# US Medicare Advantage enrollment and cost shifts

> Live situation record from CLSTR: https://clstr.news/situations/us-medicare-advantage-enrollment-and-cost-shifts
> Updated: 2026-10-23T13:16:38.000Z. Sources: 24. Developments: 6.

The U.S. Medicare landscape continues to face significant shifts in enrollment and financial stability. While Medicare Advantage (MA) enrollment has grown to 35.1 million—representing roughly 54% of the eligible population—the industry is seeing a contraction in plan availability and a pivot in enrollment drivers.

Recent data indicates that Special Needs Plans (SNPs) have become the primary driver of MA growth. A KFF analysis shows SNPs accounted for 85 percent of net Medicare Advantage enrollment growth between 2025 and 2026, up from 48 percent the previous year. By 2026, total SNP enrollment reached approximately 8.2 million people, or 23 percent of all MA enrollees.

As the 2027 open enrollment period progresses, beneficiaries face rising costs. The prescription drug maximum out-of-pocket deductible is increasing from $625 in 2026 to $700 in 2027, while the maximum out-of-pocket limit is projected to rise to $2,400 from $2,100. Individual reports also indicate sharp premium increases, such as a 25% jump in a Medigap Plan N premium in Florida.

Coverage disruptions are intensifying as major providers retract plans. Humana, UnitedHealthcare, Centene, and various state Blue Cross plans have shuttered certain policies, with estimates suggesting between 2 million and 5 million seniors will be impacted. Notably, the number of U.S. counties with no Medicare Advantage plans offered at all has risen to 193, up from 120 last year, primarily affecting rural regions. Additionally, Molina Healthcare is ending its traditional Medicare Advantage plans with prescription drug coverage after 2026 to shift focus toward dual-eligible members.

## Claims

- 193 U.S. counties will have no Medicare Advantage plans offered next year. (corroborated by 2 sources)
- Medicare's annual open enrollment period runs from October 15 until December 7. (corroborated by 2 sources)
- Estimates suggest between 2 million and 5 million seniors will be affected by plan closures. (corroborated by 2 sources)
- Humana is discontinuing plans that will affect approximately 600,000 members. (single source)
- UnitedHealthcare is closing Medicare Advantage plans for roughly 390,000 members. (single source)
- Molina Healthcare is ending its traditional Medicare Advantage plans after 2026. (single source)

## Timeline

### 2026-10-23: Medicare Advantage plans facing widespread closures for millions of seniors

Millions of seniors face losing Medicare Advantage coverage as major insurers like Humana and UnitedHealthcare exit certain markets, leaving 193 U.S. counties with no private Medicare options.

8 sources. https://clstr.news/cluster/medicare-advantage-plans-closing-affecting-millions-of-seniors

### 2026-10-19: Medicare Advantage growth driven by Special Needs Plans

Special Needs Plans now drive 85 percent of Medicare Advantage growth as insurers pivot strategies. Meanwhile, CMS proposes new rules to mandate provider directory accuracy by 2028.

2 sources. https://clstr.news/cluster/medicare-advantage-growth-driven-by-special-needs-plans

### 2026-10-19: Medicare beneficiaries face rising costs and plan exits during open enrollment

As Medicare open enrollment begins, millions of seniors face plan terminations and rising prescription drug costs due to private insurers exiting unprofitable markets and updated deductible limits.

7 sources. https://clstr.news/cluster/medicare-beneficiaries-face-rising-costs-and-plan-exits-during-open-enrollment

### 2026-10-14: Medicare Advantage enrollees face widespread plan terminations

Millions of Medicare Advantage enrollees face plan terminations and rising costs as insurers overhaul offerings due to medical expenses. Open enrollment runs from Oct. 15 to Dec. 7.

3 sources. https://clstr.news/cluster/medicare-advantage-plans-face-mass-terminations-for-29-million-beneficiaries

### 2026-10-12: Medicare Advantage enrollment rises amid reports of $76 billion in overpayments

U.S. health insurance trends show rising Medicare Advantage enrollment amid reports that privatized plans may result in $76 billion in federal overpayments this year.

4 sources. https://clstr.news/cluster/medicare-advantage-enrollment-rises-amid-reports-of-76-billion-in-overpayments

### 2026-10-07: Medicare beneficiaries face rising costs and plan cancellations

Millions of Medicare beneficiaries face rising costs and plan cancellations as major insurers shutter unprofitable policies, forcing many to switch coverage and face higher out-of-pocket medical expenses.

2 sources. https://clstr.news/cluster/medicare-beneficiaries-face-rising-costs-and-plan-cancellations

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Cite as: US Medicare Advantage enrollment and cost shifts. CLSTR, https://clstr.news/situations/us-medicare-advantage-enrollment-and-cost-shifts