Why Medicare Advantage providers are cutting plans — and what to do if your coverage is affected

Medicare Advantage providers are reducing their offerings, affecting over half a million seniors as they seek to cut costs and boost profits. Last year, Humana exited some plans, and UnitedHealthcare also terminated plans serving more than 600,000 seniors. This pattern follows a similar trend from the previous year. The shift is driven by rising healthcare costs and provider expenses.

Medicare Advantage, enjoyed by more than 35 million people, provides additional benefits beyond traditional Medicare, such as prescription drugs, eyeglasses, dental care, and fitness classes. However, the growing number of enrollees has led to increased costs for insurers. As a result, insurers are exiting plans that are not profitable, often reducing benefits and raising deductibles.

While most seniors still have options, some may face higher out-of-pocket costs and reduced benefits. Transitioning to traditional Medicare or choosing a different Medicare Advantage plan may be necessary.