The Cost of Quality: How Star Ratings Can Influence Monthly Premiums in Medicare Advantage Plans
The Centers for Medicare and Medicaid Services assigns a star rating to Medicare Advantage plans to help beneficiaries better understand and select their insurance plan. When selecting an insurance plan, quality and cost are typically the top selection criteria used. This study looks at the relationship between these two important factors – quality (in star ratings) and cost (in monthly premiums). This relationship is important because Medicare Advantage plans that achieve four or more stars receive a bonus payment and possibly a higher rebate from Medicare that must be used to enhance benefits or lower premiums.
The full report can also be found on Medicare Health Plans