Goodsurance

Medicare Advantage

CMS Removed 11 Quality Measures From Medicare Advantage Star Ratings for 2027 and Dropped a Health Equity Bonus Program

A CMS final rule from April 2026 restructures how Medicare Advantage plans are graded starting with the 2027 measurement period, eliminating measures tied to administrative processes and reversing a prior-administration health equity reward. The agency projects the shift will send about 18.5 billion dollars more to plan sponsors over the next ten years.

By the Goodsurance editorial teamAugust 18, 2026

The Centers for Medicare and Medicaid Services issued the Contract Year 2027 Medicare Advantage and Part D final rule on April 2, 2026, making the most sweeping changes to the Star Ratings system in several years.

Under the rule, CMS removed 11 measures from the Star Ratings calculations beginning with the 2027 measurement period. Revised ratings will inform bonus payments starting in 2029. Six of the removed measures applied only to Medicare Advantage plans, one applied only to Part D drug plans, and three applied to both. CMS said most dropped measures focused on administrative processes rather than clinical outcomes or patient experience.

CMS dropped 11 quality measures from Medicare Advantage star ratings for 2027 and eliminated a health equity bonus, projecting the changes will shift about 18.5 billion dollars more to plan sponsors over the next decade.

The rule also reverses a health equity initiative from the prior administration. The Health Equity Index, later renamed Excellent Health Outcomes for All, was designed to award bonus points to plans that perform well among enrollees with social risk factors, including low-income beneficiaries, dual-eligible members, and people with disabilities. CMS chose not to implement it and instead retained the existing Reward Factor, which increases payments to consistently high-performing plans regardless of their enrollee mix.

In its regulatory analysis, CMS projects the combined changes will transfer approximately 18.5 billion dollars more to Medicare Advantage and Part D plan sponsors over the next ten years compared with the prior system.

Star ratings matter to consumers because they determine which plans qualify for bonus payments. Bonus money can fund the supplemental benefits, lower premiums, and reduced cost sharing that distinguish many Medicare Advantage plans.

In plain words

CMS changed how Medicare Advantage plans are graded. Starting with the 2027 grading period, 11 types of measures will no longer count toward a plan's star rating. CMS also dropped a program that would have given extra credit to plans serving low-income and disabled members well. CMS says the combined changes will send about 18.5 billion dollars more to insurance companies over 10 years. Star ratings matter because they affect which plans can offer extra benefits and lower costs.

Understand the basics first

Source: CMS
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