Medicare Advantage plans cut for 1 million seniors, insurers say
Two of the largest private insurers are discontinuing some Medicare Advantage plans amid higher costs and a spike in utilization.
Key points
- Humana and UnitedHealthcare are discontinuing some Medicare Advantage plans starting next year, affecting about 1 million people aged 65 or older.
- Humana's plan exit will affect roughly 600,000 enrollees, and UnitedHealthcare is closing a plan for about 390,000 members.
- Both insurers say most affected members will be offered alternative plans, and UnitedHealthcare cited higher costs and increased plan usage.
Two of the largest private health insurers in the U.S. are canceling some Medicare Advantage plans for seniors, CBS News has learned. Humana and UnitedHealthcare each said they are discontinuing the plans beginning next year, ending healthcare coverage for a total of about 1 million people who are 65 or older. Healthcare Brew first reported the insurers' moves.
Scope of the plan exits
Humana's decision to exit the plan will affect roughly 600,000 enrollees, according to a company spokesperson. The company noted that most of its affected members will be offered an alternative plan.
UnitedHealthcare also confirmed that it is closing a Medicare Advantage plan for roughly 390,000 of its members, who will have access to another UnitedHealthcare Medicare Advantage plan.
We regularly evaluate our Medicare offerings to ensure we can continue providing affordable, coordinated care and access to high-quality care.
— Humana
What the insurers said
Humana said in a statement to CBS News that it regularly evaluates its Medicare offerings and that, as previously disclosed, it anticipates plan exits for 2027 will impact approximately 600,000 members.
UnitedHealthcare said it is facing higher costs and increased plan usage, pressures that are affecting the whole healthcare industry.
