Humana to Drop 600,000 Medicare Advantage Members for 2027, Non-Renewal Notices Required by October 2

Humana told investors in July it's exiting Medicare Advantage plans covering approximately 600,000 members for 2027. That's 8% of the insurer's 7.2 million Medicare Advantage enrollees, according to Morningstar/MarketWatch reporting by Jessica Hall. Federal law requires the non-renewal notices to be dated October 2, giving affected members time to shop before Medicare's annual enrollment period runs October 15 through December 7.

Humana says the cuts target its lowest-performing plans, mostly those rated 3.5 stars or below, according to insurance broker Ben Mauldin. After the exits, Humana's Medicare Advantage footprint will still cover 46 states and about 85% of U.S. counties. The company's stated goal, per myplanfit, is returning to a "sustainable" profit margin by 2028.

Humana expects to recapture roughly 40% of the displaced members, or about 240,000 people, by moving them into other Humana plans. The math on the rest: that leaves around 360,000 people who will need to actively choose new coverage, a point moneytalksnews hammered in blunt terms, calling the affected members "cut loose from the coverage they've got today."

This isn't Humana's first pass at trimming its book. The company cut two states from its footprint heading into 2026, reducing county coverage from 89% to 85%. Across the whole Medicare Advantage market, roughly 10% of enrollees were forced to find new plans in 2026, according to a JAMA analysis cited by Morningstar. In 12 states, more than 20% of Medicare Advantage enrollees lost their plans that year. In Vermont, the number hit 92%.

Humana isn't the only insurer pulling back. Clear Spring Health is exiting Medicare Advantage entirely, dropping its Colorado, Georgia and Illinois business. Presbyterian Health Plan is leaving more markets in 2027, affecting about 30,000 subscribers. Molina Healthcare is dropping Medicare Advantage plans that include prescription-drug coverage. The average senior had 39 Medicare Advantage plans with drug coverage to choose from in 2026, down from 42 in 2025, according to Jeannie Fuglesten Biniek of KFF.

The Concern From Seniors' Advocates

Shannon Benton, executive director of the Senior Citizens League, put it plainly: "Sadly, Humana's decision is another sign that Medicare Advantage insurers are prioritizing profit growth over enrollment growth. We expect to hear more from the major insurers in the coming weeks." Insurers built Medicare Advantage into a growth machine for a decade, then started cutting when medical costs and star-rating penalties ate into margins. Rural markets, which already have fewer carriers, absorb a disproportionate share of the disruption when even one insurer walks away, a point Ford Insurance Agency raised specifically for beneficiaries in Northern Michigan.

That said, there's no evidence in these reports that Humana is doing anything other than a straightforward business decision within a program designed to let private insurers compete for Medicare dollars. Nobody is accusing Humana of breaking a rule. The company disclosed the exits to investors, met the required notice timeline, and is following the same playbook it used in 2025 and 2026.

What Members Actually Get

When a Medicare Advantage plan exits, federal law grants a guaranteed-issue right to buy a Medigap policy. The insurer cannot reject the applicant, impose a pre-existing condition waiting period, or charge more because of health history. For someone who developed diabetes or heart disease after enrolling in Medicare Advantage, that protection is worth real money.

The standardized options include Plans A, B, C, D, F and G, though anyone new to Medicare in 2020 or later generally can't buy C or F, which makes Plan G the one worth pricing, according to 24/7 Wall St. The window to use this right runs from 60 days before coverage ends to 63 days after, per moneytalksnews. Miss it, and insurers in most states can go back to medical underwriting.

Ford Insurance Agency raises a fair caution here too: Medigap isn't automatically the right answer. Supplement premiums have been rising, and some carriers are pulling back from that market as well. The right call depends on each person's doctors, drugs, and budget, not a blanket rule.

Do nothing, and the default outcome is ugly. Anyone who ignores the letter gets dropped into Original Medicare on January 1, 2027, with no prescription drug coverage and no supplemental plan, according to Mauldin. Humana has not yet released a county-by-county list of exactly which plans and markets are affected. That list, along with the actual Annual Notice of Change letters, is expected to go out to members starting in early October.