Nearly three million Americans, approximately 10% of Medicare Advantage enrollees, must find new coverage in 2026. Health insurers are exiting markets and reducing plan options, according to a recent medical journal study.
Rural beneficiaries are experiencing these plan disruptions at double the rate of urban enrollees, raising concerns about access to healthcare providers and specialized treatments. In seven states, over 40% of Medicare Advantage enrollees faced plan changes, with Vermont seeing 92% affected.
The government's Medicare program serves about 60 million individuals aged 65 and older or with disabilities. Roughly half of these beneficiaries opt for privately managed Medicare Advantage plans.
Insurers cited rising costs and declining government reimbursement for shortfalls in 2025, leading to market exits and shifts for 2026. Major insurers like UnitedHealthcare, Aetna, and Elevance are significantly involved in these market adjustments.
The study also found that plans offering greater provider choice were frequently terminated. Experts suggest the current payment model incentivizes insurers to attract more profitable patients, potentially misaligning plan incentives with beneficiary needs.