With Medicare open enrollment set to begin this week, the Centers for Medicare & Medicaid Services (CMS) has released the 2021 Star Ratings for Medicare Advantage plans with prescription drug coverage (MA-PD) as well as standalone MA and PD plans, based on data from calendar year 2019. Among Cotiviti’s clients that were eligible to receive a 2021 rating, more than 75 percent earned four stars or above at the plan level compared to 60.2 percent of all eligible MA-PD plans. Here are our takeaways from the latest data and measure changes.
Overall Rating |
2020 Number of Contracts |
2020 % of Contracts |
2020 % Weighted by Enrollment |
2021 Number of Contracts |
2021 % of Contracts |
2021 % Weighted by Enrollment |
---|---|---|---|---|---|---|
5 stars |
20 |
4.99 |
10.96 |
21 |
5.25 |
9.15 |
4.5 stars |
72 |
17.96 |
31.41 |
63 |
15.75 |
21.92 |
4 stars |
118 |
29.43 |
38.82 |
110 |
27.5 |
45.76 |
3.5 stars |
131 |
32.67 |
15.82 |
141 |
35.25 |
18.97 |
3 stars |
55 |
13.72 |
2.93 |
61 |
15.25 |
4.14 |
2.5 stars |
4 |
1 |
0.05 |
4 |
1 |
0.06 |
2 stars |
1 |
0.25 |
0.02 |
0 |
0 |
0 |
Table 1. 2020–2021 overall Star Ratings distribution for MA-PD contracts (Source: CMS).
The total number of contracts, including those ineligible for a rating, went up from 743 last year to 816 this year, an increase of nearly 10 percent. Most of this increase was driven by large national payers expanding into new markets, often through acquisition of smaller plans.
As more payers continue to enter or expand their presence in the MA space and overall premiums continue to drop, the importance of performing well in the Star Ratings program will intensify as members seek the highest value for their premiums. Plans that than don’t earn four stars or above will likely find it increasingly difficult to grow their membership and recognize additional revenue gains.
Including MA-PD plans and other plan types, 28 total contracts received a coveted five-star rating, up from 23 contracts for the 2020 Star Ratings.
However, the total number of plans earning four stars or above overall went down. As shown in Table 1, nearly 77 percent of current MA-PD enrollees belong to a plan that earned four stars or above. This figure represents a year-over-year decrease from the ratings released for 2020, when more than 81 percent of enrollees belonged to such a plan.
As noted by CMS, MA-PD plans that have been in the program for 10+ years are more likely to receive four stars or more compared to those with less experience. Indeed, 152 plans with 10+ years’ experience received such a rating compared to only 42 plans with nine years or fewer. More experienced plans are more likely to have seamless and integrated processes in place to handle the numerous annual changes to the program, especially in the administrative and member satisfaction measures, whose weight increased from 1.5 to 2 for the 2021 ratings.
Here are three recommendations from Cotiviti based on tactics used by our high-performing MA clients.
Cotiviti’s Star Navigator works alongside our Quality Intelligence solution to enable MA plans to figure out the most direct path to higher Star Ratings, then track and communicate their progress toward improvement goals. Download our fact sheet to learn how.
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