Millions of Medicare beneficiaries are set to lose their current private health plans as insurers pull back on Medicare Advantage offerings for 2027. Estimates indicate that roughly 5 million people will need to switch plans because their policies have been canceled or are no longer available in their counties, according to health technology firm Duos.

The wave of terminations follows a similar surge the prior year, when approximately 2.9 million enrollees faced forced disenrollment. Major carriers including UnitedHealth Group and Humana are among those reducing plans, with UnitedHealth affecting about 390,000 members and Humana about 600,000. Other insurers such as Aetna and Centene are also shrinking options in response to rising medical costs and government payment adjustments.

Open enrollment for 2027 plans begins October 15 and runs through December 7. Affected beneficiaries must select new coverage or risk defaulting to traditional Medicare, which may involve different networks, benefits, and higher out-of-pocket expenses in some cases. Rural areas have been hit particularly hard, with some counties seeing all Medicare Advantage plans eliminated.

Analysts attribute the pullbacks to market corrections after years of rapid growth in the privatized Medicare program, which now covers more than half of beneficiaries. Insurers have cited unprofitable plans in certain markets and heightened regulatory scrutiny. The number of counties without any Medicare Advantage options has risen to 187 for 2027.

Seniors receiving non-renewal notices are advised to review their options promptly through Medicare.gov or with licensed agents. Most affected individuals will have multiple alternative plans available, though costs and provider access may change. The disruptions highlight ongoing volatility in the Medicare Advantage market amid efforts to address prior overpayments.