Humana Drops Medicare Advantage Plans for 500,000 Seniors as Costs Squeeze Margins
Updated
Updated · Yahoo Finance · Aug 15
Humana Drops Medicare Advantage Plans for 500,000 Seniors as Costs Squeeze Margins
3 articles · Updated · Yahoo Finance · Aug 15
Summary
More than 500,000 Humana members will have to pick new Medicare Advantage coverage next year after the insurer said it is exiting unprofitable plans in some markets.
High medical costs and thinner margins drove the pullback, CFO Celeste Mellet said, making this Humana’s second straight year of Medicare Advantage downsizing.
194 counties and three states were hit by Humana’s latest round this year, while UnitedHealthcare also shed plans serving more than 600,000 seniors.
35 million people—about 55% of eligible Medicare beneficiaries—now use Medicare Advantage, but rising provider costs are pushing insurers to cut plans, trim benefits and raise deductibles.
Humana and UnitedHealth together cover nearly half the market, underscoring how retrenchment by a few large insurers can leave seniors scrambling for replacement coverage.