If Your Advantage Plan Ends December 31 and You Do Nothing, You Wake Up January 1 in Original Medicare With No Drug Coverage and No Medigap.

Humana (NYSE: HUM | HUM Price Prediction) non-renewal letters start hitting mailboxes in early October, and the company is pulling plans covering roughly 600,000 Medicare Advantage members for 2027. If one of those letters shows up with your name on it, the danger is not that Medicare disappears. It is where Medicare puts you if you do nothing.

On January 1, 2027, you return to Original Medicare without a standalone Part D drug plan or Medigap policy. Coverage remains, but two layers of protection disappear overnight, and your limited chance to replace one of them is already running.

Default Landing: Original Medicare, Bare

When a Medicare Advantage plan does not renew, members who choose no replacement are automatically enrolled in Original Medicare on January 1. That sounds harmless. It is not. Original Medicare in 2026 means a $202.90 monthly Part B premium, a $283 annual Part B deductible and a $1,736 Part A inpatient deductible for each benefit period. Starting on day 61 of a hospital stay, coinsurance reaches $434 a day. Skilled nursing care costs $217 a day from days 21 through 100.

Most important, Original Medicare has no annual out-of-pocket maximum. Your old Advantage plan capped your exposure. The default landing does not, and the surcharges and coverage gaps that catch retirees off guard go well beyond the headline premium (we mapped the worst offenders in a free Medicare guide if you want the full list).

Drug Coverage Disappears With the Plan

If you were enrolled in a Medicare Advantage prescription drug (MA-PD) plan, its drug benefit ends with the plan. Members who do not choose another MA-PD plan or a standalone Part D plan begin January without prescription coverage. Some beneficiaries receiving Extra Help may be automatically enrolled or reassigned to another drug plan, but they should confirm that coverage rather than assume the handoff occurred.

The immediate consequence is paying for prescriptions without Part D coverage. A longer lapse can create another problem: going 63 consecutive days without creditable drug coverage can trigger a late-enrollment penalty equal to 1% of the national base premium for every uncovered month. In most cases, that penalty follows the beneficiary for as long as Part D coverage continues.

The Window Extends Beyond the Coverage

Medicare gives members whose plans are ending a Special Enrollment Period (SEP) from December 8 through the final day of February. That sounds generous until the effective dates enter. A replacement selected in January generally begins February 1. One selected in February begins March 1. During the gap, prescriptions may be entirely out of pocket. Original Medicare still covers eligible imaging, specialist visits and other Part B services, but its deductible and usually 20% coinsurance apply without Medigap protection.

The regular Medicare open-enrollment period closes December 7, but the non-renewal SEP continues afterward. To have replacement coverage begin January 1, the member must make the choice by December 31.

Medigap Comes With Its Own Clock

Federal law gives affected members guaranteed-issue Medigap rights beginning 60 days before their Advantage coverage ends and continuing for 63 days afterward. Inside that window, an insurer cannot reject the application or charge more because of health history.

Someone eligible for Medicare on or after January 1, 2020, can generally purchase Plans A, B, D, G, K or L. Those eligible before that date may also choose Plans C or F. Availability still depends on which policies insurers sell in the state. Outside the federal window, insurers in most states may use medical underwriting. A prior heart attack, cancer history or diabetes can lead to a denial or higher premium, although some states provide stronger protections and another qualifying event can create new guaranteed-issue rights later.

December Is the Month That Matters

Three decisions should be made before the old plan disappears:

1. Choose another Advantage plan or Original Medicare with standalone Part D coverage by December 31.
2. If moving to Original Medicare, apply for Medigap while guaranteed-issue rights remain open.
3. Run every current prescription through Medicare Plan Finder because formularies, tiers and preferred pharmacies change.

The letter is not merely notice that a plan is closing. Answer it before December ends, and January 1 becomes a handoff instead of a coverage cliff.

Contact [email protected] for any questions or corrections.