Home / Health / Medicare Advantage Plans Vanish for Millions
Medicare Advantage Plans Vanish for Millions
9 Oct
Summary
- Millions of seniors face plan cancellations for 2027.
- Insurers are exiting markets, reducing choices.
- Out-of-pocket costs for prescriptions and care will rise.
Enrollment for Medicare Advantage begins this month, with millions of older Americans confronting significantly fewer insurance options for 2027. Insurers, including major players like UnitedHealth and Centene, are withdrawing from certain markets due to unprofitability. This results in plan cancellations for approximately five million beneficiaries, forcing them to find new coverage, often at higher prices.
The impact is particularly severe in rural areas, where some counties now offer no or very limited Medicare Advantage plans. Beneficiaries face increased out-of-pocket expenses for prescriptions and medical care, exacerbating financial strain for those on fixed incomes. This situation contrasts with administration claims of program stability and lower premiums.
Some insurers are scaling back their offerings, citing changing policies and rising medical costs. For instance, Health Care Service Corp. is reducing its presence in several states. UnitedHealth alone is causing around 390,000 people to switch policies. While some plan benefits like dental care are being reduced, administrative claims of program stability persist.
The consequences are stark for individuals like Ann and Mick Kalber in Hawaii, who received notice their plan was being discontinued, bracing for hundreds of dollars in increased costs. Michele Harris-Padron in California will see premiums rise by $30 monthly. In Minnesota's Crow Wing County, brokers are advising clients to switch to traditional Medicare, incurring an estimated $330 monthly premium for supplemental plans and separate drug coverage.
The number of counties nationwide with no Medicare Advantage plans available has risen to 187. This turmoil affects traditional Medicare beneficiaries too, as temporary subsidies for Part D prescription drug plans are ending, requiring an estimated four million people to pay monthly premiums. Experts suggest that fully funding Medicare Advantage and stable policymaking are crucial to prevent this situation from becoming the new normal.
