The largest health insurance companies in Minnesota are changing or dropping Medicare plans for 320,000 seniors ahead of 2027.
The Minnesota Star Tribune is reporting that massive insurers, including Blue Cross and Blue Shield, Medica, and HealthPartners, are heavily cutting or revamping private Medicare choices. Blue Cross and Blue Shield is the largest Medicare Advantage provider to Minnesotans.
The move will leave hundreds of thousands of local seniors scrambling to find new coverage that will likely cost them more money out-of-pocket.
State regulators and federal officials are watching closely to see how this will impact the upcoming enrollment season and whether this means more changes are coming.
Open enrollment begins October 15.
Many seniors choose to purchase Medicare Advantage programs from private insurance instead of relying solely on the government-funded Medicare program. Medicare Advantage usually features different features and pricing. Around half the state's seniors use a Medicare Advantage program.
Last year, UCare announced they were ending their programs entirely, and shut down their business, transitioning users to Medica.
The changes come as insurers say rising drug and medical costs have led to them losing money, forcing them to adjust how they provide plans.
For 2027, premiums have declined overall, including here in Minnesota. But options have been scaled back, and patients are expected to have to pay more when they do need care.
All healthcare costs are on the rise
Overall health care costs continue to skyrocket. The price of Affordable Care Act insurance has gone up significantly for many Americans during Trump’s second term, after Republicans opposed extending COVID-era subsidies that had helped offset the costs of health insurance for most enrollees during Biden’s term.
Premiums doubled or tripled for many enrollees, prompting millions to downgrade their plans or exit the program entirely after the Republican-led Congress allowed the subsidies to expire this year.
Last week, Vice President JD Vance and White House officials announced plans to remove 760,000 Affordable Care Act enrollees from public healthcare exchanges. They allege these individuals were fraudulently enrolled or do not exist. On Tuesday, Vance said this move would save $2.2 billion, ensuring subsidies go to those who need them.
The Government Accountability Office suggests fraud risks in the advance premium tax credit do exist - however it's unclear at what scale. The GAO conducted covert testing using fictitious ACA applicants enrolled in 2024 and 2025. A report released in December showed that the federal marketplace approved subsidized coverage for almost all of the GAO’s 24 fake enrollees.
Massive insurers, including Blue Cross and Blue Shield, Medica, and HealthPartners, are heavily cutting or revamping private Medicare choices
Massive insurers, including Blue Cross and Blue Shield, Medica, and HealthPartners, are heavily cutting or revamping private Medicare choices
