Benefits under the federal Medicare Advantage (Part C) program for seniors are expected to be significantly reduced starting 2026, as major insurers scale back their offerings amid lower government subsidies and rising healthcare costs.
Several large insurance companies, including UnitedHealthcare, Aetna, and Humana, have announced plans to reduce or withdraw their Medicare Advantage coverage in many areas. According to UnitedHealthcare’s announcement on October 1, the company will stop offering Part C plans in 109 counties nationwide next year. Aetna, a subsidiary of CVS, will exit 100 counties, while Humana plans to reduce coverage in two states. Other insurers such as Premera Blue Cross, Blue Cross & Blue Shield of Kansas City, and Harvard Pilgrim Health Care have decided to discontinue their Part C programs entirely.
Bobby Hunter, director of government programs at UnitedHealthcare, said the company expects federal funding to decline by about 20% compared with 2023, adding that tighter government payment regulations could lower insurance revenue by around $4 billion next year. “Scaling back is unavoidable,” he said.
The Part C program provides federally funded coverage through private insurers for Americans aged 65 and older and those with disabilities. It includes prescription drug coverage and extra benefits such as grocery allowances, transportation assistance, and wellness programs—features that make it popular among Korean American seniors.
According to the Centers for Medicare & Medicaid Services (CMS), the reduction will affect roughly 1.2 million enrollees across the top three insurers: Humana (500,000), Aetna (450,000), and UnitedHealthcare (250,000).
The changes will begin primarily in suburban and rural areas, not in major metropolitan counties such as Los Angeles County. Concerns have been raised that, as insurers withdraw and the senior population continues to grow, debates over healthcare coverage may expand in the coming years.
Industry sources report that insurers are also scaling back dental benefits and limiting the use of Flex Cards, which provide up to $500 in additional perks.
Clara Ahn, president of Clara Insurance, said, “Eight or nine out of ten insurers are already cutting benefits. Grocery benefits once available to everyone are now limited to people with chronic conditions, and new out-of-pocket costs are being added, increasing the burden on seniors.”
Experts urge current Part C members to carefully review their coverage during the annual Medicare enrollment period, which runs from October 15 to December 7. Reviewing the Annual Notice of Change (ANOC) sent by insurers in September is especially important, as benefits may differ even under the same plan name.
Justin Oh, president of Justin Oh Insurance Agency, said, “We’re getting more inquiries from people saying they didn’t receive the same benefits this year as before. Beneficiaries should read their notices carefully and consult with an agent before deciding whether to switch plans.”
Yoonhee Kim, a 71-year-old LA resident, said, “My medical group recently dropped out of the Part C plan, which was confusing. I liked it because it included dental, vision, and fitness benefits, but now I’m considering switching to another plan.”
