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The letter says your Medicare Advantage plan won’t be back next year. Your plan’s network, drug coverage and copays — all of it ends Dec. 31. Now what?
Let’s say that letter landed in the mailbox of a 72-year-old retiree we’ll call Barbara. She’s not a real person, but her situation is.
Humana alone told investors in July that its targeted 2027 exits will affect about 600,000 members, 24/7 Wall St. reported. (1) Federal rules require plans to mail non-renewal notices at least 90 days before coverage ends — by Oct. 2 for plans ending Dec. 31. (2)
I’ve been a CPA since 1981, and this is one of those moments where a deadline you’ve never heard of can cost you for years. Here’s what I’d tell Barbara.
Open enrollment runs Oct. 15 through Dec. 7. (3) But a plan that’s leaving gives you extra rights and extra time, if you use them correctly. (4)(5) Here are six moves to make.
1. Don’t panic — you won’t be left with nothing
If Barbara does nothing, she won’t lose Medicare. If you don’t join another Medicare Advantage plan before your current plan ends, you’re enrolled in Original Medicare automatically. (4)
That’s the safety net. But “automatic” doesn’t mean “complete,” as you’ll see in move 3.
2. Know your two deadlines
When a plan’s contract isn’t renewed, Medicare gives you a special enrollment period to switch, “between December 8 and the last day in February of the following year.” (4) That’s on top of regular open enrollment.
So Barbara has two windows: Oct. 15 to Dec. 7 to pick a plan that starts Jan. 1, and the special window after that if she needs it. (3)(4)
My advice: don’t wait for the second window. If you pick a new plan by Dec. 7, it starts Jan. 1, so you’re not scrambling in January without the drug coverage you need.
3. If you go to Original Medicare, add drug coverage
Here’s the trap. Most Medicare Advantage plans include drug coverage, so you don’t need a separate drug plan. With Original Medicare, you join a separate Medicare drug plan to get it. (6)
And timing matters. If you go 63 days or more in a row without creditable prescription drug coverage, you’ll have to wait for an enrollment period to sign up — and you may pay a late enrollment penalty. (7)
4. This is your rare chance to buy a Medigap policy without a health check
This is the move I’d circle twice. Normally, if you’re outside your Medigap open enrollment period, “there’s no federal guarantee that an insurance company will sell you a Medigap policy,” and it may cost more because of past or present health problems, according to Medicare.gov. (5)
But when your Medicare Advantage plan leaves Medicare and you switch to Original Medicare, you get a guaranteed issue right. Medicare’s official Medigap guide lists Medigap Plan A, B, C, D, F or G sold by an insurer in your state, though some of those plans carry eligibility limits. (8)
You can apply as early as 60 days before your Advantage coverage ends, and no more than 63 days after it ends. (5)(8)
For a plan ending Dec. 31, that window opens in early November and closes in early March. Miss it, and she loses the federal guarantee.
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5. Compare the full year’s cost, not just the premium
Whatever Barbara picks, she’ll still pay the standard Part B premium, $202.90 a month in 2026, plus a $283 annual deductible. (9)
An Advantage plan with a low premium and a Medigap policy with a higher one can come out very differently once you add drugs, doctor visits and a hospital stay. Run your actual prescriptions and doctors through Medicare’s Plan Finder before you choose. (3)
Small savings add up, too. An AARP membership includes savings on eyeglasses, prescriptions and meal delivery, plus the AARP Fraud Watch Network — at as low as $15 for your first year with auto-renewal.
6. Plug the gap no Medicare plan covers
Whichever way Barbara goes, there’s one bill neither path pays. “Medicare doesn’t pay for long-term care” — also called custodial care — and neither does Medigap, according to Medicare.gov. (10)
That’s a cost worth planning for separately. Long-term care insurance helps fill that gap, covering services like home care, assisted living and help with daily tasks. Rates are typically lowest if you buy in your 50s or early 60s, and couples often qualify for discounts.
And if you have savings to protect, a plan change is a good time for a broader checkup. SmartAsset matches you with up to three fiduciary advisors — legally required to prioritize your interests. If you have $100K+ in investments, get matched free.
My honest take
A plan leaving the market feels like bad news. Sometimes it’s an opening.
Outside a window like this, moving from Medicare Advantage to Original Medicare plus Medigap can be hard, because a Medigap insurer can charge more or say no based on your health. (5) A non-renewal letter hands you a do-over, with a guarantee attached, for a few months.
So if Barbara were my neighbor, I’d tell her this: don’t just grab the replacement plan the letter suggests. Compare both paths, add drug coverage if you need it, and mark that early-March Medigap deadline on the calendar in red.
Sources: 1. 24/7 Wall St. via Yahoo Finance; 2. 42 CFR 422.506 (eCFR); 3. Centers for Medicare & Medicaid Services; 4. Medicare.gov — Special Enrollment Periods; 5. Medicare.gov — When can I buy a Medigap policy?; 6. Medicare.gov — Compare Original Medicare and Medicare Advantage; 7. Medicare.gov — Switch, drop or rejoin drug coverage; 8. Medicare — Choosing a Medigap Policy (2026 guide); 9. CMS — 2026 Part B premiums; 10. Medicare.gov — Long-term care
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