality. Based on these three ratings, the overall 5-Star rating is assigned in 5 steps: Step 1: Start with the Health Inspection Rating.

What is the difference between hedis and stars?

For HEDIS measures, Star Ratings use a clustering algorithm that identifies “gaps” in the data and creates five categories (one for each Star Rating). Star Ratings incorporate a measure on improvement into plans' overall score, with a weight of 5. HPR does not incorporate an improvement bonus.

Which Medicare Advantage plan has the highest rating?

What Does a Five Star Medicare Advantage Plan Mean? Medicare Advantage plans are rated from 1 to 5 stars, with five stars being an “excellent” rating. This means a five-star plan has the highest overall score for how well it offers members access to healthcare and a positive customer service experience.

What is the best way to compare Medicare Advantage Plans?

The Medicare Plan Finder on Medicare.gov is currently the most comprehensive tool for comparing Medicare Advantage plan benefits, prescription drug coverage and costs.

Do Medicare supplement plans have star ratings?

The reason for saying this is because Medicare Advantage Plans do have star ratings and Medicare Supplement Plans (aka Medigap) do not have star ratings. The 5-star rating system used by Medicare only applies to Medicare Advantage Plans and Medicare Part D drug plans.

What is the most popular Medicare Part D plan?

Best-rated Medicare Part D providersRankMedicare Part D providerMedicare star rating for Part D plans1Kaiser Permanente4.92UnitedHealthcare (AARP)3.93BlueCross BlueShield (Anthem)3.94Humana3.83 more rows•Mar 16, 2022

What is the best Medicare Part D plan for 2022?

The 5 Best Medicare Part D Providers for 2022Best in Ease of Use: Humana.Best in Broad Information: Blue Cross Blue Shield.Best for Simplicity: Aetna.Best in Number of Medications Covered: Cigna.Best in Education: AARP.

How are star ratings determined?

Summary star ratings are an average of a provider's question level star ratings. Patient star ratings are calculated by dividing the patient's aggregate mean score by 20. For clients using only one question in the patient star rating, the star rating would simply be the individual question score, divided by 20.

How to check Medicare plan ratings?

You can compare up to three plans at a time. Or you can call 800-MEDICARE (1-800-633-4227) to get a plan’s ratings.

What does Medicare rating mean?

What the Ratings Mean. What Medicare Evaluates to Rate Quality. Medicare rates the quality of Medicare Advantage plans, which cover hospitalization, outpatient care, and often prescription-drug coverage. It also rates Part D drug plans, which help to pay for the cost of prescription medications for people not enrolled in a Medicare Advantage plan.

What does Medicare evaluate to rate quality?

What Medicare Evaluates to Rate Quality. Medicare uses information from many sources to do the ratings. This includes surveys filled out by members of a health plan as well as required data reporting from the health plan. Medicare also uses information from health care providers.

What is service specific rating?

A plan’s service-specific rating. Besides the overall rating, you can check how each plan rates for a specific type of care. Service-specific ratings use the same one-to-five scale. For instance, you might be interested in a plan's rating on flu vaccines, how plans rate on their speed setting up appointments, or how long you have to wait for care.

What is Medicare based on?

In general, Medicare rates plans based on member health, member complaints, receipt of recommended care, and member satisfaction. Some of the factors used to rate plans may be important to your health and satisfaction with the plan, others less so.

Is 5 stars good or bad for Medicare?

Five stars is excellent. Four stars is above average. Three stars is average. Two stars is below average. One star is poor. Continued. If a plan has no rating, it's new. Or there might not be enough information for a rating to be done. Find a Medicare Plan that Fits Your Needs Get a Free Medicare Plan Review.

When is the 5 star rating for Medicare?

Medicare has a special five-star rating open enrollment period from December 8 to November 30 each year , during which a person can switch from their Advantage plan to a five-star plan.

How many stars does Medicare use?

Medicare uses a five-star rating system to help people compare plans. The ratings are based on customer satisfaction and a review of records. The system uses five categories to rate Advantage plans and four categories to rate Part D plans. People can find the star ratings for the plans available in their area using the Medicare plan finder online ...

What is the Medicare Advantage rating for 2021?

According to the CMS, almost half of all Medicare Advantage plans that include prescription drug coverage have an overall rating of four stars or higher for 2021. Further information from the CMS shows that more than 76% of stand-alone Part D plans carry a star rating of 3.5 or higher for 2021.

Why do Medicare stars work?

Medicare uses star ratings to help people compare the quality of health and drug plans. The Centers for Medicare & Medicaid Services (CMS) base the ratings on specific measurements and update them each fall. This article looks at Medicare and the program’s star ratings system. It also explains how to evaluate health and drug prescription plans ...

What are the benefits of Medicare Advantage?

The performance of Medicare Advantage plans in five categories contributes to their score: 1 tests, screenings, and vaccines 2 responsiveness and care 3 managing chronic conditions 4 complaints, problems, and people leaving the plan 5 customer service

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Healthline Media does not transact the business of insurance in any manner and is not licensed as an insurance company or producer in any U.S . jurisdiction. Healthline Media does not recommend or endorse any third parties that may transact the business of insurance. Last medically reviewed on November 12, 2020.

Difference Between Medicare Advantage Star Rating & Prescription Drug Plan Star Ratings

Medicare Advantage star ratings and star ratings for Medicare Part D plans are determined by different factors. Learn more about how Medicare Advantage Plans and Prescription Drug Plans are rated below.

Medicare Star Ratings Are Not Everything

While Medicare star ratings can be a good indicator of a solid plan, that doesn’t always mean the highest rated Medicare Advantage or Prescription Drug Plan is the right option for you.

SelectQuote Can Help Find a Medicare Plan Fit For Your Needs

At SelectQuote, we can help you evaluate your current Medicare coverage and look at other options available to you to ensure you’re getting all of the benefits you need and deserve. Some of the trusted carriers we work with could have plans available to you with a Medicare 5-star rating.

How does Medicare star rating work?

First and foremost, since Medicare plan coverage and costs change regularly, plan performance is reevaluated on a yearly basis. This means plan star ratings may change each year, with the results being released to the public each October and go into effect the following year. Medicare recipients can rely on newly released star ratings to inform their decision to change existing coverage or enroll in a new plan during the Annual Enrollment Period, which begins October 15th and lasts until December 7th. After evaluating Medicare plan options and costs, coverage and prescription inclusions and the practices available in each network, the Star Rating System can help you finalize your choice of coverage.

What are the factors that determine the star rating of a Medicare Advantage plan?

There are five key categories that factor into a Medicare Advantage Plan’s Star Rating. The first category is what’s known as Staying Healthy. This category covers issues such as a plan’s ability to provide access to tests, health screenings, physical exams and other preventative health measures. Next up, the second ranking factor is Managing Chronic Long Term Conditions. Did you know that people under the age of 65 who receive Social Security Disability Insurance (SSDI) payments generally become eligible for Medicare after a two-year waiting period? Those diagnosed with end-stage renal disease (ESRD) and amyotrophic lateral sclerosis (ALS) become eligible for Medicare with no waiting period. For these reasons, it’s important to understand how long-term conditions are handled by a plan. This category relates to how well a plan is able to provide a patient with management and treatment options for long-term conditions. The third category is Member Experience. This consideration takes into account the overall experience and patient satisfaction with their plan and the ease of obtaining service and the quality of care received. The fourth category in the Star Rating System for Medicare Advantage Plans is called Member Complaints. This category tracks the number of complaints from members and ranks the plan’s ability to deal with them in a professional, helpful manner. The fifth and final category used to rank Medicare plans is Customer Service. This category rates the plan’s response to customers, including handling disputes and getting new enrollments underway.

How does the Star Rating System work?

In the simplest terms, the Star Rating System determine s the quality of Medicare Advantage plans and Part D prescription drug coverage plans, measuring them against several different factors of performance. Everything from the quality of medical care received to the availability of excellent customer service communications factors into the overall rating that a plan receives. Understanding the role of the Star Rating System for Medicare Plans is one of the best ways to ensure that you obtain the plan and coverage that fits your needs. Plans rank anywhere from one star (lowest quality) to five stars (highest quality). Using this simple measurement, you can begin to see how your top plan choices stack up against other Medicare Advantage and Part D plans.

What are the ranking factors for a drug plan?

These ranking factors include: member experience and one’s satisfaction with the drug plan, the handling and responsiveness toward member complaints, customer service and ease of obtaining service and lastly, patient safety and the accuracy of prescription drug pricing.

What is Medicare Part D?

Medicare Part D Plans (stand-alone prescription drug coverage) are ranked based on different rankings factors. Though if the Medicare Advantage plan in question includes prescription drug coverage, it is evaluated on these criteria as well.

Key Takeaways

Medicare Star Ratings were developed to give people more information to consider when choosing a health or prescription drug plan.

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How are Medicare Plans Rated?

CMS rates Medicare Advantage and Part D plans annually, using a scale from one to five, with more stars equating to better performance and quality. A five-star rating is the highest a Medicare Advantage or Part D plan can receive, and half-ratings also exist (1.5, 2.5, 3.5, 4.5).

Why is the Medicare Star Rating Important?

A Medicare plan’s star rating is important because it can help you when comparing different plans. You should not use a star rating as the only factor when making a final decision though. Some plans that have fewer than five stars may actually be a better fit for you. Use the Medicare star rating as just a single factor of evaluation.

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How does Medicare's star rating system work?

You could choose from a wide range of Medicare Part C (now known as Medicare Advantage) plans as early as 1997. But you didn't have a good way to compare them until 2008. That's when the Centers for Medicare & Medicaid Services (CMS) first rolled out the star rating system.

What parts of a health insurance plan are rated?

The way that the CMS rates healthcare plans depends on what type of plan it is.

What is the standard rating for a Medicare plan?

Most Medicare plans have a good rating these days, but not all. According to the CMS, nearly 68% of Medicare plans with prescription drug coverage (MA-PDP) in 2022 have a four-star rating or higher. That’s up from 49% in 2021.

How to use the rating system to pick the best health insurance plan

In general, it's best to choose the highest-rated plan that you can afford. You can compare plans and their ratings on the Medicare Plan Finder website. On the Plan Finder tool, each plan has an overall star rating based on all the rated categories.

The bottom line

Choosing between different Medicare plans can be tough. But the star ratings can help you identify high-performing ones and those with higher scores in categories that may matter to you. The CMS rates each plan on up to 40 different factors to create a helpful picture of how well the plan treats its members and their healthcare needs.

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