2 Major Healthcare Companies Are Ditching Medicare Advantage In These US Locations

Medicare Advantage (MA) — also known as Part C — lets private insurers offer Medicare benefits like hospital and medical coverage as single-plan alternatives to Original Medicare under contract with the federal government. While many beneficiaries appreciate its all-in-one structure — as opposed to Original Medicare's separate hospital, medical, and drug plans — the caveat is that Medicare depends heavily on federal reimbursements and utilization levels, making it sensitive to government policy.

Under the 2025 One Big Beautiful Bill Act (OBBBA), the federal government introduced sweeping budget changes, causing some of 2025's worst Medicare cuts. Analysts from the Congressional Budget Office estimate that, due to this law, Medicare will lose upwards of $500 billion in funding by 2035. On top of that, this legislation changes how certain Medicare programs are paid, leaving insurers with smaller margins to run MA.

These changes are making insurers reconsider where and how they can profitably operate MA plans. United Healthcare, the nation's largest MA provider, recently disclosed it will exit MA in 109 counties across the U.S. in 2026, affecting roughly 180,000 enrollees. Additionally, United Healthcare is fully leaving Vermont's MA market, meaning that seniors in that state would need to find another private option if there are any left. Another big insurer, Blue Cross Blue Shield (BCBS) is also exiting Vermont, putting a statewide end to its Vermont Blue Advantage MA plans in 2026. And across the border in New Hampshire, Anthem Blue Cross and Blue Shield will stop offering individual MA plans altogether.

For the seniors caught in the middle of these exits, there's some good news: When a Medicare Advantage plan non-renews, beneficiaries automatically revert to Original Medicare unless they choose another option. So, no matter what happens, you won't be left without coverage. The trade-off is that Original Medicare doesn't include extras like routine eye checks, dental, or bundled prescription coverage. Unlike MA, it also has no annual out-of-pocket maximum. That means higher potential costs if you get sick without additional coverage.

If you lose your MA plan, you also qualify for Special Enrollment Periods (SEP), which give you until the end of February to pick a new Medicare Advantage plan if one is available in your county. If not, you can add a standalone Part D drug plan and consider a Medigap supplement to help with your out-of-pocket expenses. Federal rules give you a one-time guaranteed right to buy Medigap without any medical underwriting, but that window only lasts 63 days after coverage ends, so you'll need to act fast.

Low-income seniors should also check if they qualify for "Extra Help" with drug costs, because it's one of the best ways to get discounts on prescriptions. Additionally, Medicare Savings Programs can help pay hospital and medical insurance premiums and reduce cost-sharing. For anyone overwhelmed by the choices, your state's State Health Insurance Program (SHIP) offers free, one-on-one help comparing plans and deadlines.