3.2 Million Medicare Advantage Enrollees Lose Plans for 2027
About 3.2 million Medicare Advantage enrollees, nearly 11% of the total, must find new coverage for 2027 because their insurers are dropping their plans, with open enrollment running through December 7.
Newsnibs Staff
- 2026-10-27
- Updated 3:12 AM UTC
Nearly 3.2 million Medicare Advantage enrollees, almost 11% of the total, must find new coverage for 2027 because their insurers are no longer offering their plans, according to a Medicare Market Insights review of federal data. An estimate from the consulting firm Oliver Wyman puts the number of people losing stand-alone Part D drug plans at more than 1 million. Open enrollment runs through December 7. Jared Strock, who founded Medicare Market Insights, said 2.9 million enrollees lost plans for 2026 and about 2 million for 2025.
Humana, UnitedHealthcare, Aetna and several Blue Cross Blue Shield carriers are cutting plans or leaving areas. Humana said its 2027 exits will affect roughly 600,000 members, and that most will be offered an alternative plan. UnitedHealthcare confirmed it is closing a Medicare Advantage plan for roughly 390,000 members, who will have access to another of its Medicare Advantage plans. It said it faces higher costs and increased plan usage, pressures it described as industry-wide. The counts differ because they measure different things. Common Dreams, for example, reported more than 1 million seniors affected, along with cuts to benefits such as routine dental coverage.
A KFF analysis found UnitedHealthcare exiting 228 counties and entering nine, while Humana is leaving 62 and entering four. About 638,000 beneficiaries in 193 counties will have no Medicare Advantage drug plan available for general enrollment, and rural areas are hit hardest. Insurers are also scaling back "giveback" rebates and raising out-of-pocket maximums.
In Massachusetts, Blue Cross Blue Shield is eliminating several Medicare Advantage plans, including specific plans in Middlesex, Essex and Worcester counties, and is limiting new enrollment in the remaining ones on a first-come, first-served basis. The changes touch about 20,000 seniors in the state, and Mass General Brigham Health Plan, Point32Health and Mass Advantage are also trimming offerings. In Minnesota, around 340,000 residents are affected. Blue Cross Blue Shield of Massachusetts cited $275 million in cumulative losses across its plans in 2024 and 2025. "The cost of care to run the Medicare Advantage program has exceeded the premiums that we're getting to administer the program from the federal government," said Sarah Iselin, the company's CEO. The insurer hopes to rebuild its presence in 2028. Tom Stambaugh, 74, of Somerville, said his monthly total will rise to $315, a jump of nearly 200 percent. Sharon Kling, 74, of Sutton, said she is anxious about the paperwork of moving to Original Medicare with a supplemental Medigap plan.
The Centers for Medicare & Medicaid Services, led by Mehmet Oz, announced a payment increase to private insurers of roughly 2.5%, or about 5% when changes to risk assessment payments are included, according to Reuters. The Medicare Payment Advisory Commission estimates the government pays $76 billion more for Medicare Advantage enrollees than it would for the same people in traditional Medicare, and the Congressional Budget Office projects such overpayments could cost $1 trillion over the next decade. Families USA called the increase "a big giveaway" that could have gone toward better benefits. The insurers point to costs that have outrun what they are paid.
Drug coverage is getting more expensive too. Aetna is leaving the stand-alone Part D market in about half of the states, and no stand-alone plan will have a $0 premium for people without Extra Help. CMS projects the average monthly premium at $36, though one plan in Fairfax County, Virginia, goes from $39.60 to $121.90. The Part D deductible rises from $615 to $700 and the out-of-pocket cap from $2,100 to $2,400. The Part B premium climbs $6.60 to $209.50 a month, and the Part B deductible goes from $283 to $292. Medigap policies are expected to rise 10 to 15 percent a year.
Anyone who takes no action when a plan ends is generally moved to Original Medicare on January 1, 2027, which has no drug coverage unless the person joins a separate Part D plan. Going 63 days or more without creditable drug coverage brings a late enrollment penalty of 1% of the national base premium, $41.33 in 2027, for each month without coverage. It is added to the monthly premium for as long as the person has Medicare drug coverage. A special enrollment period runs from December 8 through February 28, 2027, but a new plan starts the first day of the month after the switch, which can mean weeks of paying full price for prescriptions. Free counseling is available through State Health Insurance Assistance Programs.
Florida has 5.3 million Medicare enrollees and will offer 11 stand-alone Part D plans, with monthly premiums from $5.30 to $326. Beatrice Scafidi, a SHINE liaison with the Area Agency on Aging of Palm Beach/Treasure Coast, expects higher costs across the board. "Your co-pays are going to go up, so if you paid $10 bucks to see your primary last year, you may need to pay $20," she said. Separately, Medicare is expanding coverage of GLP-1 weight-loss drugs such as Wegovy and Zepbound under a federal bridge initiative that runs through 2027.
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