UnitedHealthcare, Humana, Aetna, and others are reducing plans or pulling out of some markets
October 5, 2026
Some of the nation's largest health insurers are eliminating Medicare Advantage plans or withdrawing from hundreds of counties for 2027.
Humana says its plan reductions will affect about 600,000 members, while UnitedHealthcare, Aetna, and Centene are also significantly shrinking their footprints.
Seniors should carefully review notices from their current insurer and compare coverage during Medicare's annual enrollment period, which runs Oct. 15 through Dec. 7.
Millions of Medicare beneficiaries may find fewer choices when they shop for Medicare Advantage coverage for 2027, as some of the nation's largest health insurers continue to retreat from plans and markets that have become less profitable.
UnitedHealthcare, Humana, CVS Health's Aetna, Centene, and Elevance Health are among the major insurers reducing their Medicare Advantage offerings. At the same time, a number of smaller and regional insurers are leaving the individual Medicare Advantage business entirely.
The pullback comes as insurers contend with higher medical expenses, increased use of healthcare services by seniors, and changes in federal Medicare payments.
Data from the Centers for Medicare and Medicaid Services (CMS) show that the total number of Medicare Advantage plans nationwide will decline only slightly, from 5,553 in 2026 to about 5,532 in 2027. More than 99% of Medicare beneficiaries will still have access to at least one Medicare Advantage plan and 97% will have at least 10 choices, according to CMS.
But those national numbers can obscure significant changes at the local level.
Big insurers shrink their footprints
UnitedHealthcare, the country's largest Medicare Advantage insurer, is dropping individual Medicare Advantage coverage in about 140 counties, according to an analysis of CMS data.
The company has also confirmed that it is discontinuing some plans and has sent non-renewal notices to affected members.
Aetna is reducing its individual Medicare Advantage footprint by about 123 counties, while Centene is pulling back from approximately 344 counties. Elevance Health, which operates many Blue Cross and Blue Shield plans, is reducing its footprint by about 56 counties.
Humana presents a somewhat different picture. Its overall geographic footprint is shrinking only modestly, but the company previously disclosed that plan exits would affect roughly 600,000 Medicare Advantage members. Humana has said it hopes to move about 40% of those affected customers into other Humana plans.
Among major carriers, Centene is making one of the largest percentage reductions, cutting its individual Medicare Advantage county footprint by nearly 20%.
Eleven insurers that offered individual Medicare Advantage coverage in 2026 are leaving that market completely for 2027, according to an analysis of CMS data. They include Wellmark Blue Cross Blue Shield, Blue Cross Blue Shield of North Dakota, Blue Cross Blue Shield of Mississippi's Medicare Advantage operation, Providence Health Plan, and several health system-owned plans. Some companies will continue offering specialized Medicare Advantage coverage.
Why insurers are pulling back
Medicare Advantage has historically been an attractive business for insurers because the federal government pays private companies to provide Medicare benefits. But the economics have become more challenging.
Older Americans have been using more medical services, pushing insurers' costs higher than many companies anticipated. At the same time, changes in federal reimbursement and Medicare's risk-adjustment system have put additional pressure on profit margins.
As a result, insurers have increasingly focused on keeping plans and markets where they believe they can earn acceptable returns.
The changes don't necessarily mean insurers are abandoning Medicare Advantage. In many cases, companies are eliminating one plan while continuing to sell another in the same area.
Insurers are also increasingly emphasizing Special Needs Plans, or SNPs, which serve people with certain chronic conditions, people who qualify for both Medicare and Medicaid, or people requiring institutional care. The number of Special Needs Plans is expected to rise about 9% in 2027, even as other Medicare Advantage offerings contract.
Plans that remain may also cost more to use
Losing a plan isn't the only issue beneficiaries should watch.
Some insurers are reducing supplemental benefits or increasing the amount members must pay when they receive care. An analysis of 2027 offerings found reductions in such benefits as dental allowances and Medicare Part B premium "givebacks."
Another analysis found that the average maximum out-of-pocket limit among Medicare Advantage plans is increasing about 9% for 2027.
That means consumers shouldn't judge a plan solely by its monthly premium. In fact, CMS projects the weighted average Medicare Advantage premium will fall from $14.37 a month in 2026 to $12 in 2027, a decline of 16.5%.
A plan with a low or zero premium, however, could still become more expensive if copayments rise, drug coverage changes, dental or vision benefits shrink, or the out-of-pocket maximum increases.
What Medicare beneficiaries should do now
People enrolled in Medicare Advantage should have received an Annual Notice of Change explaining how their existing plan will change in 2027. Consumers whose plans are being discontinued should also receive a non-renewal notice.
Those documents deserve close attention.
Consumers should check whether their doctors and hospitals will remain in the network, whether their prescription drugs are still covered, and what they will pay for specialist visits, hospital stays, and other services. Supplemental benefits such as dental, vision, hearing, and over-the-counter allowances should also be compared with this year's coverage.
Medicare's annual enrollment period begins Oct. 15 and runs through Dec. 7, with coverage selections taking effect Jan. 1.
Beneficiaries can use the Medicare Plan Finder at Medicare.gov or call 1-800-MEDICARE to compare available plans.
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