UnitedHealthcare, other insurers to scale back Medicare Advantage plans
Insurance companies scaling back Medicare Advantage
Funding cuts to Medicare will have an impact on residents in Minnesota, with UnitedHealth primarily pulling back in the southern part of the state. FOX 9's Mike Manzoni has the latest details.
(FOX 9) - UnitedHealth said on Wednesday that it plans to withdraw Medicare Advantage coverage from nearly four dozen Minnesota counties, a move it blamed on Medicare funding cuts.
UnitedHealth to stop offering Medicare Advantage plans in parts of Minnesota
What we know:
Eden Prairie-based UnitedHealth said it plans to reduce its Medicare Advantage footprint from 72 to 27 counties. It said the decision would affect about 20% of its Medicare Advantage subscribers statewide. The insurer said the impacts will disproportionately impact southern Minnesota but did not specify why.
The reason:
UnitedHealth blamed the decision on "funding pressures," specifically federal funding cuts to the Centers for Medicare and Medicaid Services.
Medicare Advantage subscribers losing coverage have options
What are the options:
Medicare Advantage plan subscribers who lose their coverage will automatically be covered under Original Medicare. But that program does not include prescription drug coverage or other additional benefits that come with Medicare Advantage plans. If a current subscriber wants to find another Medicare Advantage plan, they can do so online or with the help of an agent.
What they're saying:
"You still have some insurance. You just won’t have prescription drug coverage, and your deductibles change, your co-pays change," explained Tim Jopp, an agent at Waconia-based Legacy Health Insurance. "Things like that are different on Original Medicare than what they’re like when you’re on a Medicare Advantage plan."
"They’re also going to be able to buy or look at other Medicare Advantage plans or look at a supplement – whichever one is a better fit for them," he said.
Other insurers also planning Medicare Advantage changes
What they’re doing:
Minneapolis-based UCare announced in September that it planned to stop offering Medicare Advantage plans altogether in 2026. In addition, HealthPartners and Aetna are also withdrawing coverage in some Minnesota counties.
There are also some changes coming to Blue Cross and Blue Shield of Minnesota. A spokesperson for the company shared the following statement:
"Blue Cross and Blue Shield of Minnesota (Blue Cross) will continue to offer Medicare Advantage plans in 66 counties across the state. Medicare Cost plans are also available in the remaining 21 counties. Altogether, Blue Cross will continue to offer Medicare plans for seniors in all 87 counties in Minnesota."
What's next:
The plan changes take effect on Jan. 1.