Medicare Advantage premiums are set to fall sharply in 2027, but some beneficiaries may have fewer doctors and plan options to choose from.
The Centers for Medicare & Medicaid Services projects the weighted average monthly Medicare Advantage premium will decline from $14.37 in 2026 to $12.00 in 2027, a 16.5% drop. More than 99% of Medicare beneficiaries will still have access to at least one MA plan, while 97% will have at least 10 options.
The headline looks positive for consumers, but it comes as major insurers are narrowing networks and leaving less-profitable markets.
UnitedHealthcare and Aetna Are Tightening Networks
UnitedHealthcare and CVS Health’s Aetna are shifting more Medicare Advantage members toward plans with tighter provider networks in 2027 as they try to control rising medical costs.
UnitedHealthcare said only about 66% of members will have access to both HMO and PPO options in 2027, down from roughly 70% in 2026. PPO plans generally offer broader out-of-network access but are also more expensive for insurers to operate.
Aetna, meanwhile, is expanding HMO offerings while reducing its geographic footprint from 43 states to 41. The changes are expected to contribute to the loss of roughly 950,000 members.
Humana is also reducing coverage, with previously announced Medicare Advantage exits affecting around 600,000 members.
Insurers Are Still Getting $13B More From Medicare
The pullback is notable because insurers are not facing an outright cut in federal payments.
CMS finalized a 2.48% average increase in Medicare Advantage payments for 2027, equivalent to more than $13 billion in additional funding. Including expected changes in risk scores, the agency estimates the effective increase at about 4.98%.
That policy change previously triggered a sharp Medicare insurer stock rally, with UnitedHealth, Humana and CVS shares jumping after the larger-than-expected payment increase was announced.
