Fewer Medicare Advantage Plans Earn Top Star Ratings in 2027

2027 Medicare Advantage Star Ratings Decline: What Insurance Agents Should Know

Fewer Medicare Advantage contracts earned top Star Ratings for 2027, adding another consideration for agents helping clients evaluate coverage options.

A new analysis from Mark Farrah Associates shows that several Medicare Advantage insurers experienced declining Star Ratings for 2027. The findings highlight continued pressure on plan quality scores as insurers navigate changing CMS performance standards.

For independent insurance agents, these shifts reinforce the importance of reviewing plan quality alongside benefits, provider networks, prescription coverage, and costs.

Fewer Medicare Advantage Contracts Earn 5 Stars

According to Mark Farrah Associates' November 5, 2026 report, the number of Medicare Advantage contracts receiving a 5-star rating declined from 22 in 2026 to just 15 in 2027.

Other findings include:

• 15 contracts earned 5 stars, representing 2.29% of all MA contracts analyzed.
• 13 of those 15 contracts included active Special Needs Plans (SNPs).
• 172 contracts were unrated, down from 204 in 2026.
• UnitedHealth Group accounted for three 5-star contracts, while several other major insurers earned one each.

CMS separately reports that approximately 71% of Medicare Advantage-Prescription Drug (MA-PD) enrollees are currently in contracts rated four stars or higher for 2027.

These figures illustrate an important distinction: fewer contracts are achieving the highest ratings, but many beneficiaries remain enrolled in highly rated coverage.

Why Star Ratings Matter for Insurance Agents

CMS Star Ratings measure plan performance across areas such as preventive care, chronic-condition management, member experience, and customer service.

Although ratings are only one factor in selecting coverage, changes can influence how beneficiaries compare available plans.

During the 2027 Annual Enrollment Period, agents should:

• Review updated ratings: Don't assume a client's existing plan maintained its previous score.
• Look beyond the stars: Evaluate provider networks, prescription formularies, out-of-pocket costs, and benefits.
• Explain rating changes: Help clients understand that a lower rating does not automatically mean a plan is unsuitable.
• Monitor local options: Carrier performance and available plans can vary significantly by market.

For additional guidance, see 10 Questions Agents Should Ask During Every Medicare Annual Review.

Another Layer of Change for 2027

Star Rating adjustments arrive as the Medicare Advantage market experiences broader changes, including plan exits, benefit adjustments, and shifting carrier strategies.

Agents should consider these developments together rather than evaluating ratings in isolation.

Read more: 2027 Medicare Advantage Market: Fewer Plans, Shifting Competition, and New Opportunities.

How PSM Brokerage Supports Agents

At PSM Brokerage, we help independent insurance agents navigate a changing Medicare marketplace through carrier access, enrollment technology, product training, compliance resources, and dedicated account management.

As Star Ratings and plan offerings evolve, having access to multiple carriers and current market information can help agents make more informed recommendations.

The takeaway: Star Ratings remain an important quality indicator, but successful client reviews require looking at the complete coverage picture.

Explore More Medicare Advantage Insights at PSM Brokerage

Sources:

• Mark Farrah Associates — Overall Star Ratings Declined for Multiple Medicare Advantage Part C Insurers (November 5, 2026)
• CMS — 2027 Medicare Advantage and Part D Star Ratings