UnitedHealth to Scale Back Medicare Advantage Plans in 2026
UnitedHealth Group (UNH) will exit more than 100 Medicare Advantage plans across 109 U.S. counties by 2026, affecting approximately 600,000 enrollees. The retrenchment primarily targets preferred provider organization (PPO) plans and other less-managed products, particularly in rural areas where cost control remains challenging.
The strategic shift reflects mounting pressure from rising medical costs—including increased emergency care utilization and pharmaceutical expenses—alongside tighter reimbursement rules from CMS. A projected 20% reduction in federal funding for 2026 has accelerated the company's pivot toward more restrictive health maintenance organization (HMO) models.