Key facts
- Millions of older adults must find new healthcare coverage for 2027 as insurers exit markets.
- There will be no Medicare Advantage plans in 181 counties in 2027, up from 67 in 2026.
- The average Medicare beneficiary can choose from 35 plans in 2027, down from 39 in 2026.
- Roughly 3.8 million to 5 million enrollees will be forced to find new coverage.
- Insurers like UnitedHealth Group, Humana, and Aetna are exiting markets or reducing offerings.
- Beneficiaries face potentially higher out-of-pocket costs for drugs and medical care.
Millions of older Americans are facing a reduced selection of private Medicare Advantage plans and potentially higher costs for healthcare and prescriptions in 2027. Insurers are withdrawing from or scaling back their offerings in various markets, citing the need to protect profit margins rather than pursue subscriber growth.
The Medicare Advantage open-enrollment period, which runs from October 15 to December 7, will see an average beneficiary able to choose from 35 plans, a decrease from 39 plans in 2026, according to the healthcare policy and research firm KFF. This reduction means some beneficiaries will find their current coverage is no longer an option for the upcoming year.
More significantly, 181 counties will have no Medicare Advantage plans available in 2027, a substantial increase from 67 counties in 2026, according to a report by Modern Healthcare. This leaves approximately 3.8 million to 5 million enrollees needing to find new coverage. Major insurers such as UnitedHealth Group, Humana, and CVS Health's Aetna are among those making these market adjustments.
Experts warn that these changes could lead to greater financial hardship for seniors on fixed incomes, who may face substantially higher out-of-pocket expenses for drugs, doctor visits, and hospital care. The situation contrasts with claims from the Trump administration that Medicare Advantage is stable and premiums will be lower. Beneficiaries are advised to carefully review their annual notice of change documents from their insurers to understand specific changes to benefits, costs, and provider networks for 2027.