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UnitedHealthcare, Humana Medicare Advantage cancellations to affect 1M
NewsNation • • business
Key Points:
- UnitedHealthcare and Humana are canceling nearly one million Medicare Advantage plans, primarily Preferred Provider Organizations, due to financial losses from high healthcare usage and rising medical costs.
- UnitedHealthcare will cut about 390,000 plans, focusing on those allowing out-of-network doctor visits, while Humana will discontinue around 600,000 plans, leading to fewer benefits and higher out-of-pocket costs for affected seniors.
- The cancellations aim to protect corporate profits by encouraging customers to switch to less costly plans with more restrictions on providers and services.
- Major insurers are broadly scaling back benefits, reducing dental coverage, increasing out-of-pocket expenses, and eliminating $0 prescription drug plans, shifting more costs onto seniors.
- Despite cuts, insurers are expanding specialized plans for severe illnesses, which receive higher government subsidies and cannot charge Medicare recipients extra.
