US Insurer Humana Is Exiting More Medicare Advantage Plans in 2027— Here's Who Could Be Affected

Humana Inc. (NYSE: HUM ) said Wednesday it plans to exit additional Medicare Advantage plans in 2027, a move expected to affect about 600,000 members.

The insurer said the changes are part of its strategy to improve profitability while reshaping its Medicare Advantage portfolio and staying on track to achieve a sustainable 3% pre-tax margin by 2028.

Medicare Advantage is the privately managed version of Medicare in which insurers receive government payments to provide healthcare coverage to eligible seniors.

The planned exits will primarily target lower-return plans while Humana seeks to preserve benefits and retain members in its higher-performing Medicare Advantage offerings.

Margin Push “Our number one priority was to make the necessary progress to remain on track to deliver on our 2028 commitment of returning to a sustainable margin of at least 3%,” Chief Financial Officer Celeste Mellet said during Humana’s second-quarter earnings call Wednesday.

Mellet said Humana’s 2027 strategy includes targeted exits from lower-return Medicare Advantage plans alongside ongoing clinical and operating efficiency efforts and benefit adjustments.

The company expects the exits to affect approximately 600,000 members but plans to recapture a significant portion of them through other plans, similar to its efforts in 2025.

She added that Humana is prioritizing higher-performing plans with stronger value-based care penetration to preserve benefits for members, and expects to retain just over 40% of affected members, consistent with its 2025 experience.

Read Also: Chip Stocks Are Crashing— but This Analyst Says AI Chip Demand Still Outpaces Supply Until At Least 2028: 'You Just Don't Have The..' Bigger Picture The announcement follows Humana’s second-quarter earnings report released Wednesday, in which the insurer beat Wall Street estimates with adjusted earnings of $7.61 per share on revenue of $40.89 billion.

However, the company lowered its 2026 GAAP earnings outlook while maintaining its adjusted earnings guidance, sending shares lower despite continued growth in its Medicare Advantage business.

Humana’s individual Medicare Advantage membership increased 23% year over year to 6.45 million, while total Medicare membership climbed to 11.13 million.

The company continues to expect individual Medicare Advantage membership growth of about 25% in 2026.

During the earnings call, executives also said medical cost trends remained in line with expectations, with inpatient costs performing better than anticipated, while ongoing operating efficiencies continued to support margins.

The latest move comes as Medicare Advantage insurers face continued pressure to improve profitability while navigating rising medical costs and increased regulatory scrutiny.

Earlier this year, federal investigators raised concerns about prior authorization practices across some of the largest Medicare Advantage insurers, finding that many denied requests for post-hospital recovery care were later overturned on appeal.

At the same time, the Trump administration finalized a 2.48% increase in Medicare Advantage payment rates for 2027, providing additional funding for participating insurers.

Price Action: Humana shares closed Wednesday’s regular trading session down 5.99% at $365.41.

The stock was down 1.48% at $360.00 during Thursday’s premarket trading.

According to Edge Stock Rankings, HUM has a Negative short-term price trend, while its medium- and long-term price trends remain Positive.

Disclaimer: This content was produced with the help of AI tools and was reviewed and published editors.

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