CMS Medicare Advantage 2022 Star Ratings - AHIP

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CMS Medicare Advantage 2022 Star Ratings - AHIP
2022 MA Stars Analysis

 CMS Medicare Advantage
 2022 Star Ratings
 Comprehensive market analysis of CMS MA 2022 Star
 Ratings to uncover insights and upcoming industry shifts
 that are likely to shape future Stars strategies

This whitepaper represents the views of the author, not AHIP. The publication, distribution or posting of this whitepaper by AHIP does not constitute a
guaranty of any product or service by AHIP.
CMS Medicare Advantage 2022 Star Ratings - AHIP
www.citiustech.com
CMS Medicare Advantage 2022 Star Ratings - AHIP
2022 Star Ratings Performance                   Objectives
Analysis

CMS released the 2022 Star Ratings for the      • Get a detailed retrospective Stars
Medicare Advantage program in October             performance analysis
2021. CitiusTech’s latest report on Star
Ratings performance provides an industry-       • Identify focus areas for actionable
wide perspective around Star ratings released     planning
for 2022 and compares them to the prior
                                                • Inform Stars performance challenges
year’s ratings.                                   for 2023 and beyond
This analysis is geared to provide holistic
insights to business, consulting and
technology stakeholders who are actively
involved in improving MA Star Ratings. It
helps them to strategically position
themselves and modify their initiatives for
Stars improvement.

                                                                                        1
Highlights for 2022 Stars

        Historic rise in the enrollment of high performing Medicare Advantage Prescription Drug
 1      Plan (MAPD) and Prescription Drug Plan (PDP) contracts

        MA contracts with less than 50,000 enrollments, drive significant Year-on-Year
 2      improvement towards high Stars performance

        Additional data points from newer contracts is resulting in a significant improvement in
 3      the Member Experience performance

        A significant rise in Year-on-Year performance across highly weighted data sources is
 4      the primary cause for high Stars improvement

        Measure-level improvements across 4 Stars and above rated contracts were driven by
 5      pandemic relaxations and minimum threshold changes

2
Historic rise in the enrollment of high performing MAPD and PDP
      1                         contracts

                  YOY Distribution of MAPD vs Medicare FFS                           Key Statistics
                                 Beneficiaries
                                                                                     •   9 out of 10 MAPD enrollees are part of 4 Stars and
                                       Year 2021      Year 2022                          above rated contracts; ▲ 14% YOY rise in enrollee
                                                                                         distribution across high-rated contracts
                                                           38.4       37.6 ▼ 2.2%
                                          ▲ 9.2%                                     •   75% of high rated MAPD enrollments fall under
                       23.1        25.2
                                                                                         contracts with > 50K enrollees

                                                                                     •   ▲ 2% YOY growth of overall Medicare enrollees (MA +
                                                                                         Medicare Fee For Service (FFS)) 1.26M
                       MA Beneficiaries             Medicare FFS Beneficiaries (In
                        (In Millions)                         Millions)
                                                                                     •   ▲ 9% increase in MAPD enrollment between 2021-22
                                                                                         (2.12 M) as compared to the ▼ 2% drop in Medicare FFS

                  2021 vs 2022 Enrollment Distribution by                            Our Perspective
                                   Stars
                                                                                     •   Historic rise in high Star rated contracts with quality
                              2021 Enrollment       2022 Enrollment                      bonus eligibility will cause MA market to have
                                                                                         competitively priced supplemental benefit options
                 50%
Distribution %

                 40%
                                                                                     •   Disproportionate enrollee distribution across higher than
                 30%
                                                                                         4.5 Stars contracts reflects consumer affinity for
                 20%
                                                                                         supplemental benefit offerings
                 10%
                  0%
                                                                                     •   Primary deterrents for member disenrollment are – lack
                         Less Than 4      4 Stars       4.5 Stars      5 Stars
                                                                                         of clarity around drug and medical benefits, along with
                            Stars
                                                                                         difficulty in accessing health plan information

                                                                                                                                                   3
MA contracts with < 50K enrollments, drive significant YOY
                2              improvement towards High Stars Performance

                              MAPD Distribution by Contracts YOY                                 Key Statistics
                             Less than 4 Stars     4 Stars     4.5 Stars    5 Stars              •   ▲19% rise in MAPD Contracts with 4 Stars and above in
                                                                                                     2022 (i.e. 322 in 2022 vs. 195 in 2021)
                                                                31.6%
            YEAR 2022                        15.7%                                               •   51% MAPD contracts (with 3+ years existence) reported
                                                  20.4%                                              improved performance in 2022 vs 2021
                                                                 32.3%

                                                                                       51.3%     •   88% of large size MAPD contracts have scored high Star
            YEAR 2021            5.3%                                                                ratings compared to 63% in small size segment
                                              16.0%
                                                             27.5%                               •   80 newly rated MAPD contracts in 2022 contributed
                                                                                                     for ~18% rise in MAPD contract base YOY

                 MAPD Contracts by Enrollment Size and Performance

                                                                                                 Our Perspective

                                                                                                 •   Industry performance has improved due to COVID
                                                                                                     exception policies and additional reported data points
                                                                                                     from new contracts

                                                                                                 •   Steady shift of rising MA population across high
                                                                                                     performing contracts will be a driving factor for CMS
                                                                                                     strategy recalibration for benchmarks

                                                                                                 •   With ~$57 PMPM increase in bonus rates across all
                                                                                                     bonus categories (0%, 3.5%, 5%), the earning potential
                                                                                                     to score 4 Stars and above increased by 50%, driving
                                                                                                     expansions, acquisitions and new entries

            4
Note: The variance is the difference in distribution of 4 Star contracts between 2022 and 2021
Additional data points from newer contracts is resulting in a significant
              3                improvement in the Member Experience performance

                    YOY Variance Distribution of 4 Stars and above contracts                           Key Statistics
                                          by Domain
                                                                                                       •   ▲ 17% shift in contract distribution with high Stars for
              DD3: Member Experience with the Drug
                                                                                                           member experience domain DD3; ▲ 13% shift for HD3,
                             Plan
                                                                                                 17%       DD4

                                                                                                       •   ▲ 3% rise in contract distribution with high Stars for
           HD3: Member Experience with Health Plan                                       13%               operational domains. 90% contracts scored 4 Stars and
                                                                                                           above
               DD4: Drug Safety and Accuracy of Drug
                                                                                      12%
                              Pricing                                                                  •   58% contracts have unreported Stars for the applicable
                                                                                                           domains; half of the unreported Stars are attributed to
                  HD2: Managing Chronic (Long Term)                                                        new contracts
                                                                               8%
                             Conditions
                                                                                                       •   25% YOY increase in reporting data points for
          HD1: Staying Healthy: Screenings, Tests and
                                                                          6%                               operational domain DD1
                          Vaccines
                                                                                                       Our Perspective
                   HD5: Health Plan Customer Service                     6%
                                                                                                       •   A 2X weightage shift across member experience
                                                                                                           domains and inorganic 2022 Stars growth presents an
            HD4: Member Complaints and Changes in
                                                                   3%                                      uphill task for MA contracts to maintain 4 Stars & above
                 the Health Plan's Performance
                                                                                                       •   Increased budgets via 2022 bonuses to fuel focused
                     DD1: Drug Plan Customer Service               3%                                      investments across modern technologies to improve
                                                                                                           member experience and drive provider performance
            DD2: Member Complaints and Changes in
                                                             1%                                        •   Enhanced focus on future expansion of value-based
                 the Drug Plan’s Performance
                                                                                                           payments as a part of the MA network strategy for
                                                                                                           driving higher Stars at optimized cost

                                                                                                                                                               5
Note: The variance is the difference in distribution of 4 Star contracts between 2022 and 2021
A significant rise in YOY performance across highly weighted data
     4               sources is the primary cause for high Stars improvement

         2022 % Distribution contracts across 4 Stars and above                                Key Statistics
        % Contracts with 4 Stars and above         % Contracts with less than 4 Stars
                                                                                               •   ▲ 10% - 28% YOY increase in high performing contracts
                    0%       20%             40%          60%           80%             100%       across CAHPS (2X); Stars Ratings (5X)

            CTM                                                                                •   80% of contracts that scored 5 Stars in both years were
                                                                                                   also seen to have consistently high (over 90%) YoY
              IRE                                                                                  performance for CTMs

      Call Center                                                                              •   ▼ 27% YOY decrease for PDE/MPF data source led by a
                                                                                                   ▼ 56% reduction in 5 Star contracts compared to 2021
Part D Reporting

          MBDSS
                                                                                               Our Perspective
PDE / MPF Pricing
                                                                                               •   Reduced complaints, owing to lower elective procedures
           HEDIS                                                                                   and deferred care, have largely driven performance for
                                                                                                   CTM, IRE and Call-Center
     Star Ratings
                                                                                               •   2023 Stars that will be based off 2021 survey data will
 Part C Reporting                                                                                  demonstrate the pandemic’s impact on member
                                                                                                   experience and care access with virtual provider
          CAHPS                                                                                    interactions

        PDE Data                                                                               •   With member experience as the key focus for 2023,
                                                                                                   advanced segmentation, specialized care management,
            HOS                                                                                    digital collaboration and member journey analytics will
                                                                                                   be key areas for active payer investment

 6
Measure-level improvements across ≥ 4 Stars rated contracts were
  5              driven by pandemic relaxations and minimum threshold changes

    Top 6 measures based on Cut-point Change and Performance                                                                         Key Statistics
                          Improvement
                                                                                                                                     •   ▲16 - 29% YOY increase in high performing contract
                                                                                                                                         distribution for statin therapy utilization, breast cancer

                                          2022 Weights (Change)

                                                                  YOY Cut-point Change
                                                                                                                                         screening, C&D improvement measures and medication

                                                                                         Reported Data Point

                                                                                                               High Rated Contract
                                                                                                               Distribution Change
                                                                                                                                         adherence for RAS Statins
                                Data
Measure Name                                                                                                                         •   ▼ 16 - 26% YOY decrease in high performing contract
                                Source
                                                                                                                                         distribution for HOS measures, medication adherence
                                                                                                                                         for diabetic meds and MPF price accuracy

                                                                                         Change
                                                                                                                                     •   3 - 5% cut-point shift through CMS guardrail modelling,
D04: Drug Plan Quality          Star                                                                                                     ▼ 15% - 30% sensitivity is observed for high rated
                                          5 (-)                   10%                        9%                  29%                     contract distribution across most measures
Improvement                     Ratings
D09: Medication Adherence for
Hypertension (RAS               PDE       3 (-)                   0%                       12%                   26%                 Our Perspective
antagonists)
                                                                                                                                     •   With office visits & utilization getting back to pre-COVID
C25: Health Plan Quality        Star                               -                                                                     levels, clinical/operational measures extend the
                                          5 (-)                                              7%                  26%
Improvement                     Ratings                           19%                                                                    opportunity to build a stronger foundation for Stars
C16: Statin Therapy for
Patients with Cardiovascular    HEDIS     1 (-)                   1%                       22%                   21%                 •   2022 improvement across all member experience
Disease                                                                                                                                  measures, driven by minimal change in cut-points,
                                                                                                                                         increased weightage and stiff market competition
C01: Breast Cancer Screening    HEDIS     1 (-)                   -9%                      20%                   19%

D10: Medication Adherence for
                                                                                                                                     •   With FHIR interoperability and clinical data exchange
Cholesterol (Statins)
                                PDE       3 (-)                   1%                       11%                   16%                     going live by Jan 2023, seamless clinical data
                                                                                                                                         availability can significantly improve year-round
                                                                                                                                         coordination for higher Star outcomes

                                                                                                                                                                                               7
2022 Star Ratings Analysis: Focus Areas for 2023

                            30% (▲ 6%) contribution of CAHPS with 2X weightage shift
               1
                              •     Adoption of PROM (Patient Reported Outcome Measures) surveys and member portals
                              •     Disease specific care management with focus on digital member engagement

                            CMS Guardrail to be launched for Stars 2023
               2
                              • Most contracts showing high sensitivity for 3-5% cut-point shift
                              • Highly precise forecasting capabilities & ‘what-if’ simulations for guided Stars improvement

                            Payer-provider clinical data exchange on FHIR to go-live by Jan 2023
               3
                              • Implementation of bidirectional Payer-Provider clinical data exchange strategies using FHIR
                              • Stronger year-round coordination for high Star performance across clinical measures

                            100% provider payments in MA through alternate payment models by 2025 (1)
               4
                              • Steady transition to value-based models to counter more stringent benchmarks
                              • Recalibration of sub-network strategies for optimal Star outcomes through market expansion

           8
1- http://hcp-lan.org/workproducts/2021-Roadshow-Deck-508.pdf
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                                                                                              9
CitiusTech Key Contacts

                Shitang Patel                           Prosenjit Dhar                              Harsh Desai
                Asst. Vice President                    Sr. Healthcare Consultant                   Healthcare Consultant
                Payer Market                            Payer Market                                Payer Market
                CitiusTech                              CitiusTech                                  CitiusTech

Shitang has 20 years of experience     Prosenjit has 13 years of                    Harsh has 9+ years of experience
spanning healthcare management         experience in the payer Industry             in US Health Analytics across
and health policy making settings,     for large IT services organizations          payer and provider market. Prior
with focus on payer strategy and       across market research and pre-              to CitiusTech, he worked for
business transformation. Prior to      sales, product consulting and                several large payers and led
CitiusTech, he worked for PwC          product management.                          successful end-to-end
Health Industries Advisory for 9                                                    development/implementations of
years, and health services research    He is AHIP Certified and has                 various value based and HEDIS
and policymaking in Washington         specialized for payer quality                analytic solutions.
D.C. for 5 years.                      (HEDIS/Stars), FWA, payer core
                                       administration with focus on                 He holds a Masters in Healthcare
Specialty areas include: payer-        platform solutioning and sales.              Administration and is Six Sigma
provider integration and                                                            Green Belt Certified.
contracting, consumer-centric          Prosenjit’s current focus areas
operations, analytics and data                                                      Specialty areas include: value
                                       include HEDIS/Stars, quality and
science, Stars and quality                                                          based contracting, network
                                       data management platforms.
improvement, core admin system                                                      management, claims systems,
evaluation and selection, value-                                                    HEDIS/Stars, business intelligence
based insurance design and                                                          and analytics.
financial reporting.

Email Shitang at:                      Email Prosenjit at:                          Email Harsh at:
shitang.patel@citiustech.com           prosenjit.dhar@citiustech.com                harsh.desai@citiustech.com
                                                                                                                    9
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