Humana’s Medicare Advantage (MA) plan exits will affect approximately 600,000 members in 2027, according to information the insurer provided to investors in July. Members whose plans are not renewed may receive notices dated October 2 informing them that their coverage will end on December 31.
A non-renewal notice is more than routine Medicare paperwork. When an MA plan leaves Medicare or stops serving a member’s area, federal law may give the enrollee a guaranteed-issue right to purchase a Medigap policy after switching to Original Medicare.
Why October 2 Matters for Humana Members
Federal rules require non-renewal notices for coverage ending December 31 to be dated October 2. The timing gives affected members an opportunity to review their options before Medicare’s annual enrollment period, which runs from October 15 through December 7.
Humana has said its 2027 strategy includes benefit adjustments and targeted plan exits as it focuses on higher-performing coverage and works toward its profitability goals. The company expects to retain some affected members by moving them into other Humana plans.
However, the nearest replacement plan may not provide the same doctors, benefits, prescription coverage or costs. Members should compare the details of any new plan rather than relying on the familiar Humana name.
How a Plan Exit Can Create a Medigap Opportunity
People who have been enrolled in Medicare Advantage for years generally cannot automatically return to Original Medicare and expect a Medigap insurer to accept them. Outside certain protected enrollment periods, medical underwriting can make Medigap coverage more difficult to obtain in many states.
A Medicare Advantage plan exit can change that. When an MA plan leaves Medicare or stops serving an enrollee’s area, federal law provides a guaranteed-issue Medigap right if the member switches to Original Medicare. The insurer cannot reject the applicant, impose a waiting period for pre-existing conditions or charge more because of the applicant’s health.
This protection can be especially valuable to people who developed diabetes, heart disease or another medical condition after joining Medicare Advantage.
Subject to eligibility rules, the standardized Medigap choices available under the federal rule include Plans A, B, C, D, F and G. People who became eligible for Medicare in 2020 or later generally cannot buy Plans C or F, making Plan G one of the key options to compare.
The guaranteed-issue window may begin before the existing MA coverage ends. That gives members time to compare the cost of Original Medicare combined with Medigap and prescription drug coverage against available Medicare Advantage replacements.
Do Not Assume Another Medicare Advantage Plan Is the Best Choice
Humana expects to recapture a meaningful share of the 600,000 affected members through other coverage options. Staying with Medicare Advantage is one possible choice, but it is not the only one.
A replacement plan may use a different physician network or drug formulary, impose different specialist copayments and have a different out-of-pocket maximum. Members should confirm that their doctors, hospitals and prescriptions are covered under the specific 2027 plan they are considering.
Doing nothing also has consequences. When an MA contract is not renewed and the member does not select another Medicare Advantage plan, Medicare generally returns the person to Original Medicare when the old coverage ends.
Members leaving a Medicare Advantage plan that included prescription drug coverage may also need to consider enrolling in a standalone Part D plan. Failing to review that coverage could create gaps or additional costs.
Steps to Take After Receiving a Non-Renewal Notice
- Read the notice immediately and record every enrollment deadline, including any Special Enrollment Period available because the coverage is ending.
- If Original Medicare is an option, price a guaranteed-issue Medigap Plan G before selecting another Medicare Advantage plan. A health history that would normally make switching difficult may not prevent enrollment during this protected period.
- If you plan to remain in Medicare Advantage, compare your doctors, hospitals and prescriptions with the actual 2027 replacement plan rather than relying on the coverage you had in 2026.
A Humana cancellation or non-renewal letter may be unwelcome, but it can also give affected retirees an important opportunity to reconsider how their Medicare coverage is structured before the existing plan ends.
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