Special Enrollment Periods After a Plan Termination or SAR

When your Medicare plan ends, you’re not stuck.

Imagine checking your mail in October and seeing a letter that says your Medicare plan won’t be offered next year. It’s confusing, stressful, and your first thought might be: “Am I losing my coverage?”

The good news is — you’re not. When a Medicare plan terminates or you get what’s called a SAR (Service Area Reduction) notice, you qualify for something called a Special Enrollment Period, or SEP.

This SEP gives you extra time and flexibility to pick a new plan without losing coverage. Here’s what that actually means and how to use it to your advantage.

What a “Special Enrollment Period” Really Means

A Special Enrollment Period (SEP) is a window of time that lets you make changes to your Medicare coverage outside of the regular Annual Enrollment Period (AEP).

Normally, you can only switch plans from October 15 to December 7. But if your plan is ending, you get an additional SEP that allows you to enroll in a new plan without waiting until next year.

Think of it as Medicare’s way of saying, “Don’t worry — we’ve got you covered while you find something new.”

What Triggers a Special Enrollment Period After a Plan Termination or SAR

You qualify for an SEP if:

Your Medicare Advantage or Part D plan is terminated — either because the plan is leaving your area or shutting down completely.
You receive a Service Area Reduction (SAR) notice saying your plan will no longer serve your county or ZIP code next year.
Medicare ends a plan’s contract, which can happen midyear if the plan fails to meet certain standards.

No matter the reason, the key point is: you’re allowed to choose new coverage without penalty.

When Your Special Enrollment Period Starts and Ends

Timing matters here.

If your plan terminates at the end of the year, your SEP starts December 8 and runs through the last day of February.
If your plan terminates midyear, your SEP usually starts one month before the termination date and continues two months after.

You can enroll in a new Medicare Advantage or Part D drug plan anytime during that window — and your new coverage typically starts the first day of the month after you enroll.

Example:

If your plan ends December 31 and you enroll in a new one on January 10, your new coverage starts February 1.

What to Do When You Get a Plan Termination or SAR Letter

First, don’t ignore it. Those letters are time-sensitive. Here’s what to do:

Read the letter carefully. It will explain when your plan ends and what type of coverage you’ll lose.

Mark your SEP window. Note your start and end dates so you don’t miss your chance to switch.

Compare your options early. Use Medicare.gov or talk to a licensed agent to find a plan that fits your doctors, prescriptions, and budget.

Don’t wait until the last week. The earlier you act, the smoother the transition.

What Happens If You Don’t Choose a New Plan

If you don’t take action before your SEP ends, Medicare will automatically return you to Original Medicare.

That means you’ll have Part A and Part B only — no prescription coverage and no extra benefits.

If you still want drug coverage or a Medicare Advantage plan, you’ll have to wait until the next Annual Enrollment Period (October–December) unless another SEP applies.

So yes — you have a safety net, but it’s better to make a proactive choice than let the system decide for you.

What to Consider When Choosing Your Replacement Plan

When reviewing new plans after a termination or SAR, focus on what actually affects your wallet and your care:

Doctors and hospitals: Are your providers in-network?
Prescription drugs: Are your medications still covered — and at what cost tier?
Monthly premium: Is it affordable year-round?
Out-of-pocket maximum: How high could your costs go if something major happens?
Extra benefits: Are dental, vision, or hearing still important to you?

The best plan is the one that keeps your care consistent without adding surprises or costs.

FAQs

Why did I get a letter saying my Medicare plan is ending?

You may have received a Service Area Reduction (SAR) notice or termination letter because your plan is leaving your county, ZIP code, or shutting down entirely. It doesn’t mean you’re losing Medicare — it just means you’ll need to choose a new plan.

When can I switch Medicare plans if mine is ending?

If your plan ends on December 31, your SEP starts December 8 and runs through the last day of February. If your plan ends midyear, your SEP usually starts one month before the termination date and continues two months after.

Will I lose coverage if I don’t pick a new plan?

If you don’t choose a new plan before your SEP ends, Medicare will automatically return you to Original Medicare (Parts A and B) — meaning you’ll lose drug and extra benefit coverage unless you enroll in a new plan.