Major Medicare news dropped.
Molina Healthcare confirmed it’s dropping its Medicare Advantage Prescription Drug (MAPD) plans entirely for 2027, and the company says about 99,100 members currently have one of these individual plans.
If you have a Molina Medicare Advantage plan with a prescription drug plan included, your coverage isn’t changing yet. Your current plan still works through the end of 2026, and Molina simply won’t offer these plans again starting January 2027.
Here’s what’s happening and what it means for you.
What’s Happening
Molina Healthcare confirmed it will exit the Medicare Advantage Part D business for 2027, announcing the move alongside its fourth quarter and full year 2025 earnings on February 5, 2026.
The MAPD product represents about $1 billion in annual premiums, but Molina said it doesn’t fit the company’s shift toward focusing on dual-eligible members, people who qualify for both Medicare and Medicaid. Underperformance in the MAPD line is expected to cost the company about $1.00 per diluted share in 2026.
“We have determined that the MAPD product does not align with our strategic shift to focus exclusively on dual-eligible members in Medicare, and we will exit the traditional MAPD product for 2027,” Molina CEO Joseph Zubretsky said on the company’s earnings call.
Who Will Be Affected
- Molina says roughly 99,100 members nationwide currently have one of its individual Medicare Advantage plans. Those plans stay in effect through the end of 2026 and simply won’t be offered again starting in 2027.
- In Connecticut alone, insurance brokers who spoke with the Hartford Business Journal estimated the change could affect about 48,000 people in that state, all age 65 or older, though that figure comes from local brokers rather than Molina directly.
- Molina’s Dual Eligible Special Needs Plans (D-SNPs), for people who qualify for both Medicare and Medicaid, are not affected and will continue.
What to Do About It
Because this change doesn’t take effect until 2027, you don’t need to do anything right this moment. But it’s worth keeping an eye out for a few things as the year goes on.
- Talk to a licensed insurance agent. A licensed insurance agent can walk you through the options available in your area, without steering you toward any one carrier.
- Watch for a non-renewal notice. Molina is expected to notify affected members ahead of the 2027 Annual Enrollment Period so you can plan your next move.
- Compare new plans during the Annual Enrollment Period. You can shop Medicare Advantage and Part D plans from other carriers during the Annual Enrollment Period, which runs October 15 to December 7, 2026, for coverage starting January 1, 2027.
- Consider a Medicare Supplement (Medigap) plan. Because your plan is leaving the market, you’ll qualify for guaranteed issue rights, letting you enroll in a Medicare Supplement Plan without medical underwriting during your Special Enrollment Period.
Why Is Molina Leaving Medicare Advantage?
Molina has been under financial pressure across its business. Net income for 2025 came in at $472 million, down 60% from $1.2 billion in 2024, and the company’s medical loss ratio, the share of premiums spent on care, climbed to 91.7% for the year. Its Medicare-specific loss ratio was even higher, at 92.4%, driven by higher use of care among older and higher-need members.
Molina isn’t alone. Several other insurers have pulled back from Medicare Advantage for 2027, including Humana, Clear Spring Health, Providence, and Presbyterian Health Plan, as rising medical costs continue to squeeze margins across the industry.
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If you have any questions about this situation (or Medicare in general), our licensed insurance agents are here to help.
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Calvin Bagley is the founder of PlanFit, The Medicare Store, and Nuvo Health. He and his team have helped over 60,000 people navigate Medicare options, and he’s a nationally recognized speaker in the Medicare industry. Most importantly, he’s someone who believes every American deserves clear, honest information without pressure.