Major Insurers Scale Back Medicare Advantage Plans Amid Reimbursement Cuts

Major health insurers, including UnitedHealth, Humana, and CVS Health's Aetna, are scaling back their Medicare Advantage offerings in 2026 due to government reimbursement cuts and increased medical costs. UnitedHealth will stop operating in 109 counties, affecting 180,000 people, while Humana will reduce availability to 85% of counties, down from 89% this year. The insurers are also exiting some states altogether.

Major health insurers, including UnitedHealth, Humana, and CVS Health's Aetna, are scaling back their Medicare Advantage offerings in 2026 due to government reimbursement cuts and increased medical costs. UnitedHealth will stop operating in 109 counties, affecting approximately 180,000 people, while Humana will reduce availability to 85% of counties, down from 89% this year. The insurers are also exiting some states altogether.

UnitedHealth Group shares declined in premarket trading on Wednesday after the health insurer announced plans to cancel its Medicare Advantage offerings in 109 U.S. counties in 2026 UnitedHealth Stock Slips Premarket Amid Medicare Advantage Pullback; Humana, CVS Also Tighten Coverage^[1]. The decision comes as UnitedHealth and its peers, Humana and CVS Health, move to scale back their Medicare Advantage presence amid mounting cost pressures and lower federal reimbursements.

Bobby Hunter, head of UnitedHealth’s government programs, stated during a Tuesday press briefing that the combination of Centers for Medicare and Medicaid Services (CMS) funding cuts, rising healthcare costs, and increased utilization has created headwinds that no organization can ignore UnitedHealth Stock Slips Premarket Amid Medicare Advantage Pullback; Humana, CVS Also Tighten Coverage^[1]. UnitedHealth will continue operating in most U.S. states and remains the largest Medicare Advantage provider nationwide, ahead of Humana and CVS’s Aetna business.

Humana and CVS Health’s Aetna are also reducing their Medicare Advantage offerings. Aetna will offer plans in 43 states and Washington D.C., one fewer than this year, while Humana will cover only 85% of U.S. counties next year, down from 89% this year Aetna and Humana to Pull Back on Medicare Advantage Plans^[2]. These moves follow a challenging year for Medicare-focused insurers, which faced higher-than-expected service utilization and lower government payments.

The stock market has reacted to these announcements, with retail sentiment for UnitedHealth and CVS Health being 'bearish' on Stocktwits, while Humana's sentiment was 'neutral' amid 'high' activity UnitedHealth Stock Slips Premarket Amid Medicare Advantage Pullback; Humana, CVS Also Tighten Coverage^[1]. UnitedHealth's stock has fallen 30% so far this year, while Humana is down 2%, and CVS Health has surged 77%.