CRE: CMS’ Five-Star Quality Rating System is a Violation of Medicare and APA Rulemaking Requirements

CMS’s Five-Star Quality Rating System for Part C and D Medicare is laudible concept for using informed consumer choice rather than command-and-control regulation to improve the healthcare market. However, because the Star Rating System is now used to determine bonuses, rebates, and eligibility, CMS is statutorily required to implement the ratings through Federal Register notice-and-comment rulemaking proceedings.

In the letter to CMS attached here, the Center for Regulatory Effectiveness explains the deficiencies in how the ratings were developed. CRE concludes that CMS should

  1. Follow Federal Register notice-and-comment rulemaking proceedings for the star ratings programs.