The Insurance Agent’s Guide to Star Ratings

Star Ratings: What They Mean and How to Use Them

Star ratings play a crucial role in the Medicare landscape, influencing both client decisions and sales opportunities for insurance agents. Whether you’re new to selling Medicare plans or an experienced agent, understanding star ratings can help you educate your clients, build trust, and grow your business year-round.

What Are Star Ratings?

The Centers for Medicare & Medicaid Services (CMS) assigns star ratings annually to Medicare Advantage (Part C) and Medicare Prescription Drug Plans (Part D). These ratings, ranging from 1 star (poor) to 5 stars (excellent), evaluate a plan’s quality and performance across several factors, including:

• Customer Service: Responsiveness and support for enrollees.
• Member Satisfaction: Feedback from enrollees on their experience.
• Health Outcomes: How well the plan helps members maintain or improve their health.
• Drug Safety: Accuracy and safety of prescription drug coverage.

What Star Ratings Mean for Insurance Agents

1. Higher Star Ratings = Easier Client Sell

Plans with 4 or 5 stars are seen as high-quality options, making them easier to sell. Clients trust plans with better ratings, so offering top-rated plans can build your credibility.

2. Year-Round Selling with 5-Star Plans

Plans with 5-star ratings allow agents to sell them year-round through a Special Enrollment Period (SEP). This unique selling advantage can help you generate business outside of the traditional Medicare Annual Enrollment Period (AEP).

3. Client Retention and Satisfaction

Offering plans with higher star ratings leads to better client satisfaction, which translates into long-term relationships and renewals. Happy clients often result in referrals.

How to Use Star Ratings to Educate Clients

Explain the Importance of Star Ratings

• Educate clients on what star ratings mean and how they’re calculated. Clients appreciate transparency and will trust your expertise.
• Use real examples to demonstrate the benefits of higher-rated plans, such as better customer service and access to quality care.

Compare Plans Using Star Ratings

• Highlight the differences between plans with varying star ratings.
• Show clients how a plan’s rating can impact their overall experience and healthcare outcomes.

Address Client Concerns

• Some clients may prioritize lower premiums over higher star ratings. Explain how a higher-rated plan could save them money in the long term through better benefits and lower out-of-pocket costs.

Maximizing Business Opportunities with Star Ratings

1. Leverage 5-Star SEPs
   Use 5-star rated plans to fill your pipeline year-round. Market these plans to clients who missed AEP or are dissatisfied with their current coverage.

2. Focus on Education and Trust
   Educating clients on the value of higher-rated plans builds your reputation as a knowledgeable and trustworthy agent.

3. Use Star Ratings to Drive Marketing Efforts
   Highlight star ratings in your marketing materials to attract quality-focused clients. Emphasize the unique benefits of selling 5-star plans.

Tips for Success

• Stay Updated: Star ratings are released annually. Familiarize yourself with the latest ratings to guide your clients effectively.
• Use Tools: Platforms like Medicare.gov and quoting tools can help you compare plans and showcase star ratings to clients.
• Ask for Referrals: Happy clients are more likely to refer their friends and family, especially if you’ve helped them secure a high-quality plan.

Partnering with PSM Brokerage for Success

At PSM Brokerage, we empower insurance agents with the tools, training, and support needed to excel in the Medicare market. When you partner with us, you gain access to:

• Top-Tier Plans: A comprehensive portfolio of Medicare Advantage and Part D plans, including 5-star options.
• Cutting-Edge Tools: Free quoting and enrollment platforms that make comparing star-rated plans effortless.
• Marketing Resources: Customizable marketing materials to help you highlight star ratings in your outreach.
• Expert Training: Webinars, guides, and one-on-one coaching to keep you informed about Medicare trends and star ratings.

Ready to Elevate Your Business?

By understanding star ratings and leveraging them effectively, you can better serve your clients, boost your sales, and create a thriving Medicare business year-round. Partner with PSM Brokerage today and unlock your full potential in the Medicare market.

View Medicare Agent Resources