If you have a Medicare Advantage plan, this is the year to pay closer attention than usual. Several major insurers have already signaled that they are pulling back from Medicare Advantage in 2027, either by dropping plans entirely, shrinking their service areas, or cutting benefits to protect their profit margins. For Arizona seniors, that means it is worth checking now whether your plan will still exist, and in its current form, when the 2027 plan year begins.
This article explains what is driving the pullback, which insurers are involved, what it could mean for Arizona specifically, and the steps you can take before and during this year’s Annual Enrollment Period.
Why insurers are cutting back
Medicare Advantage plans are paid a fixed monthly amount by the federal government for each member they cover. For 2027, the Centers for Medicare and Medicaid Services finalized a rate increase of about 2.48 percent. That is higher than first proposed, but insurers say it still has not kept pace with rising medical costs, prescription drug spending, and hospital utilization among their members.
At the same time, CMS has tightened its review of how insurers calculate risk scores, which affects how much insurers get paid per member, and increased scrutiny of prior authorization practices. Combined with tougher Star Ratings requirements, insurers argue the math no longer works in many counties. When a plan is not profitable in a given area, the insurer generally has two choices: reduce benefits and raise cost-sharing, or exit the market entirely.
Which insurers are pulling back for 2027
Humana has confirmed it will shut down more Medicare Advantage plans in 2027, marking the second year in a row of plan exits for the company. Humana already offered coverage in three fewer states and 194 fewer counties in 2026, and executives told investors this pullback continues as the company works to return to a sustainable profit margin by 2028.
CVS Health’s Aetna has also signaled a strategic shift for 2027, moving away from membership growth and toward margin improvement, which is expected to include exits from specific counties and markets. Aetna had already closed around 90 Medicare Advantage plans across 34 states heading into 2026, most of them PPO plans.
UnitedHealthcare, the nation’s largest Medicare Advantage insurer, is also trimming its PPO offerings, a move that has affected roughly 600,000 members nationally.
This follows a pattern that has been building for several years. Blue Cross Blue Shield of Arizona already stopped offering Medicare Advantage prescription drug plans in the state, and Centene’s WellCare brand and several regional Blue Cross Blue Shield plans have exited other states entirely.
What this could mean for Arizona
Arizona has been affected by these national trends before, and there is no reason to expect 2027 will be different. The number of Medicare Advantage plans available in Arizona already declined from 149 plans in 2025 to 133 in 2026. Arizona’s Medicare Advantage market includes national insurers such as UnitedHealthcare (AARP Medicare Advantage), Humana, Aetna, and SCAN Health Plan, along with plans tied to local health systems such as Banner Health. Any of these could scale back their footprint in specific Arizona counties for 2027, particularly in more rural or lower-enrollment areas like Cochise, Graham, and Greenlee counties, where insurers historically have thinner networks to begin with.
The exact list of which Arizona counties will lose which plans will not be final until insurers file their 2027 bids with CMS and mail notices to affected members, which typically happens in the fall ahead of the Annual Enrollment Period. Until those notices go out, it is not possible to say with certainty whose plan will be affected. What is certain is that more Arizona seniors than in a typical year are likely to receive a notice that their current plan is changing or ending.
What happens if your plan exits your area
If your Medicare Advantage plan leaves your county or shuts down entirely, Medicare gives you a Special Enrollment Period so you are not left without coverage. You are not limited to the standard Annual Enrollment Period window in that case, and you generally have until the end of February of the following year to pick a new plan. If you do not choose a new plan on your own, CMS may automatically assign you to a different one, which may not fit your needs, your doctors, or your medications.
During that Special Enrollment Period, you have three broad paths available:
Enroll in a different Medicare Advantage plan offered in your area.
Switch to Original Medicare, which you can pair with a standalone Part D drug plan and, if you qualify medically, a Medigap supplement policy.
Stay with the same insurer if it offers another plan in your county, though the benefits, premium, and provider network may be different from what you had.
Steps to take before Annual Enrollment
Watch your mail closely this fall. Insurers are required to notify members if their plan is changing or being discontinued. Do not assume no news is good news; read every notice from your plan carefully, even ones that look routine.
Confirm your doctors and hospitals are still in-network for 2027 before you re-enroll in the same plan, since networks can shrink even when a plan itself is not discontinued.
Check your prescription drug coverage every year, since formularies and drug tiers can change even for returning members.
Compare plans using the official Medicare Plan Finder at medicare.gov, or get free, unbiased help from a licensed counselor rather than relying solely on insurance agent mailers and calls.
This year’s Annual Enrollment Period runs October 15 through December 7, 2026, for coverage that begins January 1, 2027.
Free help for Arizona seniors
You do not have to sort through these changes alone. Arizona’s State Health Insurance Assistance Program, known as SHIP, offers free, unbiased Medicare counseling to every Arizona resident, with no sales pressure and no cost. Counselors can help you compare Medicare Advantage plans, understand Medigap, review your Part D drug coverage, and check whether you qualify for programs that help cover premiums.
Arizona SHIP statewide hotline: 1-800-432-4040 1-800-MEDICARE (1-800-633-4227), available 24 hours a day
If your Medicare Advantage plan is discontinued or leaves your county for 2027, this is exactly the kind of situation SHIP counselors handle every year. Reaching out early, before the Annual Enrollment Period gets busy, will get you a shorter wait and more time to review your options carefully.
The bottom line
Insurers are not exiting Medicare Advantage nationwide, and most Arizona seniors will still have multiple plan choices in 2027. But the industry-wide pullback among Humana, Aetna, UnitedHealthcare, and others means more disruption than usual is likely, and some Arizona seniors, especially in rural counties, may find their current plan is no longer offered. The best protection is simple: read your enrollment notices this fall, compare your options even if you are happy with your current plan, and use free local help if anything changes.