Millions of older Americans will face a narrower set of healthcare choices when Medicare’s open-enrollment period begins October 15 and runs through December 7.
The average Medicare beneficiary can now choose from among 35 plans for 2027, down from 39 plans available in 2026, according to healthcare policy and research firm KFF.
At least 3.8 million enrollees will be forced to find new coverage for 2027 as insurers pull back from markets to protect profit margins rather than chase subscriber growth.
Medicare Advantage, the private-plan alternative to traditional Medicare, controls more than half of the overall Medicare market of approximately 69.6 million subscribers nationwide.
The program offers extra benefits such as vision and dental coverage and caps annual out-of-pocket costs, but comes with a limited choice of doctors and additional requirements for specialist referrals.
UnitedHealth Group (UNH), Humana (HUM), and CVS Health (CVS) subsidiary Aetna are among the insurers exiting markets or adjusting their coverage offerings as analysts say they prioritize profits over growth.
UnitedHealth Group is exiting 228 counties and entering just 9 new ones, while Humana is leaving 62 counties and entering only 4, according to KFF data.
Centene (CNC) is leaving 359 counties and entering 15, while Health Care Service Corporation is exiting the most counties of any insurer at 498, while entering none.
Two insurers, Group 1001 and Molina Healthcare (MOH), are exiting the Medicare Advantage prescription drug market entirely, according to KFF findings.
UnitedHealth and Humana have confirmed they are discontinuing plans that together cover more than one million seniors, with Humana’s cuts affecting roughly 600,000 members and UnitedHealth’s affecting approximately 390,000 members.
There will be no Medicare Advantage plans available in 181 counties for 2027, a sharp increase from 67 counties this year, according to a report by Modern Healthcare.
For 2027, the typical beneficiary will be able to select from 28 Medicare Advantage prescription drug plans, a drop from the 32 that were available in 2026, according to KFF.
“The modest decrease in the number of Medicare Advantage plans available to the average beneficiary means that some Medicare beneficiaries will find that their current coverage is no longer an option for next year,” KFF said.
“In most cases, these beneficiaries live in counties where they will continue to have robust Medicare Advantage plan options available for 2027, as well as traditional Medicare,” KFF added.
The 2027 changes are considered less dramatic than those of 2026, when as much as 10% of the Medicare Advantage market was forced to find new plans as insurers exited, according to an analysis published in JAMA.
In 12 states, more than 20% of Medicare Advantage enrollees lost their plans in 2026, highlighting the scale of disruption that year compared to current shifts.
Part D prescription drug plans are also changing, with the average base premium for 2027 projected at around $36 per month, varying by location and specific plan.
Zero-premium drug plans will no longer be available for enrollees who do not qualify for low-income subsidies, with some beneficiaries facing increases of $50 or even $100 monthly.
