2027 Medicare Advantage and Part D Star Ratings

The Centers for Medicare and Medicaid Services (CMS) released the 2027 Medicare Advantage and Part D Star Ratings on October 8, 2026, providing insurance agents with updated insight into plan quality ahead of the Annual Enrollment Period (AEP).

According to CMS, approximately 71% of Medicare Advantage Prescription Drug (MA-PD) enrollees are currently in contracts rated four stars or higher for 2027. However, fewer than 37% of MA-PD contracts achieved that rating.

For independent Medicare agents, these findings highlight the importance of evaluating plan quality alongside benefits, provider networks, prescription drug coverage, and overall costs.

Key Takeaways From the 2027 Medicare Star Ratings

CMS reported several important findings for 2027:

• 71% of MA-PD enrollees are in contracts rated four stars or higher.
• 37% of MA-PD contracts (188 contracts) earned four or more stars.
• 15 MA-PD contracts received a five-star rating, compared with 22 in 2026.
• The enrollment-weighted average MA-PD Star Rating declined slightly from 4.01 in 2026 to 3.99 in 2027.
• Approximately 22% of standalone Part D enrollees are in contracts rated four stars or higher, compared with 2% in 2026.
• The enrollment-weighted average standalone Part D rating increased from 3.01 to 3.22 stars.

These results reveal a mixed picture. While most MA-PD members remain enrolled in higher-rated contracts, fewer contracts achieved the highest ratings, and standalone Part D performance improved.

Source: CMS — 2027 Medicare Advantage and Part D Star Ratings, October 8, 2026

What Medicare Star Ratings Measure

CMS uses a five-star rating system to evaluate the quality and performance of Medicare Advantage and Part D contracts.

Ratings consider several aspects of care and service, including:

• Preventive care and chronic condition management
• Member satisfaction and healthcare experiences
• Customer service and complaints
• Prescription drug access and medication adherence
• Care coordination and health plan performance

For 2027, MA-PD contracts are evaluated using up to 43 quality and performance measures, MA-only contracts using up to 32 measures, and standalone Part D contracts using up to 13 measures.

Star Ratings are published through Medicare Plan Finder, allowing beneficiaries to compare plan quality alongside coverage and cost information.

Fewer Medicare Advantage Contracts Earned Five Stars

One notable change for 2027 is the decline in five-star MA-PD contracts.

CMS reported that 15 contracts earned five stars for 2027, down from 22 contracts in 2026. Additionally, four MA-PD contracts received a consistently low-performing designation.

While Star Ratings naturally fluctuate from year to year, these changes reinforce why agents should review updated plan information rather than relying on previous ratings.

A carrier or contract that performed well in 2026 may have a different rating for 2027.

Standalone Part D Plans Show Improvement

Standalone Medicare Part D contracts experienced an improvement in enrollment-weighted average ratings, increasing from 3.01 stars in 2026 to 3.22 stars in 2027.

Approximately 27% of standalone Part D contracts earned four stars or higher. More importantly, the share of enrollees in contracts rated four stars or higher increased from approximately 2% to 22%.

Despite the improvement, no standalone Part D contract received a five-star rating for 2027.

For agents working with clients enrolled in Original Medicare and Medicare Supplement plans, these results provide another reason to carefully evaluate prescription drug coverage during annual reviews.

CMS Introduces New Quality Measures for 2027

The 2027 ratings also include changes to how CMS evaluates plan performance.

Two new measures were introduced:

• Concurrent Use of Opioids and Benzodiazepines: Evaluates potentially risky combinations of these medications.
• Polypharmacy — Multiple Anticholinergic Medications: Evaluates the use of multiple anticholinergic medications among older adults.

CMS also increased the weighting of measures related to maintaining or improving physical and mental health.

These changes reflect an increased emphasis on medication safety, health outcomes, and quality of care.

What the 2027 Star Ratings Mean for Medicare Agents

1. Use Star Ratings as Part of Annual Coverage Reviews

Updated Star Ratings provide another valuable point of discussion when meeting with existing Medicare clients.

Agents should consider whether a client's current plan has experienced a rating change and whether available alternatives better align with their healthcare needs.

For additional guidance on preparing for the enrollment season, explore the PSM Brokerage AEP Preparation Guide.

2. Remember That Higher Ratings Don't Always Mean a Better Fit

A plan's Star Rating reflects overall contract performance, but it does not necessarily determine whether that plan is the most appropriate option for an individual beneficiary.

Agents should continue reviewing provider participation, prescription drug formularies, pharmacy access, premiums, out-of-pocket costs, and supplemental benefits.

The best coverage recommendation is based on the client's individual needs, not simply the highest available Star Rating.

3. Review Plan Changes Alongside Quality Ratings

The 2027 ratings arrive during a period of changes in the Medicare Advantage market.

Some carriers are adjusting their geographic footprints, plan offerings, and benefit structures for the upcoming year.

Agents should evaluate these changes together with updated Star Ratings to provide a more complete picture of available coverage.

Explore PSM Brokerage's Medicare Advantage carrier portfolio to learn more about available carrier opportunities.

4. Make Client Education a Priority This AEP

Star Ratings can be a useful conversation starter, particularly when clients are evaluating multiple plans with similar premiums or benefits.

Helping beneficiaries understand what ratings measure, and what they don't, can build confidence and support informed coverage decisions.

PSM Brokerage offers training and marketing resources to help independent agents communicate effectively with clients throughout the enrollment season.

Visit the PSM Agent Academy for educational resources or explore the AEP Marketing Toolkit for agent marketing materials.

Prepare for the 2027 Medicare Enrollment Season With PSM Brokerage

The latest CMS Star Ratings provide valuable insight into Medicare Advantage and Part D plan quality, but they represent only one part of the enrollment conversation.

As agents prepare for AEP, reviewing updated ratings, understanding carrier changes, and evaluating individual client needs will remain essential.

PSM Brokerage helps independent insurance agents navigate the Medicare market with carrier access, experienced account managers, enrollment technology, compliance resources, and marketing support.

The bottom line: Use the 2027 Medicare Star Ratings to inform client conversations, but keep the focus on finding appropriate coverage that meets each beneficiary's healthcare and financial needs.

Source

Centers for Medicare & Medicaid Services (CMS). 2027 Medicare Advantage and Part D Star Ratings. October 8, 2026.

https://www.cms.gov/newsroom/fact-sheets/2027-medicare-advantage-part-d-star-ratings