“Plans are paid about $10,000 per member annually on average, although the precise amount varies by county and other factors. For plans with 4, 4.5 or 5 stars, bonuses bring in an extra 5% a year per member — about $500 each, said Monisha Machado-Pereira, a partner at consulting firm McKinsey & Co. A 4-star plan with 1 million members would earn $500 million in bonuses. ‘Getting to 4 stars is really, really critical,’ said Michael Kavouras, vice president of star ratings at Aetna.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
Interesting background on Medicare Advantage and star ratings.