Healthcare DIVE May 5, 2025

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Medicare Star Ratings are a good indicator of the quality of care they provide to their members. An increase from 3 to 4 stars can result in a revenue boost of $12 million to $16.2 million (for a plan with about 9,600 members).[1] A 1-star increase is also associated with an 8% to 12% growth in enrollment the following year.[2]

Unfortunately, many Medicare Advantage Organizations (MAOs) went in the other direction in 2025. The top 15 MAOs saw an average 0.23-star decline, while some fared even worse.

Plans could see further declines in the future if they don’t prioritize providing members quality care. Recent changes in the Medicare Star Ratings formula have put increased...

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