Key Points
- UnitedHealth (UnitedHealthcare) and (Humana) will cancel some (Medicare Advantage) programs, affecting approximately 990,000 Americans.
- Rising medical costs are leading to the reduction of insurance benefits, cutbacks in benefits, and an increase in out-of-pocket expenses for policyholders.
- Affected elderly individuals must review their coverage options before the registration deadline on December 7th to ensure they are covered by medical insurance for the year 2027.
UnitedHealth and Humana will cancel some Medicare Advantage programs in 2027, affecting nearly 1 million Americans.
According to a report by Fortune on October 20th, these two largest Medicare Advantage insurance companies are canceling plans that cover approximately 990,000 people in order to cope with higher medical expenses and the pressure to improve profitability.
As medical costs rise, UnitedHealth and Humana cut costs
UnitedHealth confirmed that its plan to close certain Medicare Advantage programs in 2027 will affect approximately 390,000 members. The company is focusing on reducing its efforts in the Preferred Providers Organization ( PPO ) program, while giving priority to maintaining coverage under the Health Maintenance Organization ( HMO ) program and the Special Needs Program ( SNPs ).
At the same time, Humana will cancel the plan to cover approximately 600,000 members, which accounts for about 8% of its total number of Medicare Advantage participants.
During a financial report conference call in July, Humana Chief Financial Officer Celeste Mellet stated that the company was targeting plans with poor performance, rather than making widespread cuts across the entire product portfolio. Humana also hopes to retain a large portion of these customers by encouraging them to switch to other plans.
Medicare Advantage Members Face Reduced Benefits and Rising Costs
In addition to canceling some programs, UnitedHealth and Humana are also reducing certain benefits for 2027. According to a report by Healthcare Dive on October 1st, which cited research from Leerink Partners, UnitedHealth's measures to cut dental benefits have affected nearly 70% of its members.
Humana also reduced or cancelled the Medicare Part B premium rebate benefit for approximately 62% of its members, however, the company maintained the co-payment amount for primary healthcare and slightly increased the dental subsidy amount.
What do these changes mean for the elderly in 2027?
Americans whose Medicare Advantage plans have been cancelled need to review their coverage options before the registration deadline on December 7th.
Affected members may be able to transfer to another Medicare Advantage program, or return to the original Medicare (or Original Medicare), but the fees, network of medical service providers, and supplementary coverage options may vary.
