Breaking — Carrier News
Centene Cuts Medicare Advantage Plans Heading Into AEP 2026: What Every Broker Needs to Know
Centene Corporation, operating its Medicare business primarily under the WellCare brand, is cutting Medicare Advantage plans ahead of the Annual Enrollment Period that opens October 15, 2026. According to a report published August 20, 2026 by Modern Healthcare, the move could affect roughly one-third of Centene’s Medicare Advantage membership. This is the latest in a wave of major carrier pullbacks that has already reshaped the Medicare Advantage market heading into the 2027 plan year — and it is creating a significant opening for independent brokers who are properly contracted and positioned to help displaced beneficiaries.
Here is what happened, why it matters, and exactly what brokers should do about it before October 15.
What Centene Is Doing and Why
Centene’s Medicare Advantage retreat has been building for two years. The company’s WellCare subsidiary exited six states entirely for the 2025 plan year — Alabama, Massachusetts, New Hampshire, New Mexico, Rhode Island, and Vermont — displacing approximately 37,300 members, according to reporting by Fierce Healthcare and confirmed in Centene’s own 2025 Annual Report. For the 2026 plan year, WellCare exited 104 counties while entering only 63, according to KFF analysis reported in Leader’s Edge.
The August 20, 2026 Modern Healthcare report indicates the next round of cuts — announced ahead of AEP 2026 — could reduce Centene’s Medicare Advantage enrollment by roughly one-third. That is a significant acceleration of an already-clear strategic retreat from the Medicare Advantage market.
The Drivers Behind the Exits
Centene and its peers are not exiting Medicare Advantage arbitrarily. Multiple structural pressures have converged:
- Rising medical utilization. Post-pandemic care utilization has run above projections across the Medicare Advantage market, compressing margins for carriers who priced plans based on pre-pandemic assumptions.
- CMS reimbursement benchmarks. Annual rate adjustments from CMS have not kept pace with actual cost trends in some markets, making certain county-level plans financially unviable.
- Low star ratings and CMS enforcement. CMS took enforcement action against WellCare contracts in North Carolina and Arizona in 2025, terminating two Part C and D plans after three consecutive years of low star ratings, per Healthcare Finance News. Plans with low star ratings face enrollment restrictions and reduced bonus payments.
- Part D commission decision. In 2024, Centene eliminated broker commissions on its Wellcare Medicare Prescription Drug Plans effective January 1, 2025, citing the Inflation Reduction Act’s changes to Part D as creating “significant changes” to plan economics, according to STAT News.
What Happens to Beneficiaries When a Plan Exits
When a Medicare Advantage plan terminates, CMS provides affected beneficiaries with a Special Enrollment Period (SEP) in addition to the standard October 15–December 7 Annual Enrollment Period. This SEP typically runs for several months and allows displaced members to:
- Enroll in a new Medicare Advantage plan from a different carrier
- Enroll in a Medicare Supplement (Medigap) plan to pair with Original Medicare
- Join a standalone Medicare Part D prescription drug plan
- Return to Original Medicare
Critically, if a beneficiary does nothing, they may be returned to Original Medicare — which carries different cost-sharing and lacks the supplemental benefits (dental, vision, hearing, OTC allowances) that many Medicare Advantage members rely on. This creates genuine urgency and a real need for professional guidance.
The Broader Medicare Advantage Market Picture Heading Into AEP 2026
Centene’s move does not happen in a vacuum. The Medicare Advantage market is undergoing its most significant structural reset in years, and the 2027 plan year is shaping up to be another disruptive one for beneficiaries in many markets.
| Carrier | 2026 Action | 2027 Status (as of Aug 2026) | Broker Impact |
|---|---|---|---|
| Centene / WellCare | Exited 104 counties; 6 state exits (2025) | Further cuts announced — ~⅓ of MA membership | Members need alternatives; broker opportunity high |
| Humana | Exited 198 counties; 3 fewer states | Exiting plans covering 600,000 members in 2027 | Massive displacement; multi-carrier brokers positioned well |
| UnitedHealthcare | Exited 225 counties (~600,000 members) | Further review underway for 2027 | Rural market gaps opening for local brokers |
| Aetna / CVS Health | Exited 160 counties | Continued pullback expected | Displaced members need guidance on alternatives |
| Elevance / Anthem | Added 1 state, 64 counties for 2026 | Growing in select markets | New contracting opportunities for brokers in Elevance markets |
| Molina Healthcare | Active in select markets | Stopping MA-PD plans in 2027 | Members need to transition; broker assistance critical |
Sources: MarketWatch/Morningstar, Aug 15, 2026; Leader’s Edge / KFF Analysis; Modern Healthcare, Aug 20, 2026.
Why This Is One of the Biggest Broker Opportunities of the Decade
Large carrier exits are disruptive for beneficiaries — but they are a structured growth opportunity for independent brokers who are prepared. Here is why:
Every member whose plan exits is, by definition, a prospect in the market for new coverage. They have a genuine need, a finite window to act, and often no idea where to start. A broker who reaches a displaced WellCare or Humana member with a helpful, non-pressured explanation of their options is providing real value — and earning a client relationship that can generate residual income for years.
Four Specific Opportunities for Independent Brokers
1. Serve Existing Clients Proactively
Review your book now. Any client on a WellCare, Humana, or Aetna plan in an affected county needs a proactive call — before they receive a confusing termination notice and call another broker first.
2. Expand Carrier Contracting
If you only held WellCare contracts, you have nothing to offer displaced members. Brokers with multi-carrier contracts can present real alternatives from carriers still active in those markets.
3. Target Community Outreach
Senior centers, pharmacies, and physicians near affected counties will have members asking questions. Educational events presenting “your options when your plan is discontinued” are highly timely and compliant.
4. Medicare Supplement Conversations
Some displaced members — particularly those with significant health needs — may be better served by a Medicare Supplement plan plus standalone Part D rather than another Medicare Advantage plan. Brokers licensed for both products can provide a genuinely complete comparison.
What Brokers Should Do Right Now — Before AEP Opens
- Audit your book of business. Identify every client currently enrolled in a WellCare, Humana, Aetna, or UnitedHealthcare Medicare Advantage plan. Cross-reference against the counties where exits have been confirmed. These clients need a call now — not in October.
- Confirm your carrier contracts. Make sure you are contracted with carriers that are active in your markets for the 2027 plan year. The exits are being announced now, but 2027 plan details are being finalized ahead of the October 1 effective date for CMS marketing rules.
- Complete AHIP certification. Most carriers require current AHIP certification before you can enroll members during AEP. If you haven’t done it for the 2027 plan year, Affordable Care Agents provides access to a discounted AHIP certification path through our OIM partnership: ahipmedicaretraining.com/clients/oim.
- Review the new CMS marketing rules. Effective October 1, 2026, the 48-hour SOA waiting period is eliminated and SOA collection at educational events is permitted. Understanding these changes — and any carrier-specific additions — is critical before your first AEP appointment. Source: CMS.gov Marketing Guidelines.
- Build your outreach plan. Contact your FMO for updated plan landscape files, carrier training schedules, and any co-op marketing support available. The brokers who enter AEP most prepared are the ones who did this work in August and September.
Don’t Enter AEP 2026 With a Single-Carrier Contract
Affordable Care Agents contracts independent brokers with top Medicare Advantage carriers, provides AHIP support, back-office assistance, and the training to serve displaced Medicare members compliantly and confidently. Get contracted before October 15.
Frequently Asked Questions
Is Centene exiting Medicare Advantage?
Which states did WellCare exit for Medicare Advantage?
Why is Centene cutting Medicare Advantage plans?
What happens to beneficiaries when a Medicare Advantage plan exits?
Can brokers enroll beneficiaries who lost their Medicare Advantage plan?
Is WellCare still paying broker commissions for Medicare Advantage?
How does the Medicare Advantage market contraction affect broker strategy for AEP 2026?
Which major carriers are still active and growing in Medicare Advantage?
Affordable Care Agents: Your AEP 2026 Growth Partner
Independent brokers who partner with Affordable Care Agents get contracted with multiple Medicare Advantage carriers, access to AHIP certification support, AEP training, back-office assistance, and compliance guidance — all at no cost to the broker. Don’t enter the biggest enrollment season in years without the right support behind you.
