Medicare Plan Discontinued? What To Do if You Lose Health Insurance
Key Takeaways
- Your insurance carrier is required to give you at least 60 days notice when your plan will be terminated.
- You can enroll in a new plan during the Annual Enrollment Period or the Special Enrollment Period.
- If you don’t choose a new plan before your current plan ends, you will be switched back to Original Medicare.
- Consider your priorities and healthcare needs when picking a new plan.
In 2024, most Medicare-eligible U.S. adults received their health insurance through Medicare Advantage plans (also called Medicare Part C) from private carriers. For these individuals, Medicare Advantage plans may offer Medicare Part D prescription drug coverage and other benefits on top of the coverage they would get through the federally administered Original Medicare (Medicare Part A and Part B) program.
However, by the end of 2024, some carriers discontinued their plans in specific ZIP codes, affecting about 1.4 million enrollees. Other plans cut benefits, driven by factors like rising costs and new regulations.
Each year, Medicare Advantage plans may change or even go away entirely. You can protect your access to affordable coverage when you understand what to do if you lose health insurance.
Ready for a new Medicare Advantage plan?
What Happens if My Medicare Advantage Plan Is Discontinued?
Federal rules require Medicare Advantage plans to send an Annual Notice of Change no later than September 30 of each year. This document lists any updates in your current plan on January 1 of the coming year, which may impact your monthly premiums, deductibles, prescription drug coverage, or provider networks.
According to the health policy nonprofit KFF, about 1.8 million people learned that their existing plan would be consolidated into another one from the same insurance carrier in 2024. In a case like this, you’re enrolled in a new plan at the end of the year unless you decide to switch to a different one.
If your plan is no longer available in your ZIP code and won’t be consolidated, you instead receive a Notice of Termination. When a plan is discontinued in the middle of the year, your carrier must provide at least 60 days of notice.
Enrollment Periods When You Lose Medicare Advantage Coverage
Since plans change every year, it’s always a good idea to consider your options and make sure you’re getting the best coverage for your needs.
Annual Enrollment Period
If your plan is ending or being consolidated, it’s especially vital to explore other plans during the Annual Enrollment Period, which lasts from Oct. 15 to Dec. 7.
In the Annual Enrollment Period, you can:
- Switch to a new Medicare Advantage plan
OR
- Go back to Original Medicare and enroll in a Medicare Part D prescription drug plan
The coverage changes you make during the Annual Enrollment Period will take effect on January 1.
Special Enrollment Period
When you receive a Medicare Advantage plan termination notice, you have a Special Enrollment Period which lasts from two months before the plan ends until one month afterward. At this time, you have the option to switch to a New Medicare Advantage plan.
Returning to Original Medicare
If you haven’t enrolled by the time your plan is discontinued, you will automatically be returned to Original Medicare. Those who qualify for Extra Help (also called the Low Income Subsidy), which lowers the costs of Medicare Part D for people with limited incomes and resources, will be placed in a prescription drug plan. Otherwise, you must enroll yourself in a Part D plan to get coverage for most prescription medications.
People on Original Medicare often choose to add a Medicare Supplement plan (also called Medigap). These plans help with the costs not covered by Part A or Part B. If you apply during the period that starts 60 days before your Medicare Advantage plan is discontinued and ends 63 days later, you could qualify for guaranteed issue rights, which means you won’t pay higher monthly premiums based on your medical conditions.
Ready for a new Medicare Advantage plan?
Picking a New Medicare Advantage Plan
Even if your current Medicare Advantage plan is ending, you can likely choose from several others. As of 2025, the average person on Medicare had 42 different plans available in their area.
Before you start looking for new coverage, think about the plan features that are most important to you. Your healthcare needs and priorities may have changed since you last signed up for a plan. Some factors to consider include:
- Is there a monthly plan premium to pay on top of the Medicare Part B premium?
- How much will you pay in deductibles for medical services and prescription drugs before your coverage kicks in?
- What is the annual out-of-pocket maximum for covered services?
- How much will you pay for any prescription drugs you take regularly?
- What additional benefits (such as dental, vision, and hearing) are most important to you?
Talk to a licensed insurance agent about finding the right Medicare Advantage plan for your healthcare needs and financial situation. By preparing for the transition out of your current plan, you can make sure you don’t miss out on the benefits that make a difference in your life.