The share of Medicare Advantage members enrolled in highly rated plans remained steady at 71% for 2027. But some health insurers experienced big shake-ups.
The Centers for Medicare and Medicaid Services released the data on how insurers fared in the 2027 star ratings last Thursday. The annual enrollment begins Thursday and ends Dec. 7.
Under the Star Ratings program, CMS evaluates Medicare Advantage contracts — which are bundles of plans — on dozens of quality metrics. Plans that win at least four out of five stars qualify for 5% bonus payments.
Humana, second in Medicare Advantage market share to UnitedHealth Group subsidiary UnitedHealthcare, saw a big jump in the percentage of members in highly rated plans. For 2027, 94.9% of its enrollees are in contracts rated at least four, compared with 21.3% for 2026.
The improvement exceeded investor expectations and will equate to more than $3 billion in bonus payments, according to a research note the investment bank TD Cowen issued last Thursday. Nevertheless, Humana is exiting markets and cutting plans affecting 600,000 members for 2027 after it gained more enrollees than it planned on this year.
The share of Blue Cross Blue Shield of Michigan Medicare Advantage members in high-scoring plans rose to 98.9%, up from 87.2% for 2026. Still, the nonprofit insurance company is leaving 65% of the counties where it sells plans, the most in the industry by percentage.
Medica enjoyed the biggest increase in the proportion of Medicare Advantage customers in top contracts. The insurer converted its entire membership to contracts with at least four stars for 2027 after 67.5% were in top-rated plans for 2026. The company experienced a 67.5% increase in membership after rival UCare folded, and is consolidating its offerings for the coming plan year.
Many of the companies that earned high star ratings also recorded some of the biggest membership gains this year. Industry watchers often say that big membership growth one year translates to poor star ratings the next because insurers have trouble managing new members’ health and customer experience.
