Full Breakdown
Humana Plans to Exit Medicare Advantage Coverage for About 600,000 Members in 2027
8/31/2026, 11:40:00 AM
Core Event: Large-Scale Plan Withdrawals Announced
Humana disclosed on its July 29, 2026 second-quarter earnings call that it will discontinue Medicare Advantage (MA) plans covering roughly 600,000 enrollees beginning December 31, 2026. The exits represent about 8 % of its 7.2 million MA population and are part of a strategy to focus on higher-performing plans and achieve a sustainable MA margin of at least 3 % by 2028.
Background & Context
The decision follows two consecutive years in which Humana has withdrawn from select markets to improve profitability. In 2025 the company exited similar plans and “recaptured just over 40 %” of those members into other Humana offerings.
Data & Statistics
- Members affected: ~600,000 (?8 % of Humana’s MA base).
- Recapture goal: About 40 % of the affected members, or roughly 240,000 people, are expected to be moved into other Humana plans.
- Financial targets: Sustainable MA margin >= 3 % by 2028; Q2 2026 pre-tax margin 1.8 % (down from 6.7 % in 2020).
- Stock reaction: Shares fell 1.81 % on Aug. 28, closing at $385.54.
- Medigap eligibility: Federal law guarantees a “guaranteed-issue” Medigap right when an MA plan ends, allowing enrollment in standardized Plans A, B, C, D, F, G (and, depending on eligibility, K and L) without health-status underwriting. The Medigap window can begin up to 60 days before the MA coverage ends.
Official Statements & Responses
Humana emphasized that members will have “other plan options available,” though it noted that comparable benefit levels may be harder to find in some markets.
Why It Matters for Enrollees
When an MA contract is not renewed, members receive a non-renewal notice dated October 2. This gives beneficiaries a window before Medicare’s annual enrollment period (October 15 – December 7) to evaluate alternatives.
If members do not select another MA plan, they revert to Original Medicare on December 31 and must decide whether to add a standalone Part D prescription-drug plan and whether to purchase a Medigap policy. The guaranteed-issue Medigap right removes typical underwriting barriers, allowing seniors with newly developed conditions to obtain coverage that would otherwise be denied or priced higher.
Choosing a replacement MA plan is not automatic; new plans may feature different physician networks, drug formularies, specialist copays, or out-of-pocket limits. Beneficiaries should compare the total cost of Original Medicare plus a Medigap plan (most commonly Plan G) against any offered Humana MA alternatives before the new year begins.
Practical Guidance for Affected Members
1. Read the notice promptly and note every enrollment deadline, including any Special Enrollment Period triggered by the plan’s termination.
2. Assess Original Medicare plus Medigap by obtaining price quotes for guaranteed-issue plans, especially Plan G.
3. Evaluate replacement MA options for network adequacy, formulary coverage, and out-of-pocket caps, rather than assuming a familiar Humana logo guarantees comparable benefits.
What's Next
Humana will mail the non-renewal letters in early October, with the official notice dated October 2. Affected members will have until December 7 to select new coverage. The insurer expects to retain a portion of the 600,000 members through enrollment in other Humana plans; the remainder will need to transition to Original Medicare and possibly a Medigap or Part D plan.
*This article synthesizes information from Humana’s July 29, 2026 earnings disclosure, federal Medicare enrollment rules, and industry analyses of the insurer’s profitability strategy.*
