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By Suzanne Blake
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Another major Texas health system is leaving the Medicare Advantage insurance market as hospitals and health systems across the country retreat from certain private Medicare plans.
Houston-based Memorial Hermann Health System is ending its Medicare Advantage plan at the end of 2026, meaning its coverage will no longer be available for the 2027 plan year.
The move is part of a much larger shake-up in Medicare Advantage. Ten health system-affiliated insurers already are among 18 plans exiting the Medicare Advantage market for 2027, according to Centers for Medicare & Medicaid Services (CMS) data.
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“What we’re witnessing is a larger challenge within the Medicare Advantage system, where private insurers are expected to provide affordable coverage while managing escalating healthcare costs, and when those competing priorities become unsustainable, seniors are often left facing the consequences,” Alex Beene, financial literacy instructor at the University of Tennessee at Martin, told Newsweek.
At the same time, some hospitals and health systems are remaining in Medicare Advantage but terminating their network agreements with individual insurers such as UnitedHealthcare, Humana, Aetna and Anthem.
Becker's has tracked 35 health system contract breaks effective or announced in 2026 as of last week.
Why It Matters
Medicare Advantage has grown to cover more than half of eligible Medicare beneficiaries, and health systems that operate or are affiliated with their own Medicare Advantage insurers have increasingly been pulling those plans from the individual market.
In other cases, hospital systems are terminating contracts with outside Medicare Advantage insurance companies while continuing to accept other Medicare Advantage plans.
That means many Medicare beneficiaries will see different plans and providers available to them in 2027.
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What To Know
Memorial Hermann Health Plan, affiliated with Houston-based Memorial Hermann Health System, offered Medicare Advantage coverage across six Texas counties in 2026 but is now exiting the market for 2027.
However, it is not the only health system-affiliated insurer in Texas doing so.
Irving-based CHRISTUS Health Plan is also leaving Medicare Advantage in 2027 after offering plans across 36 Texas counties and eight counties in New Mexico in 2026.
The decisions put the two Texas health systems among a larger group of healthcare organizations withdrawing their insurance offerings around the country.
“They blamed competition, regulatory uncertainty and compliance burdens,” Michael Ryan, finance expert and founder of MichaelRyanMoney.com, told Newsweek. “A health system is built to deliver care. Running an insurance company on top of that is a different job.”
Full List of Health System-Affiliated Medicare Advantage Insurers Exiting in 2027
According to CMS data, the following 10 health system-affiliated insurers are exiting Medicare Advantage for 2027.
CHRISTUS Health Plan
The Irving, Texas-based organization offered plans in 36 Texas counties and eight New Mexico counties in 2026.
Braven Health
The New Jersey joint venture involves Horizon Blue Cross Blue Shield of New Jersey, Hackensack Meridian Health and RWJBarnabas Health. Its plans were available in all 21 New Jersey counties in 2026.
Saint Alphonsus Health Plan
Part of Trinity Health, it offered Medicare Advantage plans in 10 Idaho counties in 2026.
Aspirus Health Plan
The Aspirus Health-affiliated insurer offered Medicare Advantage coverage in 21 Wisconsin counties in 2026. CMS suspended new Medicare Advantage enrollment into the health plan in February after its claims processor, UCare, was taken over by Minnesota regulators.
Providence Health Plan
The health-system insurer offered Medicare Advantage coverage across six Oregon counties, six Washington counties and Orange County, California, during 2026. Its Medicare Advantage departure is part of a broader shutdown of the health plan.
CarePartners of Connecticut
A joint venture between Point32Health and Hartford HealthCare, the insurer offered Medicare Advantage coverage across seven Connecticut counties.
WellSense Health Plan
Part of Boston Medical Center, WellSense Health Plan offered Medicare Advantage plans throughout New Hampshire in 2026.
Memorial Hermann Health Plan
The Houston-based plan offered Medicare Advantage coverage in six Texas counties in 2026. Becker's also reported that the plan previously announced the shutdown of its commercial insurance business.
Mass Advantage
Part of Worcester, Massachusetts-based UMass Memorial Health, Mass Advantage offered coverage in Worcester County. The insurer will shut down as a result of its market exit.
Sharp Health Plan
Affiliated with San Diego-based Sharp HealthCare, the insurer offered individual Medicare Advantage coverage in San Diego County. It will continue offering employer group Medicare Advantage plans.
Other Major Health Systems Are Dropping Medicare Advantage Contracts
An even larger group of hospitals and health systems are taking a different approach: rather than shutting down their own Medicare Advantage insurance businesses, they are terminating their network agreements with individual private insurers.
Becker's Hospital Review has identified 35 health systems dropping Medicare Advantage plans in 2026.
That includes Ohio-based Kettering Health dropped Humana and Devoted Health Medicare Advantage for 2026 and said it will go out of network with Anthem Medicare Advantage in 2027.
Virginia-based Sentara Health also said it will go out of network with Anthem Medicare Advantage at the end of 2026 following unsuccessful contract negotiations.
Meanwhile, Oregon Health & Science University will no longer be in network with Regence BlueCross BlueShield Medicare Advantage after 2026.
Similarly, Illinois-based Endeavor Health will no longer be in network with Aetna Medicare Advantage after 2026.
“The system is decoupling right in front of our very eyes. Competition will continue to shrink as many of the providers, such as Humana, UnitedHealthcare, and others, either reduce their services or exit certain Medicare Advantage markets entirely,” Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast, told Newsweek.
“The problem is evident. For-profit healthcare is not doing a very good job of sustaining itself when the subsidies and reimbursements provided by the government are reduced or no longer exist.”
Why Are Health Systems Leaving Medicare Advantage?
Hospitals involved in the contract disputes frequently point to two issues: prior-authorization denials and slow reimbursement, experts say.
“Some people say it's because of cost, but we all know it comes down to ‘profits,’” Thompson said. “Reimbursements are dwindling, and more people enter the Medicare system each day, which continues to drive costs. Not to mention all the delays in care stemming from COVID-19 and an aging retiree population, and you have yourself quite the pricing cocktail.”
Lawmakers could likely face pressure as the Medicare Advantage clawbacks continue, Beene said.
“As more insurers reconsider their participation in Medicare Advantage, policymakers will face increasing pressure to balance financial accountability with protecting beneficiaries, while seniors will need to become more proactive in reviewing their coverage,” Beene said.
What Happens Next
The wave of exits means some Medicare beneficiaries face two different questions heading into 2027: Will their current Medicare Advantage plan still exist, and will their preferred hospital still accept it?
“Don't be the member who ignores the letter,” Ryan said regarding his advice for Medicare beneficiaries. “If they don’t pick something by Dec. 31, they generally land in Original Medicare. That means no drug plan, no cap on out of pocket costs and no Medigap unless they act.”
Newsweek’s reporters and editors used Martyn, our AI assistant, to produce this story. Learn more about Martyn here. Contact Newsweek editors on this story: Jason Lemon and Edward T. Cummins
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