Becker's Healthcare July 6, 2023
Jakob Emerson

The Medicare Advantage star rating system and its quality bonus payment program is failing to achieve its two main goals of helping beneficiaries select a plan and incentivizing payers to improve plan quality, according to a new report from the Urban Institute.

According to the June 26 report, the star rating system was intended to reduce payments to MA companies when it was established under the Affordable Care Act, but those savings have not materialized because the majority of plans are receiving bonuses for high star ratings. Bonus payments are given to plans with four or more stars, and the average MA star rating was 4.15 in 2023.

“In short, the QBP is a windfall for insurers that does not...

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Topics: CMS, Govt Agencies, Insurance, Medicare Advantage, Patient / Consumer, Provider, Survey / Study, Trends
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