Humana, UnitedHealthcare drop Medicare Advantage plans for seniors

Two of the largest Medicare Advantage insurers are ending some of their plans next year. Humana and UnitedHealthcare are discontinuing plans that cover about 1 million people aged 65 or older combined, the companies' figures show.

The cuts come during Medicare's annual open enrollment period. Seniors whose plans are ending will need to decide what coverage they want for next year.

Key facts

• Humana said it expects its 2027 plan exits to affect about 600,000 members.
• UnitedHealthcare confirmed it is closing a plan for about 390,000 members.
• NPR says Medicare open enrollment runs through Dec. 7.
• People losing a plan qualify for a special enrollment period through Feb. 28, 2027, NPR reports.
• NPR says doing nothing could mean being moved to traditional Medicare without a drug plan.

What the insurers said

Humana said most members in plans that are closing will be offered a different plan. In a statement, the company said, "we anticipate plan exits for 2027 will impact approximately 600,000 members."

UnitedHealthcare confirmed it is shutting down a Medicare Advantage plan for roughly 390,000 members. The company said those members will be able to switch to another UnitedHealthcare plan. UnitedHealthcare pointed to rising costs and greater use of its plans as the reasons.

It is not known which states and counties the two companies' exits cover.

Background

NPR explains that Medicare Advantage lets private insurers run Medicare coverage for older Americans who pick it instead of traditional Medicare, which the federal government runs.

The program is large. NPR reports that about 35 million people are in Medicare Advantage, more than half of Medicare's 70 million beneficiaries.

Plan closures are not new. Citing JAMA, NPR says 2.9 million seniors were in Medicare Advantage plans that shut down last year.

Some areas are losing plans altogether. NPR says KFF found that 193 mostly rural counties will have no Medicare Advantage plans, up from about 120 last year.

Who is affected

Together, the Humana and UnitedHealthcare cuts reach about 1 million people. Humana said about 600,000 of its members are affected, and UnitedHealthcare said its plan closure covers about 390,000 members.

The total across all insurers is likely higher, but estimates differ. NPR says an analysis of insurer announcements shows at least 2 million people will be affected this year. Other early estimates cited by NPR range from 3.2 million to 5 million.

What it means for you

Doing nothing carries risk. NPR reports that if a plan ends and the member does not choose a new one, the insurer may move the member into another Medicare Advantage plan. Otherwise, the person will land in traditional Medicare without a supplemental or drug plan, NPR says.

There is some good news for people with health problems. NPR says people leaving a plan that is ending can sign up for Medigap without the usual limits, which can help those with pre-existing conditions.

Waiting too long could also limit choices. NPR reports that insurers can cap enrollment in some plans this year, so a plan someone wants could fill up.

Practical steps

• Check your mail: NPR says insurers closing plans should have sent letters in the first week of October. Plan status can also be checked on Medicare.gov.
• Get free help: NPR suggests calling the State Health Insurance Assistance Program, or SHIP, a free service required by federal law. Each state's program can be found at shiphelp.org.
• Double-check coverage: NPR advises confirming doctor and drug lists from Medicare's Plan Finder with a doctor's office or a counselor.
• Protect personal data: NPR says to take care when sharing personal information online.
• Mind the dates: Open enrollment ends Dec. 7, and the special enrollment period for people losing a plan runs until Feb. 28, 2027, NPR says.

What happens next

People who want coverage to start on that date need to enroll by Dec. 31, according to NPR.

FAQ

What happens if a plan ends and the member does nothing? NPR says the insurer may assign the member to another Medicare Advantage plan, or the person will go into traditional Medicare.

What is the deadline to pick a new plan? NPR says open enrollment runs through Dec. 7. People whose plan is ending have a special enrollment period until Feb. 28, 2027.

Can someone losing a plan get Medigap? Yes. NPR says people leaving an ending plan can enroll in Medigap without the usual restrictions.

Why is UnitedHealthcare closing a plan? The company cited higher costs and more plan use.

How many people are in Medicare Advantage? NPR says about 35 million, more than half of all Medicare beneficiaries.

Are some areas losing all their Medicare Advantage plans? Yes. NPR says KFF found 193 mostly rural counties will have no plans, up from about 120 last year.

Could a new plan fill up? NPR says insurers can limit enrollment in some plans this year, so waiting could mean a preferred plan is full.

When does new coverage start? NPR says coverage chosen during open enrollment starts Jan.

How can people check whether their plan is ending? NPR says closing plans should have mailed letters in early October. Plan status is also listed on Medicare.gov, NPR says.

Where can people get free help? NPR points to the State Health Insurance Assistance Program, which can be found at shiphelp.org.