The news: the Centers for Medicare & Medicaid Services (CMS) published the 2027 Medicare Advantage and Part D Star Ratings on October 8, 2026, according to the CMS fact sheet. The ratings — a 1-to-5-star scorecard for nearly every Medicare Advantage plan in the country — land just one week before Medicare's Annual Enrollment Period opens on October 15, 2026, and they determine which insurers earn federal quality bonus payments in 2028.
The big moves: Humana bounced back to 4 stars on its flagship contract, with 95% of its Medicare Advantage members now in 4-star plans. Alignment Healthcare's largest California contract slipped from 4.0 to 3.5 stars. And community-based plans stood out: ACHP member plans averaged 4.23 stars, with Peak Health and Kaiser Permanente earning the top 5-star rating. Here is what changed, what the ratings actually measure, and how to use them while choosing your 2027 coverage.
In this guide
What CMS announced on October 8
Each year CMS publishes Star Ratings measuring the quality of health and prescription drug services that Medicare Advantage (Part C) and standalone Part D plans deliver. The 2027 ratings are now live on Medicare Plan Finder — exactly where shoppers will compare plans during the October 15 – December 7, 2026 Annual Enrollment Period.
CMS says the ratings help people with Medicare compare plan quality alongside benefits and costs when choosing coverage. The agency also continues refining the program to push plans toward ongoing quality improvement. One subtlety worth knowing: these ratings do not change this year's results — they feed into 2028 quality bonus payments, the federal dollars paid to plans rated 4 stars or higher.
The winners and losers: who moved
The headline winner is Humana. Its largest Medicare Advantage contract — covering more than 2 million members — regained a 4-star rating for 2027, up from 3.5 stars in 2026, according to reporting on the ratings release. Humana says 18 of its MA contracts earned at least 4 stars (up from just 7 last year), and 95% of its Medicare Advantage members will be in 4-star plans — a dramatic reversal from only about 20% in 2026. The company attributed the improvement to clinical quality and member experience work, and investors responded immediately.
On the other side, Alignment Healthcare's California H3815 HMO contract — which covers more than 75% of the company's health-plan members — fell from 4.0 to 3.5 stars, losing the bonus threshold for that contract. Alignment noted that six of its seven eligible contracts still earned 4 stars or higher, including three at 4.5 stars across Arizona, California, Nevada, North Carolina and Texas.
Community-based plans looked strong overall. The Alliance of Community Health Plans (ACHP) reported that its member plans averaged 4.23 stars versus 3.96 for non-ACHP carriers, and that more than 87% of enrollees in ACHP member contracts sit in 4-star-or-better plans, compared with about 69% at non-member plans. Two ACHP members — Peak Health and Kaiser Permanente — earned the maximum 5-star rating, as one of only 15 plans nationwide to do so. Aetna also reported that more than 69% of its Medicare Advantage members are in 2027 plans rated 4 stars or higher.
What star ratings actually measure
Medicare Advantage contracts are scored from 1 to 5 stars across dozens of measures — around 43 for MA-PD plans in 2027. The categories fall into a few buckets:
- Staying healthy: screenings, vaccinations, and preventive care.
- Managing chronic conditions: diabetes, blood pressure, and cholesterol care.
- Member experience: complaint rates, customer service, how easily members get appointments and care.
- Drug safety and pricing accuracy: medication adherence, accuracy of drug pricing information, and pharmacy quality.
- Plan administration: how the plan handles appeals, call-center responsiveness, and processing of coverage decisions.
The 4-star mark is the critical cutoff: plans rated 4 or higher qualify for quality bonus payments from the federal government — extra dollars per member that plans are expected to use for better benefits, lower premiums, or improved networks. Drop below 4, and that bonus money disappears, which is why a single half-star move on a large contract can be worth hundreds of millions in 2028 revenue.
One caveat the industry itself is raising: several stakeholders continue to question whether the current methodology consistently reflects real quality, with Alignment arguing that its 3.5-star contract's rating does not match its longstanding clinical performance. Take ratings as a strong signal, not the only one — a 3.5-star plan with a great doctor network can still be right for you.
What it means for you before open enrollment
Medicare's Annual Enrollment Period runs October 15 through December 7, 2026 — and this year's shopping season comes with real confusion. An eHealth survey published October 8, 2026 found that 48% of Medicare beneficiaries skipped or delayed medical care in the past year due to confusion over their coverage, and 54% did so over out-of-pocket cost concerns. Seven in 10 plan to prioritize GLP-1 drug coverage when comparing plans this fall.
Practically, the star ratings give you leverage in three ways:
- Compare star ratings on Medicare Plan Finder. A 4.5- or 5-star plan from a carrier like Kaiser Permanente or Peak Health signals consistently strong clinical quality and member experience — weigh it alongside premium, deductible, drug formulary, and network.
- Check whether your current plan's rating changed. If your carrier's contract moved down (or up) for 2027, that is a signal to re-shop rather than auto-renew. Ratings, benefits, formularies, and provider networks can all change year to year.
- Don't let a 5-star badge override your own needs. The highest-rated plan is not the best plan if your doctors are out of network or your medications sit on a higher tier. Stars are a filter, not a decision.
If you are under 65 and shopping for your own coverage instead of Medicare, the ACA marketplace open enrollment also starts November 1 — see our guide to health insurance for the self-employed in the USA for the basics that apply outside Medicare.
What to do now: 5 steps for AEP
- Mark October 15 – December 7 on your calendar. Coverage changes you make during this window take effect January 1, 2027. Miss the window and you are generally locked in for the year.
- Read your Annual Notice of Change (ANOC). Your current plan mails this each fall. It lists exactly what is changing for 2027 — premiums, cost-sharing, drug tiers, network. A rating change plus a premium increase is a clear re-shop signal.
- Pull the star ratings on Medicare Plan Finder. Filter your county's plans by star rating first, then compare costs. Prioritize 4-star-and-above plans that include your doctors and cover your prescriptions at a reasonable tier.
- Verify your drugs and doctors before you commit. Confirm your medications are on the plan's formulary (and which tier) and that your physicians and hospital remain in network. This matters more than a half-star difference.
- Watch for scams. Enrollment season is prime time for Medicare fraud — never give your Medicare number to a cold caller or click links in unsolicited messages. The eHealth survey found more than half of beneficiaries believe they have been targeted by Medicare-related scams.
Frequently asked questions
When were the 2027 Medicare Advantage Star Ratings released?
CMS published the 2027 MA and Part D Star Ratings on Medicare Plan Finder on October 8, 2026, per the agency's fact sheet. They appear in time for the October 15 – December 7, 2026 Annual Enrollment Period and will determine 2028 quality bonus payments.
Why did Humana's stock jump after the ratings came out?
Humana's largest Medicare Advantage contract regained a 4-star rating (up from 3.5 in 2026), with 95% of its members now in 4-star plans. Crossing the 4-star threshold unlocks federal quality bonus payments worth potentially billions in 2028 — a major boost to its profit outlook, which investors priced in immediately.
Should I avoid a plan that dropped to 3.5 stars?
Not automatically. The drop means the plan loses bonus payments and may have weaker scores on some measures — but it can still be the right plan if your doctors are in network and your drugs are covered affordably. Use the rating as a prompt to compare alternatives, not a verdict.
Where can I verify this story?
The CMS fact sheet on the 2027 MA and Part D Star Ratings is the primary source. Alignment Healthcare published its results on October 8, 2026, and multiple outlets reported the Humana turnaround and rating moves on October 8–9, 2026.