Big Medicare news dropped…
Providence Health Plan is exiting the market, and its Medicare Advantage plans are included in that exit.
That means if you have a Providence Medicare Advantage plan, you’ll need to find new coverage for 2027 in order to continue with Medicare Advantage.
Here’s what’s happening and what it means for you.
What’s Happening
Providence Health Plan, the insurance arm of Renton, Washington based nonprofit health system Providence, confirmed in August 2026 that its Medicare Advantage plans are exiting the market. Providence had been trying to sell those plans to a national carrier, but that deal did not happen.
More than 64,000 Medicare Advantage members are affected, most of them in Oregon. Providence is also exiting its other plans, affecting more than 260,000 people with commercial plans and more than 58,000 people on Medicaid, according to Healthcare Finance News.
This does not mean your 2026 coverage is changing. Providence has said current Medicare Advantage members should keep their coverage through the end of the 2026 plan year. The change takes effect for 2027.
Who Will Be Affected
- More than 64,000 Providence Medicare Advantage members are affected, mostly through Providence Health Assurance.
- You are most likely affected if you have an individual Providence Medicare Advantage plan in Oregon, Washington, California, or Montana.
- Providence has said it will share more details with members soon. Watch for an Annual Notice of Change or an official letter about your plan’s status ahead of the 2027 plan year.
Your Options if Your Plan Is Ending
If your plan ends and you do not enroll in something new, your coverage will typically go back to Original Medicare on January 1, 2027. If you would like to keep coverage beyond Original Medicare, here are your options:
- Another Medicare Advantage plan. You can enroll in another Medicare Advantage plan in your area during the Annual Enrollment Period, which runs October 15 to December 7, 2026. Plans you pick during this window start January 1, 2027. Because your plan is leaving the market, you also typically qualify for a Special Enrollment Period that runs from December 8 to the end of February.
- A Medicare Supplement (Medigap) plan. Because you’re losing your plan due to the carrier leaving the market, you qualify for guaranteed issue rights. These let you enroll in a Medicare Supplement Plan A, B, D, G, K, or L without medical underwriting. This period starts 60 days before your plan ends and ends 63 days after. Medicare Supplement plans work differently from Medicare Advantage plans and do not generally include drug coverage, so people who choose this route often add a standalone Part D plan.
- Help from a licensed insurance agent. If you want help comparing your options, you can contact a licensed insurance agent. Licensed insurance agents typically work with several insurance companies, so they can help you compare the plans in your area without bias.
Why Is Providence Leaving Medicare Advantage?
Providence originally hoped to keep its Medicare Advantage plans running under a new owner. Back in May 2026, when it first announced plans to exit most of its insurance business, the company said it was working on a deal with a national carrier. That deal fell through.
Like a number of other insurers, Providence pointed to rising medical costs and new rules and regulations. CEO Erik Wexler said it has become harder for a smaller, nonprofit health plan to compete with bigger national carriers.
Providence’s insurance business had about 660,000 members and lost more than $100 million in 2025. Many regional health plans are dealing with the same problem: about 72% reported a loss in 2025, up from 57% in 2023.
Providence is not alone. Other plans have made similar moves recently, including Humana and Presbyterian Health Plan, as rising costs push more insurers out of certain Medicare Advantage markets.
Need Help With Medicare?
If you’re losing your plan, or if you have any questions about this situation (or Medicare in general), our licensed insurance agents are here to help.
Simply call us at +1 877-360-6565 (TTY: 711) or click the button below to schedule an appointment and we’ll help you find a new plan that fits your specific needs.
Calvin Bagley is the founder of PlanFit, The Medicare Store, and Nuvo Health. He and his team have helped over 60,000 people navigate Medicare options, and he’s a nationally recognized speaker in the Medicare industry. Most importantly, he’s someone who believes every American deserves clear, honest information without pressure.