The retreat is uneven, with some companies just dropping certain counties
of ConsumerAffairsMajor insurers, including UnitedHealthcare and Humana, are reducing their Medicare Advantage coverage areas for 2027, while two smaller insurers are leaving the general-enrollment Medicare Advantage prescription drug plan market entirely.
Residents of 193 U.S. counties will have no Medicare Advantage plans with prescription drug coverage available for general enrollment in 2027, up from 123 counties in 2026.
Rising medical costs and profitability concerns are driving the retreat, forcing some retirees to find new coverage during Medicare Open Enrollment, which runs through December 7.
Millions of Americans have turned to Medicare Advantage as an alternative to traditional Medicare, attracted by low premiums and extra benefits such as dental, vision and hearing coverage. But for 2027, some of the nation's largest health insurers are scaling back their participation, leaving seniors in certain communities with fewer choices.
A new analysis by health policy research organization KFF (Kaiser Family Foundation) shows that insurers are withdrawing from hundreds of counties, with some companies eliminating their general-enrollment Medicare Advantage prescription drug plans altogether.
The pullback is particularly significant in rural communities, where Medicare Advantage choices were already limited.
According to KFF, 193 counties will have no Medicare Advantage prescription drug plans available for general enrollment next year, compared with 123 counties in 2026. About 638,000 Medicare beneficiaries live in those counties, although not all are currently enrolled in Medicare Advantage.
The changes don't mean Medicare Advantage is disappearing. In fact, most beneficiaries will still have multiple plans to choose from. But the departures illustrate growing financial pressure on a program that has become an increasingly important part of America's health insurance system.
Which companies are pulling back?
KFF's analysis of federal Medicare plan data identifies several major insurers making significant changes for 2027.
UnitedHealth Group, the nation's largest Medicare Advantage insurer, is withdrawing its Medicare Advantage prescription drug plans from 228 counties while entering nine new counties.
Humana, another dominant Medicare Advantage provider, is leaving 62 counties and entering four.
Other insurers are making even larger geographic reductions:
Health Care Service Corporation, which operates several Blue Cross Blue Shield plans, is exiting 498 counties.
Centene, the parent company of Wellcare, is exiting 359 counties while entering 15.
Blue Cross Blue Shield of Michigan is exiting 177 counties and entering one.
Elevance Health is withdrawing from 66 counties while expanding into 10.
Two companies, Clear Spring Health's parent Group 1001 and Molina Healthcare, are leaving the general-enrollment Medicare Advantage prescription drug plan market entirely. Molina will continue offering certain Special Needs Plans.
The departures do not necessarily mean these companies are abandoning Medicare Advantage altogether. Many are concentrating on markets where they believe they can operate profitably.
Meanwhile, some insurers are expanding. Devoted Health is entering 342 additional counties, demonstrating that companies have different assessments of the program's financial opportunities.
Why are insurers pulling out?
The biggest reason appears to be financial.
Medicare Advantage plans receive payments from the federal government to provide Medicare-covered services through private insurance networks. Insurers are responsible for managing the costs of medical care while meeting federal requirements.
But several developments have made that business more challenging.
Medical spending has increased as older Americans use more healthcare services. Prescription drug expenses have also put pressure on insurers, while changes in Medicare payment policies and quality ratings can affect how much companies receive from the government.
Insurers are also adjusting to changes in the Medicare prescription drug program that shift some financial responsibilities.
In Minnesota, where several insurers are withdrawing from numerous counties, industry representatives have pointed to rising pharmacy expenses, increased medical utilization and inadequate reimbursement relative to costs.
The result is a reassessment of markets where companies believe they can no longer earn acceptable returns.
Rather than withdrawing from Medicare Advantage nationwide, insurers are increasingly selecting the counties and populations they believe they can serve sustainably.
Federal officials say the program remains stable
Despite the withdrawals, the Centers for Medicare & Medicaid Services (CMS) says Medicare Advantage remains widely available.
The agency projects that more than 99% of Medicare beneficiaries will have access to at least one Medicare Advantage plan in 2027, while 97% will have at least 10 choices.
CMS also projects that the average monthly Medicare Advantage premium will decline from $14.37 in 2026 to $12 in 2027.
The total number of Medicare Advantage plans nationwide is expected to remain relatively stable, declining from 5,553 to approximately 5,532.
However, those national figures can obscure significant local differences.
Uneven availability of plans
KFF found that the average beneficiary will have 28 Medicare Advantage prescription drug plans available in 2027. But residents of some counties will have dozens of choices, while others will have none.
That makes a beneficiary's ZIP code increasingly important when evaluating Medicare coverage.
What happens if your Medicare Advantage plan disappears?
For beneficiaries whose plans are being discontinued, the immediate concern is maintaining uninterrupted healthcare coverage.
Medicare Advantage insurers generally notify members when their coverage will not be renewed for the following year.
Affected beneficiaries can choose another Medicare Advantage plan, if one is available, or return to Original Medicare.
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Posted: 2026-10-26 12:21:26
