# Blue Cross Texas to exit Medicare Advantage as open enrollment opens with fewer plans

The insurer will drop its Medicare Advantage and drug plans for 2027, while KFF finds choices shrinking in most states.

By The Signal Edition | Health / Medicare
Published: 2026-10-21T01:05:58Z
Updated: 2026-10-21T01:05:58Z
Canonical: https://www.thesignaledition.com/article/medicare-advantage-open-enrollment-blue-cross-texas-exit-nv3gcf
Image: https://www.thesignaledition.com/media/d0def3295aa5a9d3f828f2dad8a08da5.jpg (President Lyndon Johnson signing the Medicare bill in 1965 with former President Harry Truman seated beside him; credit: Cecil Stoughton / LBJ Library via Wikimedia Commons (public domain))

## Summary
- Blue Cross and Blue Shield of Texas will no longer offer Medicare Advantage, Dual Care Plus or MedicareRx plans in 2027; coverage ends Dec. 31.
- KFF says the average beneficiary will have 28 Medicare Advantage drug plans in 2027, down from 32, with Texas losing the most.
- Open enrollment runs Oct. 15 to Dec. 7; affected members get a special election period and a Medigap window to March 4.

## Blue Cross Texas leaves the market

Blue Cross and Blue Shield of Texas will stop selling Medicare Advantage plans in Texas for 2027, adding a high-profile exit to a season of shrinking choice as Medicare open enrollment runs through December 7. The insurer says it will no longer offer the plans, and coverage for affected members ends December 31, according to 24/7 Wall St. [2](https://247wallst.com/personal-finance/2026/10/15/blue-cross-blue-shield-of-texas-will-exit-medicare-advantage-for-2027-its-october-nonrenewal-letter-will-open-a-medigap-window-that-runs-through-march-4/)

KERA reported on October 20 that the company is dropping three product lines: its Medicare Advantage plans, its Dual Care Plus plans for people eligible for both Medicare and Medicaid, and its stand-alone MedicareRx drug plans. Affected members were notified by mail before October 2 and will receive a special election period to choose another plan, KERA said. [1](https://www.kera.org/2026/10/20/blue-cross-blue-shield-texas-will-no-longer-offer-medicare-advantage-plans-2027/)

The company told KERA it reviews its Medicare products each year by market and that "in some cases, we need to make adjustments." Neither report gave the number of members affected, and the company's reasons beyond that statement were not detailed. [1](https://www.kera.org/2026/10/20/blue-cross-blue-shield-texas-will-no-longer-offer-medicare-advantage-plans-2027/) [2](https://247wallst.com/personal-finance/2026/10/15/blue-cross-blue-shield-of-texas-will-exit-medicare-advantage-for-2027-its-october-nonrenewal-letter-will-open-a-medigap-window-that-runs-through-march-4/)

## What members can do

Members who receive a nonrenewal letter get a guaranteed-issue window to buy a Medigap supplement policy that lasts 63 days after coverage ends, which runs to March 4 for a December 31 end date, 24/7 Wall St. reported. During that window, Medigap insurers cannot use health questions or impose preexisting-condition waiting periods. The article advises keeping the letter as proof of eligibility. [2](https://247wallst.com/personal-finance/2026/10/15/blue-cross-blue-shield-of-texas-will-exit-medicare-advantage-for-2027-its-october-nonrenewal-letter-will-open-a-medigap-window-that-runs-through-march-4/)

Returning to Original Medicare has trade-offs. It includes no drug coverage, so a separate Part D plan is needed, and a gap of 63 days or more without creditable drug coverage can trigger a late-enrollment penalty, the outlet said. [2](https://247wallst.com/personal-finance/2026/10/15/blue-cross-blue-shield-of-texas-will-exit-medicare-advantage-for-2027-its-october-nonrenewal-letter-will-open-a-medigap-window-that-runs-through-march-4/)

## Choice is narrowing nationally

KFF found the average Medicare beneficiary will have 28 Medicare Advantage plans with drug coverage to choose from in 2027, down from 32 in 2026. Texas has the largest drop of any state, losing nine such options. [4](https://www.kff.org/medicare/the-average-medicare-beneficiary-has-28-medicare-advantage-prescription-drug-plan-options-for-2027/)

A separate KFF county analysis found 193 counties will have no general-enrollment Medicare Advantage drug plan in 2027, up from 123, covering about 638,000 beneficiaries. It lists Health Care Service Corporation, the parent of Blue Cross and Blue Shield of Texas, as exiting 498 counties and entering none. UnitedHealth Group is exiting 228 counties, Centene 359, and Humana 62. Devoted Health is entering 342 counties. [3](https://www.kff.org/medicare/medicare-advantage-plan-availability-varies-widely-by-county-for-2027/)

Healthcare Dive, using the federal landscape file released September 28, reported the national plan count falling only slightly, from 5,553 to 5,532, though insurers have cut many individual plans and projected enrollment of about 34 million, down roughly 2 million. CMS says about 8 in 10 enrollees can keep their plan at the same or lower premium; the outlet noted average out-of-pocket maximums are up about 10%. [5](https://www.healthcaredive.com/news/medicare-advantage-cuts-2027-cms-landscape/831563/)

## Costs and quality ratings

ABC News reported that the Trump administration is ending the Part D Premium Stabilization Demonstration at the end of 2026, which an administration official said will likely raise premiums for about half of recipients. The standard Part D deductible rises from $615 to $700. [6](https://abcnews.com/Health/medicare-plans-open-enrollment-begins/story?id=137374397)

CMS published 2027 star ratings on October 8. About 71% of enrollees in Medicare Advantage drug plans are in contracts rated 4 stars or higher, and the average rating is 3.99 stars, the agency said. [7](https://www.cms.gov/newsroom/fact-sheets/2027-medicare-advantage-part-d-star-ratings)

Open enrollment began October 15. People who want to change plans have until December 7; those dropped by their insurer have a separate election period, per KERA. Enrollment counts for 2027 will not be known until the new year. [1](https://www.kera.org/2026/10/20/blue-cross-blue-shield-texas-will-no-longer-offer-medicare-advantage-plans-2027/) [6](https://abcnews.com/Health/medicare-plans-open-enrollment-begins/story?id=137374397)

## Reporting sources
1. [KERA: Blue Cross Blue Shield of Texas will no longer offer Medicare Advantage plans starting in 2027](https://www.kera.org/2026/10/20/blue-cross-blue-shield-texas-will-no-longer-offer-medicare-advantage-plans-2027/) (2026-10-20)
2. [24/7 Wall St.: Blue Cross Blue Shield of Texas Will Exit Medicare Advantage for 2027](https://247wallst.com/personal-finance/2026/10/15/blue-cross-blue-shield-of-texas-will-exit-medicare-advantage-for-2027-its-october-nonrenewal-letter-will-open-a-medigap-window-that-runs-through-march-4/) (2026-10-15)
3. [KFF: Medicare Advantage Plan Availability Varies Widely by County for 2027](https://www.kff.org/medicare/medicare-advantage-plan-availability-varies-widely-by-county-for-2027/) (2026-10-09)
4. [KFF: The Average Medicare Beneficiary has 28 Medicare Advantage Prescription Drug Plan Options for 2027](https://www.kff.org/medicare/the-average-medicare-beneficiary-has-28-medicare-advantage-prescription-drug-plan-options-for-2027/) (2026-10-01)
5. [Healthcare Dive: Here's how much insurers are cutting Medicare Advantage plans for 2027](https://www.healthcaredive.com/news/medicare-advantage-cuts-2027-cms-landscape/831563/) (2026-09-29)
6. [ABC News: What to know about changes to Medicare plans as open enrollment begins](https://abcnews.com/Health/medicare-plans-open-enrollment-begins/story?id=137374397) (2026-10-20)
7. [CMS: 2027 Medicare Advantage and Part D Star Ratings](https://www.cms.gov/newsroom/fact-sheets/2027-medicare-advantage-part-d-star-ratings) (2026-10-08)