64,000 Seniors Could Lose Medicare Coverage in 2027—Here’s Why and How to Prevent it
A failed sale means thousands of seniors must find a new plan before the year ends
Key Takeaways
- Providence Health Plan is closing after failing to sell to a national buyer.
- About 64,000 Medicare Advantage seniors will need new coverage by 2027.
- Open enrollment runs October 15 to December 7, 2026, for new plan options.
Seniors on a Medicare Advantage plan through Providence Health Plan might be forced to find new coverage in 2027 now that a deal to keep the plan active has failed. This news comes just six weeks before open enrollment for 2027 begins and is expected to impact more than 64,000 Americans. Below we share what exactly happened to Providence Health Plan and reveal what seniors who have Medicare Advantage plans need to know before open enrollment begins.
What is Providence Health Plan?
Providence Health Plan is a Washington-based insurance company that provides health insurance plans to about 440,000 people in several Western states. They have been in business for more than 40 years and are now closing after they failed to sell their Medicare Advantage—also known as Medicare Part C—plans to a national buyer.
“Despite significant effort on all sides, we were unable to reach an agreement on a sale,” a Providence spokesperson told Healthcare Finance News. “We are in discussion with regulators about this development and the broader wind-down of Providence’s health plan operations. We will share more details with our members and the public as we are able under applicable regulations.”
The closing of Providence will affect seniors enrolled in a Medicare Advantage plan and families and individuals who enrolled in the company’s healthcare plans through the Affordable Care Act (ACA) marketplace, which was created by former president Barack Obama in March 2010 and has undergone many cuts over the past couple of years.
“Providence is another on a growing list of carriers looking to opt out of the ACA marketplace as well as Medicare Advantage as reimbursements decline and costs continue to increase,” Kevin Thompson, CEO of 9i Capital Group and the host of the 9innings podcast, explained to Newsweek.
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin added to that, telling the outlet that this closure was “just the latest in a series of exits from companies that had previously offered Medicare Advantage plans and are now moving out of the space.”
“Providence is dealing with the same financial pressures other insurers in the space have, as rising costs have made these plans unsustainable in remaining profitable for the long term,” he continued. “The reality is effects from this profitability pinch could be felt by many more if other insurers continue to revise or drop plans.”
How the closing of Providence Health Plan will impact seniors
For the 64,000 seniors enrolled in a Medicare Advantage plan through Providence Health Plan, there is good news and bad news. The good news is that they will be covered through the rest of 2026. The bad news is that their health insurance coverage will end on January 1, 2027, so they’ll be forced to find a new health insurance provider during open enrollment this fall.
During that time, seniors will have the chance to renew, change or add coverage to their Medicare plan, which will guarantee them coverage throughout the year. Open enrollment goes from Thursday, October 15, 2026 to Monday, December 7, 2026 and you can learn more about how to navigate it here!
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