UnitedHealthcare and Humana are ending Medicare Advantage plans for nearly 1 million people
When payers end a plan, they either want to lose those customers altogether or get those customers to switch to a different, typically pared down and more profitable plan, Brooks Conway, a principal at Oliver Wyman actuarial consulting, told Healthcare Brew.
UnitedHealthcare and Humana are reducing benefits and cutting Medicare Advantage (MA) plans for nearly 1 million beneficiaries in 2027. The Centers for Medicare and Medicaid Services (CMS) has deemed the MA 2027 plan options "stable" with lower average premiums, but industry experts say payers are increasing out-of-pocket costs, narrowing networks, and reducing supplemental benefits.
Clover Health, UnitedHealthcare (UHC), Humana, and Centene are prioritizing profit over growth, with Humana being the only payer not cutting dental allowances. Clover's maximum out-of-pocket cost will increase by $1,144 for all sampled members, the highest among the four. Humana plans impacting nearly 600,000 people are also ending.
Payers are shifting enrollees into narrower networks and cutting supplemental benefits, citing a rise in utilization and medical costs. Some payers are exiting MA entirely or canceling specific plans. The two largest MA providers by enrollment, Humana and UHC, are ending plans affecting a cumulative nearly 1 million individuals.
UnitedHealth Group, the parent company of UHC, ended plans in response to high MA utilization and costs, causing a stock decline in 2025. UHC has since reduced MA membership to 7.6 million.
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