Key facts
- Medicare Advantage plans are becoming less available in 2027.
- 193 counties will lack Medicare Advantage plans in 2027.
- Reverse mortgage proceeds are not treated as taxable income by the IRS.
- Unspent reverse mortgage proceeds can affect eligibility for Medicaid and SSI.
A decline in the availability of Medicare Advantage plans in 2027 could increase demand for reverse mortgages as seniors seek ways to cover healthcare expenses. Insurers are reducing their offerings, particularly in rural areas, leading to a rise in forced disenrollments from the program. While reverse mortgages do not affect Medicare eligibility or tax liabilities, unspent proceeds can impact eligibility for needs-based benefits like Medicaid and SSI.