Key Takeaways
- Cuts Hit Seniors Hard: UnitedHealth, Humana, and CVS are pulling back Medicare Advantage plans in 2026, affecting hundreds of thousands of seniors across dozens of states.
- Washington to Blame: Insurers cite Biden-era reimbursement cuts, rising healthcare costs, and higher utilization as reasons for leaving markets once considered stable.
- Fewer Options Ahead: With major insurers exiting counties and states, seniors will face shrinking choices and disrupted coverage, proving again that government meddling comes with a price.
America’s seniors are about to feel the pinch. Three of the nation’s biggest health insurers — UnitedHealth, Humana, and CVS Health’s Aetna — announced they will scale back Medicare Advantage offerings in 2026, blaming Washington’s funding cuts and rising healthcare costs.
Medicare Advantage, the privately-run alternative to traditional Medicare, has been a lifeline for millions of seniors who want more choice and better value. But since 2024, the federal government has slashed reimbursements, leaving insurers with fewer resources to serve patients. The result: fewer plan options, reduced coverage areas, and hundreds of thousands of seniors forced to shop for new plans.
UnitedHealth will exit 109 counties, cutting coverage for about 180,000 people. Humana will trim its footprint from 89% of counties to 85%, and Aetna is pulling prescription drug plans out of 100 counties. UnitedHealth’s Bobby Hunter didn’t sugarcoat it: “The combination of CMS funding cuts, rising healthcare costs and increased utilization have created headwinds that no organization can ignore.”
The numbers are stark. Humana will now operate in 46 states instead of 48. Aetna is down to 43 states and 2,159 counties. UnitedHealth’s shutdown of over 100 plans will affect roughly 600,000 members, many of whom value flexibility to see providers outside rigid networks.
While insurers are trying to soften the blow — Humana with new plan types and lower premiums, CVS expanding dual-eligibility offerings — the message is clear: government meddling in Medicare markets has consequences.
America’s seniors deserve stability, choice, and affordability — not fewer options created by Washington’s obsession with cutting corners instead of reforming costs.