Two of the largest US health insurers are canceling Medicare Advantage plans for about 1 million people aged 65 and older starting in 2027.
By the numbers: Humana expects its 2027 plan exits to affect roughly 600,000 members, a company spokesperson said. UnitedHealthcare confirmed it is closing a Medicare Advantage plan covering about 390,000 members.
- "We regularly evaluate our Medicare offerings to ensure we can continue providing affordable, coordinated care and access to high-quality care," Humana said in a statement to CBS News.
Zoom in: UnitedHealthcare pointed to higher costs and increased plan usage, pressures it said are affecting the whole healthcare industry. Both insurers say most affected members will be offered an alternative plan.
The big picture: Medicare Advantage lets private insurers run Medicare, and more than half of the 70 million Americans on Medicare choose it. For 2027, KFF counts 193 counties with zero Medicare Advantage plans on offer, up from about 120 last year.
- Dallas, Minneapolis, Seattle, Houston and Portland each have between a quarter and a third fewer plans available, per KFF's analysis of federal data.
- This is the third straight year of large-scale exits. Last year 2.9 million seniors were in Medicare Advantage plans that closed, and preliminary estimates for 2027 run from about 2 million to 5 million people affected.
What's next: Open enrollment runs through December 7. Anyone whose plan is closing should have received a letter in early October, and plan status can be checked by logging in at Medicare.gov. A closing plan also unlocks Medigap enrollment without the usual pre-existing condition restrictions.
Why it matters: Insurers can cap enrollment on some plans this year, so a plan you want may fill up while you wait. Members who choose nothing get assigned to another Advantage plan or to traditional Medicare, with no supplemental or drug coverage attached.
