US Medicare coverage and plan availability

The landscape of Medicare coverage options for seniors involves navigating the differences between Medigap and Medicare Advantage plans. Medigap plans complement Original Medicare by covering cost gaps like deductibles and coinsurance, though they generally do not cover services such as dental or vision. Conversely, Medicare Advantage provides a bundled approach including Part A, Part B, and often Part D, frequently offering additional perks like transportation or hearing services, though some extra benefits have recently declined.

In a specific development, Humana announced plans to exit certain Medicare Advantage plans in 2027, a move expected to impact approximately 600,000 members. The company aims to prioritize higher-performing plans to reach a sustainable margin by 2028. Affected members may be eligible for guaranteed-issue rights to purchase Medigap coverage without medical underwriting if their specific plans leave the market.

As of late 2026, the stability of Medicare Advantage networks faces further challenges. Twenty-nine health systems are scheduled to drop Medicare Advantage plans in 2026, citing reimbursement disputes, deal renegotiations, and prior authorization denials. While UnitedHealthcare stated it is actively negotiating with most providers to renew relationships, several major facilities—including Lee Health in Florida, Fairview Health Services in Minnesota, the University of Miami Health System, and CarolinaEast Medical Center in North Carolina—are terminating contracts with the insurer at the end of 2026. Additionally, Naples Comprehensive Health is set to move out-of-network with Centene’s Wellcare and Health Care Service Corporation’s HealthSpring plans in 2027.

Beneficiaries are encouraged to use the Annual Election Period, running from October 15 through December 7, to review changes and evaluate coverage options.