Here’s how much insurers are cutting Medicare Advantage plans for 2027

Key Points:

• Medicare Advantage (MA) insurers are significantly reducing the number of plans offered for 2027, with major companies like UnitedHealthcare and Humana cutting hundreds to thousands of plans to improve profit margins amid rising medical costs.
• Although the total number of MA plans nationally remains relatively stable, many beneficiaries may face plan eliminations, higher cost sharing, and loss of benefits, continuing the disruption experienced during the volatile 2026 enrollment period.
• Geographically, major insurers are scaling back their presence in numerous counties, with Centene exiting 344 counties, while smaller insurers like Devoted Health are expanding coverage areas.
• Despite CMS assurances of plan stability and broad coverage options, premiums for MA-Prescription Drug plans are rising, and cost sharing—including maximum out-of-pocket limits and Part D deductibles—is increasing significantly, potentially leading to higher out-of-pocket expenses for seniors.
• The conflicting messages between CMS's optimistic outlook and the data showing market contraction and benefit reductions may confuse seniors during the October 15 Medicare open enrollment period, complicating their plan selection process.