2027 Medicare Advantage Plan Reductions: Which States Are Most Affected?

Medicare Advantage plan availability is shrinking in several states for 2027, creating important considerations for insurance agents preparing for the upcoming Annual Enrollment Period (AEP).

While national Medicare Advantage plan availability remains relatively stable, state-level changes tell a different story. Some markets are experiencing significant reductions in plan options, while others are seeing new plans enter the market.

According to a recent Becker's Payer Issues report, Medicare Advantage plan availability is declining in 29 states and jurisdictions for 2027.

For independent insurance agents, understanding where these changes are occurring can help prioritize client reviews, evaluate carrier relationships, and identify areas that may require additional attention during AEP.

Which States Are Losing the Most Medicare Advantage Plans?

Florida, Ohio, and Illinois are experiencing the largest reductions in the total number of available Medicare Advantage plans.

Based on the recently released 2027 Medicare Advantage landscape information, the following states are seeing notable changes.

Although Florida has the largest numerical reduction, smaller markets are experiencing some of the most substantial percentage declines.

Wyoming is losing approximately 43% of its available plans, followed by Montana at 28%. Maryland and Washington, D.C., are each experiencing reductions of approximately 25%.

These figures highlight why agents should look beyond national Medicare Advantage trends when evaluating their local markets.

A relatively small nationwide change can represent a much more significant shift in individual states and counties.

Not Every Market Is Contracting

While some states are experiencing reductions, others are gaining Medicare Advantage plan options.

Tennessee is projected to experience the largest increase, growing from 132 plans in 2026 to 155 in 2027.

Other states experiencing notable increases include:

• Missouri: 157 to 174 plans
• Arizona: 133 to 148 plans
• Alabama: 98 to 113 plans

These contrasting trends reinforce an important point: the 2027 Medicare Advantage market is changing differently across the country.

Agents operating in multiple states should evaluate each market independently rather than applying a single strategy across their entire service area.

What Do These Changes Mean for Insurance Agents?

A reduction in available plans doesn't necessarily mean beneficiaries will have fewer suitable coverage options. However, it does make reviewing individual coverage needs and understanding local carrier participation particularly important.

Here are three areas agents should consider heading into AEP.

1. Prioritize Clients in Markets Experiencing Plan Reductions

Agents serving markets with significant plan reductions should identify existing clients whose coverage may be affected.

Review carrier announcements, plan discontinuation notices, and Annual Notices of Change (ANOCs) to determine which clients may need additional assistance.

Prioritizing these conversations can help agents manage their appointment schedules and provide clients with adequate time to evaluate their coverage options.

Remember that statewide plan counts do not necessarily reflect the choices available in an individual client's ZIP code or county.

2. Reevaluate Your Local Carrier Portfolio

Changes in carrier participation can create gaps in an agent's existing product portfolio.

Agents should review which carriers are continuing to offer coverage in their markets and investigate additional carrier relationships when appropriate.

Having access to multiple carriers can provide greater flexibility when discussing coverage alternatives with clients.

However, it's important to verify plan availability, provider networks, prescription drug coverage, benefits, and individual eligibility before presenting recommendations.

Explore PSM Brokerage's Medicare Solutions to learn more about available carrier relationships and product opportunities.

3. Prepare for More Detailed Client Comparisons

CMS projects that the weighted average monthly Medicare Advantage premium will decrease from $14.37 in 2026 to approximately $12 in 2027.

However, national averages don't reflect every local market.

For example, Wyoming's projected average monthly premium is increasing from $45.91 to $69.23.

Agents should look beyond monthly premiums when helping clients evaluate their options.

Provider networks, prescription drug formularies, maximum out-of-pocket costs, supplemental benefits, and individual healthcare needs all deserve consideration.

With significant differences emerging between markets, detailed plan comparisons remain essential.

Use the 2027 CMS Landscape Files to Understand Your Market

Agents interested in researching specific states and counties can access the official Medicare Advantage and Part D Landscape files released by CMS.

These resources provide valuable information about plan availability and premiums for the upcoming coverage year.

Official resource: 2027 CMS Medicare Advantage and Part D Landscape Files

PSM Brokerage recently published a guide explaining how agents can use these files to research their markets, identify changes in carrier participation, and prepare for AEP.

Read: 2027 CMS Medicare Landscape Files Are Here: How Insurance Agents Can Use the Data

Turn Market Changes Into Better AEP Preparation

The Medicare Advantage landscape continues to evolve, but the impact of these changes will look different depending on where agents conduct business.

Whether your market is gaining plans, losing options, or remaining relatively stable, understanding your local landscape is an important part of preparing for AEP.

With the Annual Enrollment Period beginning October 15, now is the time to review carrier participation, identify potentially affected clients, and organize your outreach strategy.

PSM Brokerage offers independent agents carrier access, personalized support, enrollment technology, and marketing resources to help them navigate changing Medicare markets.

Build a stronger strategy for the 2027 Medicare market.

Explore PSM Brokerage's Medicare Solutions and discover how our team can help you evaluate your portfolio and prepare for the upcoming enrollment season.

Sources:

• Becker's Payer Issues: The States Losing the Most Medicare Advantage Plans in 2027
• CMS: Medicare Advantage and Medicare Prescription Drug Programs Expected to Remain Stable in 2027
• CMS: Medicare Advantage and Part D Landscape Files