Major Medicare Advantage insurers cut plans, risking coverage for millions of seniors

UnitedHealthcare, the largest Medicare Advantage insurer, has reduced its portfolio by about 13% in 18 states, dropping coverage in one fewer state and 109 counties, cutting certain over-the-counter benefits, and favoring plans with tighter provider networks. Humana disclosed that its exit from selected markets and plan cancellations will impact roughly 600,000 members as it pursues margin expansion. A Johns Hopkins health-economics expert estimates that close to 3 million seniors enrolled in Medicare Advantage may have to change coverage this year, a phenomenon described as forced disenrollment.

These profit-driven strategies follow a substantial payment boost to Medicare Advantage plans granted by the Trump administration, which critics say contradicts earlier promises to curb waste and fraud. Advocacy groups note that Medicare Advantage has been linked to overbilling practices such as upcoding. President Donald Trump recently pledged to halt all government payments to large insurers, a statement that could threaten the privately run Medicare Advantage model, which received over $534 billion last year.