Nearly one million older Americans could soon lose their health insurance as private companies are cutting members off their Medicare Advantage plans.
Medicare Advantage offers a one-in-one approach, with additional coverage for dental, vision and hearing that original Medicare doesn’t provide. Medicare Advantage plans also often have low-cost or even $0 premiums.
While it might be an affordable option for seniors, it can also become a profit drain on healthcare companies offering it.
UnitedHealthcare and Humana, the two largest Medicare Advantage providers by enrollment, are ending plans for nearly one million members combined.
About 390,000 UnitedHealthcare members will be impacted by Medicare Advantage plan closures next year, a spokesperson for the healthcare company told The Independent.
But “most impacted members will continue to have access to another UnitedHealthcare Medicare Advantage plan,” the spokesperson said, adding, “We are providing personalized support to help members understand their options and make informed coverage decisions.”
Medicare Advantage plans for about 600,000 Humana members will also be cut in 2027, Humana Chief Financial Officer Celeste Mellet said during an earnings call in July.
But she told investors, “We will work to recapture a significant portion” of the 600,000 people impacted.
Healthcare Brew first reported about the 1 million plan closures Friday. The Independent has reached out to Humana for comment.
News of the plan shakeup at UnitedHealthcare and Humana comes as older Americans start to choose their healthcare coverage for next year.
Medicare open enrollment for 2027 started last Thursday and will run until December 7. During open enrollment, those eligible can pick between original Medicare and Medicare Advantage. They can also join or drop a prescription drug plan.
Healthcare costs and affordability have topped the list of economic anxieties for Americans.
Sixty-two percent of adults are somewhat or very worried about being able to afford healthcare costs for themselves and their families, according to a poll from health policy organization KFF conducted in June.
"What do we do if one of us gets sick?" Stacy Cox, a self-employed photographer from Utah who is one of 3 million Americans who dropped out of the Affordable Care Act marketplace this year due to increased premiums and deductibles, said in an interview with Reuters.
"Do we just die? Because we sure can't afford to fight it, and that's a really scary place to be in."
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