2026: Medicare Advantage enrollment declines in seven states and enrollment in Traditional Medicare grows

Health insurers offering Medicare Advantage plans are pulling out of several low-margin markets with the goal of boosting profits, reports Jakob Emerson for Becker’s. Overall, Medicare Advantage enrollment grew just 2.5 percent in 2026, 30 percent slower than in 2025, when it grew 3.6 percent.

In Vermont, Wyoming, New Hampshire, Idaho, Minnesota, Maryland, and South Dakota, insurers left the Medicare Advantage market or reduced their Medicare Advantage offerings. UnitedHealth and Aetna cut back significantly on their offerings. In addition, only two percent of Medicare Advantage enrollees are in five-star plans.

Overall, there were 6.6 percent fewer Medicare Advantage plans for people with Medicare only. And, insurers offered 10 percent fewer PPO plans, plans that cover care outside of a restricted area. That said, last year more than four in ten people enrolling in Medicare Advantage were in PPOs.

At the same time, for the first time in several years, enrollment in traditional Medicare grew by 600,000. And, 1.7 million more people enrolled in standalone Part D prescription drug plans.

Humana saw the most new enrollment in Medicare Advantage, increasing enrollment by 21 percent and adding 1.2 new enrollees.

Insurers focused enrollment on Medicare Advantage plans that cover people with Medicare and Medicaid. All in, these Special Needs Plans added 12.2 percent more enrollees in 2026, up from 10.1 in 2025. I assume the government pays the insurers even more for people enrolled in these plans.

And, not surprisingly, 70 percent of insurers said they expected to offer fewer additional benefits next year. That’s no big loss given that the “extra” benefits tend to be more sizzle than steak, costing enrollees a lot out of pocket and therefore often going unused.

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