A KFF report showed 55% of eligible Medicare beneficiaries are enrolled in privatized Medicare Advantage this year, “though the pace of enrollment growth continued to slow.” The report was issued June 5, 2026
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Despite some major withdrawals by health insurers from Medicare Advantage, the privatized healthcare option for older adults continues to attract new members. As of now, it is chosen by 55% of eligible beneficiaries, according to a new report shows.
Medicare Advantage plans are agreements with the federal government to provide traditional Medicare benefits along with additional services for seniors, including disease management, drug coverage, and nurse hotlines. Some plans also include vision, dental, and wellness programs.
According to a new analysis by KFF, while more Medicare beneficiaries are opting for Medicare Advantage plans, the growth rate of enrollments has decreased in 2026.
The KFF study highlights that Medicare Advantage remains a preferred choice among older adults. Even those who had to switch plans due to insurers exiting the market still opted for Medicare Advantage with a different provider. Leading players in this sector, such as UnitedHealth Group’s UnitedHealthcare and CVS Health’s Aetna, have scaled back this year after years of expanding their reach.
Nonetheless, the KFF report states that these large companies continue to dominate the Medicare Advantage market.
“Medicare Advantage enrollment is highly concentrated among plans owned by a small number of parent organizations, with UnitedHealth Group leading the market, and, together with Humana, accounting for nearly half (46%) of all Medicare Advantage enrollees nationwide, the same as in 2025, and consistent with the pattern in prior years,” the KFF report showed.
“However, market shares for the leading parent organizations changed with UnitedHealth Group dropping to 26% (down from 29%), and Humana increasing to 20% (up from 17%),” KFF said. “In absolute numbers, Humana had the largest growth in enrollment, with 1.3 million more enrollees in 2026 than in 2025. In contrast, enrollment in UnitedHealth Group plans decreased by nearly 647,000 from 2025 to 2026.”
Over the past two years, rising healthcare costs and increased demand from seniors prompted health plans to reassess their market presence. Last fall, they announced a strategic retreat to areas where they could offer competitive and comprehensive benefit packages with strong doctor and hospital networks.
Analysts and investors on Wall Street have been concerned about these plans’ ability to manage costs despite positive first-quarter financial results. Currently, companies report that Medicare Advantage cost trends are stabilizing after the challenges of the past two years.
Humana, for instance, last week reaffirmed its 2026 full-year adjusted earnings per share guidance of at least $9. Additionally, UnitedHealth and CVS saw their stocks rise, reflecting analysts’ observations of moderating healthcare utilization trends, as reported by Investors Business Daily.
