2027 Medicare Advantage: Premium drops mask benefit cuts and network shrinkage
Major insurers are cutting 2027 Medicare Advantage plans and benefits to boost margins, despite lower premiums.
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healthcare8 days ago
2027 Medicare Advantage: Lower premiums mask rising out-of-pocket costs and benefit cuts
Despite a 16% drop in average monthly premiums for 2027, Medicare Advantage insurers are raising out-of-pocket costs and cutting supplemental benefits like dental care to boost margins. Major carriers including UnitedHealth Group and Humana are reducing plan availability and increasing cost-sharing, a shift driven by investor pressure for higher profits. While insurers publicly emphasize affordability and core coverage, federal data and independent analyses reveal significant reductions in benefits for millions of seniors. Open enrollment for 2027 plans begins October 15, requiring beneficiaries to carefully compare plans to avoid unexpected cost increases or loss of provider access.
Humana Exits 600,000 Medicare Advantage Members Ahead of 2027
Humana says it will terminate plans covering about 600,000 Medicare Advantage members in 2027 (roughly 8% of its MA base), with disenrollment letters going out in September 2026. The exit triggers a 63-day guaranteed-issue Medigap window (Plan G commonly) to buy coverage without health underwriting, plus ongoing enrollment options during AEP and a special enrollment period. Members should confirm their disenrollment date, secure Medigap quotes within the window, and compare Original Medicare plus a Medigap plan vs staying with another MA plan, as costs can vary widely.
Humana trims Medicare Advantage footprint again to chase margins in 2027
Humana plans to exit more Medicare Advantage plans in 2027 to hit its sustainable margin target of at least 3%, cutting its MA footprint by about 600,000 members (roughly 8% of its 7.2 million MA enrollment) and aiming to reassign about 240,000 to other Humana plans. The exits come as MA star ratings and CMS payments pressure profits, even as Humana beat quarterly expectations but lowered its non-adjusted earnings guidance; executives remain confident in improving star ratings toward 2028 and in growth initiatives like CenterWell.
Humana tops Q2, keeps at least $9 2026 EPS forecast
Humana beat Q2 estimates with adjusted EPS of $7.61 on revenue of $40.87 billion, driven by strength in insurance and CenterWell; the company maintained its 2026 adjusted EPS target of at least $9, with medical costs in line with expectations and a medical benefit ratio of 91.2%. Management expects 2027–2028 profitability improvements and more stable costs, though the stock fell about 6% after the report.
Medicare Rates Spark Selloff in Major U.S. Insurers
The Trump administration proposed Medicare insurer payment rates that were lower than analysts expected, triggering a sharp selloff in stocks of UnitedHealth Group, Humana, and CVS Health as investors priced in tighter reimbursements.
Major Insurers Cut Medicare Advantage Plans for 2026 Amid Rising Premiums and Access Concerns
Major U.S. health insurers CVS Health, Humana, and UnitedHealth are reducing their Medicare Advantage offerings in 2026 due to decreased government reimbursements and rising healthcare costs, leading to plan cuts across numerous counties and states, affecting hundreds of thousands of beneficiaries.
Humana Shares Drop Amid Medicare Bonus Challenges
Humana's shares fell significantly after reports indicated that the criteria for earning Medicare bonus payments are becoming more difficult, potentially impacting the company's revenue from Medicare Advantage plans.
Cigna's Stock Rises as Humana Merger Talks End
Cigna Group has confirmed it is not pursuing a merger with Humana, despite recent speculation. The company remains focused on acquisitions that align with its strategic and financial goals. Cigna plans to reaffirm its 2024 earnings outlook and expects significant growth in 2025. The company's third-quarter sales increased by 30% year-over-year, driven by strong performance in its Evernorth Health Services division. Cigna's stock rose nearly 8% following the announcement, while Humana's stock fell over 6%.
"Health Insurers Hit Hard as Medicare Advantage Rates Fall"
Health insurers like UnitedHealth and Humana saw their stocks tumble after the Biden Administration announced that final Medicare Advantage rates in 2025 won't change from initial plans in January, with UnitedHealth and Humana being the largest Medicare Advantage players. Other insurers like CVS Health and Cigna also retreated, as the Centers for Medicare and Medicaid Services revealed that private Medicare Advantage rates will increase an average 3.7% in 2025, impacting various players in the market.
Humana Relocates Headquarters from Iconic Tower in Downtown Louisville
Humana, the only Fortune 500 company headquartered in Kentucky, is planning to vacate its iconic 27-story headquarters building in downtown Louisville as part of a cost-cutting move, leaving a significant amount of office space empty. The company, which no longer needs the building due to its embrace of hybrid and remote work, will consolidate its Louisville headquarters into its Waterside-Clocktower campus on the east side of downtown, citing significant cost savings and the modern facilities at the new location. The move raises fresh doubts about the company's long-term commitment to the city, and the future use of the iconic tower remains uncertain.
"Iconic Humana Tower in Downtown Louisville Vacated as Company Relocates Headquarters"
After nearly four decades, Humana is vacating its downtown Louisville headquarters at 500 Main Street and consolidating into the Waterside and Clocktower Buildings due to employees embracing hybrid work. The complete exit from the current headquarters will occur over the next 18 to 24 months, and the company is working with city agencies to identify potential future occupants for the property.
Humana Tower in Downtown Louisville to Be Vacated by Headquarters
Humana Tower in downtown Louisville will be vacated over the next 18 to 24 months, with employees being relocated to the renovated Waterside Building and nearby Clocktower Building as the company consolidates its campus footprint. The decision comes as Humana adapts to more flexible work styles and reduced daily office utilization, aiming to improve the on-site experience for its employees. Despite the iconic status of the Tower, the company plans to work with city agencies to identify potential future uses for the property, while remaining a strong anchor for the Downtown Louisville business community.
Humana Consolidates Headquarters, Vacates Downtown Louisville Tower
Humana, the only Fortune 500 company headquartered in Kentucky, is planning to vacate its iconic headquarters building in downtown Louisville and consolidate its employees in the Waterside-Clocktower campus on the east side of downtown. The decision to vacate the Humana Tower comes after the company's significant reduction in its hometown footprint over the last five years. The move is primarily driven by the need for more space, with the company's east side buildings offering 40% more square footage than the tower. Humana has also filed a lawsuit against the firms involved in the tower's construction, citing "latent defects" discovered in 2019. The company expects to realize cost savings by vacating the tower and is working with the city to determine its future use.
"Expansion Plans: Two New Senior Care Centers Set for Capital Region"
CenterWell Senior Primary Care, a part of Humana’s Primary Care Organization, is planning to open new senior care centers in the Baton Rouge and New Orleans areas later this year, as part of an ambitious growth plan to open between 30 and 50 new facilities through 2025. The new facilities are expected to open in late spring or early summer and are part of a growing market for senior care in the region, with Ochsner also recently opening a senior care clinic in Bocage.