US Insurers Limit Provider Networks for 2027 Medicare Advantage Plans
US health insurers UnitedHealthcare and Aetna will shift their Medicare Advantage plans to offer more limited provider networks for enrolled users in 2027. This move is due to funding pressures, rising medical costs, and increased utilization affecting every part of the healthcare system, according to Bobby Hunter, president at UnitedHealthcare.
The companies plan to exit locations where they currently offer preferred provider organizations (PPOs), which give members an option to see providers outside of the plan network. This type of plan is more expensive for insurers to operate. Instead, Aetna will expand health maintenance organization (HMO) plans, which limit coverage to a small network of typically low-cost providers.
Rival Humana next year will offer plans in over 80% of US counties, down from 85% in 2026. Aetna will shed an estimated 950,000 enrollees next year as it withdraws from some states and will offer plans in 41 states, down from 43 this year.