Health Alliance to end Medicare Advantage plans by 2026

URBANA, Ill. (WAND) — Earlier this year, Carle Health announced that Champaign-based insurance company Health Alliance would be ending all insurance plans other than Medicare Advantage by Jan. 1, 2026.

But after "comprehensive strategic and financial analysis," Carle announced Thursday that the Medicare Advantage plans would also be ending this year.

“Our decision to exit the insurance market comes at a time when market dynamics and plan designs have made it increasingly difficult for provider-owned health plans to remain sustainable,” said James C. Leonard, MD, Carle Health president and chief executive officer. “We’re proud of the service our health plans have delivered for decades, and especially proud to have connected people to the care they’ve trusted through every stage of life. That legacy continues as Carle Health focuses our efforts on delivering exceptional care and positioning Carle Health for long-term strength and impact.”

Coverage for current Medicare Advantage members remains unchanged through the end of the year.

Starting in July, Carle plans to lay off more than 600 employees, according to a WARN notice submitted to the state.