Two of the nation’s largest healthcare insurers, UnitedHealth Group and Aetna (CVS Health), are reducing their Medicare Advantage offerings in select U.S. markets, impacting hundreds of thousands of beneficiaries. This move reflects broader industry trends as insurers adjust to rising healthcare costs and changes in federal reimbursement rates.
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UnitedHealth Group Reduces Coverage
UnitedHealth Group, the largest Medicare Advantage provider in the country, will discontinue its plans in 109 U.S. counties, affecting approximately 180,000 members. The company cited operational streamlining and financial pressures, including high patient usage and insufficient federal reimbursements, as reasons for the decision.
Aetna (CVS Health) Cuts Plans
Aetna is closing around 90 Medicare Advantage plans across 34 states, primarily affecting PPO plan members. The decision follows a trend among insurers adjusting to reduced federal payments and rising healthcare expenses.
Broader Industry Impact
Other insurers, including Anthem (Elevance Health), Humana, and UCare, are also scaling back or exiting certain Medicare Advantage markets. Overall, nearly 1 million beneficiaries nationwide are expected to be affected.
Table: Medicare Advantage Reductions by Major Insurers (2026)
| Insurer | Plans Discontinued | States/Counties Affected | Approximate Members Impacted |
|---|---|---|---|
| UnitedHealth Group | 109 counties | Nationwide | 180,000 |
| Aetna (CVS Health) | 90 plans | 34 states | Not specified |
| Anthem (Elevance Health) | Various | Selected markets | Part of ~1 million total |
| Humana | Various | Selected markets | Part of ~1 million total |
| UCare | Various | Selected markets | Part of ~1 million total |
What Beneficiaries Should Do
Affected seniors should have received an Annual Notice of Change (ANOC) outlining the discontinuation of their current plan. Beneficiaries have several options during the Medicare Open Enrollment Period (October 15–December 7):
- Enroll in a new Medicare Advantage plan.
- Switch to Original Medicare and select a standalone Part D prescription drug plan.
- Consider a Medigap policy for additional coverage.
Failing to take action could result in a lapse of prescription drug coverage and potential late enrollment penalties.
Resources for Assistance
- Medicare Plan Finder – Compare available Medicare plans.
- State Health Insurance Assistance Programs (SHIPs) – Free counseling to help navigate changes.
Frequently Asked Questions (FAQ)
Q1: Why are these insurers reducing Medicare Advantage plans?
A1: Rising healthcare costs and lower federal reimbursement rates have led insurers to scale back coverage in certain markets.
Q2: How will I know if my plan is affected?
A2: Beneficiaries should receive an Annual Notice of Change (ANOC) from their insurer explaining plan discontinuation.
Q3: What are my options if my plan is discontinued?
A3: You can enroll in a new Medicare Advantage plan, switch to Original Medicare with Part D, or consider a Medigap policy.
Q4: What happens if I don’t take action?
A4: Not selecting a new plan may result in a lapse of prescription drug coverage and potential late enrollment penalties.