Medicare Advantage Insurers Shift More Costs onto Seniors with Benefit Cuts

Medicare Advantage insurers are set to shift more costs onto seniors in 2027 as they cut back on benefits and increase out-of-pocket expenses. According to federal data analyzed by STAT and investment firms, companies like UnitedHealth Group and Humana are pruning their plans to boost profits. This could result in shock for older adults who discover that their doctors or hospitals are no longer part of their plan.

Investors have been pressuring insurers to improve margins, leading them to cut back on benefits such as dental care and prescription coverage. The changes even come after the industry secured a payment increase from the Trump administration in April. Big companies like UnitedHealth Group, Humana, and others are driving these changes.

The Medicare Advantage annual enrollment period for 2027 plans starts on October 15. Seniors should be cautious during this time to ensure that their doctors and hospitals are still part of their plan. Medicare Advantage insurers are not required to notify enrollees if their doctor or hospital is no longer in-network.