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Celeste Mellet Confirms Humana Will Terminate Medicare Advantage Plans for 600,000 Members in 2027

Humana CFO Celeste Mellet confirmed that the company will exit approximately 600,000 Medicare Advantage members from its plans by 2027. This move, which affects about 8% of Humana's 7.2 million members, is driven by high costs and slimmer profit margins in specific markets. The administration announced that Medicare Advantage plans receive a federal rebate of $2,664 per enrollee in 2026, which helps fund additional benefits like prescription drugs and dental care. While many seniors will remain in the Medicare Advantage system, those whose plans are terminated will have a 63-day guaranteed-issue window to switch to a Medigap policy without medical underwriting. This window is a critical opportunity for seniors to secure coverage without being penalized by their health history. If a member's plan is terminated and the company offers a replacement, they will be automatically enrolled in the new plan. However, if the company exits the market entirely, members must actively choose a new plan or switch to traditional Medicare. Experts suggest that seniors should carefully review their provider networks and out-of-pocket costs before making a plan selection.

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