Many BIG insurance companies have confirmed intentions to drop certain Medicare Advantage plans in 2026. These developments affect approximately 2.6 million Medicare beneficiaries.
Here’s what you need to know.
What’s Happening
In general, insurance companies are facing a “perfect storm” of mounting financial pressures, regulatory changes, and operational changes.
Here’s what people are saying behind the scenes:
- Higher Healthcare Costs: Since the COVID-19 Pandemic, people are using more services on average, which increases costs for insurance companies. To manage this, some companies are cutting Medicare Advantage plans or reducing extra benefits, like dental or gym memberships, to stay financially stable.
- Government Payment Updates: The government pays insurance companies to offer MA plans. For 2026, payments are increasing by about 5%, but some companies say this isn’t enough to cover rising costs. New rules also limit how companies report health conditions, which can affect their payments.
- Fewer Doctors and Hospitals in Plans: Some doctors and hospitals are no longer working with certain MA plans due to paperwork issues or payment delays. This can make plans less attractive, leading companies to stop offering them in some areas.
- New Prescription Drug Rules: A 2022 law lowers your out-of-pocket drug costs to $2,100 in 2026 and raises the deductible to $615. This shifts more costs to insurance companies, so some are adjusting benefits, like limiting extras such as transportation or meals.
- Business Decisions: Some companies are focusing on plans that work better financially, especially in areas with more customers. This means they may stop offering plans in places where fewer people enroll, like rural areas.
Due to these pressures, many insurers are looking to scale back or drop PPO plans in rural or unprofitable areas across the country.
Major Insurers Who Have Announced Medicare Advantage Plan Reductions
UnitedHealth Group (UnitedHealthcare)
The company plans to drop or significantly reduce Medicare Advantage plans expected to impact more than 600,000 enrollees, primarily affecting Preferred Provider Organization (PPO) plans. UnitedHealth, the largest MA provider, will continue offering plans in most areas but with fewer options in some counties.
Elevance Health (Anthem)
Elevance Health has announced its complete exit from the standalone Prescription Drug Plan (PDP) market for 2026, which often pairs with MA plans. While this primarily affects Part D-only coverage, it could indirectly impact MA enrollees who rely on separate PDPs for drug benefits.
CVS Health (Aetna)
Aetna is discontinuing around 90 MA plans across 34 states for 2026, mostly PPOs, which could affect hundreds of thousands of members.
UCare
This Minnesota-based nonprofit insurer is fully exiting the Medicare Advantage market for 2026, affecting about 158,000 enrollees. UCare cited unsustainable financial pressures from reimbursement shortfalls and operational challenges as the reason, marking a significant regional disruption.
Samaritan Health Plans
This Oregon-based nonprofit is exiting the stand-alone Medicare Advantage market for 2026, affecting approximately 14,000 enrollees across Lincoln, Benton, and Linn counties. Samaritan will discontinue three MA plans (Premier, Premier Plus, and Valor) while continuing to offer a D-SNP plan for dual-eligible beneficiaries. The company cited unsustainable financial losses, with member utilization outpacing premium revenue and CMS reimbursements.
Humana
The second-largest Medicare Advantage provider plans to drop approximately 500,000 MA members by 2026, reducing its presence in two states. The changes primarily impact individual Medicare Advantage plans in rural or mid-sized areas where medical costs outpace government reimbursements, while Special Needs Plans are largely preserved.
Vermont Blue Advantage
Vermont’s individual Medicare Advantage market is experiencing a near-total collapse for 2026, with more than 51,600 enrollees losing coverage. Blue Cross Blue Shield of Vermont is discontinuing all Vermont Blue Advantage plans (affecting approximately 26,000 members), while UnitedHealthcare is ending coverage in 14 counties (impacting around 7,800 members). The exits stem from unsustainable membership growth when other insurers left the state in 2025, rising healthcare costs, Vermont’s small rural market with limited competition, and lower federal payments that haven’t kept pace with care costs.
This Also Happened Last Year
These 2026 changes come after a similar shakeup in 2025. Many big insurance companies announced similar Medicare Advantage plan exits for financial reasons.
Humana
Humana exited multiple Medicare Advantage markets in 2025, affecting over 100,000 enrollees.
Aetna
Aetna dropped Medicare Advantage plans across multiple states, losing approximately 400,000 enrollees (10% of their membership).
Cigna
Cigna reduced its service areas in 8 states: Colorado, Florida, Illinois, Missouri, North Carolina, Tennessee, Texas, and Utah. This affected roughly 5,400 beneficiaries across 36 discontinued or reduced plans.
Blue Cross Blue Shield
Several Blue Cross Blue Shield affiliates made major changes:
- Blue Cross Blue Shield of Kansas City left the Medicare Advantage market entirely, citing “heightened regulatory demands and rising market and financial pressures”
- Blue Cross Blue Shield Arizona stopped offering Medicare Advantage prescription drug plans in Arizona
WellCare (Centene Corp)
Centene Corp discontinued its WellCare Medicare Advantage plans in 6 states: Alabama, Massachusetts, New Hampshire, New Mexico, Rhode Island, and Vermont. This affected approximately 37,000 people.
Other 2025 Exits
- Clear Spring Health withdrew from South Carolina and Virginia
- Care N’ Care shut down in Texas, affecting around 26,000 people
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