Many people wonder if they can cancel their health insurance outside of open enrollment. The answer isn’t as simple as you may think. In this article, we will explore the realities of canceling health insurance outside of open enrollment. We’ll cover important information about eligibility, termination timelines, and more.
You’ll also get tips for finding a new plan if you decide that switching coverage is the best route for you. Read on to learn more about navigating life without health insurance during open enrollment.
What is Open Enrollment?
Open enrollment is the period of time each year when you can sign up for health insurance or make changes to your existing health insurance plan. The open enrollment period for 2021 is from November 1, 2020 to December 15, 2020.
If you do not have health insurance and do not enroll in a plan during open enrollment, you will likely have to pay a penalty when you file your taxes.
If you have health insurance through your job, you may still be able to make changes to your coverage during open enrollment even if it is outside of the open enrollment period for the general public. However, it is important to check with your employer first to see what their policy is.
Can I Cancel My Health Insurance Outside of Open Enrollment?
Yes, you can cancel your health insurance outside of open enrollment, but there are some things you should know first. For starters, if you have a Marketplace plan, you can only cancel your coverage during the first 60 days of your policy.
After that, you’ll have to wait until the next open enrollment period to make any changes to your plan. If you have a private health insurance plan, you can cancel it at any time, but keep in mind that you may not be able to get coverage again until the next open enrollment period.
There are also some implications to cancelling your health insurance outside of open enrollment. If you cancel your Marketplace plan mid-way through the year, you may have to pay back some or all of the premium tax credits you received. And if you cancel your private health insurance plan, you may be subject to a pre-existing condition exclusion if you try to get coverage again in the future.
So while you can technically cancel your health insurance at any time, it’s important to weigh your options carefully before doing so.
When Can I Make Changes to My Health Insurance Plan?
If you have a Marketplace plan, you can make changes to your coverage during the annual Open Enrollment period or if you have a qualifying life event. Qualifying life events include things like getting married, having a baby, or losing other health coverage.
If you have an employer-sponsored plan, you may be able to make changes to your coverage during the year depending on your company’s rules. Some employers allow employees to make changes to their coverage at any time, while others only permit changes during an annual enrollment period.
It’s important to note that if you cancel your health insurance outside of Open Enrollment (or without a qualifying life event), you may not be able to get covered again until the next Open Enrollment period. This could leave you without coverage for several months, which is why it’s generally advisable to wait until Open Enrollment unless you experience a major life change.
How Do I Cancel My Health Insurance Plan?
If you need to cancel your health insurance plan, you can do so at any time. However, if you cancel outside of open enrollment, you may not be able to get another plan until the next open enrollment period.
To cancel your health insurance plan, contact your insurance company or agent and let them know that you wish to cancel your policy. Be sure to have your policy number handy when you call. You may also need to provide a reason for cancelling. Once you have cancelled your policy, you will no longer be covered by that plan.
If you have a health savings account (HSA) associated with your health insurance plan, you will need to take some additional steps to close out the account. For more information on HSAs, please see our blog post on the subject.
Conclusion
To sum up, outside of the open enrollment period, you may be able to cancel your health insurance if you have a qualifying life event. Depending on your provider and plan type, there may be some restrictions on when and how you can cancel but it is possible. Make sure to do research before canceling since this could affect your ability to get health coverage in the future.