Key takeaways
- UnitedHealthcare and Humana are discontinuing Medicare Advantage plans affecting approximately 990,000 Americans
- Rising healthcare costs are driving plan cuts, reduced benefits and higher out-of-pocket expenses
- Affected seniors must review their coverage options before the Dec. 7 enrollment deadline to secure healthcare coverage for 2027
UnitedHealthcare and Humana are discontinuing Medicare Advantage plans affecting nearly 1 million Americans in 2027.
According to an Oct. 20Fortune report, the two largest Medicare Advantage insurers are eliminating plans covering approximately 990,000 people to respond to higher medical expenses and pressure to improve profitability.
UnitedHealthcare and Humana Cut Plans as Healthcare Costs Rise
UnitedHealthcare confirmed that approximately 390,000 members will be affected by its Medicare Advantage plan closures for 2027. The company is focusing its reductions primarily on Preferred Provider Organization (PPO) plans while prioritizing Health Maintenance Organization (HMO) coverage and Special Needs Plans (SNPs).
Humana, meanwhile, is discontinuing plans covering approximately 600,000 members, which is roughly 8% of its Medicare Advantage enrollment.
During a July earnings call, Humana CFO Celeste Mellet explained that the company was targeting lower-performing plans rather than implementing widespread reductions across its entire portfolio. Humana also hopes to retain a big portion of the affected customers by encouraging them to enroll in alternative plans.
Medicare Advantage Members Face Reduced Benefits and Higher Costs
Beyond plan closures, UnitedHealthcare and Humana are scaling back certain benefits for 2027. An Oct. 1Healthcare Dive report, referencing research from Leerink Partners, found that UnitedHealthcare's dental benefit reductions affected almost 70% of its members.
Humana also reduced or eliminated Medicare Part B premium givebacks for approximately 62% of its members, although it maintained primary care copays and modestly increased dental allowances.
What Medicare Advantage Changes Mean for Seniors in 2027
Americans whose Medicare Advantage plans are being discontinued will need to review their coverage options ahead of the Dec. 7 enrollment deadline.
Affected members may be able to switch to another Medicare Advantage plan or return to Original Medicare, although costs, provider networks and supplemental coverage options may differ.