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Health insurance is a necessary part of your family’s financial security and well-being. Occasionally, you may face the decision to cancel health insurance for yourself or other members of your family for a number of reasons. Things can get complicated quickly when it comes to navigating the complex regulations around health insurance, and the Affordable Care Act Marketplaces (ACA).
The ACA oftentimes referred to as Obamacare, is the first port of call for many uninsured individuals and families seeking health coverage. If there comes a point where that insurance is no longer necessary or affordable it is possible to cancel your Marketplace health insurance. Here are a few things you need to know.
How To Cancel Your Marketplace Health Insurance
In many situations, canceling your marketplace health insurance is as simple as contacting your insurance company. You can locate their contact number on the back of your insurance ID card. If you have purchased your plan through the Obamacare Marketplace, whether it is a state- or Federally-run marketplace, you can also simply call the marketplace or log into your marketplace account and request to cancel your Obamacare coverage.
It is a straightforward process to cancel marketplace insurance for yourself. Simply contact your insurance company or the Obamacare Marketplace in your state and submit your request. The process is generally that quick and easy.
If you have multiple family members with Obamacare insurance and you wish to end coverage for some or all of them, the process is still straightforward, with a few extra considerations. This may come into play if your spouse gets a new job and will now have employer insurance, or one of the kids now has their own coverage.
Sometimes you may not be able to cancel immediately and, if the family members enrolled during certain Special Enrollment Periods offered by the Marketplace, there may be further constraints on ending coverage at a specific time.
Can You Cancel Obamacare Plans At Any Time?
ACA regulation allows you to cancel Obamacare insurance plans at any time, but with one small hitch. To end an ACA Marketplace health insurance plan, you will probably be faced with a temporary waiting period. During that time, the period between your request to cancel marketplace insurance and the cancellation effective date, you will be responsible for all premium payments.
The waiting period will be determined by how many family members are on your plan and how many of your family members will be ending coverage. If you plan to cancel Obamacare coverage that is just for yourself, or if everyone on the plan is ending coverage, you are allowed to cancel marketplace insurance at any time. This can be the date you submit your cancellation, or you can request a future date.
The waiting period only comes into play if some family members are canceling and others will remain covered under the plan. In certain instances, the coverage can still be terminated at the time of the request, but Special Enrollment Periods may affect coverage for some family members. You can contact your Obamacare Marketplace for more information on this.
Finding New Coverage
It is important to remember if you are planning to cancel marketplace insurance that under the ACA you will face a financial penalty if you or a family member is without health coverage for more than 3 months of any given year. These penalties are levied at tax time.
You may wish to find new coverage right away to avoid facing the penalties. You can start by reviewing the plans still available in the Obamacare marketplace. You can also contact insurance companies individually and discuss enrollment. The best way to avoid all the confusion is to contact a licensed insurance agent who can walk you through your options and the re-enrollment process.
Compare Plans With FirstQuote Health
If you cancel your marketplace health insurance plan, you’ll inevitably be left uninsured, which could prove to be costly. Thankfully, FirstQuote Health can help you get covered at any point throughout the year. Enter your zip code to compare health quotes, and find a plan that fits your needs in just minutes.