Major Insurers Cut Medicare Advantage Offerings, Creating Confusion for Seniors

NEW YORK, USA — Major health insurers, including UnitedHealth Group, Humana, and CVS Health’s Aetna, are scaling back their Medicare Advantage (MA) offerings for the upcoming year, a move that could create confusion for seniors seeking coverage options. The changes come as the industry braces for reduced government reimbursement.

The Centers for Medicare and Medicaid Services (CMS) has been reducing payments to Medicare Advantage plans as part of an effort to decrease spending. Companies like UnitedHealth reported significant losses as seniors have been utilizing more healthcare services than anticipated.

For the year 2026, there will be a slight decline in overall MA plans available to seniors, dropping to an average of 41.9 plans per county, down from 42.8 in 2025, according to healthcare consultancy ATI Advisory. A significant factor in this decline is that many major providers are pulling back from certain service areas, impacting the options available to consumers.

UnitedHealth will operate in one fewer state and 109 fewer counties, which affects roughly 180,000 seniors. Similarly, Humana is also retracting its offerings in three states and 194 counties, while Aetna will operate in 100 less. In contrast, Elevance and Centene are slightly increasing their presence in the market, adding states and counties to their offerings.

This reduction in service area from major insurers means that hundreds of thousands of Medicare Advantage customers could be shopping for new plans during the open enrollment period starting October 15. Experts warn that many seniors may reenroll in coverage without fully understanding the changes, potentially leading them to choose less generous plans.

According to a recent eHealth survey, many seniors do not review their Medicare options each year, opting instead to automatically renew their existing coverage. This lack of awareness could leave enrollees stranded with less favorable plans.

The average monthly premium for general enrollment MA plans is expected to increase by $2.84, or nearly 22%, from 2025. This change comes as large insurers are raising deductibles and out-of-pocket maximums, which could further increase costs for consumers.

Several major payers are also reducing benefits. For instance, Aetna and UnitedHealthcare have significantly cut allowances for over-the-counter health supplies in their non-special needs plans. Industry experts note that these trends will lead to a more complicated and potentially more expensive landscape for seniors, who may have fewer options and less coverage moving forward.

Despite these challenges, analysts predict that MA enrollment will remain stable, although it may fall below the threshold of covering more than half of all Medicare enrollees for the first time in two decades.

Open enrollment for Medicare starts on October 15 and ends on December 7, giving seniors a crucial window to explore their options.