UnitedHealth Group Cuts 390k Medicare Advantage Members Amid Industry-Wide Shift
UnitedHealth Group (UNH) has announced that it will be shutting down Medicare Advantage plans covering approximately 390,000 people for the year 2027. This move is part of an industry-wide trend, with at least 1 million seniors expected to have to switch plans due to similar actions from other companies like Humana (HUM).
The affected members were notified by UnitedHealthcare on October 2, and shares in UNH closed at $365.20 on October 1, down 0.51%. The company's Medicare Advantage enrollment stands at 7.565 million as of June 30, 2026.
Chief Financial Officer Wayne DeVeydt attributed the decision to 'benefit redesign' and 'rightsizing products in a few markets,' stating that UnitedHealthcare believes its benefits will remain competitive. However, brokers disagree, with a Leerink note suggesting that UNH is cutting about 13% of plans across 18 states.
The open enrollment period for Medicare Advantage runs from October 15 to December 7, and TIKR consensus estimates fourth-quarter earnings per share (EPS) at around $2.10, slightly below the previous year's $2.11. The company is positioned to fund commission strategies and unique investments related to Star ratings, which are used by Medicare to evaluate plan quality.