The Great Unbundling

The volatility brokers and their clients are navigating in Medicare Advantage is not a temporary detour. It’s more likely a multi-year change to the industry’s landscape. After years of benefit-rich MA plans, regulatory changes and rising costs have made the “all in one” MA plan less economically viable. As a result, we are currently witnessing a seismic shift in the Medicare Advantage product and operating model.

Between the 11% decline in average plan availability and the millions of beneficiaries impacted by carrier exits, the evidence is clear that carriers are coping by taking difficult, some might say necessary, steps in order to keep their MA products on a sustainable economic footing. This is leading to what I call “The Great Unbundling,” of legacy Medicare Advantage products, and while it feels like a crisis on the front lines, it is actually the moment where the broker who acts as a true advisor separates themselves from the pack. The broker community is arguably more needed now than ever.

The Unbundling of Medicare Advantage

To understand where we are going, we have to look at the structural erosion of the "all-in-one" product. In previous cycles, carriers loaded base plans with rich supplementary benefits—OTC allowances, meal programs, and transportation—often at a $0 premium.

In 2026, the profitability squeeze driven by rising medical costs, stark changes to the risk adjustment calculation, and tighter CMS Star Rating requirements has forced a reset. According to recent data, OTC benefit availability has dropped from 73% to 66% of plans, while meal benefits have fallen to 57%. Perhaps more concerning for the consumer is the "silent" cost creep: median Maximum Out-of-Pocket (MOOP) limits have spiked to nearly $6,000.

When you add a record-high Part B premium of $202.90 into the mix, the “checkbook cost” for a senior on a fixed income has fundamentally changed. The base product year-over-year simply looks worse. For the broker at the kitchen table, this isn't just a data point; it’s a difficult, emotional conversation.

The Good News for Medicare Brokers

In years past, a broker could survive and even thrive simply by processing enrollments and renewals. When every plan is getting better, your job is simply to facilitate a transaction. But in a volatile market characterized by dynamic change, clients have more options and need more support.

If you simply move a client from one eroding $0 premium plan to another, you aren't solving their problem—you’re just delaying their dissatisfaction. But if you seize the opportunity to transition their coverage to a more personalized coverage portfolio that’s less exposed to changes in their core MA plan, now you’re building a valuable relationship with the client, providing more comprehensive coverage, and earning loyalty. 

The 2026 paradigm shift requires a transition to what I call the Comprehensive Guide. This is a broker who understands that their value isn't found in a carrier’s formulary, but in their own ability to design "personalized coverage portfolios."

The Architecture of the Coverage Portfolio

Personalized coverage means moving away from the "all in one" plan and toward a customized portfolio of benefits. If the carrier is unbundling the benefits, the broker must re-bundle them in a personalized fashion at scale. 

This is where the strategic use of ancillary policies becomes the "chassis" of more stable, personalized coverage for the client and a more predictable business for brokers. By leveraging standalone dental, vision, or hospital indemnity products, a good broker can "backfill" the gaps created by leaner MA plans.

As my colleague Sam Melamed, CEO of NCD, recently noted: 

“In a volatile market, an ancillary policy isn’t just an ‘add-on’—it is the stabilizer. It protects the client’s access to care even when the primary MA plan inevitably changes or exits the service area.”

This approach offers two distinct advantages:

1. Portability: A standalone dental or vision policy stays with the senior regardless of what happens to the MA market.
2. Stability: It insulates the client (and the broker’s retention rate) from the annual "benefit yo-yo" of carrier bids.

Embracing the Paradigm Shift

I recognize that this transition is exhausting. For agency owners, training a team to move from high-volume "churn and burn" enrollments to comprehensive portfolio building feels like turning a battleship in a canal. The "All in One" was comfortable, but it was also a commodity game where some brokers became order takers.

The "Unbundling Era" is different. Complexity is the friend of the expert. When 2.6 million beneficiaries are being forced off their plans, they aren't looking for a tech-only solution; they are looking for a human being who can navigate the chaos.

This is the moment to lean into the "Guide" identity. Carriers are our partners, and their need to maintain economically sustainable products is a necessary step for the long-term health of Medicare. Our job is to bridge the gap they’ve left behind—and the ones who make this mindset shift first are the ones who will thrive.

The Path Forward, Enabled by AI

Success in 2026 will be earned by the ones who act as benefit architects, but to do so requires a level of plan analysis and personalization that is impossible using traditional broker workflows and solutions. AI and automation technology will be critical to manage the workload behind the scenes. Those who apply AI and modernize their tools fastest will be the winners over the next five years. 

By embracing coverage personalization and building portfolios that prioritize long-term stability, we can transform this market reset into a flight to quality for the benefit of American seniors and the brokerage community. The "Great Unbundling" isn't a threat to the broker—it is the ultimate validation of why the broker exists in the first place.

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Author Bio

Will Johnson is the co-founder and CEO of Gyde, an AI-native insurance brokerage partnering through acquisition with leading employee benefits and medicare agencies. He previously spent a decade at Oscar Health, where he built national broker networks and led growth and platform teams serving millions of members. During that time, he worked closely with agencies navigating rapid growth, complex carrier relationships, and increasing administrative burden.

Linkedin: https://www.linkedin.com/in/will-johnson-71197236/