United Healthcare Medicare Advantage 2026: 600,000 Dropped!
Well, the Medicare Advantage companies are at it again.
Unfortunately, due to their poor 2025 earnings, 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.
You can find the article 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.
Important note: This does not apply if you have a United Healthcare Medicare Supplement plan. UHC remains a strong option for Medicare Supplements.
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.”
So, what does this all mean?
Why Is This Happening?
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.
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.
A Medicare Advantage plan responds to financial loss by doing a few things. They either trim their medical provider network, which means removing doctors and hospitals that are not profitable enough, or they remove plans from certain counties.
If your plan is eliminated, 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.”
This is becoming very common. During last year’s Annual Election Period, over a million people lost their plans 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 will determine how high the reimbursement rate is to the company.
This year looks like it’s going to be somewhat of a repeat of last year, with many people losing their plans and some of the benefits changing.
Many people will most likely lose access to different medical facilities and doctors as they try to trim costs there as well.
So, here are my thoughts on the topic.
My Take as an Agent
I’ve been doing this for 15 years. I’ve been in the Medicare space educating people, teaching people how Medicare works, and 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, and the government must reimburse them adequately.
They attract new members by offering dental and vision coverage, free doctor visits, and grocery benefits. While those are all great, 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.
So, they’re trying to learn 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 an informative post 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 again, so as I recommended last year, I’m doing the same this year:
Keep an eye out for your mail.
You get your annual notice of change (ANOC) in October, sometimes a little sooner.
See if your plan’s going to renew or 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, you have an important opportunity.
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.
If you’re considering Medigap, United Healthcare is still a strong option.
Unlike their Advantage business, their Medigap plans come with household discounts in many states and provide the nationwide freedom to see any doctor who accepts Medicare.
These plans are not impacted by the financial trimming happening in the Advantage market.
This matters because applying for a Medigap plan outside of your initial enrollment period can result in being 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 Medigap Plans So Appealing?
The biggest advantage of Medicare Supplement (Medigap) plans is stability. Unlike Medicare Advantage, where networks, benefits, and even plans can change each year, Medigap coverage is guaranteed renewable for life as long as you pay your premium.
Medigap also offers predictable, hassle-free coverage. You can see any provider nationwide that accepts Medicare without worrying about networks or prior authorizations. If Medicare approves a service, your supplement helps cover the remaining costs based on your plan’s benefits.
By filling many of Original Medicare’s out-of-pocket expenses, Medigap makes healthcare costs more predictable. While it doesn’t include prescription drugs, dental, or vision coverage, you can easily add standalone Part D and dental/vision plans to build the coverage that fits your needs.
For beneficiaries who value long-term stability, nationwide access, and predictable medical costs, Medigap remains one of the strongest retirement healthcare options available.
What Are The Main Differences Of Medigap And Advantage Plans?
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. Although premiums are higher, 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 can change yearly. Plus, many services require referrals or prior approval.
This only works well if you’re comfortable with networks and like the idea of lower monthly costs and bundled perks.
Final Thoughts
To be clear, my concerns about the instability of the Advantage plan do not extend to UnitedHealthcare’s Medigap products. I still recommend them as a top carrier in the Medicare Supplement space. They’ve consistently provided strong, stable coverage.
When paired with Original Medicare and a Part D plan, their Medigap options remain among the best choices for retirees who want predictability and peace of mind.
If you have questions, reach out to us 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, balance billing, or dealing 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 get into trouble.
They’re losing their plans and providers, so I highly recommend that if you can afford a Medicare Supplement, definitely do your homework, contact us, and we can help you determine that.
If you can afford a Medicare Supplement, get on it and get superior coverage. Stop dealing with these annual plan changes, roller coaster rides, and plan terminations. Get on a comprehensive plan like Medigap, and you will not regret it.
Thanks for being here. If you have questions, let us know how we can help!
FAQs
- 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?
