We study the $K^*$ meson reduction in heavy ion collisions by focusing on the hadronic effects on the $K^*$ meson abundance. We evaluate the absorption cross sections of the $K^*$ and $K$ meson by light mesons in the hadronic matter, and further investigate the variation in the meson abundances for both particles during the hadronic stage of heavy ion collisions. We show how the interplay between the interaction of the $K^*$ meson and kaon with light mesons in the hadronic medium determines the final yield difference of the statistical hadronization model to the experimental measurements. For the central Au+Au collision at $sqrt{s_{NN}}=200$ GeV, we find that the $K^*/K$ yield ratio at chemical freeze-out decreases by $36%$ during the expansion of the hadronic matter, resulting in the final ratio comparable to STAR measurements of 0.23 $pm0.05$.