Lower 2023 Medicare star ratings don't mean your plan got worse

Medicare star ratings reached record highs in 2022, but they’re coming back down for 2023. It’s not the first time the government’s quality ratings for Medicare plans have fallen, but this year’s decline involves more than the usual yearly adjustments.

The COVID-19 pandemic triggered changes to 2022 star rating calculations that led to higher scores. For 2023, the star ratings don’t get that same boost.

The updated methodology is mostly responsible for the ratings decline for 2023, but it’s still a good idea to shop around for the best plan. Here’s what Medicare beneficiaries need to know when comparing plans during the 2023 Medicare open enrollment period, which runs from Oct. 15 to Dec. 7.

What are Medicare star ratings?

The Centers for Medicare & Medicaid Services, or CMS, calculates Medicare star ratings based on performance and member satisfaction data for Medicare Advantage plans and Medicare Part D prescription drug plans.

Plans are rated on a number of quality measures from 1 to 5 stars, where 1 is worst and 5 is best. These measures include customer service, member complaints,, and how well the plan manages chronic conditions. CMS also calculates a rating for each plan as a whole.

You can find them with the Medicare plan-finding tool when you search for plans in your area.

Why were ratings higher in 2022?

The 2022 average overall rating of 4.37 stars for Medicare Advantage plans is the all-time high, and the jump from 2021’s average of 4.06 stars is the largest ever increase, according to a NerdWallet analysis of CMS data.

Because 2022 star ratings relied on 2020 data, there was a much bigger change. The 2020 COVID-19 public health emergency triggered a disaster policy meant to avoid penalizing plans for what CMS calls “extreme and uncontrollable circumstances.”

In most years, this policy affects a small number of plans in areas hit by disasters like hurricanes. For 2022, it went into effect for all Medicare plans and changed the scoring system. If a plan’s rating would have gone down from 2021 to 2022, the plan could keep the higher 2021 score instead. The policy stopped ratings from going down, but plans still got credit for improvements.

Why are ratings lower in 2023?

In 2022, all plans qualified for the disaster policy that pushed Medicare star ratings higher. That’s no longer the case for 2023, so the overall average fell from 4.37 stars to 4.15 stars.

Averages for the 2023 star ratings are on par with 2020 and a little higher than 2021, before the disaster policy made the scoring more lenient. This suggests that Medicare Advantage plans' performance hasn't changed much..

What do lower ratings mean for you?

Whether your plan’s ratings went down or you just want to compare your options, the updated star ratings can help.

For 2023, the average overall star rating for Medicare Advantage plans is 4.15 stars, and the average summary rating for Medicare Part D plans is 3.25 stars. If your plan isn’t performing well compared with these averages, you might want to look for other options.

It’s good to shop around every year, but you might especially want to do so if your plan’s star rating went down. See whether there’s a better rated plan available in your area that meets your needs for cost and coverage.

Check details that matter to you

If you have specific needs for coverage, take a look at the details of plans’ ratings. For example, both Medicare Advantage and Medicare Part D plans are evaluated on diabetes-specific quality measures. If you have diabetes, performance on those measures might be the best guide plans that meet your needs.