{"id":595447,"date":"2026-08-25T11:16:16","date_gmt":"2026-08-25T11:16:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/595447\/"},"modified":"2026-08-25T11:16:16","modified_gmt":"2026-08-25T11:16:16","slug":"health-insurers-are-dropping-medicare-advantage-plans-and-nearly-3-million-older-americans-will-be-affected","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/595447\/","title":{"rendered":"Health insurers are dropping Medicare Advantage plans \u2014 and nearly 3 million older Americans will be affected"},"content":{"rendered":"

\"An<\/a> PeopleImages\/Shutterstock <\/p>\n

Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. <\/p>\n

Thousands of retirees are receiving notification that their Medicare Advantage plan won’t be available next year, and there’s nothing they can do about it except find another option. <\/p>\n

This year alone, 1 in 10 Medicare Advantage policyholders face forced disenrollment, according to an analysis by researchers at the Johns Hopkins Bloomberg School of Public Health (1). That’s as many as 2.9 million Americans. <\/p>\n

Must Read <\/p>\n

In 12 states, more than 1 in 5 policyholders are losing their plan. Older Americans in Vermont will be particularly hard hit, with 92% of policyholders forced to find other options. <\/p>\n

The first major insurer to announce its exit from multiple markets in 2027 is Humana, which is doing so for the second consecutive year. This will impact 600,000 members, Humana’s CFO Celeste Mellet said during a Q2 earnings call, adding that plan exits will be used to “prioritize higher-performing plans (2).” <\/p>\n

During the first half of 2026, Humana reported a profit of $1.9 billion. <\/p>\n

“Humana’s decision is another sign that Medicare Advantage insurers are prioritizing profit growth over enrollment growth,” Shannon Benton, executive director of The Senior Citizens League, told MarketWatch (3). “We expect to hear more from the major insurers in the coming weeks.” <\/p>\n

Why Medicare Advantage plans are disappearing <\/p>\n

Medicare Advantage (MA), which operates at the county level, is a private-plan alternative to traditional Medicare. As of 2026, more than half (55%) of eligible Medicare beneficiaries were enrolled in MA plans, according to KFF (4), while nearly a quarter (23%) of MA enrollees had a special needs plan. <\/p>\n

Enrollment in MA plans had been growing steadily for more than two decades, attracting older Americans away from traditional Medicare with its dental, vision and hearing benefits \u2014 often with low or zero monthly premiums. But that changed in 2025. <\/p>\n

“Multiple large insurers have now substantially reduced their Medicare Advantage offerings for 2026, citing financial pressures and policy uncertainty,” the Johns Hopkins research notes (1). <\/p>\n

Federal policy changes aimed at reducing overpayments are resulting in lower reimbursement rates from the government to insurers. That, along with rising medical costs, is squeezing insurers’ profitability margins, which is why many are cutting benefits or exiting markets altogether. <\/p>\n

The Johns Hopkins researchers found that annual forced disenrollment rates averaged around 1% between 2018 and 2024. In 2025, however, that rate jumped to 6.9% and is expected to reach 10% in 2026. <\/p>\n

Smaller plan providers are withdrawing, too. Clear Spring Health, which previously served Colorado, Georgia and Illinois, shut down its Medicare Advantage operations effective June 1 (5), while Presbyterian Health Plan will exit most markets in 2027, impacting about 30,000 policyholders (6). <\/p>\n

Rural counties with lower MA penetration are more likely to be impacted, according to Johns Hopkins researchers. And in these counties, there isn’t always much choice to begin with. <\/p>\n

“Despite most beneficiaries having access to plans operated by several parent organizations, Medicare Advantage enrollment is highly concentrated among a small number of parent organizations,” wrote KFF (4). <\/p>\n

KFF data shows that the UnitedHealth Group accounts for more than a quarter (26%) of MA enrollment in 2026, followed by Humana at 20%. Together, these two providers account for almost half of enrollment across the nation. But in a whopping 28% of counties, UnitedHealth and Humana account for at least 75% of MA enrollment. <\/p>\n

“For seniors, especially those in rural areas, the concern is that insurer exits could mean fewer choices and less competition,” Benton told MarketWatch (3). <\/p>\n

Read More: Millionaires under 43 hold only 25% of their wealth in stocks. Here’s where their money is actually going<\/a> <\/p>\n

What older Americans can do <\/p>\n

If your insurer is exiting your area, you’ll be notified in advance (so check your mailbox). You should be notified by Sept. 30 for any changes that take effect in 2027. <\/p>\n

If you’ve been disenrolled from your MA plan, it doesn’t mean you’re suddenly without any coverage. You’ll automatically move back to traditional Medicare (Parts A and B), which covers hospital care and medical services. <\/p>\n

But your drug coverage will change, as will perks like dental and vision. <\/p>\n

You can switch to another MA plan or move back to traditional Medicare, add a stand-alone Part D drug plan and apply for supplemental Medigap coverage for deductibles and coinsurance. <\/p>\n

You can also sign up for a new MA plan during the Annual Enrollment Period (from Oct. 15 to Dec. 7). If you’ve been disenrolled from your current plan, you typically qualify for a Special Enrollment Period, though this window is limited (typically around 60 days). <\/p>\n

Before signing up for a new plan, check that your primary care doctor and specialists are covered in the new plan’s network. Additionally, check that your medications are covered under its formulary (drug list). You can verify them on the Medicare Plan Finder tool (7) or call the plan provider directly. <\/p>\n

Even if you haven’t been disenrolled, it’s always a good time to go over any changes to your current plan. As insurers look to trim costs, they might reduce some of your perks, like dental and vision, or raise copays. They might also reduce their network of doctors and hospitals. <\/p>\n

If you’ve been disenrolled and aren’t sure what your options are, contact your State Health Insurance Assistance Program \u2014 there’s one in every state \u2014 for free Medicare counseling at SHIPhelp.org (8) or 1-800-MEDICARE. <\/p>\n

Build a robust emergency fund <\/p>\n

As you figure out your next steps, one of the best ways to protect your retirement plan is to give yourself a financial cushion. A healthy emergency fund can help cover an unexpected medical bill without forcing you to scramble for cash or dip into your long-term savings. <\/p>\n

As of 2025, the average 65-year-old couple retiring is estimated to spend about $12,850 on healthcare during their first year of retirement, according to Fidelity (9). <\/p>\n

That’s why having several months’ worth of expenses set aside can be especially valuable once you leave the workforce. If an unexpected bill lands during a market downturn, you may not want to sell investments to cover it \u2014 particularly if those investments have already lost value. <\/p>\n

Selling shares when markets are down can turn a temporary paper loss into a permanent one. And although tapping a 401(k) or IRA may seem like an easy way to get cash, it can also undermine the nest egg you’ve spent decades building. <\/p>\n

Rather than having every dollar tied up in the market, consider setting aside enough readily available cash to cover several months of essential expenses and unexpected bills. A high-yield account can be a useful place for that money, because it allows your emergency savings to earn interest while remaining accessible at all times. <\/p>\n

For instance, a high-yield account like a Wealthfront Cash Account<\/a> can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it. <\/p>\n

A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%<\/a>. <\/p>\n

That’s 10 times the national deposit savings rate, according to the FDIC’s July report. <\/p>\n

Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000\/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%<\/a>. <\/p>\n

With no minimum balances or account fees, as well as 24\/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks<\/a>. <\/p>\n

Get long-term care insurance <\/p>\n

An emergency fund can only go so far. For many retirees, the bigger financial risk may be an expense that lasts for months or even years: long-term care. <\/p>\n

According to the Administration for Community Living, someone turning 65 today has nearly a 70% chance of needing some form of long-term care during their lifetime (10). That could mean receiving help at home, moving into an assisted-living facility or eventually requiring nursing care. <\/p>\n

In most cases, Medicare doesn’t cover the ongoing costs of long-term custodial care (11). <\/p>\n

That’s where long-term care insurance can come into play. Having a policy in place before you need care may help cover eligible expenses and reduce the amount you ultimately have to pull from your retirement savings. <\/p>\n

Long-term coverage through GoldenCare<\/a> can help cushion that blow, offering long-term care insurance for the costs of in-home assistance, nursing homes or assisted living facilities. <\/p>\n

GoldenCare offers different options based on your needs<\/a>, including hybrid life or annuity with long-term care benefits, short-term care, extended care, home healthcare, assisted living and traditional long-term care insurance. <\/p>\n

All you have to do is fill in a bit of information about yourself, and GoldenCare will provide you with a free quote for long-term care coverage<\/a> that fits your needs and budget. <\/p>\n

– With files from Vawn Himmelsbach <\/p>\n

You May Also Like <\/p>\n

Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now<\/a>. <\/p>\n

Article sources <\/p>\n

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>. <\/p>\n

Johns Hopkins Bloomberg School of Public Health (1<\/a>); Fierce Healthcare (2<\/a>); MarketWatch (3<\/a>); KFF (4<\/a>); SmartMatch (5<\/a>); HealthLeaders Media (6<\/a>); Medicare.gov<\/a> (7<\/a>), (11<\/a>); State Health Insurance Assistance Program (8<\/a>); Fidelity (9<\/a>); Administration for Community Living (10<\/a>) <\/p>\n

This article provides information only and should not be construed as advice. It is provided without warranty of any kind. <\/p>\n","protected":false},"excerpt":{"rendered":"PeopleImages\/Shutterstock Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Thousands…\n","protected":false},"author":2,"featured_media":595448,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[163,521,30619,85,218938,46,10196,150938,6943,24456,269300],"class_list":["post-595447","post","type-post","status-publish","format-standard","has-post-thumbnail","category-healthcare","tag-health","tag-healthcare","tag-humana","tag-il","tag-insurers","tag-israel","tag-johns-hopkins","tag-kff","tag-medicare-advantage","tag-older-americans","tag-special-needs-plan"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/595447","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=595447"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/595447\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/595448"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=595447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=595447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=595447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}