UnitedHealthcare plans to offer more Medicare Advantage plans with limited provider networks in 2027. Competitors, including CVS Health’s Aetna, are making similar moves. UnitedHealthcare is shifting its focus toward Health Maintenance Organization (HMO) plans, which limit members to a smaller provider network to help control costs. The strategy responds to rising medical and drug costs, increased healthcare use, and government funding pressures.
The insurer will exit locations where it has a higher concentration of Preferred Provider Organization (PPO) plans. PPO plans cost more to operate because they allow members to receive out-of-network care. UnitedHealthcare says 95% of eligible individuals in its service area will have access to an HMO plan, but some seniors will have fewer provider choices.
A company spokesperson said the share of members with access to both HMO and PPO plans will fall from 70% in 2026 to 66% in 2027.