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  • Writer's pictureAhsan Malyk

Can Health Insurance Be Canceled At Any Time?

Your health insurance can be cancelled for several reasons. For instance, you would be eligible for a special enrollment period to cancel or enrol in a new health plan if you started a new job with new health benefits, recently turned 65 and became eligible for Medicare, or were laid off.


Your provider's policies, reasons for cancelling, and whether your plan covers your dependents will influence the steps you should take to end your health insurance coverage.


We'll outline the most important steps for cancelling your medical insurance in this blog post, along with five suggestions to help you choose wisely when changing your health insurance plan.


Can you ever terminate your health insurance coverage?


You can terminate your health plan at any moment if you have an individual health insurance policy. However, outside of open enrollment, which typically runs from November 1 to December 15, you will only be able to choose a new health plan.


You are not permitted to cancel your policy at any time if you have group health insurance provided by your employer. You would need to experience a qualifying life event and start a special enrollment period in order to terminate your employer's health plan outside of your company's open enrollment period.


You can terminate your current health plan and select new healthcare coverage if you qualify for a special enrollment period without waiting for open enrollment. Beginning the day of your qualifying life event, this period typically lasts 60 days. You will need to wait until your state's open enrollment period to enrol or make changes to your current coverage after the 60-day window has expired.


Tips to remember when terminating or changing your health insurance coverage


1. Contact your insurance provider or the Health Insurance Marketplace.


By logging into your account and ending the plan's coverage, you can cancel an individual policy if you're cancelling a state- or federal-run Marketplace plan. If you need assistance cancelling your Marketplace plan online, you can also contact their customer service department.


You can speak with your insurance provider directly to cancel a privately purchased health insurance plan. Your policy, health insurance card, and premium bills all include your insurer's contact information.


Your service provider might let you cancel over the phone, but in some cases, they might also need a written confirmation from you sent via fax or mail.


2. Comply with the instructions given by the insurance representative.


Every health insurance provider has a cancellation procedure that you must adhere to, such as making sure the end dates of your policy are accurate to avoid a coverage lapse.


An insurance professional will confirm all the actions you need to do to successfully terminate your insurance plan, whether you cancel online or by phone.


Last but not least, write down the name of the salesperson and any cancellation confirmation numbers. This is crucial if there are any mistakes made during the administrative procedure.


3. Check your bank statements and inquire about a premium refund.


Ask your health insurance provider if you can be compensated for the premium payments for the remaining months if you paid in full for a one-year individual policy and wish to cancel it before the policy expires. Many businesses will reimburse you for the remaining time on your policy.


In order to make sure you are not charged for the cancelled plan and that your new policy is active under the new payments, you should also check your bank statements after you cancel your policy and before your new health insurance coverage begins.


4. Review your existing coverage before buying a new policy.


Prior to obtaining new insurance and examining the coverage effective date, don't cancel your previous one. You cannot lawfully file claims to two distinct major medical policies, so ensure the current coverage periods do not coincide.


Check your monthly health allowance if your company reimburses you for your insurance premium or other out-of-pocket medical expenses through a perk like a health reimbursement arrangement (HRA) or health stipend. How much you decide to spend for your insurance could be influenced by this sum.


Check the sort of HRA that your firm offers, too. In order to assist with deductibles, copays, and other out-of-pocket costs, an integrated HRA can be used in conjunction with employer health insurance plans; but, it cannot be used to recoup health insurance premium costs.


5. Understand the rules about health insurance cancellation.


Consumer protection laws and insurance regulators are available in every state to assist you with any inquiries or grievances you may have regarding your specific plan.


The laws in your state may address things like the need for health insurance, the speedy settlement of claims, the availability of particular doctors and healthcare providers, and the coverage of particular procedures and services. These protection regulations cover all health plans, including those offered by employers and individuals.


If you provided incorrect information on your application, a health insurance provider may cancel your coverage, but if you genuinely made a mistake, they may not do so.


If you pay your premiums late, your provider may also revoke your insurance. To allow you time to obtain new individual coverage or file an appeal, your insurance provider must typically provide you at least 30 days' notice before cancelling your policy.


Conclusion


You can normally not enrol in a new plan, even though individual health insurance coverage can be terminated at any time. Make sure you are eligible for a special enrollment period if open enrollment is unavailable so that you can make preparations before discontinuing your medical care. You won't ever experience a healthcare coverage gap and won't be denied the care you may require.


If you need help cancelling your current policy and choosing a new one, an insurance broker or the Marketplace customer service may be able to help.



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