Minnesota seniors face tough choices for health plans

Daren Wysocki received a letter last week from Eagan-based Blue Cross Blue Shield of Minnesota.

The heading was blunt: "Important notice: Your Medicare plan won't be offered in 2027."

The letter also outlined his options, including purchasing supplemental insurance or enrolling in another Medicare plan.

Wysocki, 68, lives outside Deerwood in central Minnesota. He spent 36 years working in the Minnesota Department of Natural Resources' forestry division and said he is in good health, takes medication for blood pressure and cholesterol, and was satisfied with his Medicare Advantage plan.

After reading the letter, he logged onto Medicare.gov and entered the ZIP code for his home in Crow Wing County, and discovered there were no Medicare Advantage plans available for 2027.

"Well, what the hell's going on here?" he said.

Wysocki is among nearly 390,000 Minnesotans who received notices this month that their Medicare Advantage plans would be discontinued next year, leading them to reconsider their coverage.

More than 1 million Minnesotans are enrolled in Medicare, the federal health insurance program primarily for people aged 65 and older, as well as some younger adults with qualifying disabilities.

The latest round of changes marks the second consecutive year in which many beneficiaries have had to reassess their coverage as insurers withdraw from parts of Minnesota's Medicare Advantage market.

Several companies, including Bloomington-based HealthPartners, Minnetonka-based UnitedHealthcare and Medica, Kentucky-based Humana and Blue Cross Blue Shield of Minnesota, are ending contracts or altering their participation in the market. While some plans will be discontinued, new ones will be introduced, leaving beneficiaries with fewer choices in certain counties.

Insurers say rising medical and pharmacy costs have contributed to financial losses, prompting them to restructure their Medicare Advantage offerings.

Dana Erickson, president and CEO of Blue Cross Blue Shield, announced in a statement that the company is restructuring all its Medicare Advantage plans in response to rising costs.

"In just the past three years, our company has lost more than $500 million on Medicare alone," Erickson said. "While I am reassured that our financial foundation remains strong, that does not mean we can ignore such an unsustainable trend."

Humana will stop selling individual Medicare Advantage plans in Minnesota. A company spokesperson told MPR News that Humana had fewer than 10,000 members in the state last year. The insurer will continue offering Medicare coverage in Minnesota, but only through employer and other group plans.

The open enrollment period for 2027 Medicare coverage began on Oct. 15, and many Minnesotans are scrambling to find new plans after being informed that their current ones are being eliminated. In some regions, this could result in a complete loss of access to Medicare Advantage plans.

Some counties will lose Medicare Advantage plans

For residents like Wysocki, the changes mean losing access to Medicare Advantage altogether.

No insurer is offering a Medicare Advantage plan in Crow Wing County for 2027.

About 70,00 people live in Crow Wing County, where roughly one in four residents is 65 or older, according to census data. The county's median household income is about $73,000.

Wysocki worries that some residents will struggle to understand their options or find replacement coverage.

"I kind of keep on top of this stuff," he said. "But the demographics of this county…there's a lot of seniors out there that I'm sure are going to be kind of rudderless and not knowing what to do."

Understand the options

Medicare beneficiaries receive their coverage through original Medicare, administered by the federal government, or Medicare Advantage, offered by private insurance companies that contract with Medicare.

Both cover hospital and medical care, but differ in costs, provider access and prescription drug coverage.

Original Medicare allows beneficiaries to see any doctor or visit any hospital nationwide that accepts Medicare, without the provider networks typical of Medicare Advantage plans. It generally does not require referrals for covered services, although some services may require prior authorization. Beneficiaries can also purchase a private supplemental insurance policy, known as Medigap, to help cover out-of-pocket costs. Most also need separate prescription drug coverage if they want insurance for medications.

Medicare Advantage plans typically offer lower premiums and may include additional benefits, such as dental, vision and hearing coverage, as well as gym memberships. But they rely on provider networks that can limit patients' choices of doctors and hospitals. Depending on the plan, beneficiaries may also incur higher monthly out-of-pocket costs and authorization requirements.

Maureen Schneider, chair of the Minnesota Board on Aging, said the changes are creating uncertainty for people who rely on their existing coverage.

"There are really quite a number of serious concerns this year," she said. "Some people are not sure about whether their providers would be in network any longer, and that includes their preferred drugs or pharmacy suppliers."

Beneficiaries whose plans are discontinued can review other available Medicare Advantage plans or consider switching to original Medicare. Schneider said comparing the cost of prescriptions, access to preferred doctors and hospitals, and the need for supplemental benefits can all influence what plan makes the most sense.

Finding help before the deadline

Medicare's annual enrollment period runs from Oct.15 through Dec. 7. During this time, individuals can enroll in Medicare or modify their existing health and prescription drug coverage for the upcoming year. Any changes made during this period take effect on Jan. 1.

People whose Medicare Advantage plans are discontinued may also qualify for a special enrollment period, allowing them additional time to select coverage.

Free enrollment assistance is available through Aging Pathways, a statewide service of the Minnesota Board on Aging. Schneider said demand surged in 2025 as the enrollment deadline approached.

"Last year, our longest wait time, getting towards the deadline, was three hours and 46 minutes, and callers were willing to wait because they were very anxious to make sure that they got everything right before the deadline," she said.

Wysocki did not wait to call and has already decided what to do. He plans to switch to original Medicare, buy a supplemental Medigap policy, and enroll in a separate prescription drug plan.

The change will cost him at least $150 more per month.

For Wysocki, the decision is straightforward. But he worries that other older Minnesotans might find it harder to navigate their options, particularly in counties where Medicare Advantage plans are disappearing entirely.

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