Medicare Advantage Plan Terminations and Medigap Opportunities in 2026
Approximately 2.9 million Medicare Advantage enrollees are set to experience plan terminations in 2026 as several insurers exit the market. This development opens a significant opportunity for beneficiaries to reassess their insurance options, particularly concerning Medigap policies. When a Medicare Advantage plan concludes, affected individuals have a limited 63-day window with guaranteed-issue rights to purchase certain Medigap plans without undergoing medical underwriting—an option not widely known.
A study by the Johns Hopkins Bloomberg School of Public Health, published in JAMA, evaluated the impact of these plan exits. The findings indicated an increase in disenrollment rates from an average of 1% between 2018 and 2024 to 6.9% in 2025, with projections reaching 10% in 2026. This analysis considered data from over 28 million enrollees, revealing substantial regional variation. Vermont faces the highest disenrollment at 92.2%, with other states like Idaho, Wyoming, North Dakota, South Dakota, New Hampshire, and Maryland reporting rates over 40%.
For many affected individuals, exploring Medigap options can provide financial predictability. Original Medicare, coupled with a Medigap Plan G, offers comprehensive coverage by limiting out-of-pocket costs to the annual Part B deductible, unlike potential high expenses with some Advantage plans. In 2026, the standard monthly Part B premium will rise to $202.90, and a Medigap Plan G could add an additional $150 to $250 monthly, determined by age and location.
State regulations often extend additional protections beyond federal standards. States like New York, Connecticut, Massachusetts, and Maine offer broader Medigap rights, making it vital for beneficiaries to consult state insurance departments or SHIPs to understand their available options thoroughly.
The current situation underscores the necessity of making informed decisions, considering both immediate and long-term healthcare needs. It’s vital for affected beneficiaries to calculate costs for both Medigap and Medicare Advantage options, consider plan networks, and reassess Part D drug coverage. Confirming the specifics of the Medigap guaranteed-issue period and understanding plan availability in one's area without medical underwriting are essential steps.
As the landscape of Medicare Advantage plans evolves, beneficiaries face both challenges and opportunities. Ensuring comprehensive awareness of broader Medigap rights and responsibilities remains critical for those navigating these changes in 2026.