1M Seniors Face Medicare Advantage Plan Cuts Amid Rising Costs

Over 1 million seniors will need to switch Medicare Advantage plans next year due to rising medical costs and tighter federal scrutiny. UnitedHealth Group is shutting down plans that currently cover around 390,000 members, while Humana plans to reduce its offerings that cover approximately 600,000 people.

CVS Health's Aetna and Centene are also cutting back options, but declined to disclose the number of affected members. The shift is a result of insurers prioritizing profit margins over growth, as seen in UnitedHealth's first earnings shortfall in over ten years due to higher-than-expected healthcare usage.

According to government data, at least one million seniors will have to switch plans next year. Some individuals whose plans shut down may be automatically assigned to other options. The number of plan closures is significant, with about 3 million people enrolled in Medicare Advantage plans that closed in 2026.