Carriers
Humana’s 600,000 non-renewal letters are landing. Agents have until Dec. 7
Humana is discontinuing plans rated 3.5 stars or lower. About 360,000 members may need coverage outside Humana. Agents can keep them as clients, but usually at the renewal rate.
About 600,000 Humana Medicare Advantage members are receiving letters this month telling them their plan will not exist in 2027. For agents, those letters start a short clock: they must reach affected clients, find replacement coverage, and complete enrollments before the season closes on December 7.
What’s happening
Humana is discontinuing plans rated 3.5 stars or lower for the 2027 bonus year, according to Insurance Business. The exits affect about 8% of its 7.2 million Medicare Advantage members. Federal rules require the non-renewal notices to be dated October 2, and coverage on the affected plans ends December 31, 2026.
Humana’s CFO, Celeste Mellet, described the strategy as cutting “off the lower tail of profitability” rather than reducing benefits across every plan. Humana has not disclosed which counties are affected.
Where the clients go
Humana expects to move roughly 40% of affected members into its other plans. Insurance Business estimates that leaves about 360,000 people who need coverage elsewhere. For agents who help those members compare replacement coverage, compensation is usually lower than for a first-time enrollment. Under CMS rules, a move from one Medicare Advantage plan to another is a “like plan type” change, paid at up to half the initial rate, even when the client changes carriers. For 2027 that is a renewal cap of $363 in most states, against a $725 initial cap.
Humana itself is adding 39 counties while trimming plans, so some replacement options may still be Humana plans. Commission status can differ from plan to plan, so check your upline’s current grid rather than assuming. Brokers have reported that more than 300 Humana plans will not pay commissions in 2027, though Humana has not confirmed that figure.
Why this matters beyond Humana
Plan exits forced about 2.9 million Medicare Advantage members to find new plans for 2026, roughly 10% of all enrollees, compared with a historical average of about 1%. Confirmed and reported 2027 exits from Humana, Centene, Molina and UnitedHealthcare put more than one million more members in line for disruption.
Your move
- Pull every Humana member from your book and match them against the plans being discontinued as soon as your upline publishes the list.
- Contact affected clients before enrollment opens on October 15, and book review appointments early in the season.
- Choose replacement coverage on each client’s needs. Separately, check each option’s commission status on your upline’s current grid, so you know what you will be paid and can answer compensation questions accurately.
- Budget for the renewal rate. Moving a client from a discontinued Humana plan into another Medicare Advantage plan, at Humana or another carrier, usually pays renewal compensation, not initial. The exception is a client still in their first year of Medicare Advantage, which is paid pro-rated initial-year compensation.
Correction, Oct. 3, 2026: An earlier version of this article said clients who move to another carrier count as new enrollments. Under CMS rules, a move from one Medicare Advantage plan to another is generally paid at the renewal rate. The article has been updated.
