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By Suzanne Blake
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Humana is ending certain Medicare Advantage plans that cover approximately 600,000 members, forcing hundreds of thousands of seniors to review their health coverage options ahead of 2027.
The insurer said the move is part of a broader effort to improve profitability by exiting lower-performing plans rather than making broader cuts across its Medicare Advantage business.
“We will work to recapture a significant portion of that volume as we did in 2025,” CFO Celeste Mellet said during the company’s July 29 second quarter earnings call.
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While affected beneficiaries will not lose their Medicare eligibility, they will need to choose new coverage if their current plan is not renewed.
Newsweek reached out to Humana for comment via email.
Why It Matters
Humana is one of the nation's largest Medicare Advantage insurers, and the plan cuts affecting 600,000 members are one of the biggest plan shakeups announced for 2027 so far.
For many retirees, Medicare Advantage plans provide access to doctors, prescription drug coverage and supplemental benefits in a single package. That means plan termination can require beneficiaries to switch doctors, review drug coverage or choose between Medicare Advantage and original Medicare.
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What To Know
In Humana's July 29 earnings call, the insurer said it expects targeted Medicare Advantage plan exits in 2027 to affect roughly 600,000 members.
Company executives said they targeted plans at the "lower tail" of profitability as part of efforts to improve financial performance.
“This underpins the main difference between Medicare Advantage and traditional Medicare: profit motive,” Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek. “Medicare Advantage is run by for-profit insurance companies, and therefore require a certain profit margin in order to operate. What this means for the individual policyholder is you can be dropped from your plan if you are not profitable for the insurance company.”
Humana has indicated that some affected beneficiaries may be able to remain with the company by enrolling in different Humana Medicare Advantage plans. The company said it expects a recapture rate similar to the more than 40 percent rate achieved following prior plan exits in 2025.
If a similar rate holds, Humana estimates that a significant share of impacted members could transition into other Humana plans, although individual coverage options will vary by your location.
What Happens If Your Plan Is Discontinued?
A discontinued Medicare Advantage plan does not mean a beneficiary loses their Medicare coverage.
Instead, beneficiaries whose plans leave the Medicare Advantage program must select new coverage for the following year. Individuals who do not choose another Medicare Advantage plan will generally return to original Medicare once their current coverage ends.
“As plans leave the marketplace, you will see consolidation within the industry, which will lead to lower supply,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. “What happens when competition declines? Prices inevitably rise, or the composition of the plans gets reduced.”
Members are expected to receive formal Plan Non-Renewal Notices informing them that their coverage will not continue into the next plan year. Those notices generally arrive in October and provide details about when current coverage ends.
Key Medicare Deadlines for Affected Members
The first major enrollment period begins with Medicare Open Enrollment, which runs from October 15 through December 7 each year. During this period, beneficiaries can switch Medicare Advantage plans, move to original Medicare, or change prescription drug coverage.
Changes generally take effect on January 1.
Affected members may also qualify for a Special Enrollment Period if their Medicare Advantage plan is not renewed. That window runs from December 8 through the last day of February for plans ending January 1.
What Happens Next
Affected Humana members should begin reviewing plan materials carefully when non-renewal notices arrive later this year. Those documents will identify whether a beneficiary's current plan is ending and outline their available options.
The key decision for many retirees will be whether to enroll in another Medicare Advantage plan or return to original Medicare, potentially paired with a Medigap policy and a standalone Part D prescription drug plan.
“Medicare reimbursements continue to decline, and as long as potential government cost savings lead the rhetoric, you may continue to see plans leave the marketplace,” Thompson said.
Contact Newsweek editors on this story: Jason Lemon and Gray R. Thomas
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