About 180,00 Seniors Across 16 States Will Soon Lose Their Medicare Advantage Plan | Insurify

UnitedHealth Group is reducing its Medicare Advantage plans in 2026, withdrawing from 109 counties across 16 U.S. states. This change will affect 180,000 policyholders who previously held UnitedHealth Medicare Advantage coverage. The changes go into effect in January 2026.

UnitedHealth sent non-renewal notices to affected policyholders on Oct. 2, informing them of the changes and of any options still available to them through UnitedHealth. The specific plans cut vary by state and county, but they primarily affect people with Medicare Advantage preferred provider organization (PPO) plans.

The available options from UnitedHealth for policyholders who've had coverage cut include health maintenance organization (HMO) plans, according to Reuters.

Most of the cut plans are in rural areas.

Bobby Hunter, CEO of government programs for UnitedHealth Group, told Reuters: "We need a model that is sustainable and allows us to bring care to folks in those areas in a cost-effective way."

Medicare Advantage plans are a private alternative to Original Medicare that the government pays private insurers to provide. These plans are available exclusively to people already eligible for and enrolled in Medicare coverage, including seniors aged 65 and older, and people with disabilities.

UnitedHealth announced that the insurance company will eventually drop more than 100 Medicare Advantage plans, covering more than 600,000 people, during its second-quarter earnings call in July.

Why is UnitedHealthcare cutting Medicare Advantage plans?

The 180,000 people losing coverage in January are only the first group of policyholders who will be affected. UnitedHealth says rising costs and more people using its coverage make the cuts necessary.

Tim Noel, CEO of UnitedHealthcare, said the company underestimated how much Medicare Advantage plans would cost the insurer and that United failed to adjust benefits and plan offerings to offset such costs.

The insurer estimates that by the end of 2025, UnitedHealth will have seen $6.5 billion more in medical costs than expected for the year. More than half of these costs specifically stem from the company's Medicare coverage offerings — which include Medicare Advantage plans, among other options.

The cuts also come as UnitedHealth and other health insurers are facing added financial pressure due to a reduction in federal government funding.

"Our pricing strategy is intensely focused on margin recovery and moving back toward our earnings growth targets," Noel said of the company's goals for 2026.

UnitedHealth isn't the only major health insurance company cutting Medicare Advantage plans in 2026.

Aetna, owned by CVS Health, announced that it will reduce its prescription drug plans in 100 counties. Anthem has completely cut its stand-alone prescription drug plan, and Humana is decreasing its Medicare Advantage plan availability from 89% to 84% of U.S. counties.