UnitedHealth and Humana Scale Back Medicare Advantage Plans Affecting Over 1 Million Seniors

Major Medicare Advantage providers are scaling back their offerings, leaving over a million seniors facing coverage changes. UnitedHealth and Humana are discontinuing plans that cover more than one million beneficiaries, with UnitedHealth affecting approximately 390,000 members and Humana impacting around 600,000 enrollees. The insurers cite financial pressures, including rising prescription drug costs and higher patient utilization, as reasons for the cuts. Nationwide Medicare Advantage enrollment could drop by 6% due to these adjustments.

The insurers are also restructuring their plan types, favoring health maintenance organization (HMO) options over preferred provider organization (PPO) plans. HMOs typically confine members to lower-cost provider networks. Humana is further reducing its geographic reach, shrinking its network from 85% of counties to just over 80%. Federal reimbursement rates have not kept pace with rising clinical care expenses, exacerbating the financial strain.

Affected members will receive non-renewal notices with information on their enrollment options for 2027. These options include new Advantage policies, supplemental Medigap coverage, and standalone Part D drug plans. Open enrollment runs from October 15 through December 31, with a special election period extending through February 28, 2027, for those returning to original Medicare.

Seniors are advised to carefully review any official mail from their current insurer, ensure their preferred doctors and specialists remain in-network, and verify that their prescription drugs are covered. Comparing total out-of-pocket maximums across competing plans can help avoid surprise medical bills. Key steps include checking for non-renewal notices, researching replacement policies starting October 15, and enrolling in a new policy before December 31.