CMS Medicare Advantage 2027 Star Ratings Overview
The Centers for Medicare & Medicaid Services (CMS) has updated its Medicare Advantage drug plan ratings for 2027, shifting the overall landscape for major health insurance carriers.
Across the industry, about 71% of Medicare Advantage drug plan enrollees will be in contracts rated four stars or higher for 2027, an increase from approximately 67%.
However, performance varies significantly between major providers under the updated scoring system.
UnitedHealth vs. Humana: 2027 Star Rating Changes
J.P. Morgan estimates show contrasting results for two of the nation’s largest Medicare Advantage providers:
- UnitedHealth (UNH): The share of members enrolled in plans rated four stars or higher is estimated to drop to about 67% for 2027, down from roughly 81%. UnitedHealth noted that these ratings align with its expectations.
- Humana (HUM): Humana reported that 95% of its Medicare Advantage members will be in plans rated four stars or better for 2027, up significantly from the 20% initially reported for 2026.
| Health Plan Provider | Previous 4-Star+ Share | 2027 4-Star+ Share | Industry Comparison |
|---|---|---|---|
| UnitedHealth | ~81% | ~67% | Below CMS Average (71%) |
| Humana | ~20% (2026) | 95% | Above CMS Average (71%) |
| Industry Average | ~67% | 71% | N/A |
Why CMS Ratings Changed for 2027
The drop in scores for some carriers reflects updated CMS evaluation criteria rather than a direct decline in quality of care. Key rule changes include:
- Medication Safety Measures: CMS added two new medication-safety metrics to the scoring system.
- Health Measures Weighting: The weight of physical and mental health measures was tripled in the evaluation formula.
Because of how bonus structures are scheduled, the financial impact of these 2027 rating adjustments will take effect in 2028 rather than 2027.
