Millions Lose Medicare Advantage Plans Amid Insurer Cost Cuts

Millions of seniors face uncertainty as their Medicare Advantage plans are being discontinued by major insurers. UnitedHealth Group and Humana will stop offering coverage in less profitable markets, affecting over 1 million people, according to Bloomberg.

The cuts are largely driven by rising costs and declining profits for the companies. UnitedHealthcare President Bobby Hunter cited 'funding pressures, rising medical and drug costs, and patients using more care' as reasons for the decision.

Affected members have until January 1, 2027, to choose a new Medicare Advantage plan. If they do nothing, they will be automatically moved to original Medicare, which does not include drug coverage, forcing them to sign up for a separate Part D plan.