Nearly 1 Million Americans Face Medicare Advantage Changes as UnitedHealthcare and Humana Cut Plans

Millions of older Americans are reviewing their healthcare coverage as UnitedHealthcare and Humana prepare to discontinue Medicare Advantage plans affecting nearly 1 million people in 2027. The changes come amid rising medical expenses, shifting insurer strategies and growing concerns about the affordability of healthcare for retirees.

UnitedHealthcare expects approximately 390,000 members to be affected by plan closures, while Humana has indicated that around 600,000 members are enrolled in plans scheduled to end. Together, these changes represent a significant disruption for people who may need to find alternative coverage before the new plan year begins.

The timing is particularly important because Medicare's annual open enrollment period is already underway. From October 15 through December 7, 2026, beneficiaries can compare available plans, review their healthcare needs and make changes to coverage for 2027.

For many seniors, selecting a new plan involves more than comparing monthly premiums. Prescription drug costs, access to doctors, hospital networks, dental benefits and out-of-pocket expenses can all influence how much healthcare ultimately costs.

Medicare Advantage, also known as Medicare Part C, allows private insurance companies to provide Medicare-covered benefits under contracts with the federal government. Many plans also offer additional benefits, such as prescription drug coverage, dental care, vision services and hearing assistance.

However, insurers have been reassessing their Medicare Advantage businesses as healthcare utilisation and medical costs rise.

UnitedHealthcare and Humana are adjusting their plan offerings to concentrate on products and markets they consider financially sustainable. This includes withdrawing selected plans, reducing exposure to less profitable offerings and encouraging members to consider other available products.

UnitedHealthcare's changes particularly affect certain preferred provider organization (PPO) plans, which typically provide greater flexibility to receive care from providers outside a plan's preferred network, although at potentially higher costs.

Humana has also targeted plans it considers less financially attractive, while indicating that it hopes to retain a substantial proportion of affected members through alternative offerings.

These decisions reflect a broader change in the Medicare Advantage industry. Insurers are balancing the need to attract customers with increasing medical expenses, regulatory requirements and pressure to maintain sustainable profit margins.

For beneficiaries, however, the commercial reasons behind these decisions matter less than the practical question: will their existing healthcare coverage still meet their needs in 2027?

Plan cancellations are only one part of the changes facing Medicare beneficiaries. Some plans that remain available are also adjusting their benefits, cost-sharing requirements and provider networks.

Industry analyses have identified reductions in certain dental allowances, higher deductibles and increased out-of-pocket expenses across parts of the Medicare Advantage market. Some plans are also narrowing their provider networks, potentially limiting the doctors and hospitals members can use at preferred rates.

This means that staying with the same insurer does not necessarily guarantee that a member's healthcare coverage will remain unchanged.

A plan may retain its name and offer a relatively low monthly premium while introducing higher copayments for specialist visits, changing prescription drug costs or reducing supplemental benefits.

These changes can have a considerable impact on retirees who rely on regular medical appointments, specialist treatment or ongoing prescription medication.

At the same time, the Centers for Medicare & Medicaid Services has projected that weighted average Medicare Advantage premiums will fall by approximately 16.5% in 2027. Lower average premiums, however, do not necessarily mean that every beneficiary will pay less overall.

Monthly premiums are only one component of healthcare spending. Deductibles, copayments, coinsurance, prescription costs and the availability of preferred healthcare providers must also be considered.

The result is a complicated market in which some beneficiaries may find more affordable coverage, while others could face higher total expenses or fewer benefits.

For people affected by plan cancellations, choosing replacement coverage requires careful consideration of individual healthcare needs.

Confirm that your primary care physician, specialists and preferred hospitals participate in the replacement plan. A plan with a lower premium may become more expensive or less convenient if your regular providers are outside its network.

Review the plan's drug formulary, pharmacy network, deductibles and copayments. Even a small change in prescription coverage can significantly affect annual expenses for people taking multiple medications.

Look beyond monthly premiums. Compare deductibles, specialist fees, hospital cost-sharing and the plan's maximum out-of-pocket limit for covered services. Estimate costs based on the care you realistically expect to need.

Supplemental benefits can be valuable, but allowances, eligibility requirements and covered services vary. Check the actual terms rather than relying on headline benefit amounts.

Beneficiaries may compare other Medicare Advantage plans or consider Original Medicare with a separate Part D prescription drug plan and, where appropriate, Medigap supplemental insurance.

Switching from Medicare Advantage to Original Medicare does not automatically guarantee access to a Medigap policy without medical underwriting. Eligibility and guaranteed-issue protections depend on individual circumstances and applicable state rules, so beneficiaries should investigate these details before switching.

What the Changes Mean for the Future of Medicare Advantage

The withdrawal of plans affecting nearly 1 million people highlights the changing economics of private Medicare coverage.

For insurers, reducing exposure to less profitable plans may help control financial risk. For beneficiaries, however, the same strategy can mean fewer familiar options, more complicated comparisons and potential disruptions to established care.

The situation also illustrates why national averages can conceal important local differences. Although federal projections suggest lower average Medicare Advantage premiums in 2027, the choices available to an individual depend on their county, insurer, medical requirements and eligibility.

The coming enrollment period will therefore be important not only for affected members but also for the wider Medicare market. Beneficiaries who compare coverage early may have more time to resolve questions about providers, prescriptions and replacement policies before the deadline.

UnitedHealthcare and Humana are ending Medicare Advantage plans affecting approximately 990,000 members in 2027. With plan benefits and out-of-pocket costs also changing across parts of the market, beneficiaries should verify their coverage, compare alternatives and make informed decisions before December 7, 2026.