3.16 Million Medicare Advantage Members Face Plan Disruption in 2027

Seven organizations are exiting individual Medicare Advantage, nearly one in five Local PPO members face plan changes, and Minnesota is experiencing one of the largest market disruptions in the country.

The Medicare Advantage landscape continues to shift heading into the 2027 Annual Enrollment Period (AEP). According to an October 8, 2026, analysis by Jared Strock of Medicare Market Insights, approximately 3.16 million Medicare Advantage beneficiaries—10.6% of individual MA enrollment—are affected by plan terminations or service area reductions for 2027.

That's an increase from approximately 2.87 million affected members last year and 2 million the year before.

For independent Medicare insurance agents, these changes reinforce the importance of proactive client outreach, comprehensive annual plan reviews, and access to a diversified carrier portfolio.

With AEP running from October 15 through December 7, 2026, understanding where the greatest disruption is occurring can help agents better serve existing clients and assist beneficiaries who need to evaluate new coverage options.

Medicare Advantage Plan Terminations Continue to Rise

The latest CMS Crosswalk and Landscape files reveal a Medicare Advantage market undergoing significant restructuring.

While individual Medicare Advantage enrollment increased approximately 2.4% year over year to nearly 29.9 million members, the number of beneficiaries affected by plan terminations and service area reductions increased approximately 10%.

Of the 3.16 million affected members:

• Approximately 75% are impacted by full plan terminations.
• Approximately 25%, or nearly 800,000 beneficiaries, are affected by service area reductions.
• The overall share of affected enrollment has climbed to 10.6%, compared with approximately 10% for 2026.

These changes don't necessarily mean carriers are leaving Medicare Advantage altogether. In many cases, insurers are narrowing their service areas, discontinuing specific products, or consolidating their offerings.

For agents, the takeaway is straightforward: A carrier that offered competitive Medicare Advantage coverage in 2026 may have a very different product lineup in 2027.

Local PPO Plans Are Seeing the Greatest Disruption

Local Preferred Provider Organization (PPO) plans account for the largest share of affected Medicare Advantage enrollment.

Approximately 1.85 million Local PPO members are impacted by terminations or service area reductions, representing 19% of current Local PPO enrollment.

That's up from 15% last year and accounts for approximately 59% of all affected members nationwide.

This trend is particularly important for agents whose clients value the flexibility associated with PPO coverage.

When reviewing replacement options, agents should carefully evaluate provider networks, out-of-network benefits, prescription drug coverage, maximum out-of-pocket limits, and overall healthcare costs.

A replacement HMO or another PPO may offer different benefits, but it should be evaluated against the client's individual healthcare needs rather than simply compared on monthly premiums.

Agents should also review the 2027 Medicare Advantage and Part D Star Ratings to better understand the broader changes affecting available plans.

Seven Organizations Are Exiting Individual Medicare Advantage

Another significant development for 2027 is the complete withdrawal of seven parent organizations from the individual Medicare Advantage market.

According to Medicare Market Insights, these organizations include:

Many of these organizations are associated with provider-sponsored health systems, illustrating how regional Medicare Advantage programs are reassessing their participation in the market.

Larger national carriers are also making substantial adjustments.

Humana has approximately 601,000 affected members nationwide, representing roughly 9% of its individual Medicare Advantage enrollment. Nearly 40% of those members are located in Florida.

Other notable changes include:

• Centene: Approximately 19% of individual MA enrollment affected.
• Health Care Service Corporation (HCSC): Approximately 16% affected.
• UnitedHealthcare: Approximately 7% affected.
• Elevance Health: Approximately 4% affected.
• Blue Cross and Blue Shield of Minnesota: Approximately 258,000 affected members, representing 90% of its individual MA enrollment.

These figures reflect plan terminations and service area reductions, not necessarily complete carrier withdrawals.

For independent agents, maintaining access to multiple carriers is increasingly important as insurers continue adjusting their Medicare Advantage footprints.

Explore Medicare Advantage contracting opportunities with PSM Brokerage.

Minnesota Faces the Largest Medicare Advantage Disruption

Although Medicare Advantage plan changes are occurring throughout the country, Minnesota stands out as the most heavily affected market.

Approximately 346,000 Minnesota beneficiaries, representing 63% of the state's individual Medicare Advantage enrollment, are impacted by plan terminations or service area reductions.

Florida follows with approximately 321,000 affected members, representing 11% of its individual MA enrollment.

Other states with particularly high disruption rates include:

The disruption is also concentrated geographically.

Hennepin County, Minnesota, has approximately 67,000 affected members, more than twice the number in San Diego County, California, which has approximately 30,000.

For agents working in these markets, identifying affected clients and reviewing available replacement plans should be an immediate priority.

Could Medicare Supplement Become an Alternative?

As Medicare Advantage options contract in certain markets, some beneficiaries may consider returning to Original Medicare and purchasing Medicare Supplement coverage alongside a standalone Part D plan.

This could create additional opportunities for agents offering both Medicare Advantage and Medigap products.

However, agents must carefully consider guaranteed-issue protections, state-specific rules, underwriting requirements, and enrollment deadlines.

Not every Medicare Advantage plan change automatically provides the same Medicare Supplement enrollment rights.

Agents should verify each beneficiary's eligibility and available options before recommending a transition.

Learn more about Medicare Supplement opportunities through PSM Brokerage.

D-SNP Disruption Is Also Increasing

Traditional Medicare Advantage plans continue to account for most affected enrollment, but Dual Eligible Special Needs Plans (D-SNPs) are also experiencing notable changes.

Approximately 255,000 D-SNP members are affected by plan terminations or service area reductions for 2027, compared with approximately 135,000 in 2026.

That represents an increase from 2% to 4% of D-SNP enrollment.

While the overall percentage remains relatively low compared with traditional Medicare Advantage plans, the increase highlights the need for agents serving dual-eligible beneficiaries to carefully monitor plan availability.

Changes to D-SNP coverage may affect provider relationships, Medicaid coordination, prescription drug benefits, and access to specialized services.

What Medicare Agents Should Do During AEP 2027

With more than three million beneficiaries affected by Medicare Advantage plan changes, proactive client service should be a central part of every agent's AEP strategy.

1. Review Your Existing Book of Business

Identify clients enrolled in plans scheduled for termination or service area reduction.

Review carrier notices, confirm plan availability for 2027, and determine whether affected clients need to make an active enrollment decision.

2. Conduct Comprehensive Annual Reviews

Even clients whose plans are continuing should review their coverage annually.

Compare provider networks, prescription drug costs, deductibles, maximum out-of-pocket limits, and supplemental benefits to determine whether their existing coverage continues to meet their needs.

Use our guide on 10 Questions Agents Should Ask During Every Medicare Annual Review to help structure these conversations.

3. Expand Your Carrier and Product Portfolio

Agents operating in markets experiencing significant disruption should evaluate whether they have access to a competitive selection of Medicare Advantage, Medicare Supplement, and Part D products.

Having multiple carrier relationships can provide greater flexibility when helping clients compare available options.

4. Communicate Changes Clearly and Compliantly

Beneficiaries receiving plan termination notices may have questions about their healthcare coverage.

Agents can provide valuable assistance by explaining plan changes, reviewing alternatives, and helping consumers understand their enrollment rights.

All outreach and sales activity should comply with applicable CMS marketing, communication, permission-to-contact, and Scope of Appointment requirements.

PSM's Medicare Sales Scripts for Agents can help support compliant client conversations.

5. Take Advantage of AEP Marketing Resources

Educational outreach and annual review reminders can help agents connect with beneficiaries who may need assistance.

PSM Brokerage provides independent agents with customizable marketing materials, training, and resources designed to support their AEP efforts.

Explore the 2027 AEP Marketing Toolkit and AEP Preparation Guide.

What Happens When a Medicare Advantage Plan Is Terminated?

When a Medicare Advantage plan terminates or stops serving a beneficiary's area, affected members generally receive a notice explaining the change and available coverage options.

Depending on the circumstances, beneficiaries may qualify for a Special Enrollment Period (SEP) that allows them to select new coverage outside the standard Annual Enrollment Period.

Certain involuntary losses of Medicare Advantage coverage may also trigger guaranteed-issue rights for Medicare Supplement policies.

Agents should verify the applicable enrollment periods, coverage effective dates, and guaranteed-issue protections for each individual situation.

Official enrollment information is available through Medicare.gov.

The Bottom Line for Medicare Agents

The 2027 Medicare Advantage market is entering another year of significant restructuring.

With approximately 3.16 million beneficiaries affected by plan terminations and service area reductions, independent agents have an important role in helping clients navigate changing coverage options.

The greatest disruption is concentrated among Local PPO plans, certain regional carriers, and states such as Minnesota, where a substantial portion of the individual Medicare Advantage market is being reshaped.

For agents, success during AEP 2027 will depend on staying informed, proactively reviewing client coverage, and maintaining access to a diverse selection of insurance products.

At PSM Brokerage, we're here to help independent agents navigate these changes with carrier access, experienced support, and marketing resources designed to help grow and protect their business.

Whether you're reviewing your Medicare Advantage portfolio, exploring additional carriers, or expanding into Medicare Supplement products, our team is ready to help.

Connect with PSM Brokerage to explore your opportunities for AEP 2027.

Source: Jared Strock, 11% of Medicare Advantage Enrollees Are Losing Their Plan in 2027, Medicare Market Insights, October 8, 2026. Analysis based on CMS 2027 Crosswalk and Landscape files and September 2026 enrollment data. Includes individual MA/MAPD plans; excludes employer group plans, Medicare Cost plans, MSA, and PACE. Figures reflect plan terminations and service area reductions.