Here is what you’ll find in this week’s newsletter!

1. Important links 🔗 - the best articles we found this week about the Medicare Market along with links to Jared’s recent LinkedIn posts.

2. Deep Dive 📚 - Star Ratings 2026: A Bounce for Some, a Slide for Others 🌟

3. Sponsor Snapshot 🚀 - brought to you by Modivcare

It’s only a 6 minute read, but it will make you 10x smarter.

DEEP DIVE 📚

Star Ratings 2026: A Bounce for Some, a Slide for Others🌟

After last year’s widespread declines, the 2026 Medicare Advantage Star Ratings brought a small rebound.

While the overall tone of the results is far from euphoric, the direction matters. Both for revenue and for how consumers will perceive plan quality during the upcoming Annual Enrollment Period.

The Big Picture

The enrollment-weighted average Star Rating ticked up slightly in 2026, 3.98 vs. 3.92 last year, marking the first improvement in recent history.

(Based on MMI analysis. CMS has not yet published its usual fact sheet due to the federal shutdown.)

Shifting the Curve

• 5-Star contracts: Up year-over-year, with increases in both the number of contracts and the share of enrollees covered.

• 4.5-Star contracts: Slightly fewer contracts, but a notable rise in enrollee share.

• 4.0-Star contracts: Similar count, but a clear drop in enrollee share.

• 3.5-Star contracts: More contracts overall, with roughly steady enrollment.

The market average moved higher, but the shape of the curve shifted. Top-rated plans gained ground, while the 4-Star middle thinned out.

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Carrier-Level Results

While the overall market moved up, not everyone shared equally in the lift.

Stable Carriers:

A few large carriers held steady:

• UnitedHealthcare improved +0.15 to 4.10, keeping roughly 78% of enrollment in 4-Star or higher plans.

• Kaiser Permanente stayed on top at 4.42, with 100% of members** in 4-Star or higher plans.

• Healthfirst was essentially flat (+0.02) at 4.37.

Carriers Losing Ground:

Several notable players slipped in 2026 — both in rating level and in the share of members above the 4-Star line.

• CVS/Aetna: –0.11 to 4.19, with 4-Star or higher plans enrollment down 9 points (90% → 81%).

• Humana: –0.02 to 3.61, and 4-Star or higher plans share down 5 points (25% → 20%).

• HCSC: the steepest decline, –0.28 to 3.58, and 4-Star or higher plans share down 12 points (59% → 47%).

• BCBS of Michigan: –0.07 to 4.37, and 4-Star or higher plans share down 8.5 points.

• Highmark: –0.17 to 4.34, and 4-Star or higher plans share down 4.9 points.

• Rest of Market: –0.04 to 3.96, with 4-Star or higher plans share down 3 points (69% → 66%).

• It’s worth mentioning Clover Health which saw a change from 97% to 3% of members in 4-Star or higher plans enrollment.

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Why It Matters

Star Ratings are more than a report card, they drive how much revenue a plan earns, how competitive its benefits can be, and how attractive it looks to both members and investors.

Revenue Impact
Plans that hit 4 Stars or higher qualify for a Quality Bonus Payment and a larger share of rebate dollars. Those funds flow directly into better benefits and lower premiums. Dropping even half a star below that line can mean millions in lost revenue and tighter margins heading into 2027.

Customer Growth & Retention
Plans with strong ratings tend to keep members longer and grow faster. 5-Star contracts also get a year-round enrollment window, giving them a marketing edge when everyone else is waiting for AEP.

Market Signal
Investors and regulators watch Star Ratings closely. Consistent 4.5+ performance builds credibility and cushions against headwinds, while repeated low ratings raise questions about strategy, execution, and long-term staying power.

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Bottom Line

The 2026 Star Ratings cycle offers cautious optimism. A small step upward after last year’s reset.

Elevance and Centene helped lift the average, while United and Kaiser were steady. But for many others, the battle for 4-Star or higher status remains uphill.

For carriers sitting near the 4.0-Star cliff, the 2027 payment year will test whether incremental improvement efforts can hold back the financial and competitive headwinds.

If you’re ready, here are some ways we can help you:

• Newsletter Sponsorship opportunities: Promote your product or services to leaders in the Medicare space. Let’s discuss. (link)

• Market Research: Reports that help you wrap your arms around the Senior focused insurance markets. (link)

• Consulting: We can help you develop new insurance products for the Medicare market, appraise your books of business, and keep you compliant. Let’s discuss. (link)