When you're comparing Medicare Advantage and Part D prescription drug plans, you'll often see star ratings attached to each one. These aren't just marketing decorations — they're a federal quality measurement system that can tell you a lot about a plan before you enroll.
What Are Star Ratings?
The Centers for Medicare & Medicaid Services (CMS) evaluates Medicare Advantage and Part D plans every year and assigns each one a rating from 1 to 5 stars:
- 5 stars — Excellent performance
- 4 stars — Above average
- 3 stars — Average
- 2 stars — Below average
- 1 star — Poor performance
Ratings are based on dozens of factors including customer service, patient safety, management of chronic conditions, member satisfaction, and how well plans coordinate care.
Why Do Star Ratings Matter?
Quality Assurance
A higher rating is a signal that a plan is consistently delivering good care and service. It doesn't guarantee your individual experience will be perfect, but it reflects how the plan performs across thousands of members over time.
Plan Comparison
Star ratings give you an objective basis for comparing plans side by side — especially useful when two plans look similar on paper but one has a significantly better track record.
Enrollment Implications
Plans with higher star ratings tend to attract more enrollees. Plans that earn 5 stars even trigger a special enrollment opportunity — you can switch to a 5-star plan at any time during the year, outside of the normal enrollment windows.
Low-Performing Plans
Plans rated below 3 stars for three consecutive years receive a Low Performing Icon (LPI) from CMS. This is a formal designation that flags the plan as consistently underperforming — and it's something you should factor into your decision if you see it on a plan you're considering.
What Agents Are Required to Tell You
Licensed agents are required to disclose a plan's current star rating — and any Low Performing Icons — when helping you enroll. This transparency requirement exists specifically to make sure you have this information before you commit.
Star ratings are just one tool, not the whole picture. A 4-star plan with your doctors in network may be a better fit than a 5-star plan that doesn't cover your providers. The ratings help narrow the field — but a real needs analysis is what gets you to the right plan.
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