Answers to Questions about Medicare Advantage Plans Can Be Found in the Stars
Obamacare plans will rely on Medicare's 5-star ranking for plans - but can the data be made public when consumers need them most?
SUNNYVALE, Calif., June 25, 2013 /PRNewswire/ -- A new analysis from HealthPocket, Inc. finds that tracking voluntary attrition rates and consumer complaints for Medicare Advantage plans can help evaluate the overall quality of a health plan, but the information needs to be more timely to be of real benefit to consumers as they search for a high-quality plan.
Medicare Advantage plans are currently graded through a 5-star ratings system, which will also serve as the basis for rating future "Obamacare" health plans. The stars reflect data collected on the treatment, preventive care, and satisfaction of customers enrolled in the Medicare Advantage plan. Some experts say the star system helps Medicare recipients make more informed enrollment decisions and, by implication, reduce the need to switch plans. In theory, they say, more highly rated plans should have lower attrition rates for plan enrollees.
HealthPocket examined the contracts of 463 Medicare Advantage plans and found the average Medicare Advantage attrition rate for plans with 2 stars (the lowest level of ratings) to be 22 percent. Five-star plans (the highest level of rating), in comparison, have an attrition rate of only 2 percent.
Researchers found correlation between average plan attrition rates within star categories and Medicare star ratings. Also, when HealthPocket examined the relationship between attrition rates and frequency of customer complaints, the variables rose and fell together closely. Higher complaints led to higher attrition.
"Rates of customer complaints and disenrollment can be strong indicators of health plan quality, and can help inform people when they are making this important purchase," said Steve Zaleznick, executive director for Consumer Strategy and Development at HealthPocket. "The challenge is getting these type of data gathered and distributed in real time to the public. Health reform may be a good opportunity to improve historical lag times in getting this information out quickly to the American consumer."
The results of the study were based on an examination of Medicare Advantage plan contracts to determine how closely the star ratings are correlated to the member attrition rate. Data on attrition, complaints, and star ratings were taken from 2013 CMS Medicare Part C Performance Data tabulations.
This HealthPocket InfoStat is part of a series using health plan data to produce unbiased market analysis and guidance for consumers navigating America's changing health insurance environment. Data on available health plan complaint rates and attrition rates will be incorporated into Plan Details pages for plans on the market in 2014. For more information, visit www.HealthPocket.com.
About HealthPocket
HealthPocket.com is a free website that compares and ranks all health plans available to an individual, family, or small business, so everyone can make their best health plan decision and save on their out-of-pocket costs. The Company uses only objective data from government, nonprofit, and private sources that carry no conditions that might restrict the site from serving as an unbiased resource. The founders of HealthPocket.com spent decades pioneering online access to health insurance information and knew they could offer something different that can positively change how people buy and use healthcare in the U.S. Learn more at www.HealthPocket.com.
SOURCE HealthPocket
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