The Centers for Medicare & Medicaid Services (CMS) has raised performance benchmarks for Medicare Advantage (MA) and Part D plans, raising the bar for achieving high Star Ratings. By excluding the lowest-performing plans from calculations, CMS has effectively raised the “cut points,” meaning that health plans must improve their performance across multiple measures to attain or sustain a 4+ Star Rating each year.
Adjustments to the 2025 CMS Star Ratings
Due to annual adjustments to CMS Star Ratings, health plans are operating in an increasingly competitive environment and must elevate their overall performance to succeed. Examples of the impact of the 2025 Star Ratings include:
- Decline in High-Rated Plans. In 2025, only 40% of MA plans with drug coverage earned four stars or higher, compared to 42% in 2024. Yet, when weighted by enrollment, about 62% of Medicare Advantage-Prescription Drug (MA-PD) enrollees are in plans with four or more stars, a drop from 74% the previous year.
- Fewer 5-Star Plans. Only seven contracts received a 5-star rating in 2025, down from 38 in 2024. This signals a dramatic shift for some health plans, potentially affecting new member enrollment and CMS payments.
The decline in quality ratings reflects that CMS continues to focus on improving overall healthcare quality rather than measuring the advances of individual health plans.
Implications of CMS Star Rating Changes for Health Plans
The 2025 Star Ratings pose several challenges for health plans:
- Difficulty and Volatility to Achieve High Star Ratings. Over 60% of cut points have risen, which means plans must improve performance across many measures to maintain ratings.
- Reduced Bonus Payments. Fewer plans are expected to achieve 4+ stars, limiting bonus payments and potentially funds for supplemental benefits, which are important for attracting and retaining members.
- More Focus on Member Experience and Care Management Quality. With increased emphasis on member service, access, and medication adherence, plans need more robust digital engagement and personalized care to enhance outcomes.
- Need for Real-Time Adjustments. Ongoing regulatory changes demand real-time analytics to identify care gaps and adjust strategies quickly.
- Competitive Landscape. Stricter standards may prompt members to switch to higher-rated plans, complicating the member retention efforts of health plans.
How GuidingCare® and Wellframe™ Support Star Rating Improvement
Health plans can enhance Star Ratings by focusing on improving member engagement and streamlining care management to improve the quality of care. By adopting next-generation digital solutions, health plans can improve performance through exceptional care coordination, personalized member outreach, and data-driven insights that directly address key Star Rating measures.
Care-Wellframe is an integrated solution that combines HealthEdge’s care management platform, GuidingCare, with the Wellframe digital member experience platform to transform how health plans serve their members. The following are key ways that the integrated Care-Wellframe solution helps health plans elevate performance:
Enhanced Member Engagement
- Personalized Digital Care:Wellframe’s mobile-first programs and daily checklists improve member engagement, satisfaction, and outcomes, which are vital to Star Ratings. By providing reminders and self-service content tailored to individual needs, Wellframe enhances engagement.
- Medication Adherence: Wellframe’s tools include medication reminders, improving adherence which directly impacts Star Ratings.
- Access to Care: Digital communication channels reduce barriers to quick intervention and enhance member satisfaction by enabling seamless access to care teams.
Streamlined Care Management and Coordination
- Efficient Workflows: Care-Wellframe centralizes member data to enable seamless coordination and reduce administrative burdens.
- Automated Processes: GuidingCare supports care teams by streamlining caseload management, assisting with adherence to CMS requirements, and facilitating consistent follow-ups with members.
- Integrated Communication: Care-Wellframe enables seamless communication among members, care teams, and providers. This facilitates proactive management of high-risk conditions, screenings, and overall care quality.
- Holistic Care Management: By integrating physical, behavioral, and social determinants of health (SDOH) data, Care-Wellframe provides a comprehensive view of member needs, supporting coordinated, whole-person care.
Continuous Quality Improvement
- Real-time Analytics: Care-Wellframe offers advanced analytics that help health plans track compliance and close care gaps.
- Predictive Tools: The solution’s predictive capabilities help identify high-risk members and prioritize interventions, helping care teams take the right actions to improve compliance with care plans and achieve better outcomes.
Digital care management supports improved member experiences,
better outcomes, and high Star Ratings.
With CMS raising the bar for Star Ratings, health plans need comprehensive, adaptive solutions to stay competitive. Leveraging Care-Wellframe’s next-generation capabilities enables health plans to continuously improve member care and engagement, putting plans in the best position to thrive and enhance competitiveness in the ever-evolving healthcare landscape.
See how your health plan can improve Star Ratings by improving member engagement and satisfaction. Read our blog, “How health plans can increase member satisfaction and engagement using digital care management.”
Visit healthedge.com to discover how the integrated Care-Wellframe solution can help your plan achieve its Star Rating goals.