UnitedHealthcare and Humana end Medicare Advantage plans covering nearly 1 million members
UnitedHealthcare will close Medicare Advantage plans affecting about 390,000 members, while Humana will discontinue plans covering roughly 600,000 members in 2027. Both insurers say the moves target lower‑return plans and aim to shift enrollees to more profitable products, with UnitedHealthcare focusing on PPO plans and Humana on under‑performing offerings. The changes are driven by rising medical utilization and cost pressures.
Why it matters
The companies expect the plan closures to improve margins by moving members to higher‑margin HMO and SNP products. Analysts note the shift reflects a broader “prioritization of margin over growth” among major Medicare Advantage carriers.
Key facts
- 1UnitedHealthcare will impact about 390,000 members with plan closures. fortune.com
- 2Humana will affect about 600,000 members, roughly 8% of its 7.2 million Medicare Advantage enrollment. fortune.com
- 3UnitedHealthcare is focusing its reductions primarily on Preferred Provider Organization (PPO) plans. fortune.com
- 4Humana CFO Celeste Mellet said the company is targeting lower‑performing plans rather than a uniform cut. coinpaper.com
- 5UHC President Bobby Hunter said the cuts concentrate on PPO plans while prioritizing HMO and Special Needs Plans. fortune.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.