The star rating system is based on 53 quality measures, such as chronic-disease management, consumer complaints and preventive care. The CMS is updating public information on this system to include a “low performer” icon on the Medicare website next to names of plans that have earned fewer than three stars for the past three years.
“The demonstration rewards high performers more than low performers, creating an incentive for all performers to improve,” CMS Administrator Donald Berwick said in a written statement.
The CMS also issued a proposed rule on Medicare Advantage and Medicare prescription drug plans that includes more restrictions on passing higher costs onto consumers than traditional Medicare for certain services such as chemotherapy. These changes are part of the Patient Protection and Affordable Care Act.
Nearly a quarter of Medicare beneficiaries are enrolled in Medicare Advantage plans.