So, UnitedHealth and Humana are making some big moves by discontinuing their Medicare Advantage plans, and it’s going to affect more than a million seniors across the country. According to Bloomberg, these major insurers are stepping back from less profitable markets as we head into the 2027 enrollment year. UnitedHealth confirmed that about 390,000 members are in plans that will be cut, while Humana’s changes impact around 600,000 enrollees. And it’s not just them—analysts are noting that CVS Health’s Aetna and Centene are also scaling back their Medicare Advantage presence.
UnitedHealthcare will be sending out non-renewal notices to affected members starting October 2. Those folks will have until December 31 to sign up for another Medicare Advantage plan for coverage starting January 1, 2027. If they don’t, they’ll automatically switch back to original Medicare, but there’s a special election period until February 28, 2027, to choose a new plan.
Bobby Hunter, president of UnitedHealthcare, pointed out the harsh realities of the healthcare system, citing funding pressures, rising medical and drug costs, and increased utilization. He mentioned that UnitedHealth is pulling back from markets where preferred provider organization plans—those that let members go outside the network and cost more to run—are a big part of their offerings. Meanwhile, Aetna is expanding its health maintenance organization footprint, which keeps members within a tighter, usually cheaper network. Humana said its 2027 coverage will reach just over 80% of U.S. counties, down from 85% this year.
Government projections, based on what insurers have told them, estimate that Medicare Advantage enrollment will drop to about 34 million in 2027—that’s roughly 6% less than today. This comes after years of financial strain. The Centers for Medicare & Medicaid Services finalized a 2.48% average payment rate increase for 2027, adding over $13 billion, which is better than the tiny hike proposed earlier. But insurers still say government reimbursement isn’t keeping up with climbing costs. The U.S. government has been reducing payments to Medicare Advantage operators since 2024, making things tough all around.
