What happened
Park Ridge, Illinois-based Clear Spring Health confirmed its full exit from the Medicare Advantage market in May 2026, ending coverage for its remaining plans on May 31 and discontinuing its business across Illinois, Georgia, and Colorado. The company had roughly 12,000 members enrolled at the time.
This was the final step in a longer pullback. Clear Spring had already exited South Carolina and Virginia at the start of 2025, and had initially only planned to drop a single Colorado plan for 2026 before deciding to leave the Medicare Advantage business altogether. Its parent company, Group 1001, was also fined by CMS around the same time for overcharging enrollees due to claims-processing errors.
Why it happened
This wasn't Clear Spring's first run-in with CMS. Back in 2023, CMS terminated the company's standalone Part D contract after three consecutive years of star ratings below three stars, along with sanctions suspending enrollment and marketing. The full 2026 exit followed continued financial and operational strain on top of that history.
What happened to affected members
Because this was a mid-year plan termination, CMS guaranteed members a Special Enrollment Period running from June 1 through July 31, 2026, to pick new coverage. If you used that window, you should already be on a new plan.
If you didn't act by the July 31 deadline, you were returned to Original Medicare and automatically enrolled in the Humana Basic Rx Part D plan, which has a $0 premium. That means you should still have drug coverage, but you no longer have extra benefits or an annual out-of-pocket limit.
If you never picked a new plan
That Clear Spring-specific enrollment window has closed, so if you've gone without Part D or other creditable drug coverage since around August, it's worth knowing that a late enrollment penalty can apply once you do sign up again. It's based on how many months you went without coverage, and it generally sticks with you for as long as you have Part D.
The good news is you don't have to wait long for another chance. The Annual Enrollment Period is coming up, and any Medicare Advantage or Part D plan you choose during that window takes effect January 1, 2027.
Key dates
- May 31, 2026: Clear Spring Health Medicare Advantage coverage ended.
- June 1 to July 31, 2026: The CMS-guaranteed Special Enrollment Period for affected members (now closed).
- October 15 to December 7, 2026: The Annual Enrollment Period, your next chance to enroll in Medicare Advantage or Part D coverage.
- January 1, 2027: Coverage chosen during AEP takes effect.
What to do now
- Step 1: Confirm where you stand.
If you're not sure whether you ever enrolled in a new plan after Clear Spring closed, check your mail or call to confirm. Some people were auto-enrolled somewhere and don't realize it.
- Step 2: Use the Annual Enrollment Period.
Between October 15 and December 7, you can compare Medicare Advantage and Part D plans from any carrier available in your area for coverage starting January 1.
- Step 3: Ask about the late enrollment penalty before you enroll.
A licensed agent or your new plan can tell you exactly what you'd owe, and whether any exceptions apply to your situation.
- Step 4: Get help from a licensed agent.
Since your former SEP has already closed, comparing plans carefully during AEP matters more than ever. A licensed insurance agent can walk you through options without any bias.
Bottom line
If you had Clear Spring Health Medicare Advantage and never picked a new plan, you don't need to worry, because you can still get coverage for 2027 during the enrollment period this fall.
If you need help comparing plans or want someone to walk you through your options, book an appointment and we'll help you find new Medicare Advantage coverage.