Health insurers are dropping Medicare Advantage plans — and nearly 3 million older Americans will be affected

Nearly 3 million seniors are set to lose their Medicare Advantage plans, leaving them with no choice but to find alternative coverage. This impending disenrollment is due to private insurers reducing their offerings, citing financial pressures and policy uncertainty, according to a study by Johns Hopkins Bloomberg School of Public Health.

Over half of eligible Medicare beneficiaries are enrolled in Medicare Advantage plans, but the enrollment has been declining as insurers cut benefits or exit markets. The rate of forced disenrollment has surged from 1% in 2018 to a projected 10% in 2026. Vermont residents are particularly affected, with 92% of policyholders facing plan exits.

Humana, which has done this twice, will impact 600,000 members. For those affected, traditional Medicare (Parts A and B) becomes the default coverage, but drug coverage and perks like dental and vision change. There are limited options during the disenrollment period, but seniors can explore new plans during the Annual Enrollment Period from October 15 to December 7.