Blue Cross Blue Shield scales back Medicare Advantage offerings

Major insurance providers are withdrawing or scaling back Medicare Advantage plans in several regions starting in 2027. In Minnesota, Crow Wing County will have no Medicare Advantage options available next year, a situation that reflects a broader statewide trend affecting nearly 390,000 residents.

Blue Cross and Blue Shield of Minnesota cited significant financial losses, stating the company has lost more than $500 million on Medicare alone over the past three years due to rising medical and pharmacy costs. Other insurers, including HealthPartners, UnitedHealthcare, Medica, and Humana, are also ending or reducing plans in the state.

In Texas, Blue Cross Blue Shield of Texas has announced it will cease offering Medicare Advantage, dual care, and prescription drug plans effective January 1, 2027. Affected seniors must seek new coverage during the Medicare open enrollment period, which runs from October 15 through December 7.

Medicare Advantage plans are private alternatives to original Medicare that often include dental, vision, and prescription drug benefits. Without these plans, seniors may need to combine original Medicare with Medigap supplemental policies and separate prescription drug plans, which can lead to increased monthly costs.