BIG Medicare Advantage news that is expected to impact 600,000+ seniors…
UnitedHealthcare (UHC) recently announced that it will be dropping some of its Medicare Advantage plans across the country in 2026.
Here’s what you need to know.
What’s Happening
Tim Noel, CEO of UnitedHealthcare’s insurance division, recently announced that the company is exiting certain Medicare Advantage plans across America.
These cuts will primarily affect members in PPO plans and other “less managed products”. The company hasn’t yet specified which states or regions will be impacted.
Currently, 32.8 million Americans rely on Medicare Advantage plans–approximately 54% of all eligible Medicare beneficiaries.
This decision comes as UnitedHealthcare faces mounting financial pressure linked to rising medical costs.
The company’s profit dropped 19% to $3.41 billion in the second quarter, even though revenue increased 13%. Why? Medical costs surged 20% to $78.6 billion in just three months.
Two major factors are driving these costs:
- Emergency room visits are more expensive than expected, with doctors billing for more tests and services
- Prescription drug costs keep climbing, especially for cancer treatments, obesity medications, and gene therapies
What Are Medicare Advantage Plans?
Medicare Advantage plans (also called Medicare Part C) are an alternative way to get Medicare benefits through private insurance companies approved by Medicare.
Instead of having Original Medicare (Parts A and B) plus a separate prescription drug plan, Medicare Advantage plans often bundle everything together into one plan.
These plans may include:
- Hospital coverage (Part A)
- Medical coverage (Part B)
- Prescription drug coverage (Part D)
- Potentially additional benefits like dental, vision, or hearing aids
The key difference is that with Medicare Advantage, you’re getting your Medicare benefits through a private insurance company rather than directly through the government. These companies receive payments from Medicare to provide your coverage.
Medicare Advantage plans often have networks of doctors and hospitals you need to use, and they may require referrals to see specialists. However, they also frequently offer lower monthly premiums and additional benefits that Original Medicare doesn’t cover.
With over 32 million Medicare beneficiaries enrolled in Medicare Advantage plans (roughly 54% in 2024), they’ve become an increasingly popular plan option.
Need Help With Medicare?
If you have any questions about this situation (or Medicare in general), our licensed insurance agents are standing by.
Simply call us at +1 877-360-6565 (TTY: 771) or click the button below to schedule an appointment.