Minnesota Medicare Advantage Plans See Rising Premiums and Market Exits in 2026

Minnesota seniors face significant changes in Medicare Advantage plans for the 2026 enrollment period, with premium increases averaging nearly 18% amid insurer exits and market disruptions.

 Key providers such as HealthPartners, Humana, UnitedHealthcare, and UCare are reducing their presence or fully withdrawing from many Minnesota counties, leading to fewer plan options for beneficiaries, especially outside the Twin Cities area. Approximately 653,000 Minnesotans currently receive Medicare benefits through Advantage plans, with nearly 158,000 enrolled in UCare plans that will no longer be available.

This market disruption could drive a notable increase in plan switching, possibly affecting over 30% of enrollees compared to a typical 3% turnover rate. Nationally, average Medicare Advantage premiums are expected to decline by about 14%, from $16.40 to $14 per month, but Minnesota’s average premiums will rise from $61.51 to $72.34, driven by local market dynamics and the availability of plans with richer benefits compared to other states where $0 premium options are more common. Rising healthcare inflation and federal funding constraints have squeezed insurer profit margins, prompting carriers to tighten benefits and raise premiums to manage financial pressures. UnitedHealthcare, the largest Medicare Advantage provider nationwide, is exiting multiple markets due to reduced profitability linked partly to changes in the Medicare risk adjustment system. Humana is also reducing its county coverage and increasing premiums by about 13% statewide. The reduction in Medicare Advantage options will increase demand for enrollment counseling, which will rely more heavily on phone-based support from Minnesota Aging Pathways.

Reduced commissions on plan enrollments have also limited insurance agents’ incentives to assist beneficiaries this year. Meanwhile, over 500,000 Minnesotans enrolled in original Medicare may face higher out-of-pocket costs and might consider Medigap and standalone Part D plans to supplement their coverage. The Medicare Advantage and Part D open enrollment period runs from October 15 to December 7, with tools like the Medicare Plan Finder and counseling services available to aid decision-making.

 These developments illustrate significant market and regulatory challenges affecting Medicare Advantage coverage in Minnesota, with implications for insurers, providers, beneficiaries, and policymakers focused on managing costs and access in a shifting health insurance landscape.