Medicare Advantage Plans in 2026: Will Your Coverage Be Affected?

It’s Medicare open enrollment season, and whispers are circulating: some Medicare Advantage (MA) plans are shrinking their footprints for 2026. Major players, including Aetna CVS Health, UnitedHealthcare, and Blue Cross Blue Shield, are dialing back their offerings. CMS anticipates almost a million fewer enrollees. Understandably, this causes some consternation. It seems those on Medicare Advantage need to pay close attention.

This contraction means many over 65 will need to find new insurance. But not all areas will be affected equally. Where you live greatly impacts your options. So, let’s dissect which areas are likely to see the biggest changes and what you can do if your plan disappears.
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Insurers Re-evaluating Medicare Advantage: Why the Pullback?

The big insurers are citing a few reasons for reducing their MA plans. One explanation centers around utilization. They suggest beneficiaries are using their benefits more than anticipated, driving up costs. Additionally, some insurers complain that government reimbursement rates aren’t keeping pace with expenses.

UCare, a nonprofit serving Minnesota and western Wisconsin, is ending its Medicare Advantage coverage altogether, impacting a significant number of people. Naturally, this sparks anxiety for those who’ve relied on them for years.
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Blue Cross Blue Shield argued that new MA enrollees are often sicker with more chronic conditions than individuals in traditional Medicare. This greater need for care translates to higher costs. Yet, they claim that payment rates haven’t matched rising drug and hospital prices. This imbalance, in turn, constrains choices, erodes benefits, and ultimately could inflate costs for members.

However, it’s not all doom and gloom. Some insurers, like Humana, Devoted Health, and Clover Health, are actually expanding their nationwide Medicare Advantage options. It’s a mixed bag.

Medicare Advantage Cuts: Geography Matters

Despite the cutbacks, not every market faces the same fate. Looking at the data, while many U.S. counties will have fewer MA plans available in 2026, a considerable number will actually see an increase.

Counties that gain plans tend to be either major metropolitan areas or those with a sizable older population. For instance, Dallas County in Texas is adding MA plans. Similarly, several counties in Alabama with a growing over-65 demographic are also witnessing plan expansion.

As a Medicare broker pointed out, Medicare Advantage plans often perform better in densely populated areas like Florida. Sparse enrollment coupled with high plan usage can put insurers in the red.

This explains why rural and suburban counties, particularly those with low population densities or those not eligible for higher federal reimbursements, are often the hardest hit. In some states, like New Hampshire, choices are limited. While everyone will likely still find a plan, it may not be as comprehensive as what they currently have. Ultimately, your location plays a significant role in your Medicare Advantage landscape.

What to Do If Your Medicare Advantage Plan Changes or Ends

So, your plan might be changing, or worse, disappearing. Now what? Don’t panic. Here’s a step-by-step guide.

1. Read your Annual Notice of Change (ANOC): Your insurer sends this letter by September 30th each year. It spells out any plan changes taking effect in January, including possible termination. 2. Mark Medicare Open Enrollment on your calendar: This runs from October 15th to December 7th. It’s your chance to pick a new MA plan or switch to Original Medicare. There’s also a second enrollment period from January 1st to March 31st, although any changes you make then won’t take effect until the following month. 3. Be aware of the potential risks: Missing open enrollment after your plan cancels means you’ll automatically be enrolled in Original Medicare. Without Part D, you could find yourself without prescription drug coverage, paying full price until the next enrollment period. 4. Explore Your Options: Use the Plan Finder tool on Medicare.gov to see what plans are available in your area. Even if your current plan continues, it’s still a good idea to shop around. It’s possible to locate better coverage or lower costs. 5. Compare Plans Carefully: Don’t just look at premiums. Scrutinize out-of-pocket costs like deductibles and co-pays. Critically examine drug formularies and provider networks. Coverage could be less comprehensive than your current plan, or your doctor might no longer be in network. It is key to read the fine print. 6. Consider Medigap or a Medicare Cost Plan: Medigap supplements Original Medicare. If your MA plan is canceled, you can enroll in Medigap without medical underwriting during open enrollment. Medicare Cost Plans offer a hybrid approach, allowing out-of-network visits at reasonable costs, though availability is limited. 7. Get Help: Feeling lost? Contact your local State Health Insurance Assistance Program (SHIP) or find a reputable Medicare broker. Brokers offer more plan options from various insurers.

A Word of Caution and a Dose of Perspective

The Medicare Advantage landscape is clearly shifting. These changes, while potentially disruptive, aren’t necessarily catastrophic. This could mean a good opportunity to evaluate current needs against available plans.

It’s easy to feel overwhelmed by the complexities of Medicare. Taking a proactive approach, doing the research, and seeking help when needed will ensure you find the right coverage. Remember, this is about your health and financial well-being. Be vigilant, be informed, and make choices that work for you. This isn’t the first time Medicare has seen adjustments.

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