2026 Medicare Advantage Plan Non-Renewal: ZIP Code Termination Options

Why Medicare Advantage Plans Exit Specific ZIP Codes in 2026

A Medicare plan non-renewal in 2026 means your current Medicare Advantage plan will no longer be available in your ZIP code starting January 1. This is not a cancellation of your Medicare benefits — it is a carrier-level decision to exit a specific market or service area. When a plan non-renews, CMS guidance recommends insurers notify beneficiaries 90 days before the effective date, but for 2026, CMS issued an enforcement safe harbor that does not enforce this 90-day requirement, explaining the reason and what happens next.¹

Approximately 1.6 million Medicare Advantage enrollees faced plan non-renewals or service area reductions entering 2025, and that trend continued into 2026.² The total number of Medicare Advantage plans nationally dropped 10%, from 3,719 plans in 2025 to 3,373 in 2026.³ If you received a non-renewal letter, you have options — but the clock is ticking.

Medicare Advantage plans exit ZIP codes for business reasons, not because of your health status or claims history. Insurers evaluate profitability at the county and ZIP code level each year. When a plan's medical loss ratio — the percentage of premium dollars spent on patient care — exceeds targets, or when CMS star ratings drop below 3.5 stars, the carrier may decide to withdraw from that service area entirely.¹

For 2026, major carriers including UnitedHealthcare, Humana, and CVS reduced or exited MA plan offerings in multiple markets.⁴ These decisions are ZIP code-specific. A plan may remain available in one county but disappear in the neighboring county. Suppose you live in a ZIP code where Humana's PPO plan served 1,200 members. If Humana determines that reimbursement rates from CMS no longer support the local provider network, they terminate that plan in your area. Your coverage continues through December 31, but on January 1, you are unenrolled unless you take action.¹

The ZIP code focus matters because it affects your comparison set. A plan available in the next county may not be available to you. You must shop within your current service area.

What a Medicare Plan Non-Renewal Means for 2026

A Medicare plan non-renewal means your current MA plan will not be offered in 2026. This is different from a plan termination mid-year, which is rare. Non-renewals happen during the Annual Enrollment Period cycle. Your coverage remains active through December 31, 2025, and ends at midnight on January 1, 2026.¹

When a plan non-renews, you are automatically disenrolled and return to Original Medicare on January 1 unless you actively select a new plan during the Special Enrollment Period.⁵ CMS makes alternative plans available through the plan finder, but you must take action to enroll in a new MA plan. The SEP lets you switch to any available MA plan in your service area with no medical underwriting.⁶

The key date is December 31. If you do nothing, you will be returned to Original Medicare on January 1. If you want a different MA plan or a Medigap policy, you must act before that date or during the SEP window that follows.

Your Options When Your Medicare Advantage Plan Ends

You have three paths when your MA plan non-renews in 2026.

Option 1: Enroll in a different Medicare Advantage plan in your ZIP code. You can compare plans using the Medicare Plan Finder or work with a broker. The SEP triggered by non-renewal lets you switch to any MA plan available in your area, including HMO, PPO, or PFFS plans, with no medical underwriting.⁶

Option 2: Return to Original Medicare (Part A and Part B) and add a standalone Part D drug plan. This option gives you the broadest provider access. You can see any doctor or hospital that accepts Medicare nationwide. The trade-off is that Original Medicare does not cap out-of-pocket costs. You would need a Medigap policy to fill that gap.

Option 3: Enroll in Original Medicare plus a Medigap plan plus a Part D plan. This is the most comprehensive option but requires medical underwriting for Medigap in most states. However, in certain situations — including MA plan non-renewal — you may have guaranteed issue rights for Medigap, meaning insurers cannot deny you or charge higher premiums based on health history.

How to Switch to Original Medicare Without Losing Coverage

Switching from Medicare Advantage to Original Medicare requires coordination. If you act during the SEP triggered by the non-renewal, you can disenroll from your MA plan and enroll in Original Medicare with Part B effective January 1. You do not need to wait for the General Enrollment Period.⁶

The process works in three steps. First, contact Social Security or visit your local SSA office to confirm your Part B enrollment is active. If you have been paying your Part B premium through your MA plan, it continues automatically. Second, enroll in a standalone Part D prescription drug plan through the Medicare website. Third, if you want Medigap, apply during your guaranteed issue window.

Timing matters. If you submit your disenrollment request by December 31, your Original Medicare coverage starts January 1 with no gap. If you miss that date, you can still use the SEP to switch during January and February, but there may be a brief gap in coverage.

The Special Enrollment Period After a Plan Termination

The SEP for MA plan non-renewal is one of the most powerful enrollment rights Medicare beneficiaries have. It begins when the plan sends the non-renewal notice and lasts through the last day of February following the plan year.⁶ For a 2026 non-renewal, the SEP runs from the notice date (typically September or October 2025) through February 28, 2026.

During this SEP, you can:

• Switch to another Medicare Advantage plan in your service area
• Disenroll from Medicare Advantage and return to Original Medicare
• Enroll in a standalone Part D plan
• Apply for a Medigap policy with guaranteed issue rights in many states

The SEP is a one-time event tied to the non-renewal. If you use it to enroll in a new MA plan and later want to switch again, you must wait for the next Annual Enrollment Period (October 15 to December 7) unless another SEP applies.

Comparing Medicare Advantage and Medigap Before You Enroll

The choice between a new MA plan and Original Medicare plus Medigap depends on your health needs, budget, and preferred providers. Consider a hypothetical scenario: a 68-year-old in Phoenix whose MA plan non-renews. She takes three maintenance medications and sees a specialist quarterly.

Her current MA plan has a $3,500 maximum out-of-pocket. A new MA plan in her ZIP code has a $5,900 out-of-pocket cap. Original Medicare with a Medigap Plan G would have no out-of-pocket cap beyond the Part B deductible, but the monthly premium for Medigap is typically $150 to $250 depending on age and location.

If you travel frequently or see multiple specialists, Original Medicare plus Medigap offers more flexibility. If you prefer a low monthly premium and are comfortable with network restrictions, a new MA plan may be the better fit.

Coordinating Social Security and Medicare During the Transition

Your Social Security benefits are not affected by a Medicare plan non-renewal. Your Part B premium continues to be deducted from your Social Security check automatically. However, if you switch from an MA plan to Original Medicare, verify that your Part B premium deduction remains correct.

If you are enrolled in an MA plan that includes Part D, your drug coverage is bundled. When you switch to Original Medicare, you must enroll in a standalone Part D plan within 63 days to avoid the Part D late enrollment penalty.⁶ The penalty is 1% of the national base beneficiary premium ($36.78 in 2026) for each month you go without creditable drug coverage.

For example, suppose you delay enrolling in Part D for 10 months. Your penalty would be roughly $3.68 per month added to your Part D premium permanently.⁷ Over a 10-year period, that adds approximately $441.60 in extra costs.⁷

Avoiding Coverage Gaps and Late Enrollment Penalties

The most common mistake after a non-renewal notice is doing nothing. If you do not actively choose a new plan, you are returned to Original Medicare on January 1. That plan may have a different provider network, different drug formulary, and different cost structure than your current plan. You could lose access to your primary care doctor or find that your medications are no longer covered.

To avoid gaps:

• Respond to the non-renewal notice within 30 days
• Compare plans in your ZIP code using the Medicare Plan Finder
• Confirm that your preferred doctors and hospitals are in-network for any new MA plan
• Check the drug formulary for each medication you take
• Enroll by December 31 to ensure January 1 coverage

If you miss the December 31 deadline, you still have the SEP through February 28. However, your Original Medicare coverage begins January 1 automatically. You can enroll in a new plan during the SEP, but you may have a brief period where your provider network changes.

Your Next Step

Open the non-renewal letter you received from your Medicare Advantage plan. Note the effective date — it is almost certainly January 1, 2026. Go to Medicare.gov and use the Plan Finder tool to compare plans available in your ZIP code. Write down the three plans that cover your doctors and medications. Then call your state's State Health Insurance Assistance Program (SHIP) for free, unbiased counseling. SHIP counselors are trained to help with exactly this situation.

At Smart Money After 60, we walk through these transitions with our members regularly. Do not wait until December — the best plans fill up early, and you need time to make an informed decision.