Big Insurers Reduce Medicare Advantage Coverage Amid Upcoming Enrollment Period

UnitedHealthcare, Humana, and CVS Health have scaled back their Medicare Advantage offerings ahead of the next Medicare Open Enrollment period. UnitedHealthcare will exit 1,150 counties, Humana will exit 156 counties, and CVS Health will exit 1,736 counties. This move is likely due to the increasing competition and cost pressures in the Medicare Advantage market.

UnitedHealthcare, Humana, and CVS Health have announced significant reductions in their Medicare Advantage offerings ahead of the upcoming Medicare Open Enrollment period. UnitedHealthcare will exit 1,150 counties, Humana will exit 156 counties, and CVS Health will exit 1,736 counties. These moves are likely driven by increasing competition and cost pressures in the Medicare Advantage market.

According to a Reuters report, CVS Health's Aetna insurance business will operate prescription drug plans in 100 fewer counties than in 2025, while Humana will cut plans back to 85% of U.S. counties next year, down from 89% in 2025 CVS Health, Humana to reduce Medicare Advantage operations in 2026^[1]. Both companies provide these plans on behalf of the U.S. government.

The companies are also reducing their operations by state. Humana will provide plans in 46 states in 2026, down from 48 this year, while Aetna will operate in 43 states and Washington D.C. and 2,159 counties for 2026, down from 44 states and 2,259 counties in 2025 CVS Health, Humana to reduce Medicare Advantage operations in 2026^[1].

Humana plans to introduce new plan types in four states and 177 counties, and 83% of stand-alone prescription drug plans for 2026 will carry decreased premiums. For people who qualify for both Medicare and Medicaid plans, CVS Health will expand offerings to 16 new states.

George Renaudin, president of insurance at Humana, stated, "For decades, Humana has been dedicated to making healthcare easy to navigate for Medicare beneficiaries, offering clear and consistent options that prioritize stability, quality, and affordability" CVS Health, Humana to reduce Medicare Advantage operations in 2026^[1].

These strategic adjustments reflect the ongoing challenges insurers face in managing Medicare Advantage plans, particularly in less profitable markets. The companies' decisions to reduce their footprint may indicate a shift in focus towards more cost-effective and competitive regions.