Going without coverage, even for a short period, could lead to financial issues or serious health problems. So if you need to cancel your existing health insurance, you should know exactly when a new policy will go into effect.
When Can I Cancel My Health Insurance?
When you can cancel your health insurance may depend on your health insurance provider and the type of health care plan you have. Some group plans that pay premiums through pre-tax payroll deductions only allow you to cancel your coverage if:
You experience certain life events. Life events such as a marriage, divorce, or welcoming a child into the family may enable you to cancel your current health insurance. Other qualifying life events can include becoming a United States citizen, a change in income, moving to another county, or getting out of jail. You resign from your job or retire. You enroll in another group health plan.
Some employer-based health insurance plans limit cancellation and enrollment to annual open enrollment periods. An open enrollment period is a window of opportunity during which you can enroll in a new health care plan or drop your current coverage. If you experience a qualifying life event, you may be eligible for a special enrollment period, enabling you to cancel your current health plan and choose new coverage. If you bought a health insurance policy through a government-sponsored marketplace, you can cancel your coverage anytime, for any reason.
How Do I Cancel My Health Insurance?
The process of terminating your health insurance will depend on who provides your coverage.
Marketplace Plans
The Health Insurance Marketplace plans allow you to cancel individual coverage or family coverage at any time, for any reason; you can schedule a future cancellation date, too. But if you only cancel coverage for some family members, the termination may occur immediately. Canceling a marketplace plan is as easy as logging into your marketplace account and selecting “Start a new application or update an existing one.” To set a future cancellation date for some people on your plan, call the marketplace call center at (800) 318-2596.
Group Health Plans
Group health care plans are typically offered through an employer, association, school, or university. Some plan sponsors only allow you to cancel coverage during open enrollment unless you qualify for a special enrollment period. In some cases, canceling coverage only requires filling out and returning a termination form if you want to cancel coverage for everyone covered by your plan. Canceling coverage for one person in your household may require another procedure.
Medicare
You can cancel Medicare Part B coverage by calling (800) 772-1213 or a local Social Security office. Since discontinuing Medicare can impact your ability to get health services, terminating coverage may require an interview with a Social Security representative, who can help you complete the required form, too.
Medicaid and CHIP
The Children’s Health Insurance Program (CHIP) and Medicaid provide no-cost health insurance for low-income people, families, and children; people with disabilities; pregnant women; and senior citizens. Both federal programs are administered by the states, so the process of canceling your coverage can vary depending on where you live. Some states enable you to terminate coverage by logging into an online account. To find out how to cancel CHIP or Medicaid coverage, call Medicaid offices at (877) 267-2323.
What To Know Before You Cancel Your Health Insurance
Canceling health insurance is easy most of the time. But getting a new health insurance plan isn’t always so simple. That’s why you should never terminate your coverage until you know exactly when a new health insurance policy will take effect.
Waiting Period
Federal law allows administrators of group health plans to impose up to a 90-day waiting period. So if you land a new job that offers health insurance, you may have to wait nearly three months before your health insurance takes effect.
Young Adults
Young adults can remain on their parents’ group health insurance policy until age 26, even older in some states. While getting your own policy might seem like a step toward independence, staying on your family’s health insurance plan might prove more economical. If you’re younger than 26, you can stay on a parent’s health insurance policy even if you get married, go off to college, or move out of your folks’ house.
Risks of Going Without Insurance
Canceling your health insurance coverage may create more risks if you don’t get a new plan. Uninsured children are less likely to receive preventive care, vaccinations, and treatment for serious conditions such as asthma, according to the Office of Disease Prevention and Health Promotion. Uninsured adults often don’t receive care for deadly conditions such as cancer, cardiovascular disease, and diabetes and often don’t seek medical attention for injuries.
