The Medicare Advantage quality bonus program provides significant bonuses to Medicare Advantage plans with a star rating of 4 or above (on a five-star rating system). Recent changes in the bonus program – purportedly to simplify the program – will increase Medicare Advantage spending by $18.6 billion over the next 10 years (see Medicare Will Spend More Than $13 Billion On The Medicare Advantage Quality Bonus Program In 2026 and Medicare Program; Contract Year 2027 & Certain Contract Year 2026 Policy & Technical Changes To The Medicare Advantage Program, Medicare Prescription Drug Benefit Program & Medicare Cost Plan Program).

As a result, in 2026, approximately $13 billion will be paid to these plans as bonuses. This is between $318 and $466 per member.

This…