Medicare open enrollment runs October 15 through December 7, and this year it opens right on the heels of a major shake up in the Medicare Advantage star ratings. If you or a parent is on a Medicare Advantage plan, this is the year to look closely before you let coverage roll over.
The biggest surprise was Humana. About 95% of its Medicare Advantage members will be in plans rated four stars or higher for 2027, far above what analysts expected. Nearly half of its members sit in 4.5 star plans. Investors noticed, and the stock climbed close to 12%. Not long ago the same company was sending exit notices to roughly 600,000 members whose plans were being discontinued, so the rebound says a lot about how quickly this market can turn.
UnitedHealthcare moved the other way. The share of its members in four star or better plans dropped from about 81% to roughly 67%. Aetna held its ground, with a little over 69% of members in highly rated plans.
Across the industry, top marks are getting harder to earn. Just 15 plans received a perfect five stars this year, down from 22 last year. Still, about 71% of Medicare Advantage drug plan enrollees will land in four star or better contracts.
Why should a retiree care about a rating? Because the stars drive money, and money drives benefits. Plans rated four stars and above qualify for quality bonus payments from Medicare, and carriers often put those dollars back into lower copays, stronger drug coverage, and extras like dental and vision. When a carrier slips below that line, those perks tend to shrink over time.
There is a quieter trend running alongside the ratings. Humana, Aetna, and UnitedHealth Group together are discontinuing plans for nearly two million members in 2027. Carriers are pruning what does not pay and concentrating on what does. That means fewer choices in some areas and bigger changes inside the plans that remain.
So what should you do with the next eight weeks?
If you received a notice that your plan is ending, do not wait. You will need to pick new coverage, and choosing early gives you time to confirm your doctors and prescriptions are covered.
If your plan is continuing, still read your Annual Notice of Change. Check whether your star rating moved, whether your doctors are still in network, and whether your drug costs changed.
If you are happy with your coverage, confirm it. A quick review now beats a surprise in January.
Open enrollment closes December 7. If you would like help comparing your options, The Eriksen Insurance Group is glad to walk through them with you before the deadline.