Major insurers scale back Medicare Advantage and Part D plans for 2026

Donna LeValley, Kiplinger’s Consumer News Service on Oct 15, 2025

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CVS Health, Humana, and UnitedHealth Group have announced that they will pull back on Medicare Advantage (MA) and Part D prescription drug plans next year. These changes are a response to financial pressures, including changes to government funding and rising healthcare costs. This has led insurance carriers to scale back their offerings in less profitable regions.

“The combination of (Centers for Medicare and Medicaid Services) funding cuts, rising healthcare costs, and increased utilization have created headwinds that no organization can ignore,” said Bobby Hunter, who is the CEO of Government Programs at UnitedHealthcare.

Insurers feel cost pressures

One of the reasons insurers are dropping Medicare Advantage (MA) plans is reduced government funding. It is estimated that by 2026, government reimbursement will have fallen 20% from 2023 levels, Hunter said. This longer-term cut is masked by the projected 2026 average reimbursement rate increase of 5.06%, which is higher than the initial 2.23% increase proposed by the Biden administration back in January 2025.

When commenting on the patient impact of eliminating plans, Hunter said, “The exits will likely steer patients toward health maintenance organizations, or plans which require more frequent referrals and limit patients to a network of providers.”

Here is a summary of the planned reductions and key changes for 2026 as reported by Reuters:

What’s happening to your plan?

If you are enrolled in a Medicare Advantage plan through UnitedHealthcare, Humana, or Aetna and want to know if your plan is being eliminated, read your Annual Notice of Change (ANOC). Your plan is required to send the notice to you and should have arrived by September 30. The ANOC includes any changes in coverage, costs, and any other modifications that will take effect in January 2026.

If you haven’t received a copy of your ANOC, there are a few ways to get one. You can call them directly or check their website.

How to find a new plan

There are resources to help if you are among the MA plan participants who will need to find a new plan for 2026. The Medicare.gov website also has a plan compare feature, Abraham said, adding it allows people to compare “apples to apples,” their current plans to the other options available for 2026.

You can also contact your local SHIP (State Health Insurance Assistance Program) office. It provides unbiased help to Medicare beneficiaries, their families, and caregivers. The office can help you navigate your questions about original Medicare, Medicare Advantage plans, and Medigap insurance.

(Donna LeValley is a retirement writer for Kiplinger.com.)