Industry
UnitedHealthcare, Humana Cut Medicare Advantage Plans Affecting 1 Million
UnitedHealthcare and Humana are discontinuing Medicare Advantage plans that will affect roughly 1 million enrollees, with most terminated plans being Preferred Provider Organizations that offer broader provider network flexibility compared to HMOs. Affected members will need to select new Medicare Advantage plans or return to traditional Medicare during the upcoming enrollment period. The cancellations reflect insurers' efforts to control costs amid rising medical expenses and reduced federal reimbursement rates in the Medicare Advantage program.
Why it mattersDisplaced members losing PPO flexibility may face narrower provider networks or coverage gaps, while the shift could push some beneficiaries toward traditional Medicare or dual-eligible Medicaid coverage pathways.