UnitedHealth Group plans to trim its Medicare Advantage offerings next year, the company informed providers in a notice distributed Thursday.
UnitedHealthcare is the leading Medicare Advantage insurer with a 29% market share, according to data analyzed by KFF, and expects membership to grow by more than 900,000 this year.
But UnitedHealth Group intends to adjust its Medicare Advantage portfolio for the coming plan year in multiple states by eliminating products, including some UnitedHealthcare-AARP jointly branded plans, some dual eligible special needs plans and its private fee-for-service MedicareDirect plan, according to the notice.
In an email, a company spokesperson said, “in 2024, UnitedHealthcare will be expanding its individual Medicare Advantage footprint and, nationally, we will offer more individual benefit plans that we have in 2023.”
The healthcare conglomerate has been expanding its Medicare Advantage business in recent years. For 2023, UnitedHealth Group began selling policies in 314 new counties.
UnitedHealth Group acknowledged headwinds when making Medicare Advantage bids for 2024. The company priced in additional costs from rising medical expenses along with reduced revenue from lower risk-adjustment payments and a smaller Medicare Advantage base payment rate, CEO Andrew Witty said during a second-quarter earnings call in July.
"Even in this challenging funding environment, we continue to prioritize the stability and affordability our members have come to rely on from UnitedHealthcare," Witty said. "We're confident that, next year, we will once again grow at a pace exceeding that of the broader market."