Hospitals Offer Their Own Medicare Advantage Plans

Hospital-owned Medicare Advantage plans continue to grow, reflecting the overall increase in Advantage members.

Feb. 8, 2026 at 9:39am

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More hospitals are offering their own Medicare Advantage plans, seeking to provide a trusted option for patients and better control the care delivery process. These hospital-owned plans have tripled in enrollment in recent years, though they still make up a small slice of the overall Medicare Advantage market. The move comes as some patients have faced disruptions when their doctors have left commercial Medicare Advantage plans due to contract disputes.

Why it matters

Hospital-owned Medicare Advantage plans offer patients more stability, as they are less likely to face network changes or coverage disruptions if their doctors are part of the same health system. However, these plans still operate under the same rules as commercial insurers, so patients need to carefully consider whether the extra benefits are worth potential tradeoffs like narrower provider networks.

The details

Hospitals have been entering the Medicare Advantage insurance business for years, seeking more control over the care delivery process and a trusted option for patients. Plans like Peak Health in West Virginia and UCLA Health's new plans in Los Angeles have seen rapid enrollment growth, though they still make up a small portion of the overall Medicare Advantage market. Establishing a Medicare Advantage plan requires significant back-office infrastructure and regulatory approvals. Some health systems create their own plans, while others affiliate with or create insurance subsidiaries.

  • Peak Health, a Medicare Advantage plan started by the West Virginia University Health System, entered its third year in 2026.
  • UCLA Health introduced two new Medicare Advantage plans in Los Angeles County in January 2025.

The players

Peak Health

A Medicare Advantage plan started by the West Virginia University Health System that has tripled its enrollment since last year, now serving over 10,000 members across 49 counties.

UCLA Health

A large health system that introduced two new Medicare Advantage plans in Los Angeles County in January 2025, even though patients already had over 70 Advantage plans to choose from in the area.

Larry Wilkewitz

A 79-year-old retiree who switched from a commercial Medicare Advantage plan to Peak Health, attracted by the lower costs and more personal attention.

Amos Ross

The president of Peak Health, who spent over a decade in the commercial health insurance industry before leading this hospital-owned Medicare Advantage plan.

Fred Neary

An 88-year-old patient who enrolled in the Baylor Scott & White Health Medicare Advantage plan to avoid the risk of his doctors leaving the plan, as had happened with other commercial insurers.

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What they’re saying

“If I didn't like it, I could go back to Humana or whatever after a year.”

— Larry Wilkewitz

“It's a ton of work.”

— Amos Ross, President of Peak Health

“It was very important to me that I would never have to worry about switching over to another plan because they would not accept my Baylor Scott & White doctors.”

— Fred Neary

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

Hospital-owned Medicare Advantage plans offer patients more stability and a trusted provider network, but they still operate under the same rules as commercial insurers, so patients need to carefully weigh the tradeoffs of potentially narrower networks against the extra benefits.