Did you switch plans almost every year in the past recent years? Unfortunately, just like last year, there will be many changes and disruptions coming to San Diego again in 2027. Some Medicare Advantage and Part D plans will go away next year, while others will have fewer extra benefits to support the core benefits.
Reason for Plan Termination
Quoted from this article in Fierce Healthcare, most planned exits are part of a broader contraction in Medicare Advantage as insurers contend with rising medical costs and pressure to improve margins. They must cover higher-than-expected medical and prescription costs (up to double-digit percentages) while CMS reimbursement doesn’t keep up with the actual costs.
Beneficiaries that were most likely to face disenrollment were in PPO plans, plans with lower star ratings, or those operated by smaller carriers, according to the study.
What You Should Do
Sometime in late September or October, you will receive an Annual Notice of Change (ANOC) letter from your insurance company about the new changes in 2027, or a letter about your plan termination if the plan will stop on January 1, 2027, and about your right to enroll in available plan options. Please review it carefully to find out what they are.
For a plan termination, you need to find a new replacement plan for 2027 during this Annual Enrollment Period (AEP). You’re also entitled to a Special Enrollment Period (SEP) outside AEP (Oct 15-Dec 7) to enroll in a new Medicare plan or a guaranteed acceptance to a Medicare Supplement. If you do nothing, starting January 1, 2026, you’ll have only Original Medicare and no prescription coverage.
This is also the time for you to get professional help. As a local independent insurance agent, I am here to help you find a new Medicare health plan option that will work for you and your situation in 2027. I understand our local healthcare in San Diego. So, schedule your free consultation today!
