Following significant plan reductions in 2025, UnitedHealthcare is implementing additional changes to its Medicare Advantage offerings for 2026 as the nation’s largest health insurer continues navigating ongoing financial pressures and market realignment challenges.
UnitedHealthcare’s Medicare Advantage changes for 2026 include several key adjustments and updates, reflecting both industry-wide regulatory changes and company-specific strategy:
- Reduction in Plan Offerings: UnitedHealthcare is set to drop some Medicare Advantage (MA) plans, particularly in areas where seniors have broad provider choices. This move reduces the number of MA options in certain markets.
- Premium and Cost Changes: Premiums for UnitedHealthcare’s MA plans are expected to increase in 2026. Clients—especially those using annuities or retirement income to pay premiums—should budget for these higher costs.
- Benefit Updates and Network Adjustments: While the 2025 UnitedHealthcare MA plan expansion included the introduction of 140 new PPO plans, this growth is not expected to continue at the same rate for 2026. UnitedHealthcare is narrowing its focus to maintain stable coverage, offering a range of plans (HMO, PPO, Dual Special Needs Plans, and Chronic Special Needs Plans) tailored to regional needs. However, the reduction of some options means certain consumers may need to switch to a different plan or carrier for 2026.
- Supplemental Benefits and Restrictions: In 2026, new limitations will apply to special supplemental benefits for the chronically ill (SSBCI) within MA plans. The Centers for Medicare & Medicaid Services (CMS) has clarified that certain non-health-related items (such as alcohol, tobacco, non-healthy foods, cosmetics, life/funeral insurance, and other unrelated perks) are not eligible as supplemental benefits under MA plans.
- Part D Prescription Drug Cap Update: For 2026, the out-of-pocket prescription drug cost cap for Part D plans (often bundled with MA) will rise to $2,100, up from $2,000 in 2025, affecting what consumers pay for medications.
- Payment Policy Adjustments: CMS finalized an average 5.06% increase in government payments to MA plans for 2026. The agency is also completing phase-ins of technical funding adjustments and changes to risk adjustment models to better reflect enrollee health needs and control program costs.
- Technology Enhancements: Upgrades to tools such as the UCard, moving to more secure magstripe technology, and expanded digital care programs (like telehealth) are expected to continue as part of UnitedHealthcare’s broader modernization strategy.
- Impact on Consumers: Approximately 600,000 enrollees may be affected by the plan consolidations and discontinuations, making it important for members to review 2026 plan notices and re-enroll if necessary.
In summary, the biggest UnitedHealthcare Medicare Advantage changes for 2026 involve dropping certain plans, raising premiums and out-of-pocket medication caps, and following new regulatory restrictions on supplemental benefits to align with federal guidelines. Beneficiaries should carefully review the Annual Notice of Change and evaluate their options during open enrollment, which runs from October 15th until December 7th, 2025.
This article was updated August 3rd, 2025 with more details about the upcoming changes.