Medicare Coverage Is Changing for 2027: What Humana Members Need to Know

Humana has announced plans to discontinue certain Medicare Advantage plans and leave some markets for 2027, a move expected to affect approximately 600,000 members nationwide. The changes are part of a larger shift taking place within Medicare as insurers respond to rising healthcare costs and focus more closely on the financial sustainability of the plans they offer.

For people currently enrolled in a Humana Medicare Advantage plan in 2026, this does not necessarily mean your coverage will end. However, it does mean this is an especially important year to pay attention to your plan. If you currently have a Humana Medicare Advantage plan, we encourage you to contact Ford Insurance Agency to discuss what these changes may mean for your 2027 coverage. Our team can help you understand what is changing and review the options available to you.

It is also important not to assume that moving from Medicare Advantage to a Medicare Supplement, commonly called Medigap, is automatically the answer. Medicare Supplements are facing their own challenges, including significant premium increases and carriers reducing their participation in the market. The best solution will depend on each person's individual circumstances.

Why Is Humana Making Changes?

The Medicare Advantage market has changed significantly in recent years.

Insurance companies are dealing with rising medical expenses, increased healthcare utilization and changes to the way Medicare Advantage plans are funded and evaluated. As a result, carriers have become more selective about the plans and markets in which they participate.

Humana has made it clear that it is focusing more closely on the profitability and long-term sustainability of its Medicare Advantage business. Its planned 2027 changes include targeted exits from certain plans and markets rather than making the same reductions everywhere.

Humana is not alone. Other Medicare Advantage insurers have also reduced the number of plans or geographic areas they serve as the industry adjusts to changing financial conditions.

Why Rural Communities Could Be Especially Affected

Humana has not yet released a complete county-by-county list showing which plans and communities will be affected in 2027. Because of that, it is too early to say exactly where the largest changes will occur.

Rural Medicare beneficiaries should still pay particularly close attention.

Rural areas typically have fewer Medicare Advantage carriers and fewer plans available than larger metropolitan areas. That means the departure of even one insurance company can have a much greater impact.

Recent Medicare Advantage plan terminations have already affected rural beneficiaries disproportionately. When fewer alternatives are available, people may have to reconsider their doctors, prescription coverage, out-of-pocket costs or even the type of Medicare coverage they use.

For beneficiaries in Northern Michigan and other rural communities, reviewing coverage each year is becoming increasingly important.

Does This Mean Your Humana Plan Is Going Away?

Not necessarily.

Humana's announced 2027 changes are expected to affect approximately 600,000 members, but the company expects to retain some of those members through other Humana plans that remain available.

Depending on where you live and which plan you currently have, several things could happen.

Your Humana plan may remain available. It may remain available with changes to premiums, copays, benefits or its provider network. Your existing plan could be discontinued while another Humana plan remains available in your area. Humana could also leave certain markets entirely.

We will know much more as complete 2027 plan information becomes available.

Medicare Supplements Are Changing Too

The changes happening within Medicare Advantage should not be interpreted to mean that Medicare Supplements are automatically a better option.

Medigap coverage has been experiencing its own cost pressures.

In our work with Medicare Supplement carriers, Ford Insurance Agency saw increases of around 20% across many carriers in 2026, with some increases reaching approximately 40%. We have also seen carriers reduce their participation in the Medicare Supplement market.

Those kinds of increases can have a major impact on retirees living on a fixed income. A Medicare Supplement that was comfortably affordable when someone enrolled may become significantly more expensive over time.

Consumers can also apply to change Medicare Supplement policies, but outside certain protected enrollment situations, an insurance company may require medical underwriting. In Michigan, that can include health questions and may affect whether an applicant is accepted or how the policy is rated.

The point is not that Medicare Advantage is better than Medigap or that Medigap is better than Medicare Advantage.

The point is that there is no single answer that is right for everyone.

The Entire Medicare Market Is Under Pressure

The larger story heading into 2027 is that Medicare beneficiaries need to pay closer attention to their coverage. Medicare Advantage members may see carriers leave markets, plans disappear, benefits change or costs increase. Medicare Supplement policyholders may see significant premium increases or fewer carrier options. Prescription drug coverage can change from year to year as well. That makes simply renewing the same coverage without reviewing it a potentially costly decision. Your doctors, hospitals, medications, monthly premiums, expected healthcare needs and tolerance for out-of-pocket expenses should all be part of the decision.

Pay Attention to Your 2027 Coverage Information

Medicare beneficiaries should carefully review the information they receive from their current insurance carrier regarding 2027. For Medicare Advantage members, this includes the Annual Notice of Change, which explains changes to costs, benefits and coverage for the coming year.

Medicare's Annual Enrollment Period runs from October 15 through December 7. During this period, beneficiaries can make changes to their Medicare Advantage and Part D coverage for the following year.

You do not have to wait until October to start thinking about your options.

Talk With Ford Insurance Agency

The Humana announcement is an important reminder that Medicare coverage can change significantly from one year to the next. If you currently have a Humana Medicare Advantage plan, we especially encourage you to contact Ford Insurance Agency to discuss your coverage for 2027.

Our Medicare team can review your current plan, help you understand upcoming changes and compare the alternatives available to you. And if you currently have a Medicare Supplement, it may be worth reviewing that coverage too, particularly if you have experienced a substantial premium increase.

The goal is not to move everyone toward one type of Medicare coverage. It is to make sure you understand your choices and have coverage that continues to make sense for your healthcare needs and your budget.