Humana is ending certain Medicare Advantage plans that cover approximately 600,000 members, forcing hundreds of thousands of seniors to review their health coverage options ahead of 2027. The insurer said the move is part of a broader effort to improve profitability by exiting lower-performing plans rather than making broader cuts across its Medicare Advantage business. While affected beneficiaries will not lose their Medicare eligibility, they will need to choose new coverage if their current plan is not renewed.
Newsweek reached out to Humana for comment via email. Humana is one of the nation's largest Medicare Advantage insurers, and the plan cuts affecting 600,000 members are one of the biggest plan shakeups announced for 2027 so far. For many retirees, Medicare Advantage plans provide access to doctors, prescription drug coverage and supplemental benefits in a single package.
That means plan termination can require beneficiaries to switch doctors, review drug coverage or choose between Medicare Advantage and original Medicare. In Humana's July 29 earnings call, the insurer said it expects targeted Medicare Advantage plan exits in 2027 to affect roughly 600,000 members. Company executives said they targeted plans at the "lower tail" of profitability as part of efforts to improve financial performance.
What this means for the individual policyholder is you can be dropped from your plan if you are not profitable for the insurance company.” Humana has indicated that some affected beneficiaries may be able to remain with the company by enrolling in different Humana Medicare Advantage plans. The company said it expects a recapture rate similar to the more than 40 percent rate achieved following prior plan exits in 2025. If a similar rate holds, Humana estimates that a significant share of impacted members could transition into other Humana plans, although individual coverage options will vary by your location.
A discontinued Medicare Advantage plan does not mean a beneficiary loses their Medicare coverage. Instead, beneficiaries whose plans leave the Medicare Advantage program must select new coverage for the following year. Individuals who do not choose another Medicare Advantage plan will generally return to original Medicare once their current coverage ends.
Prices inevitably rise, or the composition of the plans gets reduced.” Members are expected to receive formal Plan Non-Renewal Notices informing them that their coverage will not continue into the next plan year. Those notices generally arrive in October and provide details about when current coverage ends. The first major enrollment period begins with Medicare Open Enrollment, which runs from October 15 through December 7 each year.
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