10% of Medicare Advantage Enrollees' Plans Were Discontinued This Year

If you are a Medicare Advantage enrollee, you may have noticed that the number of plans available to you has shrunk during the last Annual Open Enrollment.

It's not your imagination: A research letter published in the medical journal JAMA noted that about 10% of MA enrollees saw their plans discontinued for 2026, forcing them to switch to other MA plans, go back to Traditional Medicare, or sign up for a Medicare supplement plan.

When a plan shuts down, it can disrupt care in ways that are not immediately obvious. MA plans operate with provider networks and drug formularies, and those can vary significantly from one plan to another. That means you may have to switch doctors, find new specialists, or discover that your prescriptions are no longer covered in the same way.

Researchers estimate that roughly 2.9 million people were forced to find new coverage for 2026. Disenrollment rates averaged about 1% from 2018 through 2024 before rising to nearly 7% in 2025 and then 10% this year, according to the research led by Mark K. Meiselbach, PhD, of the Johns Hopkins Bloomberg School of Public Health.

Some states have been hit far harder than others. In Vermont, for example, more than 90% of enrollees received notices that their plans would no longer be available. Several other states, including Wyoming, South Dakota and New Hampshire, also saw large shares of beneficiaries affected.

Why this is happening

Insurers say rising medical costs have made some plans unprofitable. One reason is that many people delayed care during the COVID-19 pandemic and they have been flooding hospitals for that care in the last few years. The cost of treatment has also increased dramatically.

At the same time, federal payment increases to MA plans have not kept pace with those rising costs, and regulators have taken steps to rein in what some policymakers view as overpayments to insurers.

As a result, many companies are pulling out of markets or trimming plan offerings, particularly in rural areas or regions with higher-cost populations. Smaller insurers have been especially affected, but even large carriers have scaled back certain plans or reduced benefits.

Options if you are non-renewed

• Enroll in another MA plan. If you go this route, check that your preferred doctors are in-network and that your medications are covered under the plan's formulary.

• Return to Original Medicare (Parts A and B). This gives you broader access to providers but leaves you responsible for deductibles and coinsurance unless you add supplemental coverage. The bonus is that you can see any doctor who accepts Medicare.

• Purchase a Medicare Supplement (Medigap) policy. If your MA plan is terminated, you typically have a guaranteed issue right to buy a Medigap plan without medical underwriting, which means you cannot be denied coverage due to preexisting conditions. This supplements Original Medicare and helps with out-of-pocket expenses.

Regarding Medigap plans, guaranteed issue protection is important, but it is time-limited. Missing your enrollment window could mean higher premiums or denial of coverage later.

The takeaway

Medicare Advantage is still a major part of the Medicare system, but the market is shifting. Plans are becoming more selective about where they operate, and that means enrollees may need to review their coverage more carefully each year.

Staying informed and researching your options can help you avoid disruptions and maintain continuity of care.