Humana and Aetna Reduce Medicare Advantage Coverage Amid Rising Costs

In 2025, major health insurers Humana and CVS Health's Aetna are scaling back their Medicare Advantage (MA) plan offerings.

Aetna will provide Medicare Advantage prescription drug plans in 43 states plus Washington D.C., a reduction from 44 states this year. Similarly, Humana will decrease its MA plan presence from 48 states to 46 states and reduce its county-level coverage from 89% to 85% nationwide. This pullback reflects insurers' response to rising healthcare utilization and escalating medical costs that outpace government reimbursement rates for Medicare Advantage plans.

Aetna's Medicare Advantage plans will now cover 57 million Medicare-eligible beneficiaries, down from 59 million, indicating a slight contraction in market access. Humana's reduction in geographic reach signifies a strategic focus on more profitable markets amid ongoing cost pressures. Insurers have reported that government payments have not kept pace with increasing utilization and expenses, prompting portfolio adjustments to manage financial risk.

The Medicare Advantage market continues to evolve under the pressures of higher medical service utilization and reimbursement challenges. Insurers are re-evaluating their footprints and product offerings to align with profitability thresholds and regulatory changes. This trend may impact Medicare beneficiaries' plan options and regional availability.

These scaling back actions by Humana and Aetna underscore broader industry themes such as cost containment, market selectivity, and the importance of government payment adequacy to sustain insurer participation. Stakeholders in the insurance and healthcare sectors should monitor these shifts as they influence competitive dynamics, beneficiary access, and plan design strategies going forward.