Finding a health insurance plan that fits your budget and takes care of your health needs can be a huge comfort. That’s why it’s so frustrating when you’ve found a plan you love only to have it cancelled. If your Annual Notice of Change (ANOC) lets you know that your plan is being discontinued in 2027, now’s the time to start looking for another option. Read on to understand what happens when your plan is pulled and how to find a new one.
Why is my Medicare Advantage plan being discontinued?
Medicare Advantage plans are offered by private insurance carriers like UnitedHealthcare and Humana. These plans make money through member premiums and government reimbursements. Carriers can make changes to Medicare Advantage plans at any time. A handful of factors have contributed to carriers changing plans, including lowered government reimbursements, rising healthcare costs, and low enrollment. These changes can take multiple forms. Carriers can reduce the number of zip codes in which they offer a plan (called a Service Area Reduction or SAR), or they can move beneficiaries from one plan to another with similar benefits (called a Crosswalk), or they can remove a plan altogether (plan termination). Aside from carrier decisions, sometimes provider networks can end their relationship with Medicare Advantage (a provider-network exit).
Medicare Advantage Insurance carriers have been exiting certain markets at a slow but steady pace of about 1% of plans annually for several years. But in 2025, that number jumped to 6.9%. In 2026, carriers are anticipated to disenroll about 10% of policyholders.
What happens if my plan is discontinued?
When your carrier decides to discontinue your plan (through plan termination, SAR or crosswalk, etc), they are required to notify you. If the plan is not renewing in 2027, you’ll be notified in your ANOC, which you receive in the mail in September. You should look this document over carefully each year you are a Medicare beneficiary. When your plan is discontinued, there are a few possible scenarios for your future coverage:
- Your carrier could automatically enroll you in a different Medicare Advantage plan.
- If your carrier doesn’t enroll you in another plan, you do nothing, and you’ll be returned to Original Medicare and need to sign up for a Part D drug plan.
- You can search for other plans during the Annual Enrollment Period (October 15 to December 7).
If your carrier is disenrolling you during the contract year, they must send you written notice within 60 days of the plan’s termination. When this happens, you qualify for a Special Enrollment Period that typically lasts two months from the time your current plan ends.
Instead of leaving a market, some Medicare Advantage carriers are choosing to consolidate plans. When this happens, your ANOC will explain that your plan is consolidating and give information on the replacement plan. You’ll also receive an Evidence of Coverage letter in September. When this happens:
- Your carrier will choose your new Medicare Advantage plan if you do nothing.
- You can search for other plans during the Annual Enrollment Period (October 15 to December 7).
Do I still have health insurance if my plan ends?
If your plan is leaving your area or consolidating with another plan, you won’t be left uninsured. Read through your ANOC to see if you are automatically being moved to a new Medicare Advantage plan or to Original Medicare. If you move back to Original Medicare, you’ll need to choose a Part D prescription drug plan. If you want to switch to a new Medicare Advantage plan, you’ll have time to go over your options and pick a new one.
What are my rights when my Medicare Advantage plan is discontinued?
If your plan is being terminated or leaving your zip code, you qualify for a Special Enrollment Period. This lasts for 63 days, starting from the time your current plan is ending. If you choose to enroll in Original Medicare during this time, you may consider enrolling in a Medigap policy and a standalone Part D plan. If you lost your plan because you no longer live in the serviced zip code, you may be eligible for guaranteed issue rights, meaning you can buy a Medigap plan and cannot be denied due to preexisting conditions. This guaranteed issue right period can be no longer than 63 days after the end of your Medicare Advantage coverage ends.
How to replace a discontinued Medicare plan
If your Medicare Advantage plan is discontinued, take these steps to ensure you have the best plan for your needs in 2027:
- Read your ANOC to find out if you are being automatically enrolled in another plan or Original Medicare on January 1.
- If your plan is being discontinued and you are returning to Original Medicare, start shopping for a Part D plan so you don’t experience a gap on prescription coverage. You can pick one during your Special Enrollment Period (December 8 to February 28).
- You can shop for a Medicare Advantage plan during Medicare Advantage Open Enrollment Period (Jan 1-March 31)
- You can shop for Medicare Supplement (Medigap) plan when you lose your coverage as well, that lasts 63 days from when you drop from your Medicare Advantage plan.
This is a great opportunity to explore different Medicare plans. If you aren’t sure where to start, contact a licensed SmartMatch agent who can help you compare your options at no cost to you.
What you can do about Medicare plan discontinuation
If your Medicare Advantage plan is discontinued in 2027, acting early can ease your worries about coverage. When you find out, speak with a SmartMatch agent who can help you explore which plan best fits your healthcare needs and budget. If your plan isn’t changing, but you’re worried it might in the future, sign up for news from SmartMatch to keep you updated on Medicare Advantage policy changes and plan discontinuations.
