UnitedHealthcare and Humana End Medicare Advantage Plans for Nearly 1 Million People

UnitedHealthcare and Humana End Medicare Advantage Plans for Nearly 1 Million People

Two Largest MA Insurers Exit Select Markets

UnitedHealth Group and Humana are discontinuing Medicare Advantage plans covering nearly 1 million people, pulling back from less profitable markets ahead of the 2027 enrollment year. UnitedHealth Group spokesperson Eric Hausman confirmed to Healthcare Brew that about 390,000 members are in plans being discontinued. Humana Chief Financial Officer Celeste Mellet said during a July financial call that about 600,000 enrollees are in a Humana Medicare Advantage plan ending in 2027, about 8% of the company's 7.2 million Medicare members. Both companies are the largest private health insurers serving older Americans in the U.S.

Insurers' Stated Rationale: Profit Over Growth

On an October earnings call, UnitedHealthcare leaders reportedly focused cuts on plans that let patients see out-of-network doctors, continuing a strategy that favors restricted doctor networks and plans for people with specialized medical needs. Humana's scale of exits was disclosed on its July call. Fortune, citing a report, grouped Humana, UnitedHealthcare (UHC), Clover Health, and Centene among the payers showing the biggest "prioritization of margin over growth"; of those four, Humana was the only payer that did not decrease dental allowances. UnitedHealthcare will send non-renewal notices dated October 2 to affected members.

Rising Costs and Higher Utilization Drive Exits

Insurers attribute the exits to rising medical costs and unexpectedly high healthcare usage. New York Post reported that unexpectedly high healthcare usage and rising medical costs caught UnitedHealthcare off guard and lowered its stock value in 2025. Humana's 2027 coverage will reach just over 80% of U.S. counties, down from 85% this year, per Reuters. Government projections based on insurer feedback put 2027 Medicare Advantage enrollment at roughly 34 million, about 6% fewer than today. Wall Street analysts reviewing newly released government data found that CVS Health (Aetna) also cut back some Medicare Advantage coverage.

What Affected Members Can Do

Plans end December 31, 2026. UnitedHealthcare said affected members can enroll in another Medicare Advantage plan between October 15 and December 31 for coverage beginning January 1, 2027, or they will automatically revert to Original Medicare. Members who return to Original Medicare get a special election period through February 28, 2027 to select a new Medicare Advantage plan. Medicare.gov confirmed a special enrollment period for picking a replacement Medicare Advantage plan runs December 8, 2026 through February 28, 2027. Tokenpost noted both figures are estimates and their sum is not a confirmed count of people leaving either insurer.

Open Enrollment Dates and 2027 Cost Changes

Medicare open enrollment for 2027 runs October 15 through December 7, 2026, with changes generally effective January 1, 2027. CMS projects the weighted average Medicare Advantage premium will fall more than 16% from 2026 to 2027, from $14.37 to $12.00 per month, with average prescription drug premiums in Medicare Advantage projected to drop 38%. The standard Part D base beneficiary premium rises to $41.33; the Part D out-of-pocket cap rises to $2,400 and the standard deductible climbs to $700; negotiated prices for 15 drugs take effect January 1. The Medicare Trustees Report projects the standard Part B premium will rise from $202.90 to $209.50 per month in 2027, a projection rather than a final number. CMS says 97% of beneficiaries will have at least 10 plans to choose from.

Regional Impact: Iowa, Nebraska and Beyond

Beyond the two largest insurers, more than 87,000 Iowans were told their Medicare plans are canceled or leaving their county for 2027, per the Iowa Insurance Division on October 15. Wellmark is terminating all Medicare Advantage plans in Iowa; Medica is ending PPO plans in Harrison, Mills, and Pottawattamie counties, so no Iowa Medicare Advantage plan will keep Mayo Clinic in network. Medica will no longer offer Medicare Advantage plans in Nebraska's most populous counties, affecting about 8,500 people. Aetna, a CVS Health company, said it will not offer a standalone prescription drug plan in Iowa in 2027. Medica, Wellmark Blue Cross Blue Shield, Blue Cross Blue Shield of Nebraska, and UnitedHealthcare confirmed multiple changes to KETV.