Carriers & the market
Humana Plans to Exit Medicare Advantage Markets Serving About 600,000 Members in 2027
On its July 29 earnings call, Humana disclosed it will pull out of lower-rated and less-profitable Medicare Advantage markets for the 2027 contract year, leaving roughly 8 percent of its enrollees to find new coverage this fall.
By the Goodsurance editorial teamJuly 20, 2026
Humana disclosed on its July 29, 2026, second-quarter earnings call that it plans to exit Medicare Advantage plan markets serving approximately 600,000 members for the 2027 contract year. That figure represents about 8 percent of its roughly 7.2 million Medicare Advantage enrollees.
Executives described the moves as targeting what they called the lower tail of profitability in the company's portfolio. They said the majority of the markets being exited involve plans with star ratings of 3.5 or below, though they emphasized that star ratings were not the sole factor driving the decisions. The company said it is prioritizing markets with stronger value-based care penetration.
Humana is exiting Medicare Advantage markets covering about 600,000 members in 2027. Affected members will receive a Special Enrollment Period notice this fall.
Humana noted that after a similar round of plan exits in a prior year, it recaptured just over 40 percent of displaced members into other plans it offers in the same geography. It expects a comparable recapture rate after the 2027 exits.
Members whose Humana plan withdraws from their market will receive official notice this fall and will be granted a Special Enrollment Period, giving them an opportunity to select a different Medicare Advantage plan or to return to traditional Medicare alongside a standalone prescription drug plan.
The announcement adds to a pattern across the Medicare Advantage industry, where multiple carriers have trimmed their plan footprints and reduced supplemental benefits over recent contract years as they work to restore margins after elevated medical spending.
In plain words
Humana, a major Medicare Advantage company, said on July 29, 2026, that it will stop offering coverage in certain areas. About 600,000 people are in the plans that will close. That is roughly 8 out of every 100 of Humana's Medicare Advantage members. Humana says it is keeping the plans that make money and dropping the ones that do not. Members whose plan is closing will get a letter this fall. The letter will give them a special time window to pick a new plan or go back to regular Medicare. Humana expects to keep about 4 out of 10 affected members who choose one of its other available plans.
Understand the basics first
Source: Healthcare Dive
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