A growing list of hospital systems is walking away from UnitedHealthcare’s Medicare Advantage network, and the latest to join is Fairview Health Services, one of Minnesota’s largest health systems. The split takes effect January 1, 2027, and it means thousands of older Minnesotans enrolled in UnitedHealthcare Medicare Advantage plans could lose in-network access to Fairview hospitals, clinics, and physicians unless they switch coverage. For retirees who built their care routines around a specific hospital system, a contract termination like this one can force a stressful, time-sensitive decision during this year’s open enrollment window.
What Fairview Health announced
Fairview Health Services confirmed it will end its contract with UnitedHealthcare Medicare Advantage plans starting January 1, 2027, according to a report from Becker’s Hospital Review. The system operates hospitals, clinics, and specialty care sites across the Minneapolis-St. Paul area and greater Minnesota, making it a major point of care for older residents in the region.
Once the split takes effect, Fairview providers will be considered out-of-network for members enrolled in the affected UnitedHealthcare Medicare Advantage plans. Depending on the plan type, that can mean sharply higher out-of-pocket costs, denied claims, or no coverage at all for non-emergency care received at Fairview facilities.
Why hospital systems keep cutting ties with Medicare Advantage insurers
Fairview is not an isolated case. A running tally from Becker’s Hospital Review has tracked more than a dozen health systems nationwide that have dropped one or more Medicare Advantage insurers over payment and administrative disputes in recent years. Hospital executives commonly cite the same complaints: MA insurers deny or delay a higher share of claims than traditional Medicare, demand prior authorization for routine procedures, and reimburse at rates hospitals consider too low to sustain.
Medicare Advantage plans, which are sold by private insurers as an alternative to original Medicare, now cover more than half of all Medicare beneficiaries nationally, according to research from the Kaiser Family Foundation. That scale gives insurers leverage in network negotiations, but it also means that when a contract collapses, the fallout reaches a large number of enrollees at once.
What the change means for affected members
Members enrolled in an affected UnitedHealthcare Medicare Advantage plan will not lose Medicare coverage altogether, but they may lose in-network access to Fairview doctors and hospitals once the new contract year begins. For a retiree managing a chronic condition with a longtime Fairview physician, that can mean starting over with a new provider, traveling farther for care, or paying substantially more to keep seeing a familiar doctor out of network.
The practical effect varies by plan. Health maintenance organization-style Medicare Advantage plans generally provide no coverage for out-of-network, non-emergency care, while preferred provider organization plans typically cover it but at a higher cost share. Members who are unsure how their specific plan will treat Fairview providers after January 1, 2027, are encouraged to call the number on the back of their insurance card and ask directly, since plan documents can be dense and inconsistent across products.
Ongoing treatment adds another layer of complexity. A beneficiary in the middle of chemotherapy, physical therapy, or post-surgical follow-up care at a Fairview facility may qualify for a limited continuity-of-care exception under federal rules, which can allow treatment to continue in-network for a set period even after a contract ends. That exception is not automatic, though, and typically has to be requested through the insurer before the termination date rather than after coverage has already lapsed.
A pattern building across the country
Fairview’s decision adds to a broader trend that has played out region by region over the past two enrollment cycles. Large regional systems in states including Ohio, North Carolina, and New York have made similar moves against UnitedHealthcare and other national Medicare Advantage carriers, according to the same Becker’s Hospital Review tracking. In several cases, systems and insurers eventually renegotiated new contracts before the effective date, restoring in-network status. In others, the split stuck, and enrollees were left to either switch plans or switch providers.
That uncertainty is part of what makes these disputes hard on older enrollees. A contract termination announced months in advance can still be reversed at the last minute, but beneficiaries who wait too long to plan for either outcome can find themselves scrambling once annual enrollment closes for the year.
Industry analysts tracking these disputes point to a common underlying dynamic: hospital systems say Medicare Advantage plans are increasingly profitable for insurers but administratively costly for providers, citing high volumes of prior-authorization requests and claim denials that traditional Medicare rarely requires. Insurers, for their part, generally argue that tighter utilization review is what keeps premiums and out-of-pocket costs manageable for enrollees. Neither side’s public statements have resolved the underlying disagreement, and beneficiaries are typically the ones left to absorb the disruption when negotiations break down.
What retirees can do before the deadline
Anyone enrolled in a UnitedHealthcare Medicare Advantage plan who relies on Fairview Health for care has time to plan, but the window narrows as this year’s Medicare Annual Enrollment Period approaches. Beneficiaries can use that period, which runs each fall, to switch Medicare Advantage plans, move to a different insurer’s network that still includes Fairview, or return to original Medicare with a supplemental policy. The federal government’s Medicare.gov plan comparison tool lets beneficiaries check which plans include specific hospitals and doctors in their network before making a change.
Retirees who are unsure whether their plan will be affected can also review official plan network updates through the Centers for Medicare & Medicaid Services, which oversees Medicare Advantage plan rules and requires insurers to notify members of material network changes. Financial advisors who work with older clients generally recommend confirming network status directly with both the health system and the insurer rather than relying on plan marketing materials alone, since provider directories are not always current.
For now, Fairview Health and UnitedHealthcare have not announced a resolution, and the January 1, 2027 termination date stands. Members with appointments or ongoing treatment scheduled to continue past that date are advised to start researching alternatives well before the fall enrollment period opens, rather than waiting for a possible last-minute deal that may not materialize.
This article was produced with AI assistance and fact-checked against the primary and official sources linked above.
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