Humana and UnitedHealth Medicare Advantage cuts reflect rising provider costs

August 17, 2026 at 10:47 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Humana and UnitedHealthcare are cutting Medicare Advantage plans covering more than 1.1 million seniors, citing high costs and slimmer profit margins. Humana will exit some plans next year, and UnitedHealthcare has dropped plans serving over 600,000 members. The cuts come as Medicare Advantage enrollment has grown to 35 million people.

Key Facts

Humana will exit some Medicare Advantage plans next year, affecting more than 500,000 seniors.
UnitedHealthcare jettisoned Medicare Advantage plans that served more than 600,000 seniors.
In Wyoming, South Dakota, New Hampshire, North Dakota, and Vermont, at least 60% of Medicare Advantage enrollees faced terminated plans this year, according to KFF research.
More than 35 million people are enrolled in Medicare Advantage, about 55% of all eligible Medicare beneficiaries.
UnitedHealth Group and Humana together account for nearly half of all Medicare Advantage enrollees nationwide.

Plan Exits

Humana will exit some Medicare Advantage plans next year, forcing more than 500,000 seniors to find new health plans. UnitedHealthcare jettisoned Medicare Advantage plans that served more than 600,000 seniors. This year Humana exited three states and 194 counties, affecting around 500,000 members. KFF research shows the share of Medicare Advantage enrollees facing terminated plans reached 60% or higher in Wyoming, South Dakota, New Hampshire, North Dakota, and Vermont. Humana has downsized plans for a second consecutive year, and Humana and UnitedHealth together account for nearly half of all Medicare Advantage enrollees.

Cost Pressures

Humana CFO Celeste Mellet attributed the coverage cutback to high costs and slimmer profit margins in certain markets. Insurers have been steadily shuttering plans, trimming benefits, and increasing deductibles as enrollment has mushroomed. Plan sponsors have complained about people using more healthcare services than anticipated and about rising healthcare costs across the board. Medicare Advantage plans typically cover prescription drugs, eyeglasses, dental care, and fitness classes, often with very low or no premiums. David Lipschutz, associate director of the nonprofit Center for Medicare Advocacy, said plans pull out of certain areas "to maximize profit and minimize losses."

Market Scrutiny

More than 35 million people are enrolled in Medicare Advantage, about 55% of all eligible Medicare beneficiaries, up from 24 million six years ago. UnitedHealth Group is currently the largest Medicare Advantage insurer, and combined with Humana it accounts for nearly half of all enrollees nationwide. David Lipschutz said plan sponsors make business decisions more attuned to the needs of shareholders than plan enrollees, leaving individuals scrambling to figure out their coverage. Lipschutz said the plan pullouts reflect the challenges of a healthcare system overly reliant on private, for-profit insurance companies.