CNN: ‘More than 3 million Medicare Advantage enrollees need to find new plans for 2027 in third year of turmoil’
As Medicare open enrollment begins today, CNN reports that seniors in Medicare Advantage face fewer plans, higher out-of-pocket costs, and thinner supplemental benefits for 2027, the program’s third consecutive year of upheaval.
More than half of Medicare beneficiaries choose Medicare Advantage for its affordability, extra benefits, and coordinated care. Those same seniors now bear the cost of year-to-year instability. Better Medicare Alliance (BMA) believes seniors deserve a Medicare Advantage program they can count on, with predictable policy that protects their choices and keeps costs down.
Record Number of Seniors Losing Their Plans
Citing Medicare Market Insights, CNN reports that nearly 3.2 million enrollees, almost 11% of the total, must find new coverage because their plans are ending. That’s up from 2.9 million for 2026 and about 2 million for 2025. Previously, only 1% to 2% of enrollees typically lost their plans in a given year.
For a growing number of seniors, the options are gone entirely. KFF data cited by CNN show 638,000 people in 193 counties will have no Medicare Advantage plan with drug coverage in 2027, up from 399,000 people in 123 counties this year.
Lower Premiums, Higher Costs When Seniors Need Care
CNN’s reporting underscores that lower premiums are only part of the picture for seniors. Premiums for plans that don’t serve special-needs populations will rise 23%.
The bigger change comes at the point of care. The average out-of-pocket maximum for in-network care will reach $6,603, up 9% from this year, and 70% of enrollees will see their cap go up. Drug deductibles are rising 23% to an average of $509, and just 12% of enrollees will have no deductible, down from 60% in 2024. Experts also expect dental, hearing, transportation, and over-the-counter benefits to shrink.
BMA’s analysis with Avalere Health found the same pattern, with the median out-of-pocket limit for general-enrollment plans reaching $6,600 in 2027, up 32% since 2024.
Stable Funding Means Stable Coverage
BMA President and CEO Mary Beth Donahue summed up the stakes in a statement to CNN: “Better funding brought Medicare Advantage premiums down for 2027, but a record number of seniors will have to find new coverage, and many will pay more when they need care. Seniors shouldn’t have to face this disruption every year.”
A Roadmap to Stability
BMA’s 10-point policy roadmap, released last month, lays out how to replace year-to-year disruption with clear standards set well in advance. It calls for updating the risk model no more than every three years and would also stabilize star ratings and end the bonus cliffs that can cut rebates seniors rely on for extra benefits and lower costs. BMA and its coalition partners are taking the roadmap to Congress and the administration as lawmakers set year-end healthcare priorities.
Medicare Advantage works for seniors when it has a stable foundation. It delivers high-quality, coordinated care and real savings for millions of beneficiaries and their families. BMA will keep working with policymakers on both sides of the aisle so that seniors keep the affordable, high-value coverage they chose, without bracing for upheaval every fall.
Seniors can review their Annual Notice of Change and compare plans at Medicare.gov/plan-compare through Dec. 7.