Suze Orman Warned 390,000 People Their Medicare Plans Are Shutting Down, Then CNBC Called the Same Stock a Turnaround

On October 4, Suze Orman, the personal finance author and former CNBC host, had a warning for her podcast listeners covered by UnitedHealth Group (NYSE:UNH | UNH Price Prediction): “If you have UnitedHealth Group, about 390,000 people are part of plans that are shutting down.” She said Humana (NYSE:HUM) will cut plans covering about 600,000 people. She also said CVS Health (NYSE:CVS), through Aetna, and Centene (NYSE:CNC) are reducing their Medicare Advantage offerings too.

Two days later, Kevin Simpson made UnitedHealth his final trade on CNBC’s Halftime Report: “UNH has a turnaround story. And the fundamentals are starting to improve.”

Plan Exits Repair Margins and Cost Members Their Coverage

Orman and Simpson are describing the same event. In the second quarter, UnitedHealth’s medical care ratio (the share of premiums spent on care) fell to 87% from 89%. That improvement came alongside a Medicare Advantage membership drop of 965,000 since year-end 2025. UnitedHealth has not confirmed Orman’s 390,000 figure. Management did say its 2027 plans include “selective changes in market participation.”

The stock trades near $376. That’s up about 16% this year but down about 5% over the past month. Third-quarter results come before the open on Oct. 13, and they will show whether the repair is holding up. For members, the date that matters is December 7.

Orman Is Right, and the Exit Hands Members a Rare Advantage

Orman is right to sound the alarm, but her warning stops short of the most useful part. Nobody here ends up uninsured. If you do nothing, you go back to Original Medicare on January 1, without Part D drug coverage. The bigger risk is picking another Medicare Advantage plan in a rush and giving up a right you may never get again.

A discontinued plan triggers a guaranteed-issue right to certain Medigap policies. During that window, an insurer cannot deny your application or charge you more based on your health. Outside protected windows, most states let Medigap insurers review your medical history and turn you down. You can act during Open Enrollment, Oct. 15 to Dec. 7, or during a special enrollment period that runs for 2 months after the plan’s contract ends.

Medigap matters because Original Medicare by itself has no annual spending cap. In 2026, one hospital stay carries a $1,736 Part A deductible. Skilled nursing days 21 through 100 cost $217 a day. A Medigap policy covers most of those gaps.

Your Medical History Decides Which Path Costs Less

Here are example numbers. Say a replacement Medicare Advantage plan charges a $0 premium and has a $6,000 out-of-pocket maximum. A Medigap Plan G policy costs $200 a month, or $2,400 a year.

If you’re healthy and spend about $800 a year on copays, Medicare Advantage wins easily.

A chronic condition changes the math. With heart failure, cancer treatment or dialysis, you can hit the out-of-pocket cap every year. Over five years, that adds up to $30,000. After considering Medigap premiums, that leaves an $18,000 gap in Medigap’s favor. Medigap also lets you see any doctor in the country who takes Medicare, with no network restrictions.

Healthy readers face a timing problem. Choosing another Advantage plan now and getting a diagnosis in 2029 could let a Medigap insurer turn you down. The guaranteed-issue window works like insurance on your future health, and it closes.

Four Steps to Take Before December 7

1. Find your termination letter. Check your Annual Notice of Change or nonrenewal notice to confirm your plan is ending. Keep the letter, because Medigap insurers may ask for it as proof of your guaranteed-issue right.
2. Run Medicare.gov’s Plan Finder. Enter every prescription and every doctor. Compare each plan’s out-of-pocket maximum against what you actually spent this year.
3. Get Medigap quotes in your ZIP code now. Ask insurers which plans they sell under guaranteed issue in your state, and apply before the window closes.
4. Add a standalone Part D plan. If you choose Original Medicare plus Medigap, enroll in drug coverage at the same time. That avoids a gap in drug coverage and late-enrollment penalties.

A plan closing opens a short window to buy Medigap no matter your health, and the decision is due by December 7.

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