Having to pay for health insurance is like death, taxes, and an occasional visit to the DMV: unavoidable.
In the U.S., most people get their health insurance via their employer, but if you’re self-employed or retired, you’re in a different pool.
Typically, the health insurance marketplace, run by the federal government and known as the Affordable Care Act (ACA), offers access to health insurance for people who don’t or can’t get insurance from an employer.
Then there is Medicare, the government-run health insurance plan for seniors and Medicaid, coverage for low-income people and people with disabilities.
Many Americans — 33 million people, according to the Centers for Medicare and Medicaid Services (CMS) — now use Medicare Advantage, essentially Medicare benefits offered through private insurance companies that contract with CMS.
Now, people insured through Medicare Advantage may find the ground under their feet becoming increasingly unstable.
“Warning signs about the financial sustainability of benefit-rich Medicare Advantage plans have prompted several insurers to pull back in 2025, resulting in product closures and exits from markets,” according to a report from consulting firm Oliver Wyman.
The report highlighted that over 1.8 million members face losing their 2024 plans when those are discontinued in 2025.
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Major Medicare Advantage providers are pulling back
UnitedHealthcareUNH, CVS Health’s Aetna unit, and Humana (HUM) — three of the largest players in the business — are reducing their Medicare Advantage offerings. On paper, these are business decisions driven by costs, utilization, and profitability.
It may feel a lot more personal for consumers: fewer choices, higher risk of disruption, and one more reminder that the private insurance experiment inside Medicare is not built for stability.
“The combination of (Centers for Medicare and Medicaid Services) funding cuts, rising healthcare costs, and increased utilization have created headwinds that no organization can ignore,” said Bobby Hunter, head of UnitedHealth’s government programs, in comments reported by Reuters.
UnitedHealthcare will withdraw its plans from 109 counties across 16 states in 2026, potentially disrupting coverage for as many as 180,000 people. In some rural markets, it’s the only game in town, according to the Reuters report.
CVS/Aetna is shrinking its footprint, too — dropping service in one state entirely and cutting back from 2,259 counties in 2025 to 2,159 in 2026.
That means fewer plan choices for hundreds of thousands of older Americans.
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Across the industry, Medicare Advantage enrollment is barely growing — just 3% from 2024 to 2025, according to Stat News. For a program that’s been adding millions of members every year for a decade, that’s a flashing warning sign.
These are not minor adjustments. They’re a clear signal that insurers are reassessing whether they even want to remain in this market in the same way. And if they’re recalculating, consumers should be, too.
What the Medicare Advantage retreat means for consumers
When insurers “reposition their portfolio,” here’s what actually happens to real people:
- They may lose their plan. If your county gets cut, you’ll be forced to shop again — risking a new doctor network, a new drug formulary, or higher out-of-pocket costs.
- There is less competition. When the biggest insurers leave a market, smaller ones raise premiums or cut benefits. Fewer choices rarely mean better deals.
- The extras are gone. The “free gym membership” or “dental and vision coverage” that helped sell these plans is often the first thing cut.
- Rural seniors lose. UnitedHealth’s exits target rural counties, where there is already little choice and not enough doctors or hospital beds.
In other words, consumers bear the brunt of the financial decisions made on Wall Street.
Nonprofit research from KFF backs that up. The group has documented that plan exits can be highly disruptive, especially in rural markets where beneficiaries may not have an equivalent replacement option.
Insurers blame rising costs
Insurers point to rising costs, such as increased utilization, higher hospital admissions, and inflation in medical services. They also highlight stricter federal oversight and CMS pulling back on star-rating bonuses that previously padded insurer profits.
Medicare Advantage was sold as a win-win: Private insurers would run leaner, innovate faster, and deliver more benefits than traditional Medicare. Instead, it’s become a margin game — and now that those margins are getting squeezed, insurers are bailing.
What older Americans enrolled in Medicare Advantage need to know
This isn’t just about UnitedHealth or CVS. It’s about the problem of tying essential senior health care to private companies whose first responsibility is to shareholders, not patients.
If you’re enrolled in Medicare Advantage, don’t wait until the annual enrollment scramble:
- Check now whether your county is on the chopping block.
- Ask questions about your network, prescription coverage, and whether traditional Medicare plus a Medigap plan might give you more stability — even if it costs more up front.
The reality is that private health insurance companies will continue to adjust their portfolios, and every “adjustment” puts consumers at risk of disruption.
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