Humana and UnitedHealthcare to Terminate Medicare Advantage Plans for 1 Million Seniors in 2027

Key points

• Humana is discontinuing plans affecting approximately 600,000 members, stating it regularly evaluates offerings to ensure affordable and high-quality care.
• UnitedHealthcare is closing a plan for roughly 390,000 members, citing higher costs and increased usage pressures across the healthcare industry.
• Both insurers indicated that most affected members will be offered alternative Medicare Advantage plans within their respective companies.
• The 2027 open enrollment period began on October 15, 2026, prompting immediate attention to these coverage changes.
• Healthcare Brew initially reported the insurers' decisions before confirmation from company spokespeople.

Background

This move occurs amid a broader trend of insurer withdrawals from the Medicare Advantage market. Previous reporting indicated that approximately 5 million seniors faced plan cancellations over the past two years, particularly in rural areas. While average premiums for 2027 are projected to drop by 16% to $12, experts warn that this may mask benefit cuts and network shrinkage. Additionally, stand-alone Part D prescription drug premiums are expected to rise slightly to $36, potentially increasing out-of-pocket costs for those losing comprehensive coverage.

How outlets are covering it

CBS News focuses on the scale of the disruption, highlighting that Humana and UnitedHealthcare are the largest private insurers making these moves, affecting a combined 1 million seniors. The Brainerd Dispatch provides a localized perspective, noting that residents in Crow Wing and Wadena counties in Minnesota face severely limited options, with some potentially facing no affordable plan choices. The Dispatch also highlights the financial impact on individuals, such as a Brainerd resident whose monthly costs are expected to rise from $62 to $600. While CBS emphasizes the corporate rationale of cost pressures, the Brainerd Dispatch underscores the human cost and the potential for financial hardship, including late-enrollment penalties for prescription drugs. Both sources agree on the financial strain driving these decisions but differ in their focus on the national scale versus local accessibility and affordability.

Why it matters

The discontinuation of these plans affects a significant portion of the senior population, potentially leading to higher out-of-pocket costs and reduced access to comprehensive healthcare coverage. As insurers exit unprofitable markets, seniors may be forced to choose between healthcare and essential living expenses, exacerbating financial insecurity among older adults. The broader market strain could lead to further plan cancellations and increased premiums, impacting the stability of healthcare coverage for millions of Americans.

What to watch

Affected members will need to review their options during the 2027 open enrollment period, which runs through December 7, 2026. Seniors losing Medicare Advantage coverage may be automatically placed into original Medicare, requiring them to select a Part D prescription drug plan and potentially a Medigap policy to cover gaps in coverage. Insurers are expected to continue evaluating their offerings to ensure financial viability, while policymakers may need to intervene to ensure adequate coverage options in affected areas.