About 1 million older Americans will lose their current Medicare Advantage plan next year after Humana and UnitedHealthcare, the two largest companies in the market, confirmed they are discontinuing plans for 2027.
Humana said its plan exits will affect roughly 600,000 members, and UnitedHealthcare said it is closing a plan with about 390,000 members, CBS News reported Friday, Oct. 23. Both insurers said most affected members will be offered another of their plans. UnitedHealthcare pointed to higher costs and heavier use of care, pressures it said are hitting the whole industry.
The cuts land in the middle of Medicare’s annual open enrollment period, which began Oct. 15 and ends Dec. 7. Anyone whose plan is going away needs to act, or risk ending up in coverage they didn’t choose.
How widespread are the Medicare Advantage cuts?
The two giants are not alone. A KFF analysis of federal plan data published Oct. 9 found that Medicare beneficiaries in 193 counties will have no Medicare Advantage plan with drug coverage available for general enrollment in 2027, up from 123 counties this year. About 638,000 people live in those counties, most of them rural. Every county in Alaska is in that group.
By KFF’s count, UnitedHealth Group is pulling out of 228 counties entirely while entering nine, and Humana is leaving 62 counties and entering four. Health Care Service Corporation, a Blue Cross Blue Shield company, is exiting 498 counties, the most of any insurer. Centene is leaving 359. Molina and Clear Spring Health are leaving the market for Medicare Advantage drug plans altogether, though Molina will keep some special needs plans.
Not every company is shrinking. Devoted Health is entering 342 new counties, and CVS Health, which owns Aetna, is entering 63 while leaving 186.
Florida is affected too. KFF noted that Health Care Service Corporation will no longer offer Medicare Advantage drug plans in Miami-Dade County, one of the country’s most competitive markets.
How many seniors could have to switch plans?
Estimates vary. Counting Humana and UnitedHealthcare alone gets to about 1 million people. Broader preliminary estimates of everyone whose plan is ending run from about 2 million to 5 million, NPR reported Saturday. Last year, 2.9 million people were in Medicare Advantage plans that closed, according to research published in JAMA.
Most seniors still have plenty of options. The average Medicare beneficiary can choose from 28 Medicare Advantage drug plans in 2027, KFF found. But the choices are shrinking in some big cities as well as in rural areas, and the plan that replaces a canceled one may come with a different doctor network, drug list or costs.
What happens if your plan is ending and you do nothing?
Insurers that are closing plans were supposed to send letters to members in early October. If you don’t pick a new plan, your insurer may move you into another of its Medicare Advantage plans, or you will be returned to traditional Medicare, which does not include a drug plan or supplemental coverage.
That second outcome can be costly for anyone who takes regular prescriptions. Going without drug coverage can also lead to a late-enrollment penalty if you sign up later.
One new wrinkle for 2027: insurers can cap enrollment in some of the plans they offer. If you wait too long, a plan you want could already be full.
What are your options if your Medicare Advantage plan is canceled?
You can choose a different Medicare Advantage plan, or switch to traditional Medicare and add a stand-alone Part D drug plan. People whose plan is leaving their area generally get a guaranteed right to buy certain Medigap supplemental policies, even with pre-existing conditions, which can make a move back to traditional Medicare more realistic.
Timing matters. Open enrollment runs through Dec. 7 for coverage that starts Jan. 1. People whose plans are ending also get a special enrollment period that lasts until Feb. 28, 2027, but to have new coverage in place on Jan. 1 they need to enroll by Dec. 31.
Where can seniors get help choosing a new plan?
Start with Medicare’s Plan Finder, which lets you compare plans by your doctors, drugs and ZIP code. Because provider and drug lists can be wrong, confirm with your doctor’s office before you enroll.
Every state also runs a free State Health Insurance Assistance Program, known as SHIP, with counselors who give unbiased advice. You can also call 1-800-MEDICARE. If you use a broker, ask whether they sell plans from every carrier in your area and whether they will talk with you about traditional Medicare. Be careful about giving your phone number to websites that promise plan comparisons, since some sell that information.
A plan change is also a good moment to review the extra benefits you rely on, such as coverage for home medical equipment and mobility aids, hearing, dental or vision. For more on staying safe and independent at home, see HNC’s guide to aging in place.
Key Takeaways
- Humana is ending plans for about 600,000 members and UnitedHealthcare for about 390,000 in 2027, roughly 1 million seniors in total.
- 193 counties will have no Medicare Advantage drug plan for general enrollment in 2027, up from 123, according to KFF.
- Medicare open enrollment runs Oct. 15 to Dec. 7. People whose plan is ending have until Feb. 28, 2027, but should enroll by Dec. 31 for Jan. 1 coverage.
- Doing nothing can leave you in a plan you didn’t pick, or in traditional Medicare without drug coverage.
- Free help is available through your state’s SHIP program and Medicare’s Plan Finder.
Frequently Asked Questions
How do I know if my Medicare Advantage plan is ending?
Check your mail for a notice from your insurer, which plans that are closing were expected to send in early October. You can also log in to your Medicare.gov account to see your plan’s status for 2027.
What is the deadline to pick a new Medicare plan?
Open enrollment ends Dec. 7. If your plan is ending, you have a special enrollment period through Feb. 28, 2027, but you need to enroll by Dec. 31 for coverage to start Jan. 1.
Can I switch back to traditional Medicare?
Yes. You can return to traditional Medicare and add a Part D drug plan. If your plan is leaving your area, you generally have a guaranteed right to buy certain Medigap policies.
Where can I get free, unbiased help?
Your State Health Insurance Assistance Program (SHIP) offers free counseling. You can also call 1-800-MEDICARE or use the Plan Finder on Medicare.gov.
