UnitedHealth and Humana cut Medicare Advantage plans for 2027, affecting over a million seniors

UnitedHealth Group and Humana are discontinuing Medicare Advantage plans that together cover more than a million seniors, as major insurers pull back from less profitable markets ahead of the 2027 enrollment year, according to Bloomberg.

A UnitedHealth spokesperson confirmed that approximately 390,000 members are in plans being discontinued. Humana has announced cuts affecting around 600,000 enrollees. Analysts reviewing newly released government data found that CVS Health’s Aetna and Centene are also shrinking their Medicare Advantage footprints, Bloomberg reported.

UnitedHealthcare is sending non-renewal notices dated October 2 to affected members. Those members can enrol in another Medicare Advantage plan during open enrollment, which runs October 15 to December 7, for coverage beginning January 1, 2027 — or they will automatically revert to original Medicare. Members whose plans end also have a special enrollment period from December 8 through the last day of February to join another plan.

“We can’t ignore the realities facing the healthcare system,” UnitedHealthcare President Bobby Hunter said, according to Reuters. “Funding pressures, rising medical costs, rising drug costs, and increased utilization are affecting every part of healthcare.”

An analyst note from Leerink reported by Axios last month said UnitedHealthcare appeared to have dropped about 13% of plans offered across 18 states, with Humana cutting benefits the most — removing “giveback” benefits that pay part of beneficiaries’ Part B premiums, trimming major dental benefits, and raising specialist copays. A HealthScape Advisors survey of health plan leaders from 35 plans earlier this year found nearly 70% expected their overall Medicare Advantage benefit packages to be less generous in 2027.

Together, UnitedHealthcare and Humana cover almost 15 million Medicare Advantage seniors — more than 40% of the entire programme population — giving their decisions outsized impact on the market.

Sources

• Bloomberg (via NewsBeep): https://www.newsbeep.com/us/869307/
• Reuters: https://www.reuters.com/business/healthcare-pharmaceuticals/medicare-advantage-health-plans-may-cut-extra-benefits-2027-2026-05-01/
• Healthcare Dive: https://www.healthcaredive.com/news/medicare-advantage-benefit-cuts-2027-unh-hum/831861/
• Medical Daily: https://www.medicaldaily.com/medicare-advantage-members-facing-2027-plan-exits-expected-benefit-cuts-should-check-doctor-478541