About 4.3 million people with Medicare will see their private health or drug plan disappear on Dec. 31, and most of them will have to pick a new one themselves, according to a new analysis from KFF, the health policy research group.
The count, published Oct. 27, includes 3.1 million people in Medicare Advantage plans with drug coverage and 1.2 million people in stand-alone Part D prescription drug plans, which people in traditional Medicare use for their medications. KFF based the figures on plan data from the Centers for Medicare & Medicaid Services.
The findings land in the middle of Medicare’s annual open enrollment period, which runs through Dec. 7, the main window for seniors to change coverage for 2027.
Which Medicare plans are ending for 2027?
Of the 3.1 million Medicare Advantage enrollees losing their plan, about 2.8 million are in plans open to anyone eligible in their area. That is 14% of all enrollees in those plans, close to the 13% affected heading into 2026. Another 300,000 are in special needs plans, which serve people who qualify for both Medicare and Medicaid or who have certain health conditions.
Four companies account for half of those 2.8 million people, KFF found: Humana, with about 530,000 enrollees; UnitedHealth Group, with about 367,000; CVS Health, which owns Aetna, with about 254,000; and Aware Integrated, which sold Blue Cross branded plans in Minnesota, with about 249,000. HNC reported Oct. 25 on Humana’s and UnitedHealthcare’s Medicare Advantage exits.
The drug plan cuts are concentrated in a few products. About 950,000 of the 1.2 million affected Part D enrollees are in CVS Health’s SilverScript Choice plan, which is ending in 13 of the country’s Part D regions. Another 190,000 are in HealthSpring Extra Rx, sponsored by Health Care Service Corp., which is ending in 16 regions.
What happens if you do nothing?
If your Medicare Advantage plan is ending and you do not choose a new one, you will be moved to traditional Medicare, KFF noted. That keeps you covered for doctor and hospital care, but traditional Medicare does not include drug coverage on its own, so you would need to add a Part D plan to keep your prescriptions covered.
If your stand-alone Part D plan is ending, there is no automatic replacement. You will need to choose a new drug plan, or switch to a Medicare Advantage plan that includes drug coverage, if you want to keep prescription coverage under Medicare.
A separate group of about 1.4 million Medicare Advantage members are in plans that are merging with another plan from the same insurer. They will be moved automatically, but their benefits, costs and networks may change. Many of those changes stem from a new rule that, starting in January 2027, generally limits insurers to one dual eligible special needs plan in counties where they also run an affiliated Medicaid plan.
What rights do seniors have when a plan ends?
People whose plan is not renewed get extra time. Under Medicare’s rules, you can join another Medicare Advantage or drug plan between Dec. 8 and the last day of February of the following year. Choosing by Dec. 7 avoids any gap, however, because new coverage chosen during open enrollment starts Jan. 1.
People leaving a terminated Medicare Advantage plan for traditional Medicare also gain guaranteed issue rights to buy a Medigap supplement policy, KFF said. That means an insurer cannot turn them down or charge more because of a pre-existing condition. Medigap helps pay deductibles and other costs traditional Medicare does not cover. People whose plan is only being merged into another plan do not get that federal protection.
Why are Part D drug plan choices shrinking?
The average Medicare beneficiary will have nine stand-alone drug plans to choose from in 2027, down from 11 this year, the fourth straight annual decline, according to an earlier KFF analysis. KFF also found there will be no zero-premium stand-alone drug plans in 2027 for people who do not receive low-income subsidies, and some people who keep their current plan could see monthly premiums rise by $50 or more.
KFF researchers warned that with enrollment concentrated in fewer plans, more people are exposed to disruption each year when a large plan exits or raises its price. The average beneficiary still has 28 Medicare Advantage drug plans to choose from, which can make comparing options difficult.
What should affected seniors do now?
- Read the Annual Notice of Change or plan termination letter from your insurer. It says whether your plan is ending or merging.
- Compare 2027 options on Medicare.gov’s Plan Finder, checking that your doctors, pharmacies and prescriptions are covered.
- Call 1-800-MEDICARE or your State Health Insurance Assistance Program (SHIP) for free, unbiased help.
- Make a choice by Dec. 7 so new coverage starts Jan. 1 without a gap.
Key Takeaways
- KFF found 4.3 million Medicare beneficiaries will have their plan terminated Dec. 31: 3.1 million in Medicare Advantage drug plans and 1.2 million in stand-alone Part D plans.
- Humana, UnitedHealth Group, CVS Health and Aware Integrated account for half of affected individual Medicare Advantage enrollees.
- Medicare Advantage members who do nothing go to traditional Medicare without drug coverage; Part D members must pick a new drug plan.
- Affected people can switch between Dec. 8 and the end of February, but choosing by Dec. 7 avoids a gap.
Frequently Asked Questions
How many people are losing their Medicare plan for 2027?
KFF estimates 4.3 million Medicare beneficiaries will have their plan terminated at the end of 2026, including 3.1 million Medicare Advantage drug plan enrollees and 1.2 million stand-alone Part D drug plan enrollees.
What happens if my Medicare Advantage plan ends and I don’t pick a new one?
You will be moved to traditional Medicare. It covers doctor and hospital care but not most prescriptions, so you would need to add a Part D drug plan to keep drug coverage.
Do I get a special enrollment period if my plan is ending?
Yes. If your Medicare Advantage or drug plan’s contract is not renewed, Medicare lets you join another plan between Dec. 8 and the last day of February of the following year. Picking a plan by Dec. 7 means new coverage starts Jan. 1.
Can I buy a Medigap policy if my Medicare Advantage plan is terminated?
Yes. People whose Medicare Advantage plan is terminated have guaranteed issue rights to buy a Medigap policy, so they cannot be denied or charged more for a pre-existing condition. People whose plan is merging with another plan do not have that federal right.
