United Healthcare Medicare Advantage 2026: 600,000 Dropped!
Well, the Medicare Advantage companies are at it again. Unfortunately, due to their poor earnings for 2025, United Healthcare just announced that they anticipate removing 600,000 Medicare Advantage members during this year’s annual election period, which runs from October 15th through December 7th.
Take a look at this article that I’m referring to here. United Healthcare said in its second-quarter earnings call that it plans to drop Medicare Advantage plans that currently serve over 600,000 users, becoming the latest health insurer to announce a scaling back of this magnitude.
CEO Statement
This is a quote from their CEO, Tim Noel. “We are seeing higher than expected medical cost increases, particularly in outpatient care. The American health system’s long-standing cost problem is accelerating. Medicare Advantage has been extremely profitable for most insurers for a very long time.
Still, in recent years, insurers have complained about people using more healthcare services than anticipated and rising healthcare costs across the board. It’s bad for a plan’s business when people use healthcare from a plan that offers healthcare coverage. That said, it appears that they’re trimming around the edges and not pulling out of areas altogether.”
Why This Is Happening
So, what does this all mean? Over the last two or three years, the reimbursement rate that Medicare Advantage companies receive from the federal government has not been keeping up with what they call the medical loss ratio. Basically, that means that the amount of money they’re paying out in claims is more than they’re receiving reimbursement from CMS, which is the Medicare and Medicaid services.
So, how a Medicare Advantage plan responds to financial loss is that they’re gonna do a few things. They’re either gonna trim their medical provider network, which means remove doctors and hospitals from their network that are not profitable enough, or they’ll actually remove plans from certain counties.
You’ll receive a letter saying, “Your United Healthcare plan will not renew for the 2026 year. You’ll have to go to the marketplace and find another option.”
A Growing Pattern
So, this is becoming very common. Over a million people during last year’s annual election period lost their plan from United Healthcare, Humana, and Aetna, so this reimbursement rate has been a real problem. Depending on the administration and how well they like Medicare Advantage, it’s gonna determine how high the reimbursement rate is back to the company.
So, this year it looks like it’s going to be somewhat of a repeat of last year, where a lot of people are gonna lose their plans, and some of the benefits are gonna change. A lot of people are most likely gonna lose access to different medical facilities and doctors as they try to trim costs there as well.
My Recommendation
So, here’s my recommendation. I’ve been doing this for 15 years. I’ve been in the Medicare space educating people, teaching people how Medicare works, helping them understand how Medicare Supplement works compared to Medicare Advantage. The bottom line is that Medicare Advantage is built on very shaky ground. There are many moving parts. They have to receive an adequate amount of reimbursement from the government.
They attract all of these new members by giving them dental and vision, free rides to the doctor, and grocery benefits. Those things are all really great, but what’s happening is that people are being lured to these zero-premium Medicare Advantage plans and all the free benefits they get with them. Now they’ve taken on so many new baby boomers and so much new risk that they don’t know how to handle it anymore.
The Reality of Advantage Plans
So, what they’re doing is they’re learning how to handle it. Once they get all these new people in, all the claims start to come through, and then they determine, “Are we making money? Are we losing money?” But they won’t know if they’ve made a good decision on attracting all these people until they get it into the system and start using the plan and driving up medical costs, so this is just a, an informative video to let you know that,
if you do have United Healthcare, we don’t know what areas will be affected yet. This is likely to happen with Humana as well, so as I did last year, I’m doing the same this year, keep an eye out for your mail. You do get your annual notice of change in October, sometimes a little bit sooner. See if your plan’s gonna renew, see if it’s gonna terminate, that letter will indicate what you need to do.
Switching to a Medicare Supplement Plan
If you receive a notice that your Medicare Advantage plan will not be renewed, there is an important opportunity available to you. Losing your Advantage plan opens a special window called Guaranteed Issue Rights, which allows you to apply for a Medicare Supplement (Medigap) plan without going through medical underwriting.
Here’s why this matters: normally, when applying for a Medigap plan outside of your initial enrollment period, you can be denied or charged more based on your health history. But if your Advantage plan is discontinued, you can enroll in a Medigap plan during this guaranteed issue period, regardless of pre-existing conditions.
To take advantage of this, you’ll typically need to provide proof that your Medicare Advantage coverage ended. Once that’s documented, the Medigap carrier must accept your application, giving you access to stable, lifetime-renewable coverage.
For many people, this is the best chance to switch from the uncertainty of Medicare Advantage to the long-term stability and freedom of a Medicare Supplement plan – without worrying about being declined for health reasons.
What Makes Medicare Supplement Plans So Appealing?
The number one reason we recommend Medicare Supplement plans is the stability they bring. With Advantage plans, it often feels like a moving target – networks change, benefits get trimmed, and in this case, entire plans disappear from one year to the next.
With Medigap, the ground beneath you doesn’t shift. Once you’re enrolled, your benefits are locked in. As long as you pay your premium, your coverage is guaranteed for life, and you don’t have to worry about waking up to a letter in the mail saying your plan is being dropped. That sense of security is what so many retirees value most.
On top of that stability, Medigap plans are simple and consistent. If Medicare covers it, your supplement steps in to take care of the rest – no prior authorizations, no jumping through hoops, no surprises.
You don’t need to check whether your doctor is in-network, because with Medigap, you can see any provider nationwide who accepts Medicare. That kind of freedom is important, especially in a state like Florida, where many people travel seasonally or split time between different parts of the country.
Cost predictability is another big advantage. Original Medicare leaves gaps – coinsurance, copayments, and deductibles – that can add up quickly. Medigap fills those holes, turning unpredictable medical bills into something you can actually plan for. Instead of bracing yourself for changes every year, you know exactly what your coverage looks like year after year.
And while Medigap doesn’t include dental, vision, or drug coverage, it pairs seamlessly with standalone plans and Part D prescription coverage.
That means you can customize your protection without being locked into whatever bundle an Advantage plan offers. Many of our clients build the package that fits their needs – Medigap for stability and predictable costs, plus a dental/vision plan and Part D for everything else.
At the end of the day, Medicare Supplement plans are loved for their reliability. They take the uncertainty out of healthcare in retirement, letting you focus on living your life instead of worrying about whether your coverage will be there when you need it. For anyone who values long-term peace of mind, Medigap is hard to beat.
What Are the Most Popular Medigap Plans?
When it comes to Medicare Supplement (Medigap) insurance, not every plan gets the same level of attention. Over time, a few have become the clear favorites among retirees because they strike the right balance between cost and coverage. As of 2025, the three most popular Medigap options are:
Plan G
Plan G is widely considered the most comprehensive Medigap plan available to new Medicare enrollees. It covers all the major gaps in Original Medicare, including hospital deductibles, coinsurance, skilled nursing facility care, and even excess charges.
The only thing it doesn’t cover is the Medicare Part B deductible, which is relatively small. Because of this, Plan G is often regarded as the best “full coverage” option for individuals seeking predictable healthcare costs without unexpected expenses.
Plan N
Plan N offers many of the same protections as Plan G but at a lower monthly premium. The trade-off is that it comes with small copayments – up to $20 for office visits and up to $50 for emergency room visits (if you’re not admitted).
Plan N also doesn’t cover Part B excess charges, though in many states these charges are rare. For beneficiaries who are comfortable with a little cost-sharing in exchange for savings on premiums, Plan N is a very popular middle-ground choice.
High-Deductible Plan G
High-Deductible Plan G provides the same benefits as standard Plan G but requires you to meet a higher deductible before coverage begins (over $2,800 in 2025). In exchange, the monthly premium is much lower – often less than half the cost of a standard Plan G.
This option appeals to healthier retirees or budget-conscious individuals who want protection against catastrophic medical expenses but are willing to pay some costs out of pocket before full coverage kicks in.
Together, Plans G, N, and High-Deductible G cover the vast majority of Medigap enrollments in the U.S. They offer flexibility for different needs – whether it’s full coverage, a balance of affordability and benefits, or a low-premium, high-deductible approach.
What Are The Main Differences Of Medigap And Advantage Plans?
Here is a side-by-side of the differences between the two types of plans
| Feature | Medicare Supplement (Medigap) | Medicare Advantage (Part C) |
| Core Structure | Works with Original Medicare (Parts A & B) to cover deductibles, coinsurance, and copayments. | Replaces Original Medicare with a private plan that bundles Part A & B (and usually Part D). |
| Provider Access | See any doctor or hospital nationwide that accepts Medicare. No networks or referrals. | Limited to plan’s network (HMO/PPO). Out-of-network care often restricted or more expensive. |
| Stability | Benefits are federally standardized and never change year to year. Guaranteed renewable as long as premiums are paid. | Benefits, networks, and costs can change annually. Plans may even leave your county. |
| Costs | Higher monthly premiums but very low out-of-pocket costs. Predictable and consistent. | Often low or $0 monthly premiums but higher out-of-pocket costs when you use care. |
| Extra Benefits | Does not include dental, vision, hearing, or drugs. Must add standalone plans. | Usually includes extras like dental, vision, hearing, gym, meals, and Part D drug coverage. |
| Referrals & Authorizations | No referrals or prior authorizations. If Medicare covers it, your Medigap pays. | Many services require referrals and prior authorization (especially tests and procedures). |
| Best Fit For | Retirees who value stability, nationwide access, and predictable costs. | Retirees who want low upfront premiums and bundled extras, and are comfortable with networks. |
Key takeaway:
Medigap (Medicare Supplement) works with Original Medicare to help cover the gaps, like deductibles and copays. The biggest perk? You can see any doctor or hospital in the country that takes Medicare – no networks, no referrals, no surprises.
Your benefits never change, so you always know what to expect. Premiums are higher, but your out-of-pocket costs are very low and predictable. It’s a great fit if you want peace of mind, stability, and the freedom to go anywhere.
Medicare Advantage (Part C), on the other hand, replaces Original Medicare with a private plan. These plans often include extras like dental, vision, hearing, gym memberships, and drug coverage – and sometimes the monthly premium is $0.
The trade-off? You’ll usually have to stick to a network of doctors, and benefits, costs, and even the plan itself can change every year. Plus, many services require referrals or prior approval. This works well if you’re comfortable with networks and like the idea of lower monthly costs and bundled perks.
Final Thoughts
If you have questions, reach out at 888-414-4547. This should serve as a strong warning for those on a Medicare Advantage plan. Definitely look at a Medicare supplement plan. You will not experience these plans being canceled, delayed care, prior authorizations, network changes, referrals, or be balance billed or deal with denied claims.
Original Medicare with Medicare Supplement is far superior and quite honestly it becomes frustrating seeing how many people fall for these zero-premium plans and then they get into a place of trouble, they’re losing their plans, they’re losing their provider, so I would highly recommend, if you can afford Medicare Supplement, definitely do your homework, contact us, we can help you determine that. Contact a reputable agent.
If you can afford a Medicare Supplement, get on it and get superior coverage. Stop dealing with all of these annual plan change roller coaster rides and plan terminations. Get on a comprehensive plan like Medigap, and you will not regret it. Thanks for watching. If you have questions, let us know if we can help.
FAQ's
- What happens if my Medicare Advantage plan is dropped?
- Can Medicare Supplement plans ever be canceled?
- Do Medicare Supplement plans cover dental, vision, or hearing?
- When is the best time to enroll in a Medicare Supplement plan?
- How do Medigap premiums compare to Medicare Advantage costs?
