UnitedHealthcare Is Dropping About 13% of Its Medicare Advantage Plans Across 18 States for 2027

Many seniors rely on Medicare Advantage plans to save money in retirement while also accessing the healthcare they need, but certain plans may be discontinued by 2027. About one million seniors enrolled in Medicare Advantage plans may have to find different options as major insurers have announced they're discontinuing their Medicare Advantage plans. About 390,000 members are enrolled in UnitedHealth plans that are being discontinued, while Humana's cuts affect about 600,000 enrollees. This major plan discontinuation could cause upheaval for many seniors.

Here's what to know about why the plans are being discontinued, who's affected, and what to do if your plan is no longer available in 2027.

The UnitedHealthcare Medicare Advantage exit

UnitedHealthcare appears to have dropped about 13% of its Medicare Advantage plans across 18 states, according to a Leerink note reported by Axios. Many of the discontinued plans are preferred provider organization (PPO) plans; such plans allow members to receive care from outside of the network, but they're also more expensive for insurers to operate.

"We can't ignore the realities facing the healthcare system," UnitedHealthcare President Bobby Hunter said, Reuters reports. "Funding pressures, rising medical costs, rising drug costs, and increased utilization are affecting every part of healthcare."

Additional insurers discontinuing Medicare Advantage plans

UnitedHealthcare's plan discontinuation hits particularly hard because Humana has also announced the discontinuation of plans affecting about 600,000 enrollees. In 2026, Humana's coverage reached 85% of U.S. counties, but in 2027, that coverage is shrinking and should reach just over 80% of counties.

Other insurers are making changes, too. Aetna is expanding its health maintenance organization (HMO) plans; the plans usually require enrollees to receive care from a lower-cost provider network. Presbyterian Health is exiting most Medicare Advantage markets, and Molina Healthcare has dropped standard individual Medicare Advantage plans.

How seniors are being affected by the changes

Seniors in certain geographic areas are feeling the effects of these discontinued plans more than others. Medicare Advantage plans heavily rely on local hospital and physician networks, so insurers are increasingly cutting plans in counties that have high medical costs and low federal reimbursement. Rural areas are often affected the most.

Insurers are also cutting some benefits to some plans, leaving seniors with less overall value. For example, some insurers are removing the giveback benefits that pay part of a member's Medicare Part B premium. Some are cutting major dental benefits, raising copays for specialist visits, and changing the structure of out-of-pocket drug costs.

What affected members need to do

UnitedHealthcare announced it would send non-renewal notices dated October 2 to affected members. Depending on a member's location, UnitedHealthcare might offer other plans in the area in 2027.

Members affected by the plan discontinuation may enroll in another Medicare Advantage plan, but they must do so between October 15, 2026 and December 31, 2026 for a January 1, 2027 effective date. (Open enrollment ends December 7, but affected UnitedHealthcare members have until December 31 to change plans.)

The option to return to Original Medicare

If members don't enroll in a different plan, they'll automatically be returned to Original Medicare on January 1, 2027. If the member's Medicare Advantage plan included drug coverage, they'll lose that drug coverage in 2027.

Members who return to Original Medicare have a special election period allowing them to enroll in another Medicare Advantage plan until February 28, 2027. But a doctor leaving a network in the middle of the year doesn't create a special enrollment period, so it's critical to check networks before December 7 to ensure you're choosing a plan that makes sense for you and includes your doctors.

How the Medigap guaranteed-issue rights clause may help

Affected seniors may also choose to switch to Original Medicare and Medigap. Medigap policies help fill the cost-sharing gaps of Original Medicare. Signing up for Medigap may be difficult outside of a guaranteed-issue window, since insurers may be able to reject your application, charge higher premiums based on your health history, or add on a waiting period based on a pre-existing condition.

Guaranteed-issue windows prevent insurers from denying applications, imposing a waiting period, or charging a higher premium, and seniors affected by the plan discontinuations may qualify for such a window. If a senior's Medicare Advantage plan stops operating in their service area or no longer offers coverage where they live, that senior may have a guaranteed right to buy Medigap Plans A, B, C, F, K, or L.

Bottom line

UnitedHealthcare's Medicare Advantage plan discontinuation is just one example of a broader trend affecting the healthcare industry. As more insurers discontinue or scale back their plans, seniors are left to search for new coverage and might have fewer options to choose from.

Regardless of whether your Medicare Advantage plan is being discontinued, it's always a good idea to shop for a plan and compare prices. Since annual enrollment closes on December 7, start researching plans early so you can make the right moves and choose the best plan for your needs.

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