KFF Health News August 9, 2023
Jeannie Fuglesten Biniek, Anthony Damico, Tricia Neuman

To encourage Medicare Advantage plans to compete for enrollees based on quality, the Affordable Care Act (ACA) established a quality bonus program that increases payments to plans based on a five-star rating system. Plans may, but are not required to, use the additional payments to cover the cost of supplemental benefits, including reduced cost sharing, services not covered by traditional Medicare (e.g., vision, hearing and dental), and rebates against the Part B and/or Part D premiums. This analysis examines trends in bonus payments to Medicare Advantage plans, enrollment in plans in bonus status, and how these measures vary across plan types and firms, using publicly available information on Medicare Advantage enrollment, payment rates, and quality ratings.

Key takeaways:

  • Federal...

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Topics: Insurance, Medicare Advantage
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