Star rating changes: How Medicare Advantage plans react

Medicare Advantage organizations (MAOs) can have widely different responses to changes in revenue due to changes in star rating. Many MAOs are confined by competitive pressures in their market, and are unable or reluctant to make large benefit changes or premium changes in a single year. This paper provides insight into benefit and premium changes made alongside revenue changing due to a star rating change and measures the change in value added through benefits and premium changes provided to beneficiaries.