Medicare Advantage (MA) is a Medicare program administered by private insurance companies. Traditional Medicare is administered by the Federal government. Both Medicare programs are funded by the Federal government with taxpayer money. MA has been plagued with serious problems for years, including over-billing the federal government, fraud, excessive prior authorizations, delays and denials of payment, and restrictive networks that remove the freedom to choose a doctor, clinic, and hospital. Traditional Medicare allows beneficiaries to see any doctor or visit any hospital nationwide that accepts Medicare.
Thirty Four more health systems in the United States are dropping MA plans this year because of prior authorization denials and slow reimbursements. In Minneapolis, Fairview Health Services will stop scheduling patients with UnitedHealthcare MA plans on January 1, 2027. Mayo Clinic in Rochester left the network of most MA plans from UnitedHealthcare and Humana. Several companies, including HealthPartners, UnitedHealthcare, Medica, Humana, and Blue Cross Blue Shield of Minnesota are ending contracts or altering their participation in the Minnesota MA market.
Both major political parties are to blame for the enthusiasm to privatize Traditional Medicare to the severely flawed Medicare Advantage program since the 1980s. However, the Trump administration is making matters worse by claiming that the MA program is “stable” and that premiums will decrease in 2027. In addition, the Trump administration is ending temporary subsidies for Part D prescription drug insurance for people in Traditional Medicare.
Minnesota has been especially affected by the MA turmoil. In 2025, about 160,000 Minnesotans lost their MA plan options. In 2027, another 387,000 Minnesotans will be affected by plans that are ending coverage due to companies closing the plan or leaving a Minnesota county. Crow Wing County is one of 18 Minnesota counties that will have no MA insurance available to residents. Rural counties with low populations, fewer hospitals, and higher costs are disproportionately losing plans.
What should Minnesotans entangled in this Medicare Advantage turmoil do?
The Medicare Open Enrollment Period is from October 15 through December 7. During this time, individuals eligible for Medicare can change their existing plan and prescription drug coverage for 2027. Health Care for All Minnesota (HCA-MN) agrees with Nicole Converse, the insurance broker advising residents of Crow Wing County who have lost all MA plans: Medicare beneficiaries should enroll in Traditional (Original) Medicare with a supplemental Medigap plan and a separate Medicare Part D drug plan. The 387,000 Minnesotans who will lose their MA plans in 2027 now have the prime opportunity to enroll in Traditional Medicare with a Medigap and Part D drug plan without being subject to Medigap underwriting. Although our recommended coverage may cost more, enrollees can have more assurance that their medical bills will actually be paid, that their health insurance will not be cancelled, and that the MA obstacles and hassles will end.
As a counter to the MA advertising blitz we experience during Medicare Open Enrollment Periods, Medicare beneficiaries are highly encouraged to discuss their options with Minnesota Aging Pathways (MAP) at 800-333-2433, Monday through Friday 8 AM to 4:30 PM. MAP is a free, statewide service of the Minnesota Board on Aging that offers “free and unbiased education, counseling, and enrollment assistance to all people with Medicare in Minnesota.” MAP does not receive commissions from insurance companies. In 2024, MAP offered a choice between 28 Medigap plans and 14 Part D plans. As a Medicare beneficiary, you have the right and the power to inform the MAP representative that you are aware of the many problems with Medicare Advantage stated above and insist that you only wish to discuss your options of Traditional Medicare plus Medigap supplement and Medicare Part D drug plan.
Choose wisely. May the Force and Good Health be with you!
Ken Engelhart, M.D.
Editor
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