193 Counties Will Have Zero Medicare Advantage Drug Plans in 2027 - Here's Your Backup

Medicare Advantage plans may help older adults save money in retirement while still getting the healthcare they need. But as some major insurers drop their plans and overall plan coverage changes, some seniors have fewer plans to choose from, and others have no available Medicare Advantage plans with drug coverage in their location. The coverage changes mean it's particularly important for many retirees to take advantage of this year's Open Enrollment to shop for a different plan for 2027.

Here's what you should know about the plan changes, whether your coverage might be affected, and the actions you may need to take before January.

The changes to Medicare Advantage plan availability in 2027

Some major changes are coming to Medicare Advantage plan availability in 2027. Since Medicare Advantage plans are offered at the county level, KFF analyzed Centers for Medicare & Medicaid Services (CMS) data on plan availability across the country.

The analysis reveals that 193 counties may have no Medicare Advantage plan with drug coverage available for general enrollment in 2027, affecting 638,000 people; that figure is up from 123 counties in 2026 that affected 399,000 people. Counties that have no Medicare Advantage with prescription drug coverage plan options span 16 states, including Alaska, California, Colorado, Montana, New Hampshire, Oregon, Vermont, and more.

The outlook is more positive for other seniors; 20% of Medicare beneficiaries are able to choose from more than 40 Medicare Advantage plans in 2027. However, that's a decrease from 2026, when 27% of beneficiaries had more than 40 plans to choose from.

The Humana and UnitedHealth Group plan changes

Humana and UnitedHealth Group, the two largest Medicare Advantage insurers, are both exiting more counties than they are entering in 2027, further limiting plan availability. UnitedHealth Group is exiting 228 counties and entering nine new counties, while Humana is exiting 62 counties and entering four new counties.

Together, the plans that UnitedHealth Group and Humana are canceling cover nearly 1 million people.

Options available for retirees losing their Medicare Advantage plans

A Medigap policy helps cover out-of-pocket expenses not paid for by Medicare Parts A and B, and individuals may either sign up for Medigap or Medicare Advantage. Many of the retirees affected by the loss of their plans may not be aware that they have extra protection. Federal law provides guaranteed issue protections to Medicare beneficiaries who wish to purchase a Medigap policy after their Medicare Advantage plan coverage has been terminated in their area.

Outside of a guaranteed issue right period, Medigap insurers may deny Medicare beneficiaries for pre-existing conditions or charge them higher premiums, but insurers are prevented from taking either action during a guaranteed issue period.

During a guaranteed issue right period, individuals may purchase a Medigap policy without medical underwriting. That means there are no health questions and no denial. The period lasts for no more than 63 days after the previous Medicare Advantage plan ends.

The plan path after Medicare Advantage

Retirees who no longer have access to Medicare Advantage plans may choose a combination of other plans to create the coverage they need. Medicare Parts A and B have no out-of-pocket maximum, so many retirees pair Original Medicare with a Medigap plan to pay for expenses like copayments, coinsurance, and deductibles.

Since Medigap plans sold after 2005 don't include prescription drug coverage, retirees may also add on a separate Medicare Part D drug plan to cover prescription drug costs.

The deadline extension to enroll in a new plan

Medicare Open Enrollment runs from October 15 through December 7, and during that time, enrollees may shop for and change to a new plan.

Individuals whose Medicare Advantage plan has been canceled qualify for a special enrollment period that gives them more time to shop for a plan. That special enrollment period lasts until February 28, 2027. However, you'll need to enroll in a plan by December 31, 2026, for coverage to start January 1, 2027.

Extra Help for drug coverage

Retirees who are moving from a $0 Medicare Advantage plan to a paid standalone drug plan may face extra prescription costs, but help is available to cover those expenses. Medicare Part D Extra Help is a program that covers some of the Medicare Part D prescription drug plan costs, such as premiums, deductibles, and copayments. The plan offers an estimated average annual value of $5,700 per person.

To qualify for Extra Help, individuals must have Medicare Part A and/or Part B, live in the U.S., and receive Medicaid or Supplemental Security Income, be enrolled in a Medicare Savings Program, or meet other income eligibility criteria.

Bottom line

With so many changes coming to Medicare Advantage plans for 2027, it's important to carefully read your annual notice of change, rather than discarding it. Make sure that you understand any changes coming to your plan, and be prepared to compare plans during Open Enrollment to find the coverage that's right for you.

If you need additional assistance, you may call 1-800-MEDICARE or contact your local State Health Insurance Assistance Program for personalized insurance assistance. Putting some extra time into finding the right health insurance coverage may help you avoid expensive financial mistakes in retirement.

You May Also Like

23 Ways To Get Money Without Getting A Second Job

By FinanceBuzz Editors

How To Save Money on Car Insurance: 12 Ways to Lower Rates

By Elyssa Kirkham

10 Things Seniors Born Between 1941-1969 Could Take Advantage Of

By FinanceBuzz Editors

19 Dumbest Things Smart People Waste Money On

By Team FBZ

7 Moves If You Want to Stop Living Paycheck to Paycheck

By FinanceBuzz Editors

7 Clever Ways to Crush Your Debt

By FinanceBuzz Editors

Save Money and Get Huge Discounts on Everyday Purchases

AARP Benefits

• Huge discounts on travel, groceries, prescriptions and more
• Access to financial planning resources and health tools
• Join AARP and get 25% off with automatic renewal

Become a member now!

---

Subscribe Today

Learn how to make an extra $200

Get vetted side hustles and proven ways to earn extra cash sent to your inbox.

or

Subscribe Now →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms