Star ratings are an increasingly important factor in which plans Medicare Advantage beneficiaries choose, according to McKinsey and Company.
In a report published Aug. 13, the consulting firm laid out three recommendations on how plans can prepare for star ratings success in the coming years.
In 2023, 50% of Medicare Advantage beneficiaries surveyed by McKinsey said star ratings were among the top features they considered when choosing a plan, and 24% said it was the most important aspect. Just 5% of MA beneficiaries surveyed in 2020 said star ratings were the most important factor in selecting a plan.
Here are three things payers can do to maximize their chances of earning a star rating of four or higher, according to McKinsey:
- Focus on improving clinical measures. CMS is weighting clinical outcomes more heavily than member-reported experiences in star ratings. Plas can boost provider engagement in clinical outcomes by paying bonuses to providers who perform well and entering more value-based agreements. More outreach to members and closer data tracking can help improve member engagement in their care.
- Hone in on health equity. Beginning in 2027, CMS will weigh Health Equity Index performance in its star ratings. Payers should focus on identifying members eligible for low-income subsidies now, and invest in wraparound social services, including partnerships with community groups, housing organizations and nutrition assistance programs.
- Keep member experience top of mind. Though CMS is reducing the weight of member experience in star ratings, payers can't give up ground in these measures, McKinsey analysts wrote. Investing in automation and digital technology can improve member experience while reducing administrative costs.
Read the full report here.