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Millions lose private Medicare plans as costs rise

scienceOct 9, 202616705

As open enrollment for Medicare Advantage begins, about five million people will be forced to switch plans for 2027 because insurers including UnitedHealth, Centene and some state Blue Cross plans have canceled coverage they deemed unprofitable, the New York Times reports. Roughly 35 million older Americans now have private Medicare plans, and in some rural counties from Oregon to New Hampshire options have vanished or shrunk to only a few choices. The estimate of five million who must change plans comes from Duos, a health technology firm; analysts say cancellations will likely exceed this year’s record high. Beneficiaries dependent on Social Security and fixed incomes face substantially higher out-of-pocket costs next year for prescription drugs, doctor visits and hospital care. The disruptions undercut the Trump administration’s claims that Medicare Advantage is “stable” and that average premiums would fall, industry analysts and insurance brokers say. The shakeup risks angering older voters before the midterm elections and will drive a volatile enrollment period as people scramble to find new coverage during open enrollment this month.

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