Major health insurers scaling back Medicare Advantage offerings in 2026

Core Insights - Leading health insurers are scaling back their Medicare Advantage offerings due to anticipated decreases in government reimbursement starting in 2024 [1][5] - The reduction in Medicare Advantage plans is a response to higher-than-expected medical service usage and lower payments related to patients' health conditions [5][6] Company Actions - CVS Health's Aetna will reduce its prescription drug plans by 100 counties in 2026, while Humana will decrease its plan availability to 85% of counties, down from 89% [2][8] - UnitedHealth will cease operations in 109 counties, impacting approximately 180,000 individuals [2][12] - Humana will operate in 46 states in 2026, down from 48, and Aetna will offer plans in 43 states and 2,159 counties, a reduction from 44 states and 2,259 counties [8] Market Dynamics - Insurers are exiting less profitable markets due to funding cuts from the Centers for Medicare and Medicaid Services, rising healthcare costs, and increased service utilization [6][7] - UnitedHealth's decision to shut down over 100 plans will affect around 600,000 members, primarily those enrolled in preferred provider organizations [12] Plan Offerings - Humana plans to introduce new plan types in four states across 177 counties, with 83% of its standalone prescription drug plans in 2026 expected to have decreased premiums [11] - CVS Health aims to expand its offerings for individuals eligible for both Medicare and Medicaid to 16 new states [11]