Each year, CMS measures the quality and value of certified health plans like Select Health Medicare. Medicare-certified health plans, both Part C (Medicare Advantage) and Part D (Prescription Drug), are rated on a star scale. The scale ranges from one to five stars, with five stars representing the highest quality. Medicare Advantage plans, like Select Health Medicare, with prescription drug coverage contracts are rated on up to 42 unique quality and performance measures. Some examples of the categories include:
- Staying healthy: How well the plan covers and helps its members receive recommended health screenings, vaccinations, and other check-ups, including programs that encourage wellness and help members stay healthy
- Managing chronic conditions: How often members with different chronic conditions receive certain tests and treatments that help them manage their condition
- Member experience: How members rate their satisfaction with plan benefits (e.g., coverage, copays, and customer service)
- Member complaints and plan performance: How often CMS and Medicare members find problems with the plan, including how well the plan handles member appeals and new enrollment requests
CMS Star ratings can help members compare different plans’ quality and performance when they evaluate their current plans each year during the annual election period (October 15 to December 7). This is the best time for members to make sure their plan will meet their healthcare needs for the coming year and make any necessary adjustments.
Ultimately, star ratings result in added benefits like exercise plans, vision, dental, lower premiums, and lower copayments for the members. Any revenue bonus the plan receives for these ratings must be reinvested back to the member.
To determine overall performance ratings, Medicare uses:
- Information from provider, plan, and member surveys, such as the Health Outcomes Survey discussed below
- Reviews of claims and other information that plans submit to Medicare
- Results from Medicare’s regular monitoring and auditing activities
The Health Outcomes Survey (HOS) is administered annually by a CMS-approved vendor and is mandatory for MA plans. Each year, a random sample is drawn from the MA plan and selected to participate. The HOS queries Medicare Advantage plan members about their health status and the discussions they have with their providers that occur during a clinic visit or an annual wellness visit. CMS uses the results of this survey to monitor health plan performance and drive quality improvement, and results impact annual CMS Star ratings.
Learn more about the Health Outcomes Survey.