Medicare Advantage premiums projected to fall 16.5% in 2027

Medicare Advantage premiums are projected to fall by 16.5% in 2027, with the weighted average monthly premium dropping from $14.37 in 2026 to $12.00. This decline comes despite the Centers for Medicare & Medicaid Services (CMS) finalizing a 2.48% average increase in Medicare Advantage payments for 2027, totaling more than $13 billion in additional funding.

However, major insurers are responding to rising medical costs by narrowing provider networks and reducing plan availability. UnitedHealthcare is shifting members toward tighter networks, reducing the availability of both HMO and PPO options. Aetna is expanding HMO offerings while reducing its geographic footprint from 43 to 41 states. Humana is also scaling back coverage, affecting approximately 600,000 members.

In Hawaii, the Hawaii Medical Service Association (HMSA) is overhauling its plans due to financial challenges. The insurer is discontinuing two high-option PPO plans at the end of the year, which will affect roughly 16,000 members. HMSA CEO Mark Mugiishi stated the decision was driven by rising healthcare costs and industry-wide challenges.