Medicare Advantage Quality Bonus Payments Will Total at Least $11.8 Billion in 2024

The Affordable Care Act’s quality bonus program, which raises payments to Medicare Advantage plans based on a five-star rating system, is predicted to decrease by $1 billion (8%) to $11.8 billion in 2024, after a 400% surge from 2015 to 2023. The decline is said to follow the end of pandemic-era policies that temporarily boosted certain plan’s star ratings. Despite the decrease, bonus spending in 2024 will still exceed that from the years 2015 to 2022. Almost three-quarters (72%) of Medicare Advantage enrollees belong to plans receiving bonus payments.