Medicare STAR Ratings Guide
CMS STAR Ratings determine Medicare Advantage bonus payments and member enrollment. Learn measure domains, scoring methodology, data sources, database design, and strategies to improve plan performance.
What Are Medicare STAR Ratings?
CMS publishes annual STAR ratings (1–5 stars) for all Medicare Advantage and Part D plans. Ratings are published each October and apply to the following plan year — so 2024 ratings affect 2025 payment and enrollment.
The ratings are heavily consequential: plans with 4+ stars receive Quality Bonus Payments (QBP) from CMS — increasing their benchmark by up to 5%. Five-star plans can enroll Medicare beneficiaries year-round via Special Enrollment Periods, a significant competitive advantage.
As of the most recent ratings cycle, approximately 50% of MA enrollees are in plans with 4+ stars, and QBPs total billions of dollars annually across the industry.
Five STAR Rating Domains (Part C)
Staying Healthy
Weight: ModerateBreast Cancer Screening, Colorectal Cancer Screening, Annual Flu Vaccine, Improving or Maintaining Physical Health
Managing Chronic Conditions
Weight: HighControlling Blood Pressure, Diabetes Care (HbA1c, Eye Exam, Nephropathy), Medication Adherence (PDC), Rheumatoid Arthritis Management
Member Experience (CAHPS)
Weight: HighGetting Needed Care, Getting Appointments & Care Quickly, Customer Service, Rating of Health Care Quality
Member Complaints & Changes
Weight: ModerateComplaints about the Plan, Members Choosing to Leave, Plan Makes Timely Decisions, Reviewing Appeals Decisions
Health Plan Administration
Weight: Low–ModerateClaims Processing Accuracy, Care Coordination, Call Center Language Accessibility, SNP Care Management
High-Impact STAR Measures
| Measure | Domain | Data Source | Numerator Logic |
|---|---|---|---|
| PDC Diabetes | Chronic Conditions | Pharmacy Claims | PDC ≥ 80% for diabetes meds |
| PDC Hypertension (RAS) | Chronic Conditions | Pharmacy Claims | PDC ≥ 80% for ACEI/ARB |
| PDC Cholesterol (Statins) | Chronic Conditions | Pharmacy Claims | PDC ≥ 80% for statins |
| Controlling Blood Pressure | Chronic Conditions | HEDIS (Claims + EHR) | Most recent BP < 140/90 |
| Diabetes Care — HbA1c | Chronic Conditions | HEDIS | HbA1c test performed + result < 9% |
| Annual Flu Vaccine | Staying Healthy | HEDIS / Admin | Flu shot Aug 1 – Mar 31 |
| Breast Cancer Screening | Staying Healthy | HEDIS | Mammogram in past 27 months |
| Plan All-Cause Readmissions | Chronic Conditions | Admin Claims | Unplanned 30-day readmission rate |
STAR Rating Database Schema
-- STAR Measure Reference CREATE TABLE star_measure ( id SERIAL PRIMARY KEY, measure_code VARCHAR(20) UNIQUE NOT NULL, -- e.g., C01, D08 measure_name VARCHAR(255) NOT NULL, domain VARCHAR(50), -- Staying Healthy, Chronic Conditions, etc. part VARCHAR(5), -- C, D, C_D data_source VARCHAR(50), -- HEDIS, CAHPS, HOS, Admin weight DECIMAL(4,2) DEFAULT 1.0, -- CMS measure weight direction VARCHAR(10) DEFAULT 'HIGHER', -- HIGHER = better, LOWER = better is_active BOOLEAN DEFAULT TRUE, measurement_year INTEGER ); -- Member-Level Measure Tracking CREATE TABLE star_member_measure ( id UUID PRIMARY KEY DEFAULT gen_random_uuid(), member_id UUID NOT NULL, contract_id VARCHAR(20), -- CMS contract (H-number) measure_code VARCHAR(20) REFERENCES star_measure(measure_code), measurement_year INTEGER NOT NULL, -- Eligibility in_denominator BOOLEAN NOT NULL DEFAULT FALSE, exclusion_reason VARCHAR(100), -- Performance in_numerator BOOLEAN, numerator_dt DATE, -- Date the numerator event occurred numerator_source VARCHAR(50), -- CLAIM, EHR, SURVEY, MANUAL -- Raw measure value (for continuous measures like PDC) measure_value DECIMAL(8,4), measure_threshold DECIMAL(8,4), -- e.g., 0.80 for PDC -- Outreach outreach_attempted BOOLEAN DEFAULT FALSE, outreach_dt DATE, outreach_channel VARCHAR(50), -- PHONE, MAIL, PORTAL, SMS updated_at TIMESTAMP DEFAULT NOW() ); CREATE INDEX idx_star_member ON star_member_measure(member_id, measurement_year); CREATE INDEX idx_star_measure ON star_member_measure(measure_code, measurement_year); CREATE INDEX idx_star_denom ON star_member_measure(in_denominator, in_numerator); -- Plan-Level STAR Performance Rollup CREATE TABLE star_plan_performance ( id SERIAL PRIMARY KEY, contract_id VARCHAR(20) NOT NULL, measurement_year INTEGER NOT NULL, measure_code VARCHAR(20) NOT NULL, denominator_count INTEGER, numerator_count INTEGER, rate DECIMAL(6,4), star_value INTEGER, -- 1–5 star cut point achieved UNIQUE(contract_id, measurement_year, measure_code) );
SQL Query Examples
Measure Performance by Domain
SELECT
sm.domain,
sm.measure_code,
sm.measure_name,
COUNT(smm.id) AS denominator,
SUM(CASE WHEN smm.in_numerator THEN 1 ELSE 0 END) AS numerator,
ROUND(100.0 * SUM(CASE WHEN smm.in_numerator THEN 1 ELSE 0 END)
/ NULLIF(COUNT(smm.id), 0), 2) AS rate_pct,
SUM(CASE WHEN NOT smm.in_numerator AND smm.outreach_attempted THEN 1 ELSE 0 END) AS outreach_count
FROM star_measure sm
JOIN star_member_measure smm ON smm.measure_code = sm.measure_code
WHERE smm.measurement_year = 2025
AND smm.in_denominator = TRUE
AND smm.contract_id = 'H1234'
GROUP BY sm.domain, sm.measure_code, sm.measure_name
ORDER BY sm.domain, rate_pct ASC;Members Eligible for Outreach (Open Gaps)
SELECT smm.member_id, sm.measure_code, sm.measure_name, smm.outreach_attempted, smm.outreach_dt FROM star_member_measure smm JOIN star_measure sm ON sm.measure_code = smm.measure_code WHERE smm.measurement_year = 2025 AND smm.in_denominator = TRUE AND smm.in_numerator = FALSE AND smm.exclusion_reason IS NULL AND (smm.outreach_attempted = FALSE OR smm.outreach_dt < CURRENT_DATE - INTERVAL '30 days') ORDER BY sm.weight DESC, smm.member_id;
STAR Rating Best Practices
- •Track gaps in care in real time: Don't wait for annual HEDIS season — build continuous member-level tracking to identify and close care gaps throughout the year
- •Prioritize high-weight measures: CMS applies Categorical Adjustment Index weights — focus improvement efforts on highly weighted measures like medication adherence and chronic disease management
- •Use pharmacy data for PDC: Proportion of Days Covered (PDC) is measured from pharmacy claims — ensure real-time pharmacy data feeds for timely outreach
- •Integrate CAHPS strategy: CAHPS surveys are sent to random members — train call center staff and ensure issue resolution, as member perception drives survey scores
- •Simulate projected star ratings: Model cut points using historical rates and member-level data to estimate current star performance and prioritize outreach ROI
Frequently Asked Questions
What are Medicare STAR Ratings?
CMS STAR Ratings are a 1–5 star quality rating system for Medicare Advantage (Part C) and Part D prescription drug plans. CMS publishes ratings annually, and they directly affect plan bonus payments, enrollment eligibility for special enrollment periods, and beneficiary plan choice during open enrollment.
How are STAR ratings calculated?
STAR ratings combine performance on 40+ quality measures across five domains: Staying Healthy (screenings, tests, vaccines), Managing Chronic Conditions, Member Experience (CAHPS survey), Member Complaints (appeals and grievances), and Health Plan Administration. Each measure is scored using cut points, then aggregated into domain and summary scores.
What is the Quality Bonus Payment (QBP)?
MA plans that earn 4+ STAR ratings receive a Quality Bonus Payment from CMS — a percentage increase to their benchmark payment rate. 5-star plans receive the highest bonus (currently 5% above benchmark) and have the privilege of accepting enrollees year-round via Special Enrollment Periods.
What data sources are used for STAR ratings?
STAR ratings use three data sources: HEDIS (Healthcare Effectiveness Data and Information Set) from administrative claims and medical records, CAHPS (Consumer Assessment of Healthcare Providers and Systems) member surveys, and HOS (Health Outcomes Survey) for physical and mental health outcomes. Administrative data from CMS is also used for some measures.
What are the most impactful STAR measures?
CMS applies "CAI" (Categorical Adjustment Index) weights that make some measures more impactful than others. Highly weighted measures include Medication Adherence (PDC), Diabetes Care measures, Controlling Blood Pressure, Annual Flu Vaccine, and Plan All-Cause Readmissions. Improving low-performing high-weight measures has the greatest rating impact.