Medicare Advantage Plans Will Reduce Coverage in 2027

Minnesota beneficiaries will face increased out-of-pocket costs and reduced benefits starting in 2027.

Updated on Oct. 12, 2026 in Healthcare

Medicare Advantage Plans Will Reduce Coverage in 2027

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Is now a good time to re-evaluate your current Medicare plan to avoid unexpected future costs?

Medicare Advantage plans across Minnesota will implement reduced coverage and higher out-of-pocket expenses for 2027. Approximately 350,000 Minnesotans are expected to be affected by these changes to their healthcare plans.

Why it matters

The reductions in plan benefits stem directly from recent shifts in federal funding levels for Medicare Advantage. These modifications necessitate that beneficiaries review their options to avoid defaulting to original Medicare coverage.

A five-night hospital stay will rise in cost to $2,250 in 2027, compared to $400 in 2026. Additionally, the catastrophic care out-of-pocket maximum in Hennepin County will reach nearly $10,000.

The players

Twin Cities Eye Consultants

This local medical provider serves a patient base that is 85% reliant on Medicare.

The details

Local clinics like Twin Cities Eye Consultants, where 85% of patients are on Medicare, are bracing for the impact of these coverage changes. Beneficiaries who do not actively select a new plan will find themselves reverted to original Medicare.

In 2026, the catastrophic care out-of-pocket maximum was $3,800.
Coverage changes and cost increases take effect in 2027.

Market Landscape

These shifts in Medicare Advantage benefits reflect the broader industry reaction to changing federal funding requirements. This forces a recalibration of plan offerings that ultimately shifts the financial burden from insurers to beneficiaries.

Residents must actively review and select their Medicare plans for 2027 to avoid an automatic reversion to original Medicare. Patients should also prepare for significantly higher out-of-pocket costs for hospital stays and catastrophic care coverage.

The takeaway

Beneficiaries should prioritize reviewing their 2027 coverage options immediately to avoid unexpected financial burdens. Understanding the specific cost increases in your county is essential for managing your healthcare budget for the upcoming year.