UnitedHealth Group expects its Medicare Advantage enrollment will shrink by 1 million people next year, as the insurer trims offerings across the country while focusing on higher profit margins as the nation’s largest provider of the government-backed coverage.

The Eden Prairie-based health care giant announced in July it would drop Medicare Advantage plans in 2026 covering more than 600,000 people nationally due in part to rising medical costs and tighter federal funding.

On Tuesday, executives said enrollment likely will slip by another 400,000 people as enrollees turn to other insurers due to UnitedHealth’s higher prices and reduced benefits. Though insurers typically compete to enroll the most beneficiaries, UnitedHealth is focusing on a smaller pool of patients as earnings have significantly diminished in its Medicare Advantage business.

“Our plan for next year reflects a conservative path focused on (profit) margin growth,” Tim Noel, the UnitedHealthcare chief executive, said Tuesday during a call with investors. “We made significant adjustments to benefits.”

Medicare Advantage is the privatized version of the original Medicare program, where beneficiaries opt to receive their government coverage through private insurers. Heavily advertised on television, Medicare Advantage plans across the country have grown steadily over the past two decades and now enroll a majority of Medicare members.

Medicare officials anticipate enrollment across the industry will remain stable next year, but insurance companies project Medicare Advantage enrollment will slip from 34.9 million people this year to about 34 million in 2026. UnitedHealthcare is the nation’s largest provider of Medicare Advantage plans, including about 8.4 million beneficiaries as of Sept. 30.

UnitedHealth executives’ commentary on Medicare products came as the company released third quarter financial results Tuesday that beat investor expectations and prompted the company to increase its earnings outlook for the year. Yet the $2.35 billion profit earned by United between July and September was less than half the profit reported during the same period last year.

UnitedHealth shares rose about 1.5% in morning trading.