Nearly one million Americans enrolled in Medicare Advantage plans through UnitedHealthcare and Humana are expected to be affected by plan closures as two of the country's biggest insurers scale back portions of their coverage for 2027.
About 390,000 UnitedHealthcare members are enrolled in plans being discontinued, while roughly 600,000 Humana members are in plans the company is exiting. That brings the combined number affected to around 990,000.
The changes are arriving during Medicare's annual open enrollment period, which runs from October 15 through December 7, when beneficiaries can review and change their coverage for the coming year.
The plans being eliminated will end on December 31.
Why It Matters
The planned cuts could require affected beneficiaries to choose another Medicare Advantage plan or return to Original Medicare. That could translate to different provider networks, prescription drug coverage and, in some cases, higher out-of-pocket costs.
Medicare Advantage has become an increasingly important part of the U.S. Medicare system. The Centers for Medicare & Medicaid Services (CMS) estimated that about 34 million people will be enrolled in Medicare Advantage in 2027.
That makes up approximately 47.4 percent of the overall Medicare population.
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What To Know
Beneficiaries whose Medicare Advantage plans are discontinued are not losing Medicare itself.
If a plan is not renewed and the enrollee does not choose another Medicare Advantage plan before the existing coverage ends, Medicare rules generally provide for a return to Original Medicare. However, beneficiaries may need to arrange separate Part D prescription drug coverage because Original Medicare does not automatically include outpatient prescription drug coverage.
“For seniors caught in these changes, the consequences could be significant, as many will have to find new coverage, face higher out-of-pocket costs, or lose supplemental benefits like dental and vision care, making it essential that they carefully compare their options before Medicare’s enrollment deadline,” Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek.
For people affected by the UnitedHealthcare and Humana cuts, the changing plans also mean checking whether their doctors and hospitals remain in-network and whether their medications are covered under a replacement plan.
“The larger concern is that these cancellations expose a growing weakness in America’s reliance on private insurers to deliver government-funded healthcare, where the need to maintain profitability can conflict with beneficiaries’ desire for affordable coverage,” Beene said.
UnitedHealthcare's cuts are concentrated in Preferred Provider Organization, or PPO, plans. PPO plans generally provide beneficiaries with greater flexibility to receive care outside a plan's network.
Newsweek reached out to UnitedHealth Group and Humana for comment.
"For 2027, UnitedHealthcare is making targeted adjustments to our plan offerings, designed to help support long-term sustainability while continuing to provide strong value and access to care," a UnitedHealthcare spokesperson told Newsweek.
"We are preserving the Medicare Advantage benefits members rely on most, including $0 premiums, $0 primary care copays and $0 Tier 1 prescription drug copays, and remain committed to helping members understand their coverage and make the most of their benefits."
Previously, UnitedHealth Group spokesperson Eric Hausman confirmed that about 390,000 UnitedHealthcare members are affected by the plan closures.
“We can't ignore the realities facing the healthcare system,” Bobby Hunter, president of UnitedHealthcare, said, as reported by Reuters. “Funding pressures, rising medical costs, rising drug costs, and increased utilization are affecting every part of healthcare."
At Humana, Chief Financial Officer Celeste Mellet previously said about 600,000 members would be affected by the company's 2027 exits, equivalent to roughly eight percent of its Medicare Advantage enrollment.
“We will work to recapture a significant portion of that volume as we did in 2025,” Mellet said.
In the larger Medicare system, private insurers are facing higher medical utilization and costs. To address this, insurers have looked to reduce benefits or increase cost-sharing heading into 2027, experts say.
“As the government lowers reimbursements, this ultimately impacts the companies providing care,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek.
“Thus, these companies are going to protect their profits any way they can, as they choose to no longer operate in environments that are not conducive to higher margins. This is what happens when for-profit businesses meet something that many consider a foundational right, such as healthcare.”
CMS, however, has projected an overall picture of stability in the Medicare Advantage market.
The agency predicted the weighted average Medicare Advantage monthly premium will decline from $14.37 in 2026 to $12 in 2027, a 16.5 percent decrease. More than 99 percent of Medicare beneficiaries are expected to have access to at least one Medicare Advantage plan, while 97 percent will have access to at least 10 plans.
Why Medicare Advantage Plans Are Changing
CMS finalized policies in April to increase payments to Medicare Advantage plans by 2.48 percent, or more than $13 billion, for 2027.
On top of this, insurers have faced pressure from higher medical spending as members use more health care services.
UnitedHealthcare's 2027 reductions have focused particularly on PPO plans, while Humana has taken a more selective approach to its plan portfolio, looking to target plans rated 3.5 stars or below.
“The larger problem comes as the Medicare Advantage space continues to see shrinking competition and access across the industry,” Thompson said.
“What this will ultimately do is raise costs for those who rely on Medicare Advantage over the longer term, whether through higher deductibles, increased out-of-pocket costs, or a reduction in the number of facilities where they can access care.”
CMS Administrator Mehmet Oz said when the agency announced its outlook for the 2027 market that the government was working to keep Medicare coverage affordable.
"CMS is fighting to keep high-quality care options affordable and accessible for the millions of beneficiaries who rely on Medicare Advantage and Part D prescription drug plans," Oz said.
He also encouraged beneficiaries to use open enrollment to "review their coverage, compare options, and pick the plan that best suits their needs and budget."
What Happens Next
Medicare beneficiaries can change their coverage during annual open enrollment, which ends December 7, and their selections will take effect January 1.
That could mean enrolling in another UnitedHealthcare or Humana offering, selecting a Medicare Advantage plan from another insurer, or moving to Original Medicare and considering separate Part D drug coverage.
“The government has provided substantial financial support for Medicare to keep overall pricing artificially low for quite some time,” Thompson said. “As reimbursement pressures increase and insurers face higher costs, we are starting to see the aftereffects.”
Contact Newsweek editor on this story: Edward Pearcey.