Medicare Advantage plans: higher deductibles, fewer benefits in 2027

Bob covers healthcare money, focusing on health insurance and hospitals. Her stories delve into Medicare Advantage, opaque prescription drug benefits, and executive real pay. He is also the author of the Health Care Inc. newsletter. You can reach Bob on Signal at bobjherman.09.

People who have a Medicare Advantage plan – and who will need care and prescriptions next year – are in for a rude awakening.

According to federal data released this week and analyzed by STAT and several investment firms, Medicare Advantage insurers are increasing enrollee spending, slashing spending on dental and other benefits, and eliminating plans that have large networks of hospitals and doctors. This could lead to more shock for seniors, such as finding out their doctor is no longer accepted by their plan, if they don’t shop carefully during the annual Medicare enrollment period for 2027 plans, which begins October 15.

Big companies like UnitedHealth Group, Humana and others are seeking higher profits by cutting benefits, after investors became unhappy with lower margins than insurers promised. The changes in plans come even after the industry won increased payments and delayed reforms from the Trump administration in April.