What does a 2-star rating indicate for a Medicare plan?

• A. That the Plan has received an Excellent rating.
• B. That the Plan has received a Not Rated rating.
• C. That the Plan has received a Below Average rating.
• D. That the Plan has received an Above Average rating.

Answer: (C)

Medicare uses a star-rating system to summarize how well a plan performs, on a scale from one to five stars. Higher numbers mean better performance. A rating of two stars falls into the Below Average category, indicating the plan’s overall quality is lower than most other plans. This reflects weaker performance in areas like health outcomes, ease of staying healthy, managing chronic conditions, member experience, and customer service. Because this rating is below average, it’s a signal to compare with higher-rated plans to find better quality and support. Star ratings are updated each year as new performance data come in, and plans can work to improve their scores over time.