Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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The lowdown...

    • Canceling a Health Insurance Plan and the scenarios that may occasion the cancellation
    • What happens if you cancel a Health Plan in the Cooling-off Phase and the window-period given by the insurer
    • What happens if you cancel a Health Plan after the Cool-off Phase and how to avoid auto-renewal before you cancel your current policy
    • How to Cancel a Marketplace Plan due to various reasons like receiving a job-based health plan, losing a member, or qualifying for Medicare
    • Step-by-step advice for canceling various insurance covers

Health insurance has been around for many years. Recently, when the Obama administration came into being, health Insurance was standardized to make it affordable to all Americans both young and old.

The government introduced the Affordable Care Act to compel insurance companies to provide certain services such as maternity care, hospitalization and prescription drugs.

So you bought yourself a thoroughly checked out plan, but upon using it, you find that some clauses and knit bits don’t add up. The benefits you are receiving may probably cost more, and force you to cancel your health insurance policy.

Will the Insurance cover continue their services? What happens next? Not all the health insurance plans canceled are wrong. You may not like your health Insurance policy because of small discrepancies detailed in the Affordable Care Act regulations.

The law regulates health insurance plans by authorizing that they include essential benefits that health insurance companies didn’t prioritize as fit to sell in the past. The Obamacare plan limits a sum annual out-of-pocket fixed cost of $6,350 per individual to protect folks from going broke when sudden ailments occur.

The government health insurance initiative mandates all citizens to purchase the new health Insurance plans through HealthCare.gov portal. As you cancel your health plan, make sure you are geared up to buy another one within the six month window period, with a new year’s deadline.

Make sure you’re covered without facing any tax penalty; compare health insurance quotes for free online and find a new provider before you cancel your current policy. This will ensure there’s no period of noncoverage and you’ll be able to seamlessly transfer from one company to another.

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Canceling a Health Insurance Plan

Health Insurance cushions you from the excesses of medical bills should you suddenly fall sick. However, if you do not need your health insurance policy anymore, here’s what to do;

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Canceling a Health Plan in the Cooling-off Phase

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If you write off a medical insurance policy you recently bought, the contract stipulates a 14-day window period for cooling off in which to cancel the health plan for any given reason. Contact your insurer to proceed with the cancellation as soon as possible.

The 14-day period starts the moment you in possession of your health plan contract document/medical cards. A premium refund of payments already made is applicable in this case.

However, the insurance company may withhold some of the premiums to cover for the period when the plan was active, or charge you an admin fee.

Some health insurance providers may extend the cooling-off period. However, if you’re not confident about the cool-off period, refer to the terms of your health insurance policy.

Canceling a Health Plan after the Cool-off Phase

If you’ve planned to buy coverage with another health insurer, it is advisable to wait till your current health policy expires and then change to a new one. Canceling a medical insurance plan through your bank does not terminate your insurance coverage.

You need to pay outstanding premiums with the insurer. Contact your health insurer to effect the cancellation officially.

Some health plans are automatically renewed each year. Confirm the date your health plan is due for the automatic renewal to ensure that it doesn’t happen, if you’d like to cancel it at the end of the current year of cover.

How to Cancel a Marketplace Plan

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Depending on your circumstances, your health cover may end immediately, precisely 14 days from when you cancel. To avoid paying for two health plans at the same time, cancel the plan immediately you know when your new health plan will commence.

How to cancel a Marketplace plan depends on your varied reasons and situations. The central Marketplace HealthCare.gov portal gives you a step by step guide; including possible reasons for canceling out a health plan that you feel no longer serves you.

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Step-by-Step Advice for Canceling Coverage

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Cancelling instructions depend on whether you’re canceling coverage for the household contact, some family members on the application, or everybody.

Select the reason you’re canceling the health coverage. You are ceasing your health plan because of you:

      • Received a job-based health insurance
      • May be qualified for Medicaid or CHIP
      • Got qualified for Medicare
      • Acquired an individual health plan from another source
      • Cancelling Marketplace coverage for personal reasons
      • Someone on your Marketplace coverage died
      • Your tailor-made health plan is changed

Steps to end your health plan based on whom you’re canceling coverage for

In some cases, the decision you make to cancel a health plan depends on whose coverage from your family will be canceled. Choose your reason below for cancellation instructions:

      • If you cancel your health coverage for the primary household contact, (the person who applied for coverage in the Marketplace account).
      • Amend the family contact
      • Delete the household contact from the health plan, but other family members continue with the health plan.

Do not remove or change the primary family contact on the Marketplace portal unless you’re canceling out everyone on the scheme. You may arrange for cancellation over the phone to ensure your dependents stay on the plan.

Cancelling Coverage for the Entire Family

It is possible to cancel your health coverage for everybody on your Marketplace plan, like if you’ve made plans for substitute coverage from another source.

When you cancel the entire family from an Insurance health plan, your termination request is effected 14 days from the cancellation date. Your health insurer will collect premiums during the 14 day window period.

However, it is possible to set the Marketplace coverage termination date to more than 14 days in advance — like if you have a new health Insurance plan and it commences on the first day of the next month.

Cancelling Coverage for Selected Family Members

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When you decide to cancel out some people from your Marketplace plan, like a spouse or your dependents, do this if you have made plans to buy new coverage from another insurer. But keep the rest on the Marketplace coverage application.

If you revise your family income after canceling out some people from your health plan, and your premium tax credits or other savings cost changes, the remaining members may be eligible for a Special Enrollment Period.

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Conclusion

Note that canceling out some people on your Market plan will result in immediate cease of cover. If you cancel coverage for just some family members on the application, their health plan will end immediately.

Making the best choice means taking your time to explore every avenue; enter your zip code below to start comparing health insurance quotes today!