A discontinued ACA plan means your insurer will stop selling or renewing the exact plan you hold, most often at the end of the 2026 plan year on December 31, 2026. Insurers must send a written notice before that happens, and for 2027 those notices are arriving between September and November 2026. KFF reports that nine carriers had announced exits from ACA Marketplaces for plan year 2027 as of September 15, 2026, led by Cigna, which is leaving all 11 states where it sells individual plans and reported more than 350,000 on-exchange members. If your notice arrived, your coverage does not end today. Your current plan keeps working through its last day, and federal rules give you a Special Enrollment Period (SEP) that opens 60 days before that last day and stays open for 60 days after it. HealthCare.gov lists a discontinued individual plan as a qualifying life event (QLE) because you lose minimum essential coverage through no fault of your own. The goal is simple: choose a replacement Marketplace plan before the old one ends so you never have a day without coverage, and make sure your 2027 subsidy is based on your real 2027 income.
Three deadlines matter in 2026. First, Open Enrollment on HealthCare.gov runs November 1, 2026 through January 15, 2027, and a plan selected by December 15, 2026 starts January 1, 2027. Second, your discontinuation SEP lets you pick a plan from 60 days before your last day of coverage through 60 days after it, which is November 1, 2026 through March 1, 2027 when your plan ends December 31, 2026. Third, once you select a plan you usually have 30 days to upload proof that your plan was discontinued if the Marketplace asks for it, and you must pay the first premium directly to the new insurer before coverage starts. Medicaid and CHIP are the exceptions, because both accept applications year-round with no clock. Because the enhanced premium tax credits expired on January 1, 2026, the 400% FPL subsidy cliff is back, so your 2027 income estimate matters more than it did in 2025. This guide walks through six steps, the documents to gather, how COBRA does and does not fit, and the mistakes that cost households coverage or money after a plan is discontinued.
6 Steps to Get Coverage
Common Mistakes That Cost People Thousands
The most expensive mistakes after an ACA plan is discontinued in 2026:
- Ignoring the notice. Your plan ends on the date in the letter, and no coverage exists after that unless you pick a new plan.
- Accepting the auto-assigned plan without checking the network and drug list. The replacement insurer may not include your doctors or cover your prescriptions.
- Waiting past December 15, 2026. A plan chosen later starts February 1, 2027, leaving January uncovered unless you used the SEP before your old plan ended.
- Reporting last year's income instead of projected 2027 income. Starting with tax year 2026, excess advance premium tax credits no longer have a repayment cap, so a low estimate can mean a large tax bill.
- Planning to use COBRA. COBRA covers employer group plans only, so it is not an option for a discontinued individual Marketplace plan.
- Skipping the first premium payment. The new insurer does not activate coverage until it receives that payment.
Why ACA Plans Are Discontinued: 2026 and 2027 Insurer Exits
Insurers discontinue ACA plans for two different reasons, and the notice you received tells you which one applies. A product discontinuation means the insurer retires one plan but still sells others in your area, and federal rules require at least 90 days of written notice. A market exit means the insurer leaves the individual market entirely, and guaranteed renewability rules at 45 CFR 147.106 and 148.122 require at least 180 days of notice, according to CMS. For plan year 2027, CMS announced an enforcement safe harbor under which it will not act against issuers that send individual market notices on the renewal-notice timeline instead of 90 days ahead. KFF tracked nine carriers announcing exits for 2027 as of September 15, 2026, including Cigna in all 11 of its states. KFF connects the pullback to the expiration of enhanced premium tax credits at the end of 2025 and to a drop of more than one million Marketplace sign-ups between the 2025 and 2026 Open Enrollment Periods. Your current plan stays in force through December 31, 2026, so no mid-year gap opens. If your notice says HealthCare.gov may move you to another insurer's plan automatically, treat that plan as a suggestion and compare it against other 2027 options before December 15, 2026.
Medicaid Eligibility After a Plan Is Discontinued in 2026
Medicaid can replace a discontinued ACA plan at no cost when your income qualifies, and applications are accepted year-round with no Special Enrollment Period clock. Medicaid is income-gated at 138% of the Federal Poverty Level in the 40 expansion states plus DC, which for 2026 means $22,025 for a single adult and $45,540 for a family of four. State programs go by different names: California's Medi-Cal, Arizona's AHCCCS, Wisconsin's BadgerCare, Massachusetts's MassHealth, Connecticut's HUSKY Health, and Washington's Apple Health. Children often qualify for CHIP at much higher incomes, commonly 200% to 300% FPL in 2026 depending on the state, even when parents do not qualify. The 10 non-expansion states (Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin, Wyoming) set stricter limits for adults, so a household there with income above its state limit but below 100% FPL for 2026 may find that Marketplace subsidies are unavailable. Check Medicaid income limits for 2026 for your state before you compare Marketplace plans, and apply through your state Medicaid agency or healthcare.gov. Marketplace tax credits stop for anyone who is eligible for and enrolled in Medicaid, so choose one path.
Documents the Marketplace May Request After a Discontinued Plan
Documents matter because the Marketplace can pause your new coverage until it confirms why you qualify for a Special Enrollment Period. Per HealthCare.gov, you submit documents within 30 days of picking a plan, upload PDF, JPEG, PNG, or TIFF files up to 10MB each, and wait a couple of weeks for confirmation. Coverage cannot begin until eligibility is confirmed and you pay the first premium to the new insurer. The discontinuation notice is the core proof, since it names the plan, the insurer, and the last day of coverage. Income documents serve a different purpose: pay stubs, a 2026 tax return, or a self-employment profit and loss statement support the projected 2027 income that determines your premium tax credit. If tax data conflicts with your application, the Marketplace sends a data-matching request, and failing to respond can cost you the subsidy. Immigration documents are required for lawfully present applicants who lack a Social Security number. Keep every upload receipt, and keep Form 1095-A when it arrives in January 2027 for your 2026 coverage, because it feeds the Form 8962 tax reconciliation.
Frequently Asked Questions
What is the SEP window if my ACA plan is discontinued in 2026?
Your Special Enrollment Period opens 60 days before your plan's last day of coverage and closes 60 days after it, per HealthCare.gov and 45 CFR 155.420. For a plan that ends December 31, 2026, the window runs November 1, 2026 through March 1, 2027. Choose a plan before the last day and coverage begins the first of the next month, so a December 31 end date means a January 1, 2027 start. Choose after the last day and coverage begins the first of the month after you pick, which leaves a gap. Separately, 2027 Open Enrollment on HealthCare.gov runs November 1, 2026 through January 15, 2027, and December 15, 2026 is the cutoff for a January 1, 2027 start. Use Open Enrollment as your primary path and the SEP as your backstop.
How do I document a discontinued plan for my SEP application?
Upload the discontinuation or non-renewal notice from your insurer, which names the plan and the last day of coverage. HealthCare.gov asks you to submit Special Enrollment Period documents within 30 days of picking a plan, as a PDF, JPEG, PNG, or TIFF file up to 10MB, through your account or by mail. Confirmation usually takes a couple of weeks, and coverage cannot start until the Marketplace confirms eligibility and you pay the first premium. If you lost the letter, ask your insurer's member services for a copy or a written statement of the termination date. A voluntary cancellation or a termination for unpaid premiums does not qualify.
What if I miss the SEP window and Open Enrollment for 2027?
Missing both windows means you generally wait for Open Enrollment for 2028 coverage, which starts November 1, 2027, unless another qualifying life event occurs, such as moving, marriage, or a new baby. In the meantime you would have no Marketplace plan, and medical bills would fall on you. Medicaid and CHIP are the exceptions, because both accept applications year-round if your income qualifies. If you are close to a deadline, enroll first and fix details later: you can update your application after you select a plan. Call HealthCare.gov at 1-800-318-2596 if you think a processing error caused the delay, and ask about a late-enrollment exception.
Can I get retroactive coverage after my plan is discontinued?
No. Marketplace coverage is not retroactive after a plan is discontinued. If you pick a plan before your old plan ends, coverage starts the first day of the month after your last day of coverage, so a December 31, 2026 end date leads to a January 1, 2027 start with no gap. If you pick after your plan ends, coverage starts the first of the month after you choose. Medicaid is different: some states grant up to 3 months of retroactive coverage for medical bills incurred before the application month, which can matter if you become eligible after a gap. Ask your state Medicaid agency whether retroactive coverage applies where you live.
What is the difference between COBRA and the Marketplace when my ACA plan is discontinued?
COBRA does not apply to a discontinued individual ACA plan. COBRA continues employer group coverage, usually at 102% of the full premium in 2026, after job loss, reduced hours, divorce, or similar events. An individual Marketplace policy is not an employer plan, so no COBRA election exists. Your replacement paths are a new Marketplace plan with 2027 premium tax credits, Medicaid or CHIP if your income qualifies, or an employer or spouse's plan if one is offered. If you also lost a job-based plan, COBRA is a separate decision with its own 60-day election window.
What state-specific rules apply when my ACA plan is discontinued?
Rules vary by whether your state uses HealthCare.gov or its own exchange. State-based exchanges such as Covered California, the Massachusetts Health Connector, MNsure, and kynect set their own Open Enrollment dates, so confirm yours before relying on December 15, 2026 or January 15, 2027. Medicaid brands also differ: Medi-Cal in California, AHCCCS in Arizona, BadgerCare in Wisconsin, MassHealth in Massachusetts. Ten states have not expanded Medicaid (Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin, Wyoming), which changes how income gates coverage there. The federal 60-day SEP for loss of coverage applies in every state.
Do I qualify for Medicaid after my plan is discontinued?
You qualify for Medicaid in an expansion state if your household income is under 138% FPL for 2026, which is $22,025 for one person and $45,540 for a family of four. The household-size table on this page lists each size from 1 to 8. Medicaid uses current monthly income in many cases, so a recent drop in earnings can qualify you even if last year's income was higher. Apply year-round at healthcare.gov or your state Medicaid agency. If your income is above the Medicaid line but below 400% FPL for 2027 coverage, Marketplace subsidies apply, and the 400% FPL cliff is back, so incomes above it receive no premium tax credit.
What happens to my children's coverage when my ACA plan is discontinued?
Your children should be moved to a replacement plan with you, and each family member needs coverage. If your household income is too high for Medicaid, your children may still qualify for CHIP, which most states extend to incomes around 200% to 300% FPL in 2026, with very low or zero premiums. CHIP applications are accepted year-round, so you can enroll the children even if you miss the Marketplace window. Compare pediatrician and children's hospital networks before selecting a plan, since networks differ between insurers. When you apply, list every household member and report 2027 income for the whole household.
