CMS says 37% of 2027 Medicare Advantage drug plans earn four stars or higher
The agency says plans covering about 71% of current enrollees are on track to keep bonus-eligible ratings next year
Published
The Centers for Medicare and Medicaid Services said 37% of Medicare Advantage-Prescription Drug contracts earned a four-star rating or higher for 2027. Weighted by enrollment, the agency said about 71% of MA-PD members are currently in contracts that will carry four or more stars next year.
The release follows a tighter grading process. CMS used stricter cut points, the numerical thresholds that translate plan performance into a 1-to-5 star score, ahead of this year's ratings, according to Healthcare Finance News, which cited AArete managing director Pam Price. The outlet also reported that 34 Medicare Advantage plans earned five stars in last year's cycle, covering the 2026 ratings.
The industry has been trending toward fewer bonus-eligible plans even as federal bonus spending rises. RISE Health reported that quality bonus payments reached $13.4 billion in 2026, up from $12.7 billion the year before, while the share of Medicare Advantage enrollees in bonus-eligible plans fell to 68% from 75%, the lowest level since 2018. Insurer performance has also diverged: comparemedicareadvantage.org reported that Kaiser Permanente's 2026 enrollment-weighted average stood at 4.42, with all of its members in plans rated four stars or higher, while UnitedHealthcare's average was 4.10, with 78% of members in four-plus star plans and two contracts at five stars. Humana's average was 3.61, with only 20% of its members in four-plus star plans, the site reported.
Star ratings set the baseline for the quality bonus payments insurers collect under Medicare Advantage, so the 2027 results determine how much extra revenue plans can book next year and how aggressively they can price premiums and benefits during fall enrollment. With roughly seven in ten enrollees already in contracts projected to hold four or more stars, most of the MA-PD book remains eligible for bonus funding, limiting the number of plans facing the revenue hit from falling below that line. The effect still plays out insurer by insurer: a single sponsor losing stars on a large contract can swing its own bonus eligibility even as the industry-wide rate holds steady.