Quick Read
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Humana ( HUM ) is dropping 37 PPO plans for 2027, triggering a federal guaranteed-issue right to buy Medigap without medical underwriting.
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The guaranteed-issue window opens when members receive their termination notice and closes 63 days after Advantage coverage ends, and this protection does not apply to routine benefit changes.
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Members returning to Original Medicare must separately enroll in a standalone Part D plan; skipping drug coverage for 63-plus days triggers a permanent late enrollment penalty.
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A Humana( NYSE:HUM ) PPO member opens her mail this fall and finds two pieces of information in one envelope. Her plan will not return in 2027, but Humana still has other Advantage options in many markets, including HMOs. She picked a PPO for more freedom to see specialists and use doctors outside a tight network. Another Humana plan may look like continuity, but it may not preserve what she was paying for.
Humana is dropping 37 PPO plans for 2027 while adding some HMOs and special needs plans as it works to rebuild its Medicare Advantage margins. The insurer has said it expects to recapture about 40% of members affected by its broader plan exits in other Humana plans. But for someone whose plan is actually ending, the more valuable item in the envelope may be a federal right many members never use: a short window to buy Medigap without health questions.
Why Her Plan Ending Unlocks Medigap With No Health Questions
Once your first Medigap open enrollment period has passed, insurance companies in most states can review your medical history and deny you or charge you more. If she has diabetes, a heart condition or a past cancer diagnosis, she could be locked out of Original Medicare plus Medigap for good.
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Federal guaranteed-issue rules lift that underwriting when a Medicare Advantage plan is not renewed or leaves her service area. She can return to Original Medicare and buy certain standardized Medigap plans, including Plan G. The insurance companies must sell her the policy, cannot bar her preexisting conditions and cannot charge her more because of her health. For an involuntary plan ending, the guaranteed-issue window begins when she receives the termination notice and runs through 63 days after her Advantage coverage ends.
A routine plan change does not trigger this right. An ordinary Annual Notice of Change (ANOC) that raises copays, shrinks a network or moves a drug to a higher level leaves underwriting in place. So does leaving a PPO that is still being offered for an HMO she happens to like better, and some states add broader Medigap protections on top of the federal rules, so she should check her own state's rules too.
Humana's HMO Offer and Her Medigap Right Are Separate Decisions
Humana will try to keep members by directing them into another Humana plan, but she is free to ignore that offer and compare the two options on her own terms:
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Replacement HMO:typically a tighter network, possible specialist-referral rules, prior authorization for many services and a drug formulary that may differ from her current one. Its medical out-of-pocket maximum leaves out Part D drug costs, and most routine out-of-network care is not covered.
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Original Medicare with Medigap and Part D:any doctor or hospital nationwide that accepts Medicare, with no referrals. With Plan G, she pays the Part B deductible ($283 in 2026) and then close to nothing for covered services. She also pays a Medigap premium and a Part D premium every month.
She pays the Part B premium on either path ($202.90 a month in 2026). So the real choice comes down to a higher fixed monthly cost for open access versus lower premiums with network limits and prior authorization. In a healthy year, the HMO may cost less in premiums. In a year with a new diagnosis, its network and approval rules matter much more, and that is exactly why she chose a PPO in the first place.
If she has a chronic condition, sees several specialists or spends part of the year in another state, the Medigap window is worth pricing before it disappears. If she is healthy, all of her doctors are in the HMO's network and her budget is tight, the HMO may still work. If she chooses the HMO and wants Original Medicare with Medigap later, however, she may face medical underwriting again unless another guaranteed right or state protection applies.
Three Ways She Could Lose the Guarantee by Accident
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Misreading the letter.She should confirm that the notice says her plan is ending or not renewing, not simply changing benefits for 2027. If the language is unclear, she should call Humana or her State Health Insurance Assistance Program before counting on the Medigap right.
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Applying too late.She should apply for Medigap while the window is open and keep the termination notice, because an insurance company can ask for proof that she qualifies. Applying early in the window lets her Medigap coverage start the day after her Advantage plan ends.
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Forgetting drug coverage.Medigap does not cover prescription drugs. If she returns to Original Medicare, she needs to enroll in a standalone Part D plan on her own during this fall's open enrollment. Going 63 days or more without creditable drug coverage can bring a Part D late enrollment penalty.
The 2026 rules and figures here come from CMS. Medicare has not yet published 2027 premiums and deductibles, so she should budget with this year's numbers as a baseline. Premiums are only part of the picture: income-based surcharges and coverage gaps can add thousands a year on top, and we mapped out the full set in a free guide on Medicare's hidden bills.
What to Decide Before the Window Closes
The most valuable line in a plan-exit letter is the one that gives her a temporary right to buy Medigap without health questions. She can reconsider Medicare Advantage during a future enrollment period if a plan she wants is available. This Medigap guarantee is the option with an expiration date. Before she accepts the replacement Humana offers, she should price a Plan G policy and a Part D plan, list her doctors and prescriptions, and decide which setup she wants to rely on if she has a bad health year.
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