UnitedHealth Group and Humana are discontinuing Medicare Advantage plans that together cover more than one million seniors, as major insurers retreat from less profitable markets ahead of the 2027 enrollment year, according to Bloomberg.
A UnitedHealth spokesperson confirmed that approximately 390,000 members are in plans being discontinued. Humana has announced cuts affecting around 600,000 enrollees. Wall Street analysts reviewing newly released government data found that CVS Health’s Aetna and Centene are also pulling back on their Medicare Advantage footprints, Bloomberg reported.
UnitedHealthcare will send non-renewal notices dated October 2 to affected members. Those 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, the company said. Members who return to original Medicare will have a special election period through February 28, 2027, to select a new Medicare Advantage plan.
“We can’t ignore the realities facing the healthcare system,” UnitedHealthcare President Bobby Hunter said, according to Reuters. “Funding pressures, rising medical costs, rising drug costs, and increased utilization are affecting every part of healthcare.”
Beyond plan exits, insurers are restructuring the types of plans they offer. Hunter said UnitedHealth is pulling back from markets where preferred provider organization plans — which let members seek care outside the plan’s network and carry higher operating costs for insurers — make up a larger share of its offerings, according to Reuters. Aetna announced it is growing its health maintenance organization footprint, a plan type that confines members to a defined, typically lower-cost provider network. Humana said its 2027 coverage will reach just over 80% of U.S. counties, a contraction from the 85% it serves in the current year, according to Reuters.
Government projections based on insurer feedback put 2027 Medicare Advantage enrollment at roughly 34 million — about 6% fewer than today, Reuters reported.
The pullbacks come after years of mounting financial pressure. The Centers for Medicare & Medicaid Services (CMS) finalized a 2.48% average payment rate increase for Medicare Advantage plans in 2027, translating to more than $13 billion in additional payments — a meaningful improvement over a near-flat 0.09% hike proposed in January that rattled markets. Even so, insurers have said government reimbursement has not kept pace with rising medical costs. The U.S. government has been reducing payments to Medicare Advantage operators since 2024, according to the outlet.