CMS releases 2027 Medicare Advantage Star Ratings

The Centers for Medicare & Medicaid Services (CMS) has released the 2027 Star Ratings for Medicare Advantage and Part D drug plans ahead of the October 15 open enrollment period. While approximately 71% of beneficiaries in Medicare Advantage plans with prescription drug coverage are enrolled in contracts rated four stars or higher, the enrollment-weighted average rating saw a slight decrease from 4.01 in 2026 to 3.99 for 2027.

Notably, the number of top-rated contracts has declined, with only 15 five-star contracts identified this year compared to 22 last year. No standalone Part D drug plans achieved a five-star rating. These ratings are significant as they influence quality-bonus payments and rebates; plans with 4.5 to 5 stars are eligible for higher rebates to support supplemental benefits.

The release comes amid concerns regarding plan availability. Insurers such as Aetna, Humana, and UnitedHealth Group have announced terminations of certain Medicare Advantage plans, potentially affecting millions of members. Additionally, reports indicate an increase in the number of Medicare beneficiaries living in counties with no access to Medicare Advantage plans that include prescription drug coverage.