Leading health insurers are scaling back Medicare Advantage offerings due to anticipated decreases in government reimbursement. U.S. government has been cutting payments on Medicare Advantage since 2024. CVS Health’s Aetna, Humana, and UnitedHealth are all reducing availability in various counties, impacting hundreds of thousands of people.

UnitedHealth, Humana, and CVS Health are the top players in the Medicare Advantage market. Insurers cite higher-than-expected medical service usage and decreased Medicare payments as reasons for exiting less profitable markets. The industry faces challenges from CMS funding cuts, rising healthcare costs, and increased utilization.

Humana and Aetna are reducing their presence in states and counties due to reduced government compensation and rising costs. Humana plans to offer plans in fewer states in 2026, with decreased premiums in some areas. CVS Health is expanding offerings for those who qualify for both Medicare and Medicaid in additional states.

UnitedHealth will stop operating in over 100 counties, affecting 600,000 members, mostly in preferred provider organizations. Insurers are adapting their plan offerings, with Humana introducing new plan types and decreased premiums in certain areas. CVS Health is expanding offerings for those eligible for both Medicare and Medicaid in more states.

Read more at Yahoo Finance: Major health insurers scaling back Medicare Advantage offerings in 2026