Medicare

Medicare Advantage's Retreat: From the 2026 Rate Hike to the 2027 Plan Exits and Open Enrollment

CMS began this cycle by raising 2026 Medicare Advantage payments 5.06%, but plans then faced higher medical costs, risk-adjustment enforcement, and sharp pressure on 2027 bids. CMS’s final 2027 update of 2.48% was materially higher than its near-flat proposal, yet still below the prior year’s update and below cost trends cited by insurers; UnitedHealthcare and Humana have responded with benefit changes and plan exits affecting large numbers of members.