19 Health Systems Drop Medicare Advantage Plans in 2026

Nineteen health systems are dropping Medicare Advantage plans in 2026, continuing a trend of hospitals severing ties with certain insurers in the program. The health systems cite persistent frustrations with prior authorization denials and slow reimbursement from Medicare Advantage insurers as primary reasons for ending their contracts. This development is particularly significant because Medicare Advantage now covers more than half of the nation's older adults, meaning these network exits could disrupt care access for millions of seniors. The conflict highlights ongoing tensions between healthcare providers and insurers over administrative requirements and payment practices in the privatized Medicare program.

Health systems terminating Medicare Advantage contracts

• ▪Hospitals and health systems continue to sever ties with certain Medicare Advantage plans in 2026.
• ▪19 health systems are dropping Medicare Advantage plans in 2026.

Operational and financial challenges with Medicare Advantage plans

• ▪Health systems cite persistent frustrations with prior authorization denials as a reason for dropping Medicare Advantage plans.
• ▪Medicare Advantage now covers more than half of the nation's older adults.
• ▪Health systems cite slow reimbursement from insurers as a reason for dropping Medicare Advantage plans.

Perspective of Health systems dropping Medicare Advantage plans

• ▪Slow reimbursement from Medicare Advantage insurers creates persistent frustrations for health systems.
• ▪Prior authorization denials from Medicare Advantage insurers create persistent frustrations for health systems.

Perspective of Medicare Advantage insurers

• ▪Medicare Advantage insurers use prior authorization processes to manage healthcare costs and utilization.

1 source