The 2027 Medicare Advantage market is changing. Major insurers are reducing plan offerings, Special Needs Plans continue to expand, and some carriers are aggressively entering new markets. For independent insurance agents, these shifts create both challenges and opportunities heading into the Annual Enrollment Period (AEP).

According to a new October 13, 2026, analysis from Mark Farrah Associates, Medicare Advantage enrollment has reached nearly 36.3 million beneficiaries, representing approximately 51.7% of the Medicare-eligible population.

While Medicare Advantage remains a dominant force in the industry, the competitive landscape is evolving. Understanding where carriers are expanding, consolidating, or withdrawing offerings can help agents better position themselves for 2027.

2027 Medicare Advantage: The Numbers Agents Should Know

Mark Farrah Associates analyzed CMS Medicare Landscape data to identify several significant changes in the 2027 market.

3,592

MA and MA-PD plans

Down 5.3% from 2026

1,969

Special Needs Plans

Up 9.2% from 2026

1,389

Local PPO plans

Down 10.6% from 2026

323

Stand-alone Part D plans

Down 12.0% from 2026Source: Mark Farrah Associates, October 13, 2026. Plan counts reflect distinct contract-plan-segment offerings, not county-level availability. 

The overall decline in Medicare Advantage plan offerings suggests carriers are becoming more selective about where and how they compete.

For agents, this means that relying on last year's plan lineup is no longer sufficient. Every client review should include a fresh evaluation of available plans, provider networks, prescription drug coverage, and out-of-pocket costs.

Major Medicare Advantage Carriers Are Adjusting Their Strategies

Some of the industry's largest carriers are reducing their Medicare Advantage portfolios for 2027, while others are expanding.

According to Mark Farrah Associates, the following insurers are among the leading companies by number of MA plans offered for 2027:

Source: Mark Farrah Associates' 2027 Medicare Advantage Market Analysis.

Humana remains the largest carrier by number of Medicare Advantage plan offerings, despite eliminating 32 plans compared with 2026. UnitedHealthcare and CVS Health have also reduced their portfolios.

Meanwhile, Health Care Service Corporation reduced its offerings from 232 plans in 2026 to 149 in 2027, reflecting continued consolidation following its acquisition of Cigna's Medicare Advantage business.

What this means for agents: A carrier's national presence does not guarantee that its plans remain available in every local market. Agents should verify county-specific offerings and identify clients whose current coverage may be affected by plan terminations or changes.

For a closer look at the broader market changes, read our article on 2027 Medicare Advantage Plan Reductions by State.

Devoted Health Is Expanding While Other Carriers Pull Back

One of the most notable developments for 2027 is the expansion of Devoted Health.

While other leading carriers are reducing their plan counts, Devoted Health increased its offerings from 241 plans in 2026 to 407 plans in 2027.

That represents an increase of approximately 69%.

The expansion includes four additional states:

• Connecticut
• New Hampshire
• New Jersey
• New York

Devoted is also introducing additional plans in markets where it already operates.

For independent agents, this highlights the importance of maintaining a diversified carrier portfolio. New entrants and expanding insurers may introduce competitive benefits, provider networks, or plan designs that deserve consideration during client reviews.

However, expansion alone does not make a plan the right fit. Agents should carefully evaluate benefits, networks, formularies, and client needs before recommending coverage.

Explore PSM Brokerage's Medicare Advantage carrier portfolio to learn more about available contracting opportunities.

Special Needs Plans Continue to Grow

While traditional Medicare Advantage offerings are declining, Special Needs Plans (SNPs) are moving in the opposite direction.

For 2027, the number of SNP offerings increased from 1,803 to 1,969, representing 9.2% growth.

SNPs are the only major plan category in Mark Farrah Associates' analysis showing year-over-year expansion.

This trend presents an important opportunity for agents serving eligible Medicare beneficiaries, particularly those who may qualify for:

• Dual Eligible Special Needs Plans (D-SNPs)
• Chronic Condition Special Needs Plans (C-SNPs)
• Institutional Special Needs Plans (I-SNPs)

As insurers increasingly focus on specialized populations, agents who understand SNP eligibility, benefits, and enrollment requirements may be better positioned to serve clients with complex healthcare needs.

Agent takeaway: Familiarize yourself with SNP options in your service area, including eligibility verification, qualifying conditions, provider requirements, and applicable enrollment periods.

Low-Premium Medicare Advantage Plans Remain Common

Despite the reduction in overall plan offerings, low-premium Medicare Advantage plans continue to represent a substantial portion of the market.

Mark Farrah Associates reports that approximately 70% of 2027 Medicare Advantage plans, excluding SNPs, have monthly premiums below $2.

Another 14% have monthly premiums between $2 and $50.

Only about 2% of plans carry monthly premiums exceeding $200.

These figures reinforce the importance of looking beyond monthly premiums when comparing coverage.

A low-premium plan may still have meaningful differences in:

• Maximum out-of-pocket limits
• Primary care and specialist copayments
• Hospital and emergency room costs
• Prescription drug coverage and cost sharing
• Provider network participation
• Supplemental benefits

Agents should evaluate total potential healthcare expenses rather than focusing exclusively on the monthly premium.

Stand-Alone Part D Plans Are Also Declining

The changes are not limited to Medicare Advantage.

Nationwide stand-alone Prescription Drug Plan offerings declined from 367 in 2026 to 323 in 2027, a 12% reduction.

This continues a broader trend toward fewer stand-alone Part D choices.

For clients enrolled in Original Medicare with a Medicare Supplement policy, annual prescription drug coverage reviews remain especially important.

Agents should confirm that clients' medications are covered, review pharmacy network preferences, compare estimated annual drug costs, and identify any changes to their existing Part D coverage.

Five Ways Insurance Agents Can Prepare for the 2027 Market

With fewer traditional Medicare Advantage offerings and increased competition in specialized markets, preparation and proactive client service will be especially valuable.

1. Review your existing book of business. Identify clients whose plans are terminating, changing benefits, or modifying provider networks. Prioritize outreach based on the potential impact of those changes.

2. Evaluate your carrier portfolio. Determine whether your current contracts provide sufficient access to competitive plans in your service area. Consider expanding your portfolio where appropriate.

3. Strengthen your SNP knowledge. Understand the eligibility and enrollment requirements for D-SNP, C-SNP, and I-SNP products available in your market.

4. Compare more than premiums. Help clients understand the full picture, including prescription drug coverage, provider access, cost sharing, and maximum out-of-pocket exposure.

5. Prepare your marketing and enrollment processes. Confirm carrier certifications, review approved marketing materials, and ensure your enrollment technology and compliance procedures are ready.

For additional resources, explore the PSM Brokerage AEP Preparation Guide and AEP Marketing Toolkit.

The Bottom Line: A Changing Market Creates Opportunities for Independent Agents

The 2027 Medicare Advantage landscape reflects a market in transition.

Major insurers are refining their footprints, traditional MA and PPO offerings are declining, and Special Needs Plans continue to gain ground. At the same time, expanding carriers are introducing new competitive dynamics in selected markets.

For independent insurance agents, success will depend less on the sheer number of available plans and more on understanding which options best serve each client's needs.

Agents who stay informed, diversify their carrier relationships, and conduct thorough annual coverage reviews will be better prepared to navigate these changes.

Partner With PSM Brokerage for the 2027 AEP

At PSM Brokerage, we help independent insurance agents navigate an evolving Medicare market with access to competitive carrier contracts, experienced account managers, marketing resources, enrollment technology, and ongoing support.

Whether you're reviewing your existing carrier portfolio or exploring new opportunities, our team is here to help you prepare for the year ahead.

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Connect with PSM Brokerage to explore your Medicare Advantage opportunities.

Source and additional reading

Primary source: Mark Farrah Associates, Medicare Advantage 2027 Plan Competition and Market Insights, October 13, 2026. Data derived from CMS Medicare Landscape files and Mark Farrah Associates' Medicare Benefits Analyzer.

Additional PSM resource: 2027 Medicare Advantage and Part D Star Ratings.