Losing Your Medicare Advantage Plan in 2027? Read This First

Around 600,000 Humana members are getting letters this fall telling them their Medicare Advantage plans won’t exist in 2027. Nearly 3 million people got the same shock last year. Most people do one of two things when that letter arrives: they panic and grab the first replacement plan they find, or they ignore the letter entirely and let whatever happens happen. Both are costly mistakes. That letter isn’t just bad news — it’s a key. For a short window of time, it unlocks the ability to buy a Medicare Supplement plan with no health questions asked. No underwriting. No pre-existing condition pricing. Full coverage from day one. That door is normally shut for years, and it closes again in weeks. Here’s what you actually need to know.

What’s Happening With Medicare Advantage Plans for 2027

Medicare Advantage plans operate on one-year contracts with the federal government. Every fall, insurers decide which plans are worth renewing — and cut the ones that lost money. What used to be a small annual housecleaning (around 1% of plans) has become a major disruption. Last year nearly 3 million people had their plans eliminated. For 2027, Humana has announced roughly 600,000 members will be affected — about 8% of their Medicare Advantage enrollment. Presbyterian Health Plan is pulling most of its Advantage plans in New Mexico, affecting around 30,000 people. Molina is leaving the standard Medicare Advantage market entirely.

The full county-by-county list of plan eliminations becomes public in October, so watch for that. If you’re on a Medicare Advantage plan right now, you should be checking your mail carefully this fall. The wave of Medicare Advantage plan eliminations has been accelerating — and it’s not slowing down for 2027.

How to Know If Your Plan Is Actually Ending

By early October you’ll receive one of two letters. These are very different documents and it matters which one you got:

Annual Notice of Change (ANOC): This means your plan is continuing into next year. Premiums, co-pays, or drug formularies may be changing, but you’re still covered. Read it, but you’re not in emergency territory.

Non-Renewal Letter: This is the one that matters for this discussion. Your plan is ending December 31st. Keep this letter — you may need it as proof of termination when you apply for a new plan. Don’t throw it away.

If you’re not sure which letter you received, understanding what the Medicare Annual Notice of Change actually means is a good place to start.

Your Three Options When Your Plan Is Terminated

Option 1: Pick Another Medicare Advantage Plan

Research shows that nearly 99% of people in terminated plans have at least one replacement Advantage plan available — and the average person has around 25 options. More than two-thirds can stay with the same insurance company on a different plan. If you go this route, verify that your doctors and medications are still covered before you enroll. Don’t assume anything carries over.

The exception: tens of thousands of people in rural counties have no replacement Advantage plan available at all. If that’s you, this isn’t even an option.

Option 2: Do Nothing

Some insurance companies will automatically move you into a comparable plan — this is called a crosswalk. If yours does, treat that new plan like it’s brand new. Check the co-pays, drug formulary, and provider network. They can be meaningfully different from what you had. And if there’s no comparable plan? You land on original Medicare January 1st with no supplement, no drug coverage, and no out-of-pocket limit. That’s not a safety net — that’s a financial risk. Don’t let this happen by default.

Option 3: Switch to a Medicare Supplement

This is the option most people don’t know they have. There are two ways to get into a Medicare Supplement (Medigap) plan. The first — the door that’s open every year — requires you to answer health questions. Insurers can charge you more or deny you outright based on pre-existing conditions. Most people on Medicare Advantage have been on their plan for years, which means this door has been closed to them the entire time.

The second door is guaranteed issue. When your Medicare Advantage plan is terminated by the insurer, federal law guarantees you the right to buy a supplement plan — no health questions, no pre-existing condition pricing, full coverage from day one. This is not a loophole. It’s the law. And it’s one of the most valuable protections in all of Medicare that most beneficiaries never hear about until they need it.

Agent Tip

I’ve worked with clients who have serious health conditions — diabetes, heart disease, prior cancer — who could never have qualified for a supplement under normal underwriting. A plan termination letter was the only thing standing between them and guaranteed access to the best coverage in Medicare. If you get that letter and you’re in less-than-perfect health, this window is extraordinarily valuable. Don’t waste it.

Which Supplement Plans Are Guaranteed When Your Plan Is Terminated?

This depends on when you first became eligible for Medicare:

If you became eligible before January 1, 2020: Plans A, B, C, F, K, and L are guaranteed to you.

If you became eligible January 1, 2020 or later: Plans A, B, D, G, K, and L are guaranteed.

Plan N is not on the federal guaranteed issue list — but some companies will offer it anyway. It’s worth asking. If you’re declined for Plan N, fall back on your guaranteed list before your window closes. Understanding your guaranteed issue Medicare Supplement rights in full is worth doing before you make any decisions.

What About High-Deductible Plan G?

High-Deductible Plan G is part of your guaranteed issue right in most states — and it’s worth understanding as a real option, not just a fallback. The annual deductible for 2026 is $2,950. The 2027 number will be released this fall. Once you meet that deductible, it pays exactly like standard Plan G — all Medicare-approved costs covered. Zero. Nothing.

The premium on High-Deductible Plan G runs a fraction of what you’d pay for standard Plan G. For many people coming off Medicare Advantage, the math on this plan competes favorably with what they were spending in Advantage co-pays across the year. One strategy worth considering: pair High-Deductible Plan G with a cancer or critical illness policy that pays a lump-sum cash benefit if you’re diagnosed. That lump sum covers the deductible worry, and the combined cost often still beats a standard supplement premium. Worth running the numbers.

One note: whether insurance companies actually offer the high-deductible version on a guaranteed issue basis varies by state and by carrier. Check with an independent agent who knows the carriers in your area. And if you have Medicaid alongside Medicare, a supplement typically isn’t the right path regardless — Medicaid handles most of what a supplement would cover.

If you want to go deeper on how the plans compare, here’s a breakdown of High-Deductible Plan G and whether it makes sense for your situation.

The Exact Order to Do This Correctly

This is where people make mistakes — usually by doing things out of order. Here’s the sequence that protects you:

Step 1: Apply for your supplement while your Advantage plan is still active. Do not cancel anything first. Most supplement companies accept applications 60 to 90 days ahead of the start date. You can be approved and have a policy in hand before your old plan ever ends. There is zero gap.

Step 2: Once approved, enroll in a standalone Part D drug plan. Supplements don’t cover prescription drugs — you need a separate Part D plan. For 2027, the maximum out-of-pocket for covered drugs under Part D is $2,100 annually. Enroll during the Annual Enrollment Period (October 15 through December 7) or your Special Enrollment Period if applicable.

Step 3: Enrolling in Part D automatically ends your Medicare Advantage plan. You don’t call anyone to cancel. There’s no cancellation form. The moment your Part D enrollment is processed, your Advantage plan is terminated. Your supplement starts January 1st. Your drug plan starts January 1st. Your old Advantage plan ends December 31st. Clean transition, no gap in coverage.

Agent Tip

A mistake I see regularly: someone gets their non-renewal letter, calls their Advantage plan to cancel, then applies for a supplement. Don’t do it in that order. Apply first, get approved, then enroll in Part D — the Part D enrollment handles the cancellation automatically. Doing it the other way creates coverage gaps and administrative headaches that are entirely avoidable.

The Enrollment Deadlines You Cannot Miss

The Annual Enrollment Period runs October 15 through December 7. That’s when most people should be acting — decisions made here take effect January 1st, meaning you have continuous coverage with no gap.

If your plan terminates and you miss the Annual Enrollment Period, you have a Special Enrollment Period that runs December 8 through the last day of February. This is important: your special enrollment period does not end December 31st. I’ve seen major Medicare resources get this wrong. You have until the end of February. But here’s the catch: if you enroll after December 31st, your new plan doesn’t cover January. You’ll be on original Medicare only for however many days it takes your new coverage to kick in. That means full exposure to the Part A deductible of $1,736 and no out-of-pocket limit. Aim for December enrollment — January 1st start. Don’t test the edges of this deadline.

The guaranteed issue window itself closes 63 days after your old plan ends — that’s roughly the first week of March. After that, it’s health questions again. Possibly permanently.

What If You Already Enrolled in a New Advantage Plan and Changed Your Mind?

If you enrolled in a replacement Advantage plan during open enrollment but you’re having second thoughts before January 1st, your most recent enrollment choice is the one that counts. Apply for the supplement and enroll in the drug plan — that enrollment supersedes whatever Advantage election you made. Even after January 1st, the termination letter still gives you guaranteed issue rights for the first three months of the year. Use that time wisely if you need it.

If this was your very first Medicare Advantage plan ever, you may also have a separate trial right that applies — it’s worth a phone call to confirm. You can also read more about how to switch from Medicare Advantage to a supplement to understand the full picture of your options.

This Window Is a One-Time Key

Your guaranteed issue right exists because your specific plan was terminated. If your plan renews next year — which most do — there’s no new letter, no new right, and it’s back to health questions. This isn’t an annual opportunity. It’s a one-time key that your insurer’s decision handed you. If you’re in good health and want the predictability and freedom of a supplement, use it. If you have health conditions that would normally make a supplement impossible to get, this may be the only opening you ever have.

Whatever you decide, decide this season. The math on Medicare Advantage vs. Medicare Supplement costs looks different for everyone — but the deadline is the same for all of us.

Frequently Asked Questions

How do I know if my Medicare Advantage plan is being terminated or just changing?

Check your mail carefully in early October. A non-renewal letter means your plan ends December 31st. An Annual Notice of Change means your plan continues but some benefits are shifting. Keep the non-renewal letter — you may need it as proof when applying for a new plan.

Which Medicare Supplement plans can I get guaranteed if my Advantage plan is terminated?

If you became eligible for Medicare before January 1, 2020, you’re guaranteed access to Plans A, B, C, F, K, and L. If you became eligible January 1, 2020 or later, your guaranteed options are Plans A, B, D, G, K, and L. Plan N is not on the federal guaranteed list, but some carriers will offer it — ask before assuming you can’t get it.

What happens if I do nothing when my Medicare Advantage plan is terminated?

Some insurers will automatically move you to a comparable plan (called a crosswalk). If that happens, review the new plan carefully — it won’t be identical to what you had. If there’s no crosswalk plan, you’ll land on original Medicare with no supplement, no drug coverage, and no out-of-pocket cap starting January 1st. That’s a serious financial exposure. Don’t let this happen by default.

Can I apply for a Medicare Supplement before my old plan ends?

Yes — and this is exactly how you should do it. Most supplement carriers accept applications 60 to 90 days before the coverage start date. Apply while your Advantage plan is still active, get approved, then enroll in a Part D drug plan. Enrolling in Part D automatically terminates your Advantage plan. No gap, no cancel calls, no headaches.

When does my guaranteed issue window close?

Your guaranteed issue window closes 63 days after your old Advantage plan ends — roughly the first week of March. The Special Enrollment Period for terminated plans runs December 8 through the last day of February. If you enroll after December 31st, note that January won’t be covered by your new plan. Aim for a December enrollment with a January 1st start date.