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Study: Seniors Look For Star Ratings On Medicare Advantage Plans

By Ankita Rao

America’s seniors are benefiting from a that ranks the quality of Medicare Advantage plans, according to a .

Authors affiliated with the Centers for Medicare & Medicaid Services (CMS) conducted a study of almost 1.3 million Medicare beneficiaries. They found a positive relationship — a one-star higher rating was associated with a 9.5 percentage point increase in likelihood to enroll.

The rating system uses survey data and other measurements of effectiveness to gauge the quality of the private , which are an alternative to traditional fee-for-service Medicare. Dr. William Shrank, a co-author of the study, said the was a good sign for the star system put in place in 2011.

“This is a reassuring story that helps to confirm that by providing beneficiaries with better information, by empowering them, they’re making better decisions,” he said.

The ratings-to-enrollment relationship was weaker in some groups, including rural, low-income and black communities. Shrank said he was unsure of why the subgroups had different results, but that they still followed the overall trend, just at a lower magnitude.

The CMS rating system is part of a larger movement to reward the quality of health care systems, coverage plans, physicians and hospitals under the health law. According to the report, produced by the , “many insurers are devising strategies to improve their star rating to obtain bonuses.”

But authors commented that a higher rated plan isn’t necessarily a better option for a beneficiary. There are several factors to consider when it comes to Medicare Advantage plans, including cost of the plan, doctor and hospital choice and the prescription drug formulary.

“Consumers have a bunch of things to look at,” Shrank said. “Quality should be an important consideration, but it isn’t the only consideration.”

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