shalesh kumar Humana will discontinue selected Medicare Advantage plans for the 2027 plan year, a move expected to affect about 600,000 members, as the health insurer continues reshaping its business to improve long-term profitability.
The company said the decision is part of its strategy to focus on stronger-performing plans and achieve a sustainable pre-tax margin of at least 3% by 2028. Executives said they expect many affected members will be able to move into other Humana Medicare Advantage plans during the upcoming enrollment season.
Why Is Humana Ending Some Medicare Advantage Plans?
Humana says rising healthcare costs, higher spending on medical services and prescription drugs, and continued pressure on Medicare Advantage margins have made some plans financially unsustainable. Rather than reducing benefits across all plans, the insurer plans to withdraw from selected lower-performing markets and concentrate on plans that generate better long-term value.
The company estimates that roughly 40% of affected members could transition to another Humana plan if suitable options are available in their area.
What It Means for Medicare Beneficiaries
If your current Humana Medicare Advantage plan is discontinued for 2027, you will not automatically lose Medicare coverage. However, you will need to review your available options during the Medicare Open Enrollment Period (October 15–December 7, 2026) and choose a new Medicare Advantage or Medicare Part D plan for coverage beginning January 1, 2027.
Experts generally recommend comparing monthly premiums, provider networks, prescription drug coverage, deductibles, and out-of-pocket costs before making a decision.
Humana Reports Strong Revenue but Lowers GAAP Earnings Outlook
Alongside the announcement, Humana reported solid second-quarter 2026 financial results. Revenue increased 26% year over year to approximately $40.9 billion, while net profit reached $694 million. The insurer also reaffirmed its full-year adjusted earnings outlook but lowered its GAAP earnings forecast, citing continued pressure from Medicare Advantage Star Ratings and related reimbursement changes.
Company executives said overall medical costs remained largely in line with expectations, although spending on specialty prescription drugs and other healthcare services continues to place pressure on Medicare Advantage plans.
You may also find these related health insurance stories helpful:
- Trump Ends Medicare Part D Subsidy: What It Means for 2027 Medicare Drug Costs
- Hawaii Family Health Insurance Costs Rise 50% Over 10 Years
- Healthcare Costs Push Consumer Confidence Down as Medical Bills Rise
Medicare Advantage Market Continues to Change
Humana is not the only insurer adjusting its Medicare Advantage strategy. Over the past two years, several major health insurers have reduced benefits, exited certain markets, or redesigned plans as rising healthcare costs and changing federal payment policies have affected profitability.
For beneficiaries, that means plan availability can vary from one year to the next, making it important to review coverage during every open enrollment period instead of automatically renewing an existing plan.
What Should Current Humana Members Do?
Members enrolled in a Humana Medicare Advantage plan do not need to take immediate action. The company has not yet released the full list of counties and plans that will be discontinued for 2027.
Once official plan notices are issued, affected beneficiaries should:
- Confirm whether their current plan will continue in 2027.
- Compare available Medicare Advantage and Part D plans in their area.
- Check that preferred doctors, hospitals, and pharmacies remain in-network.
- Review premiums, deductibles, prescription drug coverage, and annual out-of-pocket costs before enrolling in a new plan.
What Happens Next?
Humana is expected to release additional details before the Medicare Open Enrollment Period, which runs from October 15 through December 7, 2026. Any coverage changes selected during that period will generally take effect on January 1, 2027.
The company has also indicated it expects to retain a significant share of affected members by offering alternative Humana Medicare Advantage plans where available.
The Bottom Line
Humana’s decision to discontinue selected Medicare Advantage plans in 2027 marks another significant change in the Medicare market as insurers respond to rising healthcare costs and profitability challenges. While approximately 600,000 members could be affected, beneficiaries will have an opportunity to compare plans during Open Enrollment and choose coverage that best fits their healthcare needs and budget.
Sources
- Humana — Second Quarter 2026 Earnings Results
https://www.humana.com/about/newsroom - Centers for Medicare & Medicaid Services (CMS) — Medicare Advantage & Part D
https://www.cms.gov/medicare - CMS Newsroom
https://www.cms.gov/newsroom - Medicare (Official U.S. Government Website)
https://www.medicare.gov - Humana Investor Relations
https://investors.humana.com
Frequently Asked Questions
Why is Humana ending some Medicare Advantage plans for 2027?
Humana says it is exiting lower-performing Medicare Advantage plans to improve long-term profitability while maintaining stronger benefits in plans that remain available.
How many people could be affected?
The company estimates that approximately 600,000 Medicare Advantage members could be impacted by the planned exits.
Will I lose my Medicare coverage?
No. If your Humana plan is discontinued, you can choose another Medicare Advantage plan or return to Original Medicare and enroll in a standalone Part D prescription drug plan during open enrollment.
When can I switch to another Medicare plan?
Most beneficiaries can review and change their coverage during the Medicare Open Enrollment Period from October 15 to December 7, 2026, with new coverage generally beginning on January 1, 2027.
Has Humana announced which plans will close?
Not yet. The insurer has confirmed the overall strategy but has not released a complete state-by-state or county-by-county list of affected Medicare Advantage plans. Those details are expected closer to the 2027 enrollment season.
