When picking your Medicare plan each year, sorting through copayments, monthly costs, and healthcare provider options can be overwhelming. Luckily, the Medicare Star Ratings are a helpful guide to making things easier. Here’s everything you need to know.
What is the Medicare Star Rating system?
The Medicare Star Ratings aim to assist consumers in making informed choices when they choose a Medicare health insurance plan. The Centers for Medicare & Medicaid Services (CMS) provides a star rating against plans and service types ranging from 1 to 5.
The ratings, where higher numbers signify enhanced or superior performance in a given category, are determined by assessments in specific performance areas that are important for Medicare beneficiaries, including:
- Dialysis Providers
- Home Health Care
- Medicare Advantage plans
- Medicare Prescription Drug Plan (Part D)
- Specific Hospitals
- Specific Nursing Homes
- Specific Physicians
Why does Medicare provide Star Ratings?
Understanding the significance of the Medicare Star Ratings involves recognizing two key factors:
- Easy Comparisons: No matter the Star Rating, all plans and providers are measured exactly the same way. This helps determine which hospital is best for a specific treatment.
- Keeping Providers on Track: When healthcare providers know their ratings are out there for everyone to see, it pushes them to get better where they may fall short. This openness encourages improvement and ensures they don’t lose out on potential customers.
What do the ratings mean?
When it comes to Medicare Star Ratings, we’re working with a scale from one to five stars, where five is the gold standard.
Here’s the breakdown:
- Five stars: Excellent, the best
- Four stars: Above the standard
- Three stars: Average, right in the middle
- Two stars: Below average, room for improvement
- One star: Not great, needs improvement
And don’t skip the half-stars – they come in handy when you’re tracking progress. So, 4.5 stars mean it’s an improvement from a solid 4-star rating.
How Medicare comes up with its Star Ratings
The calculation of each Star Rating is tailored to the specific plan and coverage type. Notably, Star Ratings for health plans follow a different formula than those for hospitals.
The Medicare Star Ratings are derived from patient feedback, outcomes collected by CMS throughout the year, and deep analysis. For instance, aggregated assessments in specific areas like “Plan Makes Timely Decisions about Appeals” and “Call Center – Foreign Language Interpreter and TTY Availability” help determine a plan’s rating for provided services. Also contributing are assessments for services like “Care for Older Adults – Pain Assessment,” “Reducing the Risk of Falling,” and “Improving Bladder Control.” It’s very detailed.
Think of it as building a jigsaw puzzle, with each piece representing an individual measurement. Each section you complete is like assessing a specific practice area. Then, as you put together the puzzle, the complete picture emerges from the combination of these diverse pieces. That’s the overall Star Rating.
How frequently are Medicare Star Ratings updated?
Depending on the service type, the Centers for Medicare & Medicaid Services refresh their Star Ratings at different intervals.
A plan’s Star Ratings is released each autumn to help Medicare beneficiaries decide whether to re-enroll in existing plans or make a switch. This coincides with enrollment periods for Original Medicare, Medicare Advantage (Part C), Medicare Prescription Drug Plan (Part D), and many standard health insurance.
Hospital star ratings are published annually, whereas ratings for other categories see more frequent updates. For example, the Nursing Home or Home Healthcare Star Ratings are released monthly.
Can you switch plans if yours drops in the ratings?
If you’re enrolled in a Medicare Advantage plan, Part D plan, or both, there’s an opportunity to switch to a five-star plan in your area if your current plan has a lower rating. Medicare provides a once-a-year special enrollment period for those considering this switch. However, this change is only permitted after December 8 of the year you initially selected your plan and before November 30 of your plan year.
When relying on Medicare Star Ratings, it’s important to verify the recency of the ratings. Feel free to inquire with your provider or carrier for the latest ratings if there’s any uncertainty.
Do plan members get notified of star rating updates?
If you’re thinking of sticking with your current plan, check the Star Rating before you do to see if anything has changed and how a new rating could affect you. Note that even though these updates are released publicly, individuals may not be personally notified — it’s on you to keep an eye on your plan’s Star Rating when enrollment time comes.
Look beyond the overall ratings.
Most Medicare plan members find these ratings to be super handy for checking out insurance plans and providers, but we encourage you not to rely on them solely in your decision-making. When doing your research, be sure to look for the services and facilities you need, both now and down the road. Sometimes, a provider’s rating in those specific areas might matter more than the plan’s overall Star Rating.
Keep in mind that other organizations have their own ratings, and they might use different criteria. If you want some one-on-one help, the fantastic crew at Guided Solution has Medicare experts ready to assist with personalized healthcare choices and their Star Ratings.
Five-star help for your Medicare questions
Each individual’s circumstances vary, underscoring the importance of contacting a seasoned Medicare insurance agent. We know how to quickly evaluate the plans and services most important to you and can help you assess what the ratings mean for your doctors and plans.
With a wealth of experience, the Guided Medicare team is well-prepared to assist you in making a decision about your healthcare needs. Please reach out if we can be of service.
