Insurers UnitedHealth and Humana Abandon Medicare Advantage Plans for Over One Million Seniors

Two major health insurers, UnitedHealth Group and Humana, are set to discontinue Medicare Advantage plans that cover over one million seniors. According to a report by Bloomberg, this decision reflects a trend among major insurers to retreat from less profitable markets as the 2027 enrollment year approaches.

The discontinuation of these plans will affect approximately 390,000 members under UnitedHealth and around 600,000 enrollees under Humana. For those affected, non-renewal notices will be distributed on October 2, and they will have the opportunity to enroll in an alternative Medicare Advantage plan from October 15 until December 31.

Insurers are revising their plans due to increasing costs, including rising medical and drug expenses. UnitedHealth is reducing its presence in markets where preferred provider organization (PPO) plans dominate, while Aetna is focusing on expanding its health maintenance organization (HMO) footprint. Humana's coverage will extend to just over 80% of U.S. counties in 2027.

Government projections anticipate that Medicare Advantage enrollment in 2027 will reach approximately 34 million, reflecting a decrease of about 6% compared to the current enrollment figures. This adjustment is occurring amid ongoing financial pressures in the sector, with insurers expressing concerns that government reimbursements have not kept pace with escalating medical costs.