Medicare Advantage plan reductions may increase reverse mortgage interest

HousingWire reported that the number of Medicare Advantage plans is expected to decline in 2027, with some major insurers scaling back their offerings. According to data from KFF cited by NPR, 193 U.S. counties will have no Medicare Advantage plans next year, up from 123 counties this year.

Medicare Advantage plans, which are provided by private insurers contracting with the government, offer benefits like vision and dental coverage and often have lower premiums than traditional Medicare. However, insurers can choose where to offer these plans and may withdraw from less profitable areas, particularly rural counties, NPR noted.

Research published in the Journal of the American Medical Association showed a sharp increase in the percentage of Medicare Advantage beneficiaries forced to unenroll, rising from about 1% between 2015 and 2024 to 10% in 2026. This trend may pressure seniors to find alternative ways to manage healthcare expenses.

HousingWire’s Reverse Mortgage Daily suggested that as Medicare Advantage plans become less available, demand for reverse mortgages and other home equity lending solutions could grow among the senior population seeking to cover rising healthcare costs.

The Medicare open enrollment period runs from October 15 to December 7, during which seniors can select or change their Medicare coverage options. With some areas losing Medicare Advantage plans, seniors in those counties may face limited choices moving forward.