Medicare Advantage in 2027: Fewer Plans, New Challenges

The 2027 Medicare Advantage landscape is coming into focus, and independent insurance agents should prepare for another year of meaningful market changes.

New CMS landscape data shows that the total number of Medicare Advantage plans nationwide is expected to remain relatively stable, moving from 5,553 plans in 2026 to approximately 5,532 in 2027. CMS also reports that more than 99% of Medicare beneficiaries will have access to at least one Medicare Advantage plan and 97% will have access to 10 or more options.

But those national numbers don't tell the entire story.

A recent Healthcare Dive analysis of the 2027 CMS landscape data found significant changes beneath the national totals. Major insurers are reducing individual Medicare Advantage plan offerings, exiting some counties and adjusting cost-sharing structures as they work to improve the financial performance of their Medicare businesses.

For Medicare agents, that makes individual client plan reviews especially important for the 2027 plan year.

What's Changing in Medicare Advantage for 2027?

According to Healthcare Dive's analysis, major publicly traded Medicare Advantage insurers reduced the number of individual MA plans they are offering for 2027. The analysis also found geographic contraction among several large carriers, although the degree of change varies considerably by insurer and market.

At the same time, Special Needs Plans continue to expand, helping offset some of the reductions in traditional MA and MA-PD offerings nationally.

CMS presents a broader picture of overall market stability. The agency projects the weighted average monthly premium across all MA plans will decrease from $14.37 in 2026 to $12.00 in 2027. CMS also estimates approximately eight in 10 MA beneficiaries will be able to remain in their current plan with the same or a lower premium.

For agents, both sides of the story matter: broad Medicare Advantage availability remains, but the plans available to an individual client—and what those plans cover and cost—may look different in 2027.

Plan Availability Is Only Part of the Story

Premiums naturally receive attention during AEP, but agents should look well beyond the monthly premium.

Healthcare Dive reports that insurers appear to be putting more emphasis on changes to cost sharing. Its analysis cites research showing increases in average maximum out-of-pocket limits and Part D deductibles among plans analyzed for 2027. The CMS landscape file itself does not capture every component of benefit design, including all copay, formulary and supplemental-benefit changes.

That means a plan that appears similar at first glance could potentially look different once an agent reviews its complete benefit structure.

For each client, agents should carefully review factors such as:

• Plan availability in the client's county
• Premiums
• Maximum out-of-pocket limits
• Medical copays and coinsurance
• Prescription drug deductibles and cost sharing
• Formularies and pharmacy networks
• Provider networks
• Dental, vision and hearing benefits
• Other supplemental benefits
• The client's medications and healthcare utilization

The goal isn't simply to determine whether a client's existing carrier is still available. It's to understand how the client's actual coverage and costs may change in 2027.

Client Retention Could Require More Proactive Outreach

A changing Medicare Advantage landscape can create both challenges and opportunities for independent agents.

Clients receiving an Annual Notice of Change may not fully understand how changes affect their coverage. Others may assume that because their plan name or premium hasn't changed significantly, there is no reason to review their benefits.

That makes proactive communication increasingly valuable.

Agents can use the weeks leading into AEP to organize their book of business, identify clients whose plans or markets have changed, review ANOCs and prepare for productive coverage discussions.

The Medicare Annual Enrollment Period runs October 15 through December 7, so having these processes in place before appointment volume increases can make a significant difference.

PSM's 2027 AEP Preparation Guide for Agents provides a framework for organizing client records, reviewing carrier and plan updates, segmenting your book, preparing outreach and developing follow-up workflows before AEP begins.

A Broader Portfolio Becomes Increasingly Valuable

Carrier and plan changes also reinforce the importance of maintaining a diversified product portfolio.

Independent agents who represent multiple carriers may be better positioned to evaluate available alternatives when a client's current plan changes or leaves a market.

That doesn't mean every client needs to change plans. It means agents should have enough options available to conduct a meaningful comparison based on each client's individual healthcare and coverage needs.

PSM Brokerage's Medicare Solutions portfolio provides access to Medicare Advantage, Medicare Supplement and Part D opportunities designed to help independent agents build a broader Medicare portfolio.

Agents can also explore PSM's complete Product Portfolio for additional solutions that may complement their Medicare business.

Don't Overlook Ancillary Coverage

Changes to Medicare Advantage supplemental benefits can also create opportunities for broader conversations about a client's coverage needs.

Dental, vision, hearing, hospital indemnity and other ancillary products may help address needs that aren't fully covered by a client's primary Medicare coverage.

Rather than approaching these products simply as cross-selling opportunities, agents can use the annual review process to identify potential coverage gaps and discuss appropriate options with clients.

This makes the annual Medicare review an opportunity to look at the client's overall coverage picture, not just a single MA plan.

Turn the 2027 Landscape Data Into an AEP Strategy

CMS has made the 2027 Medicare Advantage and Part D landscape files available for agents and other industry professionals who want to analyze plan availability and market changes.

For agents, the practical next step is turning that data into action.

Before AEP:

Review your markets. Identify significant carrier, plan and county-level changes where you do business.

Segment your book. Prioritize clients whose existing plans are terminating or undergoing meaningful changes.

Review complete plan details. Don't evaluate plans based solely on premiums.

Check your portfolio. Make sure you're contracted, certified and ready to sell the carriers and products you expect to need.

Prepare client outreach. Clear, timely communication can help clients understand why an annual coverage review matters.

Build a follow-up process. AEP moves quickly. Documenting appointments, decisions and outstanding follow-ups can help prevent opportunities from falling through the cracks.

The Independent Agent's Role Matters

The headline for 2027 isn't simply that Medicare Advantage plans are being cut.

The more important takeaway is that the Medicare Advantage market continues to evolve differently from one carrier, county and client to another.

Nationally, beneficiaries will continue to have broad access to Medicare Advantage options, according to CMS. At the local level, however, carrier exits, plan reductions and benefit or cost-sharing changes could have a much greater impact on individual beneficiaries.

That's where knowledgeable independent agents can provide real value: reviewing the details, comparing available options and helping clients understand how changes affect their individual coverage needs.

Prepare Your Medicare Portfolio for 2027

PSM Brokerage helps independent insurance agents navigate carrier changes, expand their product portfolio and prepare for AEP with experienced support and resources.

Explore:

2027 AEP Preparation Guide:
https://www.psmbrokerage.com/aep-preparation-guide

Medicare Solutions:
https://www.psmbrokerage.com/product-portfolio/medicare-solutions

PSM Product Portfolio:
https://www.psmbrokerage.com/product-portfolio

Sources

Healthcare Dive, Here's how much insurers are cutting Medicare Advantage plans for 2027, September 29, 2026:
Read the Healthcare Dive article

Centers for Medicare & Medicaid Services, Medicare Advantage and Medicare Prescription Drug Programs Expected to Remain Stable in 2027, September 28, 2026:
View the CMS announcement

CMS 2027 Medicare Advantage and Part D Landscape Files:
View CMS landscape data

For agent use only. This information is intended as a general overview and is not a substitute for carrier-specific guidance, CMS requirements, plan documents, or applicable laws and regulations.