Blue Cross and Blue Shield of Minnesota is discontinuing most of its Medicare Advantage plans at the end of 2026, citing more than $500 million in Medicare losses over the past three years amid rising medical and pharmacy costs.
“While I am reassured that our financial foundation remains strong, that does not mean we can ignore such an unsustainable trend,” President and CEO Dana Erickson said Oct. 1. “No organization can responsibly continue on a path of ongoing negative performance, especially when instability in one area can affect our ability to serve all 3 million of our members.”
The insurer said it will launch an entirely new MA portfolio for 2027, with more than 80% of its current enrollees having access to one of the new plans. According to CMS data, the company will pull out of 15 counties entirely and offer fewer PPO and special needs plans. The insurer said it will continue to offer supplement and standalone prescription drug plans statewide, and its Platinum Blue cost plans will remain available where currently offered.
BCBS Minnesota posted a $353 million operating loss in 2025 on $10.4 billion in premium revenue, driven largely by its Medicare Advantage and Medicaid businesses. Strong investment returns helped the insurer end the year with $83 million in net income.
Minnesota’s MA market is shrinking across the board, with the total number of plans available in the state falling from 68 to 53 in 2027, a 22% decline. Eighteen counties in the state will have no standard MA plan next year, up from three in 2026. Humana is leaving Minnesota entirely, while UnitedHealthcare, HealthPartners and Allina-Aetna are all shrinking their footprints as well. Across the country, MA plan options will fall in 28 states for 2027, and 12 insurers are exiting the market altogether.
Minnesota will also have the second-highest average MA premiums in the country next year at $59.40, behind only Wyoming.
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