Members of National Nurses United rallied with lawmakers to show their support for the Medicare For All Act on April 29, 2025 in Washington, DC.
Advocates Say Benefit Cuts by Medicare Advantage Giants Highlight 'Dysfunction' of For-Profit System
"It is well past time that the United States joins the rest of the industrialized world and treats healthcare as a right, not a privilege, by improving traditional Medicare and expanding it to everyone."
News that top Medicare Advantage insurers are moving to cut benefits and drop some plans entirely in a bid to boost their profitability came as no surprise to critics of the for-profit US health insurance system, which enriches giant companies and their executives while leaving tens of millions of people in the lurch.
In recent public remarks, executives at Humana and UnitedHealthcare—two of the largest Medicare Advantage insurers in the US—have indicated that the companies plan to exit certain geographic markets and implement other changes deemed necessary to drive "margin expansion," corporate-speak for profits. The changes by the two companies are expected to impact more than a million seniors who receive coverage through the insurers' Medicare Advantage plans, which are privately run but funded by taxpayer dollars.
Wendell Potter, president of the Center for Health and Democracy and a former Cigna executive, told Common Dreams that companies like Humana and UnitedHealthcare "have long made clear they answer to their shareholders, not those they insure."
"These companies are not really in the healthcare business, they are in the business of making money for their shareholders and their executives," said Potter, who now advocates for a Medicare for All system. "They will cut any corner, deny any care, and cut any patient if it helps increase their bottom line."
UnitedHealth Group, UnitedHealthcare's parent company, reported $5.5 billion in profit during the second quarter of 2026, up from $3.4 billion the same time last year. Humana reported $694 million in second-quarter profits.
Recent research led by Mark Meiselbach, a healthcare economist at Johns Hopkins University estimates that "approximately one in 10 beneficiaries in HMO or PPO Medicare Advantage plans will be forced to disenroll from their current plan due to their plan exiting the market" this year. That amounts to around 3 million seniors who will be forced to find a different plan or switch to traditional Medicare during the open enrollment period, which begins next month.
Nancy Altman, president of Social Security Works and author of The Road to Medicare for All: A Call to Action, told Common Dreams that "misleadingly-named Medicare 'Advantage,' together with all private health insurance, is why our nation’s healthcare system is so dysfunctional."
"It mixes healthcare with the motive to make a profit, resulting in the most expensive system in the industrialized world with the worst health outcomes," said Altman. "The recent announcements by UnitedHealthcare and Humana that they plan to exit markets and cut benefits is just one symptom of the dysfunction."
"It is well past time that the United States joins the rest of the industrialized world and treats healthcare as a right, not a privilege, by improving traditional Medicare and expanding it to everyone," said Altman.
A Congressional Budget Office (CBO) analysis published in July found that federal spending per Medicare Advantage enrollee "is projected to be 7% higher, on average," than spending on traditional Medicare over the next 10 years.
The Committee for a Responsible Federal Budget noted that the CBO's analysis "suggests the federal government will spend about $1 trillion on MA overpayments over the next decade." Medicare Advantage plans are notorious for making patients appear sicker than they actually are, reaping larger federal payments.
President Donald Trump pledged during remarks earlier this week to the Republican midterm convention that his administration would "end all payments to big health insurance companies."
But Potter noted that Trump's administration is set to shell out over $13 billion in payments to Medicare Advantage plans this year along.
"If Trump were serious about lowering healthcare costs," Potter told Common Dreams, "he'd break up the monopolies and the for-profit healthcare system."
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News that top Medicare Advantage insurers are moving to cut benefits and drop some plans entirely in a bid to boost their profitability came as no surprise to critics of the for-profit US health insurance system, which enriches giant companies and their executives while leaving tens of millions of people in the lurch.
In recent public remarks, executives at Humana and UnitedHealthcare—two of the largest Medicare Advantage insurers in the US—have indicated that the companies plan to exit certain geographic markets and implement other changes deemed necessary to drive "margin expansion," corporate-speak for profits. The changes by the two companies are expected to impact more than a million seniors who receive coverage through the insurers' Medicare Advantage plans, which are privately run but funded by taxpayer dollars.
Wendell Potter, president of the Center for Health and Democracy and a former Cigna executive, told Common Dreams that companies like Humana and UnitedHealthcare "have long made clear they answer to their shareholders, not those they insure."
"These companies are not really in the healthcare business, they are in the business of making money for their shareholders and their executives," said Potter, who now advocates for a Medicare for All system. "They will cut any corner, deny any care, and cut any patient if it helps increase their bottom line."
UnitedHealth Group, UnitedHealthcare's parent company, reported $5.5 billion in profit during the second quarter of 2026, up from $3.4 billion the same time last year. Humana reported $694 million in second-quarter profits.
Recent research led by Mark Meiselbach, a healthcare economist at Johns Hopkins University estimates that "approximately one in 10 beneficiaries in HMO or PPO Medicare Advantage plans will be forced to disenroll from their current plan due to their plan exiting the market" this year. That amounts to around 3 million seniors who will be forced to find a different plan or switch to traditional Medicare during the open enrollment period, which begins next month.
Nancy Altman, president of Social Security Works and author of The Road to Medicare for All: A Call to Action, told Common Dreams that "misleadingly-named Medicare 'Advantage,' together with all private health insurance, is why our nation’s healthcare system is so dysfunctional."
"It mixes healthcare with the motive to make a profit, resulting in the most expensive system in the industrialized world with the worst health outcomes," said Altman. "The recent announcements by UnitedHealthcare and Humana that they plan to exit markets and cut benefits is just one symptom of the dysfunction."
"It is well past time that the United States joins the rest of the industrialized world and treats healthcare as a right, not a privilege, by improving traditional Medicare and expanding it to everyone," said Altman.
A Congressional Budget Office (CBO) analysis published in July found that federal spending per Medicare Advantage enrollee "is projected to be 7% higher, on average," than spending on traditional Medicare over the next 10 years.
The Committee for a Responsible Federal Budget noted that the CBO's analysis "suggests the federal government will spend about $1 trillion on MA overpayments over the next decade." Medicare Advantage plans are notorious for making patients appear sicker than they actually are, reaping larger federal payments.
President Donald Trump pledged during remarks earlier this week to the Republican midterm convention that his administration would "end all payments to big health insurance companies."
But Potter noted that Trump's administration is set to shell out over $13 billion in payments to Medicare Advantage plans this year along.
"If Trump were serious about lowering healthcare costs," Potter told Common Dreams, "he'd break up the monopolies and the for-profit healthcare system."
News that top Medicare Advantage insurers are moving to cut benefits and drop some plans entirely in a bid to boost their profitability came as no surprise to critics of the for-profit US health insurance system, which enriches giant companies and their executives while leaving tens of millions of people in the lurch.
In recent public remarks, executives at Humana and UnitedHealthcare—two of the largest Medicare Advantage insurers in the US—have indicated that the companies plan to exit certain geographic markets and implement other changes deemed necessary to drive "margin expansion," corporate-speak for profits. The changes by the two companies are expected to impact more than a million seniors who receive coverage through the insurers' Medicare Advantage plans, which are privately run but funded by taxpayer dollars.
Wendell Potter, president of the Center for Health and Democracy and a former Cigna executive, told Common Dreams that companies like Humana and UnitedHealthcare "have long made clear they answer to their shareholders, not those they insure."
"These companies are not really in the healthcare business, they are in the business of making money for their shareholders and their executives," said Potter, who now advocates for a Medicare for All system. "They will cut any corner, deny any care, and cut any patient if it helps increase their bottom line."
UnitedHealth Group, UnitedHealthcare's parent company, reported $5.5 billion in profit during the second quarter of 2026, up from $3.4 billion the same time last year. Humana reported $694 million in second-quarter profits.
Recent research led by Mark Meiselbach, a healthcare economist at Johns Hopkins University estimates that "approximately one in 10 beneficiaries in HMO or PPO Medicare Advantage plans will be forced to disenroll from their current plan due to their plan exiting the market" this year. That amounts to around 3 million seniors who will be forced to find a different plan or switch to traditional Medicare during the open enrollment period, which begins next month.
Nancy Altman, president of Social Security Works and author of The Road to Medicare for All: A Call to Action, told Common Dreams that "misleadingly-named Medicare 'Advantage,' together with all private health insurance, is why our nation’s healthcare system is so dysfunctional."
"It mixes healthcare with the motive to make a profit, resulting in the most expensive system in the industrialized world with the worst health outcomes," said Altman. "The recent announcements by UnitedHealthcare and Humana that they plan to exit markets and cut benefits is just one symptom of the dysfunction."
"It is well past time that the United States joins the rest of the industrialized world and treats healthcare as a right, not a privilege, by improving traditional Medicare and expanding it to everyone," said Altman.
A Congressional Budget Office (CBO) analysis published in July found that federal spending per Medicare Advantage enrollee "is projected to be 7% higher, on average," than spending on traditional Medicare over the next 10 years.
The Committee for a Responsible Federal Budget noted that the CBO's analysis "suggests the federal government will spend about $1 trillion on MA overpayments over the next decade." Medicare Advantage plans are notorious for making patients appear sicker than they actually are, reaping larger federal payments.
President Donald Trump pledged during remarks earlier this week to the Republican midterm convention that his administration would "end all payments to big health insurance companies."
But Potter noted that Trump's administration is set to shell out over $13 billion in payments to Medicare Advantage plans this year along.
"If Trump were serious about lowering healthcare costs," Potter told Common Dreams, "he'd break up the monopolies and the for-profit healthcare system."