Medicare Advantage plans exit multiple states as losses mount
Molina Healthcare will stop selling Medicare plans in Connecticut, Mississippi, and Nevada, and will drop all mainstream non-SNP plans in 2027. Health Care Service Corp. plans to exit Connecticut, New York, and D.C., reducing its MA footprint from 580 to 450 counties. CMS will allow MA plans to expand service areas midyear when acquiring a competitor, amid concerns about further exits.
Molina Healthcare's withdrawal from Connecticut, Mississippi, and Nevada follows its earlier decision to eliminate all mainstream non-Special Needs Plans by 2027, with SNP coverage also ending in those three states. The company's retreat reflects broader financial pressure across the Medicare Advantage sector.
HCSC, which acquired its MA business from Cigna several years ago, reported a $4.57 billion underwriting loss last year and may exit 11 additional markets beyond the announced departures. In response to these disruptions, CMS now permits MA plans to expand service areas midyear when acquiring a competitor, aiming to preserve coverage continuity for enrollees.
These exits could leave thousands of Medicare beneficiaries in Connecticut, Mississippi, Nevada, New York, and D.C. searching for new coverage options, potentially disrupting established care relationships. While CMS's midyear expansion rule may help stabilize markets through acquisitions, seniors in affected regions could face narrower provider networks or higher costs. The trend may also signal broader instability in Medicare Advantage, prompting beneficiaries to weigh traditional Medicare alternatives more carefully.