One Million Seniors Face Medicare Advantage Plan Cuts in 2027

Over one million seniors will lose their Medicare Advantage plans in 2027 due to UnitedHealth Group and Humana discontinuing coverage in less profitable markets. According to Bloomberg, UnitedHealth confirmed that about 390,000 members are in plans being dropped, while Humana's cuts affect roughly 600,000 people.

CVS Health's Aetna and Centene are also shrinking their Medicare Advantage offerings. Those affected will receive nonrenewal letters dated Oct. 2 and can choose another Medicare Advantage plan for coverage starting Jan. 1, 2027. If they do nothing, they'll automatically be moved to original Medicare.

The federal government finalized a 2.48% average payment increase for 2027, which insurers say hasn't kept pace with their costs. Companies are also changing what they sell, such as UnitedHealth pulling back on PPO plans and Aetna expanding HMO plans.