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UnitedHealth Group and Humana are ending some Medicare Advantage plans ahead of 2027. The changes affect more than 1 million members combined, according to current reporting.
UnitedHealth said about 390,000 members are enrolled in plans that will end. Humana’s changes affect about 600,000 members. Other major insurers, including Aetna and Centene, are also reducing parts of their Medicare Advantage business.
The changes mean some seniors will need to review their coverage before the 2027 enrollment period closes.
What Medicare members need to know
UnitedHealthcare began sending nonrenewal notices to affected members on Oct. 2. Members whose plans are ending can choose another Medicare Advantage plan between Oct. 15 and Dec. 31. New coverage can begin Jan. 1, 2027.
Members who do not choose another Medicare Advantage plan will return to Original Medicare. Those who return to Original Medicare can use a special enrollment period through Feb. 28, 2027, to select a Medicare Advantage plan.
Affected members will also receive information about other coverage options. These can include Medicare Advantage plans, Medicare supplement insurance and Medicare Part D drug coverage.
Medicare’s 2027 open enrollment period runs from Oct. 15 through Dec. 7. CMS says more than 99% of Medicare beneficiaries will have access to at least one Medicare Advantage plan next year. About 97% will have access to 10 or more options.
Why insurers are changing Medicare plans
Insurers point to higher medical costs, drug costs and greater use of health services as factors behind the changes.
UnitedHealth is also changing where it offers certain Medicare Advantage plans. The company is pulling back in markets where PPO plans make up a larger share of its business. PPO plans allow members to receive care outside a network, which can cost insurers more.
Aetna is taking a different approach by expanding its HMO presence. HMO plans generally use a set network of doctors and hospitals. Humana also plans to reduce its reach. The company currently serves about 85% of U.S. counties. Its 2027 coverage will reach just over 80% of counties.
What the 2027 Medicare numbers show
The changes come even as the federal government increases payments to Medicare Advantage plans.
CMS finalized a 2.48% average increase in Medicare Advantage payments for 2027. The change represents more than $13 billion in additional payments to plans. Still, insurers say the payment increase does not fully offset rising healthcare costs.
CMS also expects about 34 million people to enroll in Medicare Advantage in 2027. That would represent about 47.4% of all Medicare enrollment. The agency projects that the average monthly Medicare Advantage premium will fall from $14.37 in 2026 to $12 in 2027. That means the 2027 market is not simply about higher premiums. Some members may instead face changes to their plan, provider network or available benefits.
For seniors affected by a plan ending, the key step is to review the options listed in their nonrenewal notice. Checking doctors, hospitals, prescriptions, premiums and out of pocket costs can help members understand how a new plan may differ from their current coverage.
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