I would quilt in the ditch down each strip then do a diamond pattern the size of each strip down the strip in the color of the background. Then an X with radiating lines outside the x for the blue/star.
Then you don't have t worry about white over red, red over white etc etc etc. The diamond border like design down each strip witll continue the horitzonal shape of those areas. The x's in the blue star will confine that area and continue the overall look of an original flag.