Medicare Advantage enrollment grew by just 3% between February 1, 2025, and February 1, 2026, according to novel federal data analyzed by STAT, signaling a significant slowdown in the program’s once rapid expansion. Approximately 35.5 million people are now enrolled in Medicare Advantage plans, a modest increase from 34.4 million during the same period last year.
The deceleration is particularly notable when compared to growth rates between 2017 and 2024, which consistently ranged from 7% to 10% annually. The most recent enrollment window, spanning from October 15 through December 7, saw a mere 1% increase in sign-ups.
Bob Herman, a health care reporter for STAT and author of the Health Care Inc. Newsletter, has extensively covered the Medicare Advantage program. His reporting, alongside that of colleague Casey Ross, has highlighted concerns about how insurance companies utilize algorithms to manage patient care and control costs. A STAT investigation last year revealed that UnitedHealth Group, the nation’s largest insurer, used a computer algorithm to deny or limit rehabilitation care for older and disabled Americans, even overriding the recommendations of their doctors, as the company’s profits increased.
The Centers for Medicare & Medicaid Services (CMS) has consistently crafted rules that favor Medicare Advantage, according to Trudy Lieberman of the Center for Health Journalism. When presented with Herman’s reporting on these practices, the agency stated it was “looking into these allegations and may take necessary enforcement or compliance actions.”
The slowdown in enrollment comes as scrutiny of Medicare Advantage intensifies. Recent reporting by Herman and Ross exposed how some plans improperly deny care to patients, raising questions about the program’s oversight and accountability. The Journalist’s Resource reported that a source shared with the reporters a “visceral” frustration with the algorithms used to determine the length of patient stays in nursing homes and rehab facilities, citing a “total lack of transparency” in how these algorithms function.
Although both traditional Medicare and Medicare Advantage cover the same basic services – Part A for hospital care and Part B for physician visits – significant variations exist in out-of-pocket costs, provider networks, and supplemental benefits, as noted by the Kaiser Family Foundation (KFF).
