Choosing the best Medicare plan is a critical decision for many Texans. One of the key tools available to aid in this decision-making process is the Medicare plan rating system.
What Are Medicare Plan Ratings?
Medicare plan ratings, also known as the Star Ratings, are an evaluation system designed by the Centers for Medicare & Medicaid Services (CMS) to assess the quality of Medicare Advantage (Part C) and Medicare Prescription Drug (Part D) plans. The ratings range from one to five stars, with five stars representing excellent performance and one star indicating poor performance.
You can check the Medicare Plan Star Rating of a provider in your area on the Medicare.gov planning tool website.
The Centers for Medicare & Medicaid Services (CMS) use member surveys, health outcomes data, and administrative records to determine Star Ratings. Medicare reviews plan performance yearly and releases new star ratings each fall. This means plan ratings may change, making it crucial for beneficiaries to review them annually.
Medicare Advantage Plans
Medicare Advantage Plans are assessed based on their effectiveness in delivering health services across five essential categories.
Staying Healthy
- Evaluates preventive care like screenings, tests, and vaccinations by tracking how often members receive these services and their effectiveness in maintaining overall health.
- Ensures plans are proactive in preventing serious health issues.
Managing Chronic Conditions
- Assesses care for members with long-term conditions like diabetes and heart disease.
- Checks how well plans provide consistent and effective tests and treatments, aiming to improve quality of life and reduce complications.
Plan Responsiveness and Care
- Measures member satisfaction with care quality and provision of timely, effective care.
Member Complaints and Service Issues
This looks at the frequency and nature of member complaints, including difficulties accessing services and reasons for leaving the plan. It reflects how well the plan handles and resolves issues.
Health Plan Customer Service
This evaluates the quality of customer support, focusing on how well the plan responds to member inquiries and resolves problems.
Medicare Part D Plans: Performance Evaluation
Medicare Part D plans, which focus on prescription drug coverage, are evaluated based on their performance in four key areas.
Drug Plan Customer Service
- Measures how effectively the plan manages customer inquiries and appeals.
Member Complaints and Medicare Audit Findings
- Tracks complaints about the drug plan and includes findings from Medicare audits, focusing on compliance and problem resolution.
Member Experience with the Drug Plan
- Evaluates overall member satisfaction with the drug plan, including ease of accessing services and obtaining medications.
Drug Pricing and Patient Safety
- Assesses how well the plan manages drug pricing and promotes safe prescribing practices, particularly for members with specific medical needs.
Low-Performing Plans
Medicare flags underperforming plans with an upside-down red triangle containing an exclamation point. This warning applies to plans rated below three stars for three consecutive years. Members of these flagged plans receive notifications but are not automatically removed. Instead, they are advised to review their plan’s costs and benefits to ensure continued suitability. To enroll in a low-performing plan, beneficiaries must call 1-800-MEDICARE or contact the plan directly, as Plan Finder does not support enrollment in these plans.
Using Medicare Plan Ratings to Choose the Best Option
When evaluating Medicare plans, the Star Ratings provide a valuable benchmark.
Understand Your Needs
Assess your healthcare needs, including the types of medical services you frequently use, any chronic conditions you have, and your prescription drug requirements. Knowing your priorities will help you focus on plans that excel in those areas.
Examine the specific measures that contribute to the plan’s overall rating. For example, if you need robust prescription drug coverage, focus on the Part D performance measures.
Compare Plans in Your Area
Not all plans are available in every region. The Medicare Plan Finder tool shows the ratings and details of plans available in your locality; use this tool to ensure you aren’t looking at plans not in your area.
Don’t Fixate on the Stars
While the Star Ratings provide a good overview of a plan’s quality, they are just one piece of the puzzle. To meet your individual needs, consider other factors like premiums, deductibles, co-pays, and network coverage. If you have a limited budget and minimal health, medical and drug needs, a five-star plan with high premiums won’t be your best choice, despite the rating.
Consider Enrollment Options
A unique feature of five-star plans is that they offer a Special Enrollment Period. This allows beneficiaries to switch to a five-star plan outside the usual enrollment periods, providing more flexibility if you find your current plan’s performance is declining.
Considerations When Looking at Medicare Plan Ratings
While the Star Ratings are a useful tool, they have limitations.
Ratings can vary significantly by region. A high-rated plan in one area might not be available in another. They also don’t completely reflect all of the factors that are important when making a decision, such as specific provider networks or particular drug formularies. Any plan can improve or decline in quality from year to year, so staying updated with annual reviews is essential.
However, Medicare plan ratings are a good tool to help you evaluate the quality and performance of Medicare Advantage and Prescription Drug plans, when used along with other factors to find the best Medicare plan for you. Many people find the process of comparing multiple providers across several categories overwhelming, though. Wise Insurance has Medicare agents who can help explain the ratings and compare plans as they relate specifically to you, to make the process easier.
Emily Trevino, Senior Managing Partner at Wise Insurance, leverages her extensive background in biology and business finance to master Medicare, health insurance, and retirement planning. With over a decade in the field, Emily has co-authored “Medicare Breakdown – The Alphabet Soup of Medicare,” marking her as a pivotal figure in insurance education. Her commitment extends through active participation in the National Association of Benefits and Insurance Professionals (NABIP) and speaking at major industry events. Emily’s drive for community service and personal resilience shines through her adventurous pursuits and dedication to societal well-being. Connect with Emily on LinkedIn to explore the future of informed insurance decisions.
