New York Elder Law Attorney
When an insurance company tells you that your Medicare Advantage plan will no longer be offered, the notice is alarming. After all, you may have spent years building relationships with your doctors, specialists, hospitals, and prescription plan.
The important point is this: a plan ending does not mean you are without options. But some of those options are time-sensitive.
The Medicare Advantage market is undergoing significant change. According to researchers at the Johns Hopkins Bloomberg School of Public Health, about 2.9 million Medicare Advantage enrollees will be forced to disenroll in 2026. Their analysis found that roughly 10% of Medicare Advantage enrollees in non-employer HMO and PPO plans would be affected by plan exits in 2026.
That represents a major reversal from the previous decade, when Medicare Advantage enrollment and plan availability generally expanded. And these shrinking changes are continuing into 2027.
Medicare Advantage Plans Are Not Permanent
Those television commercials showing smiling seniors enjoying their Medicare Advantage benefits can be genuinely heartwarming. But Medicare Advantage is a product like any other, sold by large companies to earn profits for shareholders.
Medicare Advantage plans are private insurance products. Insurance companies make business decisions based on costs, reimbursement, membership, market conditions, and profitability. That means a plan that works well for you today may not be available next year.
The Johns Hopkins analysis describes this as a sharp reversal after years of relatively stable Medicare Advantage enrollment. Forced disenrollment averaged slightly over 1% annually from 2018 through 2024. That went up to 6.9% in 2025 and about 10% in 2026.
For seniors who have serious medical conditions, changing plans is more than an administrative inconvenience. It can affect doctors, hospitals, networks, prescription coverage, prior authorization requirements, premiums, deductibles, and out-of-pocket costs.
A termination notice should never be treated as junk mail.
The 2027 Humana Medicare Advantage Changes
Humana has announced targeted exits from Medicare Advantage plans for 2027, expected to affect about 600,000 members.
During its July 29, 2026, earnings call, Humana told investors that its 2027 plan exits would affect about 600,000 members. The company also said it expected to recapture a significant part of those members, similar to its experience in 2025.
The business explanation is straightforward: Humana is trying to improve the profitability of its Medicare Advantage business and focus on what it considers higher-performing plans. The company has indicated that its targeted exits are part of a broader effort to improve margins.
From the perspective of a senior receiving the letter, however, the concern is straightforward: What does this mean for me? The answer depends on what you want to do next.
The Long-Term Care Insurance Parallel
There is an important parallel between Medicare Advantage plans and long-term care insurance policies. People often think of insurance as something permanent once they have bought it. This is often not the case. Long-term care insurance is designed to provide financial protection against a future risk: the cost of needing extended care.
Medicare Advantage is a way of receiving Medicare benefits through a private health plan. There is no guarantee that the specific private plan you selected will remain available forever. In both situations, the insurance company is making a business decision within a larger regulatory system.
That is why I tell clients to think about insurance as a contract with rights and limitations—not a lifetime promise.
The same lesson applies to estate planning. An estate plan should not simply be created and placed in a drawer. It should be reviewed when circumstances change. Insurance coverage deserves the same attention.
A change in an insurance policy can affect retirement income, health care expenses, the assets available to your spouse, and ultimately the estate you leave to your family.
What Does a Medicare Advantage Termination Notice Actually Mean?
If your Medicare Advantage plan is being terminated or is no longer available in your area, the notice is more than an announcement. It may trigger important Medicare enrollment rights.
One of the most important options is the right to return to Original Medicare and obtain a Medigap policy without standard medical underwriting if you qualify for the applicable guaranteed issue right. This distinction is extremely important.
Medicare Advantage Is Not the Same as Medigap
Medicare Advantage is another way to receive Medicare-covered benefits through a private, Medicare-approved plan. Medigap is different.
Medigap is supplemental insurance designed to help pay certain costs left by Original Medicare, such as deductibles, copayments, and coinsurance. You must have Original Medicare, including Part A and Part B, to buy Medigap.
Think of the two systems this way:
- Medicare Advantage: Medicare benefits are administered through a private Medicare Advantage plan.
- Original Medicare + Medigap: Medicare pays its share, and the Medigap policy helps cover certain remaining Medicare-approved costs.
The choice between them is significant.
Why the 63-Day Medigap Window Matters
This is where the calendar becomes extremely important.
Medicare states that when a qualifying Medicare Advantage plan ends, and you switch to Original Medicare, you may have a guaranteed-issue right to purchase certain Medigap policies. You can generally apply beginning 60 days before the Medicare Advantage coverage ends and no later than 63 days after it ends.
The exact rights depend on the circumstances, so the termination notice should be reviewed carefully.
Outside a guaranteed-issue situation, an insurance company may use medical underwriting under federal law. Depending on your circumstances and state law, that could mean higher premiums, fewer choices, or even denial of a Medigap policy. Medicare specifically warns that outside protected enrollment periods, there is no federal guarantee that an insurer will sell you a Medigap policy. Your health today can affect your insurance options tomorrow.
A guaranteed issue right can protect you from that problem.
What Does “Guaranteed Issue” Mean?
In New York and three other states, all Medigap policies include a guaranteed-issue right. The insurer must sell you a qualifying Medigap policy even if you have pre-existing health conditions. In the remaining states, you may be subject to underwriting, and premiums can be prohibitive.
Medicare explains that when you buy Medigap under a guaranteed issue right, the insurer must cover your pre-existing health conditions without the usual pre-existing-condition waiting period. For someone who has recently been diagnosed with cancer, heart disease, diabetes, kidney disease, or another serious condition, that protection can be enormously important.
Original Medicare Does Not Have an Annual Out-of-Pocket Maximum
Another issue deserves careful consideration. Original Medicare by itself does not have a yearly limit on out-of-pocket spending on covered services. Medicare explains that there is no annual out-of-pocket limit under Original Medicare unless you have supplemental coverage, such as Medigap, Medicaid, employer coverage, or similar coverage.
Medigap can help address that exposure.
For example, Medigap Plan G is one of the standardized plans available to eligible beneficiaries. Plan G generally covers Medicare-approved Part B coinsurance after the applicable Part B deductible, as well as several other covered expenses. This does not mean Plan G is automatically the right choice for everyone.
Premiums vary by insurer, location, and other factors. Prescription drug coverage is also a separate consideration because modern Medigap policies generally do not include Part D coverage.
Comparison shopping is essential.
The “Sneaky” Part: Recapture
There is another point Medicare Advantage beneficiaries should understand. When an insurer announces that a plan is ending, the company may encourage affected members to switch to another plan offered by the same insurer. That may be appropriate for some people, but it should not automatically be your decision.
Humana has said it expects to recapture a significant share of members affected by its 2027 plan exits, based on its 2025 experience. Reports from the company’s earnings call indicate that Humana recaptured just over 40% of affected membership following its 2025 exits.
This means consumers should be careful not to treat a replacement plan as the only option.
Compare before you enroll.
Look at:
- Your current doctors.
- Your specialists.
- Your preferred hospitals.
- Prescription drug coverage.
- Prior authorization requirements.
- Premiums.
- Deductibles.
- Copayments and coinsurance.
- Maximum out-of-pocket exposure.
- Travel needs.
- Whether your doctors participate in Original Medicare.
- Whether you may qualify for Medigap guaranteed issue rights.
The cheapest plan is not necessarily the best option.
And a plan with a familiar insurance company is not necessarily the best option.
Key Medicare Dates for 2027
There are several dates that beneficiaries should put on their calendars.
October 15–December 7, 2026: Medicare Open Enrollment
The Medicare Open Enrollment Period runs from October 15 to December 7.
During this period, you can change Medicare Advantage plans, switch between Medicare Advantage and Original Medicare, and make certain Part D changes. These changes generally take effect on January 1, 2027.
December 8, 2026–February 28, 2027: Non-Renewal Special Enrollment Period
For individuals whose Medicare Advantage plan is not renewed effective January 1, federal Medicare guidance provides a Special Enrollment Period beginning December 8 and continuing through the last day of February of the following year.
For 2027, that means December 8, 2026, to February 28, 2027.
This Special Enrollment Period allows affected beneficiaries to select another Medicare Advantage plan or a Part D plan, depending on the circumstances.
The Medigap 60-Day/63-Day Window
This deadline warrants special attention.
If your goal is to leave Medicare Advantage and move to Original Medicare plus Medigap, Medicare allows you to generally apply for Medigap 60 days before your Medicare Advantage coverage ends and no later than 63 days after it ends, when the applicable guaranteed issue right applies.
Notice that this deadline is not the same as the Medicare Open Enrollment calendar.
What Should You Do If You Receive a Termination Letter?
Do not throw it away. Do not assume you must stay with the same insurance company. And do not wait until the last week of enrollment.
Instead:
Read the entire notice. Locate the date your current coverage ends and the explanation of your enrollment rights.
Determine whether your plan is being terminated or non-renewed. The legal and enrollment consequences depend on the type of change.
Review your Medicare Advantage alternatives. A different Medicare Advantage plan may be a better fit for you.
Consider Original Medicare. If you are considering Original Medicare, consider whether Medigap and Part D make sense for you.
Before enrolling elsewhere, investigate your Medigap guaranteed-issue rights. This is especially important if you have significant health problems.
Keep every letter. Medicare recommends that beneficiaries retain notices, letters, emails, and other documentation regarding coverage termination because these documents may be needed to establish a guaranteed issue right.
Get objective advice. SHIP, HIICAP, and SHINE can help. You do not have to navigate this alone. One of the best resources for Medicare beneficiaries is the State Health Insurance Assistance Program (SHIP). These programs provide objective Medicare counseling.
For example, in New York, the program is called HIICAP — the Health Insurance Information, Counseling, and Assistance Program. New York describes HIICAP as a statewide network that provides free, accurate, and objective counseling and assistance on Medicare, Medicare Advantage, Medigap, and other health insurance issues.
In Florida, the comparable program is SHINE — Serving Health Insurance Needs of Elders. The Florida Department of Elder Affairs describes SHINE as a free, fair, and confidential counseling program for Medicare beneficiaries and their families.
These agencies are designed to provide education rather than sell you an insurance product.
This Is an Insurance Decision—and an Estate Planning Issue
Health insurance should be viewed as part of the larger retirement and estate planning picture.
Health care costs can be one of the largest expenses a family faces in retirement. A change in Medicare coverage can affect how much money remains in a retirement account, how much a spouse may inherit, and how quickly assets are spent.
Final Thoughts for Medicare Advantage Beneficiaries
If you receive a letter stating that your Medicare Advantage plan is ending, don’t panic, but don’t ignore it either.
You may have several options, including enrolling in another Medicare Advantage plan, returning to Original Medicare, purchasing a Medigap policy, and selecting appropriate Part D prescription drug coverage.
The most important thing is to understand which rights you have and when they end.
The 63-day Medigap window can be especially important because it may offer guaranteed issue protection that could be difficult or expensive to obtain later.
As estate planning attorneys, we spend a great deal of time talking with families about protecting assets, planning for incapacity, and preserving choices for the future.
Medicare coverage belongs in that conversation.
Read the letter. Mark the deadlines. Compare your options. And get advice before making an irreversible decision.