There are times when it’s necessary to cancel a health care plan, such as when you start a new job or age out of your parents’ coverage. Sometimes, terminating health insurance is as easy as making a phone call or accessing your online account. But policy rules can vary, depending on who provides your coverage.
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.
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.
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.
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 PeriodFederal 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.