Seniors Discouraged with Medicare Advantage, Choosing Medicare Supplement Policies Instead

PALM BEACH GARDENS, Fla., October 30, 2026 — Weiss Ratings, the nation's only independent rating agency covering the insurance industry, has released today new findings showing a dramatic shift in the medical insurance choices of seniors; from Medicare Advantage to Medicare Supplement insurance (Medigap).

Gavin Magor, Weiss’s Director of Ratings and Research, explained it this way: “For years, Medicare Advantage has been sold as the obvious choice — lower premiums, extra benefits, one card in your wallet. So, why are seniors suddenly voting with their feet for Medigap?”

Although Medicare Advantage insurers advertise more coverage for less money, it often erects barriers to specialists and give seniors fewer choices. In contrast, Medigap providers piggy-back on the same wide range of choices Medicare provides, while covering much of the gap between what doctors or hospitals charge and what Medicare pays.

The data shows that seniors are becoming more aware of these differences: In the 12 months to Q2 2026, Medicare Advantage enrollment rose just 1.7%, while Medigap enrollment jumped 7.4%.

Medicare Advantage vs. Medigap, Q2 2024–Q2 2026

The numbers point to three distinct shifts in the Medicare marketplace:

1. Enrollment momentum. Medicare Advantage added 1.16 million enrollees between Q2 2024 and Q2 2025, but only 474,955 in the following 12 months — a 59% slowdown in net additions. Medigap moved the other way, adding 359,641 enrollees in the first year and 457,980 in the second. As a result, Medigap's share of combined enrollment in the two products climbed from 17.7% to 18.8% in two years, and it accounted for nearly half (49.1%) of all net new enrollment across both products in the latest 12 months.

2. Premiums. Medigap premiums collected in the first half of 2026 rose 16.7% from the first half of 2025, to $9.45 billion, outpacing the program's 7.4% enrollment growth and pointing to a roughly 8.7% increase in premium per enrollee. Medicare Advantage first-half premiums rose 9.0% to $271.4 billion on 1.7% enrollment growth.

3. Fewer insurers. The number of companies offering Medicare Advantage fell from 513 to 489 over two years — a net loss of 24 carriers, 20 of them in the last 12 months alone. Medigap lost 8 carriers in the same period. Fewer competitors in both markets means less choice for seniors and lower pressure on the companies that remain to hold the line on prices and benefits.

“The insurers will tell you Medicare Advantage is still growing, and technically that's true,” Magor said. “But 1.7% growth, down from 4.3% a year earlier, is not a vote of confidence. Meanwhile, the roster of Medicare Advantage insurers has shrunk by two dozen in two years. Seniors who were told these plans would always be there are learning that the plan, the network and the benefits can all change from one year to the next.”

The shift matters because the two products work very differently. Medicare Advantage plans typically restrict members to a provider network and can require prior authorization for care, in exchange for lower or zero premiums. Medigap policies supplement Original Medicare, let enrollees see any provider that accepts Medicare, and cover much of the out-of-pocket cost Medicare leaves behind — but at a higher monthly premium. Seniors who leave a Medicare Advantage plan for Medigap after their initial eligibility window can, in most states, be medically underwritten and potentially denied or charged more, which makes the decision far harder to reverse than many realize.

With Medicare's Annual Enrollment Period running from October 15 through December 7, seniors should look past the advertising and check the financial strength of any insurer before purchasing or renewing coverage. A plan is only as good as the company standing behind it. Weiss Ratings' independent safety ratings for every Medicare Advantage and Medigap carrier are available here.

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