Restructured Medicare offerings for 2027

Changes at a glance

Medicare portfolio restructure

In order to address multiple systemic cost issues affecting Medicare, we are introducing new Medicare Advantage plan offerings for 2027. Impacted members are receiving personalized letters outlining their 2027 options.

Options available to all Minnesota seniors

Blue Cross is committed to offering Medicare plan options throughout the state, while making necessary adjustments to improve the sustainability of Medicare in Minnesota.

A stable path forward

While our Medicare offerings are changing for many, the goal of this restructuring is to achieve long-term stability for our members. We remain dedicated to serving Minnesota seniors and will support all affected members through this transition.

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A message from President and CEO Dana Erickson

Why Blue Cross MN is restructuring our Medicare plans

Effective January 1, 2027, Blue Cross will launch a restructuring of our Medicare offerings.

We are introducing all new Medicare Advantage products for 2027, with most of our current Medicare Advantage plans discontinuing at the end of 2026. This restructuring – combined with the continuation of our other Medicare products – is designed to create a more sustainable Medicare presence throughout Minnesota.

I want to be direct in explaining what is happening now and how we got here.

In recent years, Minnesota seniors have experienced significant disruption with Medicare. This has been especially true in Medicare Advantage, the private-plan alternative to traditional Medicare, offered by Blue Cross and many other insurance companies. Across the entire Medicare Advantage market, serious financial strain has taken hold, as medical and pharmacy cost increases continue to outpace inflation at record levels. As a result, a number of companies – both nationally and locally – have changed their product offerings while others have exited the business entirely. Over the past two years, nearly 5 million seniors throughout the country have seen their Medicare Advantage plan discontinued, requiring them to shop for new coverage.

"As a non-profit health plan, Blue Cross has a responsibility to act in the interest of being able to serve all members for years to come."

- Dana Erickson, President and CEO

Through it all, Blue Cross and Blue Shield of Minnesota has remained committed to Medicare. However, we have not been immune to these pressures. In just the past three years, our company has lost more than $500 million on Medicare alone. While I am reassured that our financial foundation remains strong, that does not mean we can ignore such an unsustainable trend. 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. Ultimately, we reached a point where serious action was necessary to give our Medicare business the best chance to remain stable over the long term.

I am not minimizing the significance of these changes or the concerns that come with them. For all of us, healthcare is deeply personal. That is why Blue Cross is committed to helping affected members fully understand their options during this year’s open enrollment for Medicare.

Blue Cross will still offer a Medicare option for every eligible senior in Minnesota, including new Medicare Advantage choices for more than 80% of our current Medicare Advantage members. We will communicate directly, provide tools and support, and work to ensure that seniors have the information they need to make the best decision for their individual circumstances in 2027.

I understand how some will disagree with these decisions. I also believe the worst option available to us was to do nothing at all. Minnesotans have seen what happens when Medicare market pressures go unaddressed. Some health plans reacted by retreating from the market to the point of having a minimal presence or needing to close their business entirely. This speaks to how quickly market conditions can change – and how financial strains can create ripple effects across an entire market. At Blue Cross, our primary responsibility is to act in the interest of being able to serve our members for years to come.

For nearly a century, Blue Cross has provided reliable access to quality healthcare for generations of Minnesotans in every corner of our state. When Medicare began more than 60 years ago, Blue Cross worked alongside local hospitals to meet the enormous challenge of launching a new federal healthcare program, quickly standing up critical administrative and operational capabilities. That history — along with the trust that so many Minnesotans have placed in Blue Cross over the years — matter deeply to me.

As a nonprofit health plan, Blue Cross has a mission to support community stakeholders, not stock shareholders. But mission and financial stewardship are not separate responsibilities. We must remain financially stable in order for us to provide dependable and affordable coverage for all members.

Blue Cross has been part of Minnesota’s healthcare landscape through decades of change. We have successfully navigated significant challenges many times before. I am confident we will continue to do so now and into the future. I am committed to engaging with all stakeholders across the healthcare ecosystem on ways to find common ground and build solutions that work in the interest of all seniors.

This message also appears in the Minneapolis-St. Paul Business Journal

Blue Cross Media Statement

Changes to Medicare plan offerings for 2027

October 1, 2026: Blue Cross is restructuring its Medicare portfolio for 2027 to address multiple systemic cost issues that threaten the long-term stability of healthcare coverage in Minnesota.

Sustained losses in Medicare totaling more than $500 million in just the past three years required us to make necessary adjustments to the plans and benefits we offer in different areas of the state.

As a result of these changes, current Medicare Advantage plans are being cancelled in order to relaunch new offerings, per Medicare rules. All impacted Medicare Advantage members are receiving personalized letters from Blue Cross, including information about their 2027 plan options and enrollment resources.

Blue Cross remains committed to offering Medicare plan options for all eligible Minnesota seniors. Our new 2027 Medicare Advantage plans will be available to more than 80% of our current Medicare Advantage members. Platinum Blue Cost plans will continue in the areas where they are currently offered, and Medicare Supplement and standalone prescription drug plans are available statewide.

FAQ

Frequently asked questions

What is happening to the Blue Cross Medicare portfolio? Effective January 1, 2027, Blue Cross and Blue Shield of Minnesota will be restructuring our Medicare portfolio. This will enable us to continue having a sustainable statewide presence in Medicare over the long term.

What is changing with Medicare Advantage? Blue Cross made necessary adjustments to our Medicare portfolio in order to address systemic cost issues that threaten the long-term stability of healthcare coverage in Minnesota. As a result, Medicare rules required us to cancel current Medicare Advantage plans in order to relaunch new offerings. The new portfolio strives to achieve long-term stability for our members.

Who is affected? Blue Cross Medicare Advantage members have been sent letters informing them that their plan will not continue in 2027. More than 80 percent of these members will have new Blue Cross Medicare Advantage plans available for 2027. All members will continue to have access to Blue Cross Medicare Supplement and standalone prescription drug plan options. Medicare Cost plans will continue to be available in the same locations where they are available today.

When is this change effective? This change takes effect for the 2027 plan year. Current members who are enrolled in plans that will be discontinued in 2027 will continue to have coverage through December 31, 2026.

What is Blue Cross doing to help members understand their options? All impacted members will be receiving personalized communication via email, letters, text, and phone calls, outlining the changes for 2027.

Were other options considered? We very carefully considered all options, and these are necessary adjustments that we did not enter into lightly. Other options would not have been able to confront the level of risk that could affect stable coverage for all 3 million of our members.

Why is this happening? Multiple systemic cost issues are threatening the sustainability of the Medicare market in Minnesota and across the country. We needed to make necessary adjustments to the plans and benefits we offer in different areas of the state to improve the long-term stability of critical healthcare coverage for all our 3 million members.

Blue Cross is committed to offering Medicare plan options throughout the state, while making adjustments to address the financial challenges we are facing.

How much has Blue Cross lost over the past few years in Medicare? Blue Cross has lost more than $500 million in Medicare over the past three years.

Are other insurers making the same decisions? Or is this just a Blue Cross challenge? We can’t speak for what other carriers are doing in 2027, but we do know that in 2026 multiple carriers pulled out of various geographies, dropped plans, or cut back benefits. This is very much a market challenge.

I received a letter in the mail. Why are you cancelling my plan? Blue Cross made necessary adjustments to our Medicare portfolio in order to address systemic cost issues that threaten the long-term stability of healthcare coverage in this market. As a result, Medicare rules required us to cancel all current products in order to relaunch a revised portfolio. The new portfolio strives to achieve long-term stability for our members. Additional details can be found in the letter you received.

When is this effective? This change takes effect for the 2027 plan year. Current members who are enrolled in policies that will be discontinued in 2027 will continue to have coverage through December 31, 2026.

I am enrolled in (Cost/Medicare Supplement/Group Medicare). Is my plan being cancelled? No. You will not be receiving a cancellation notice for your plan. You will (or already should have) received an Annual Notice of Change in the mail. This documents all changes to your plan – costs, coverage, pharmacy, provider network – that will go into effect when your plan renews for 2027.

When can I enroll in a 2027 plan? Medicare open enrollment for 2027 coverage takes place from October 15 to December 7, 2026. Options available to you are made public on October 1. For more information, you can visit bluecrossmn.com/medicare.

Where can impacted seniors go for more information?

Current Blue Cross members can speak to a company representative by calling the number listed on the back of their member ID card or visiting bluecrossmn.com.
Additionally, Medicare.gov is the official information resource provided by the federal government (CMS). It serves as a central hub for Medicare basics and provides tools for personalized options and comparisons based on a person’s ZIP code. To talk with a customer support representative, call 1-800-MEDICARE (1-800-633-4227).
Minnesota Aging Pathways (formerly the Senior LinkAge Line) is a free service of the Minnesota Board on Aging that provides in-depth Medicare counseling. It acts as Minnesota's federally designated State Health Insurance Assistance Program (SHIP), offering unbiased assistance to Medicare beneficiaries, families, and caregivers. Minnesota Aging Pathways can be reached via the phone at 1-800-333-2433. The line is open Monday through Friday, from 8 a.m. to 4:30 p.m.

Will these changes have an impact on what I pay? As healthcare and prescription drug costs continue to rise, Blue Cross aims to keep coverage as affordable as possible. However, premiums and deductibles must reflect the expected cost of care being covered for all members for the entire year. With all-new Medicare Advantage plans available in 2027, members are encouraged to review plan information in detail.

Why are certain plans and benefits only available in certain areas? Multiple systemic cost issues are threatening the sustainability of the Medicare market in Minnesota and across the country. We needed to make necessary adjustments to the plans and benefits we offer in different areas of the state to improve the long-term stability of critical healthcare coverage for all our 3 million members.

What out-of-state travel coverage will be available for Medicare Advantage in 2027? Standard out-of-state coverage will remain included in all $0 premium MA plans, providing covered care across the Blue Cross network up to six months outside of Minnesota. Other Blue Cross MA options will include an extended travel benefit, allowing out-of-state coverage for up to nine months.

Will there be a supplemental fitness benefit? Most members with Medicare Advantage availability can select a plan with a fitness benefit that provides access to hundreds of participating gyms throughout the state.

What about vision benefits? Blue Cross Medicare Advantage plans will continue to cover vision exams not covered by original Medicare.

Why are over-the-counter (OTC) benefits no longer offered for Individual Medicare Advantage plans in 2027? Multiple systemic cost issues are threatening the sustainability of the Medicare market in Minnesota and across the country. We needed to make necessary adjustments to the plans and benefits we offer in different areas of the state to improve the long-term stability of critical healthcare coverage for all our 3 million members.

OTC benefits will be offered for Freedom Blue and Group Medicare plans in 2027.

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