Humana is planning to leave an “unspecified number of Medicare Advantage markets” in 2025. This is expected to affect over 100,000 people enrolled in these plans.
If you are affected by this change, know that you are not alone. The good news is that there are a few simple steps you can follow to ensure a smooth transition into a new plan for 2025.
In this article, we’ll have a quick look at why Humana is leaving, how to find out if you’ll be impacted, and the four steps you can take.
If you’d like help looking for a new plan, you can call us at +1 877-360-6565 (TTY: 771). As licensed insurance agents, we can walk you through your options — and it doesn’t cost you anything to work with us.
Why Is Humana Exiting Medicare Advantage Markets in 2025?
The CMS has reduced benchmark rates for Medicare Advantage Plans in 2025, and Humana mentioned that the rates are lower than expected. On a call with investors, Humana executives said they plan to reduce some benefits and exit certain unprofitable Medicare Advantage markets in 2025.
“We expect benefit levels, plan stability, and choice for seniors to be negatively impacted by the final MA rate notice, which is not sufficient to address the current medical cost trend environment and regulatory changes,” CEO Bruce Broussard said.
Furthermore, in 2023, Humana spent more on claims than they were anticipating. This has led their Medicare Advantage Plans in some areas to become unprofitable.
With CMS tight regulations on Medicare Advantage Plans, the Inflation Reduction Act removing the Donut Hole, and limiting beneficiaries’ out-of-pocket spending to $2,000 for prescription drug plans, 2025 is expected to be a tough year for insurance companies.
This is why aside from Humana, several other companies like Centene Corp and BlueCross BlueShield are also dropping Medicare Advantage Plans.
Who Is Affected? How Do You Find Out If You Are Affected?
Humana is yet to release a full list of affected plans and markets. However, Humana is expected to drop Medicare Advantage Plans in specific markets, but not their other plan types.
If you are enrolled in a Humana Medicare Advantage Plan, Humana should have sent you a notice in September if your plan is being discontinued in 2025. If it is not being discontinued, they should have sent you an Annual Notice of Changes (ANOC) before September 30, which will go over all your plan’s changes for 2025.
If you haven’t received a notice that your plan is being discontinued in 2025, you may also call your insurance company to find out. Alternatively, you can call us and we’ll investigate for you at no cost to you.
Note: even if your plan is being shut down in 2025, it’s still wise to review your ANOC this year. Humana has stated that it is planning to cut benefits in several areas, and these changes may mean your current plan won’t be the right fit for you anymore.
4 Steps to Take If Your Plan is Not Renewing in 2025
If you are currently enrolled in a Humana Medicare Advantage Plan, here are four steps you can take to switch plans for 2025 and avoid coverage interruption.
Step #1: Find Out if Your Plan is Ending
Remember, not all Humana Medicare Advantage Plans are ending in 2025. Many plans are expected to discontinue.
At this stage, you should have gotten an official announcement from your insurance provider to see if your plan is ending. You may check that for more information.
Step #2: Switch Plans During the Annual Enrollment Period
Humana has stated that it has other plan options for people on their discontinued Medicare Advantage Plans. However, you don’t necessarily have to enroll in one of these.
On January 1, 2025, people enrolled in one of these Medicare Advantage plans will lose their coverage.
However, if they enroll in another plan during the Annual Enrollment Period (October 15 – December 7), their current coverage will end on December 31, and the new plan’s coverage will begin on January 1.
If they miss the Annual Enrollment Period, they may still have until December 31 to change plans. If they don’t, they will be without coverage starting January 1, 2025.
If they fail to enroll in another plan, they will automatically revert back to Original Medicare on January 1.
Note: you can switch between several Medicare Advantage Plans during the Annual Enrollment Period. Whatever plan you enroll in last before the window closes will be the one you have the following year.
Step #3: Consider a Medicare Supplement Plan
If you are losing your Medicare Advantage Plan in 2025, you may enroll in a Medicare Supplement Plan A, B, C, D, F, G, K, or L without having to pass medical underwriting. This is because one of the guaranteed issue rights situations is if you lose your Medicare Advantage Plan.
You may enroll in these plans without medical underwriting 60 days before your Medicare Advantage ends, and up to 63 days after your Medicare Advantage Plan ends.
Note: Medicare Supplement Plans work differently from Medicare Advantage Plans. Before choosing this option, make sure you research these differences first!
Step #4: Talk to a Licensed Insurance Agent For Help
Humana is likely to try to get you to enroll in one of their other Medicare plans. However, these may or may not be the right fit for you.
Many people choose to contact an unbiased licensed insurance agent for help. Licensed insurance agents work with several different insurance companies in your area. They can listen to your needs, and help you find the right plan fit for you in 2025 without bias.
Licensed insurance agents can also help you avoid potential pitfalls in these uncertain times, and can save you money by doing so.
Finally, licensed insurance agents are paid by commission, so you can get their services at no cost to you! So if you need help in these confusing times, feel free to call or text us at +1 877-360-6565 (TTY: 771) and we’d be glad to assist you.
Bonus: Switch Plans During Your Special Enrollment Period
If your Medicare Advantage Plan is being discontinued, you may qualify for a Special Enrollment Period that runs from December 8 to the end of February of the following year. During this period, you may enroll in a Medicare Advantage Plan or a standalone Medicare Part D prescription drug plan available in your area.
Generally speaking, if your plan is shutting down in 2025 and you qualify for a Special Enrollment Period, you can technically switch plans until February 28. However, if you wait this long, you would be without full coverage from January 1 to February 28. That’s why it’s popular to get new coverage within the 2024 Annual Enrollment Period window (October 15-December 7).
If your insurance company is not renewing your Medicare Advantage Plan, you also qualify for a Special Enrollment Period. This period runs from December 8 to the last day of February of the following year. During this time, you may enroll in another Medicare Advantage Plan available in your area.
Conclusion – Stay Calm
If you’ve just received news that your Medicare Advantage Plan is ending in 2025, it’s important to stay calm.
As long as you follow the four steps above, you should be able to enroll in a new plan without much trouble.
Finally, if ever you need assistance comparing plans and finding the right one for you, you can contact one of our licensed insurance agents here at PlanFit for help at any time!