There can be various reasons for canceling marketplace health insurance policies, from starting a new job to becoming eligible for Medicare; certain steps must be taken in order to make sure your coverage ends properly.
Be mindful that cancellations will take effect 14 days later. Make a note of all confirmation numbers, tickets purchased, and representative’s name when canceling for future reference.
1. Go to the Marketplace Website
There may be various reasons you’d want to cancel your individual Marketplace coverage, from finding a job with better benefits or turning 65 and qualifying for Medicare to losing your job and no longer afford healthcare premiums – whatever it is, knowing when and how to cancel Marketplace health insurance is essential in avoiding gaps in coverage.
First step to cancelling a policy on Marketplace is visiting their website and depending on your individual situation, either canceling it yourself or seeking help from an agent will do. They can advise exactly which steps must be taken in order to terminate and find new coverage if necessary.
Most people find the process for canceling Marketplace coverage takes at least 14 days and you may still owe premiums during that time. Therefore, it’s essential to regularly check your bank statements to make sure that the cancelled policy hasn’t been billed again.
If you’re only canceling for specific individuals on your application, the cancellation can take effect either immediately or at a future date (such as when your next paycheck arrives). This option can help if someone in your household becomes eligible for job-based coverage, Medicaid, or CHIP and wants to switch plans as it allows you to avoid the hassle of filling out another application during open enrollment period.
Special enrollment periods offer another means of changing plans: they usually last 60 days and are open to anyone who experiences a “qualifying life event” such as changing jobs or giving birth. You will typically need hard proof that this event happened, not relying on something like Tinder profiles or cancelled plans to qualify.
Be mindful that by switching to Medicare early, any premium tax credits or cost-cutting subsidies won’t apply; thus, your monthly insurance will continue to cost full price until your Medicare coverage begins.
2. Call the Marketplace Call Center
Individual Marketplace coverage allows you to cancel at any time, though it’s best done immediately as there may be a two-week window before coverage ceases and premium payments become due during that period.
To cancel your plan, it’s necessary to contact the Marketplace Call Center using the number listed on your health insurance card or in your online account. A representative from their team will give specific instructions depending on why you wish to cancel it.
As an example, switching plans because you are now eligible for comprehensive Medicare coverage will require following different steps from someone cancelling their Marketplace plan due to employment and affording new employer-sponsored coverage. Your provider’s specific cancellation procedures may differ depending on the details of your situation, though any phone call to the Marketplace Call Center must occur first.
Notes should be taken during your Call Center conversation in order to keep a record. Take down details like the representative’s name, time/date of cancellation conversation and any ticket or confirmation numbers provided – this will come in handy should your cancellation request encounter any problems, or should a supervisor need to intervene.
During open enrollment periods, the Marketplace Call Center can become very busy as consumers need assistance in comparing and selecting plans. Luckily, their representatives are well trained in handling high volumes with customer satisfaction in mind. If waiting is too much of an inconvenience, consider hiring an independent insurance broker or certified application counselor to guide you through this process of applying and enrolling for new plans.
If you cancel your Marketplace insurance before the next open enrollment period in November and January, your state may have special enrollment periods wherein you can sign up for new self-only or family coverage before this point in time. However, if a qualifying life event triggers one during the year that triggers special enrollment periods of 60 days, or less during that year can allow you to select new health plans without waiting for open enrollment to occur.
3. Write Down Confirmation Numbers
Alongside your Marketplace account, you should also have received a Form 1095-A which contains details of when your coverage began and ended, along with any tax credits you were eligible to claim. Keep this form safe – the IRS could audit your taxes and require it as evidence.
As soon as you call or log into your Marketplace Call Center or online account, make a note of when and how you spoke with a representative, their name, their callback number and any ticket/confirmation numbers given out; this information can help with future issues that may arise.
Save all paperwork from the Marketplace just in case it could come in handy at some point in the future. You never know when you might need it!
If you cancel your Marketplace plan without first having another policy in place, this could result in gaps in coverage. Therefore, it’s essential that any changes be done responsibly and ensure you have other forms of insurance before making changes to your plan.
Check your bank statements to make sure the cancellation was billed, and make sure your new policy starts on the date that was cancelled.
If you cancel a Marketplace plan before Medicare coverage starts, it is crucial to remember that any premium tax credits or savings associated with Marketplace health plans won’t become eligible until the next Open Enrollment Period (OEP). Furthermore, enrollment must wait until OEP begins before being permitted back into coverage, unless qualifying for an SEP Special Enrollment Period exists.
4. Schedule an Appointment
Cancelling a Marketplace plan is easy during both open enrollment and special enrollment periods, via either calling the Marketplace Call Center, visiting your online account on the website, or using the app on your phone. In-person assisters or insurance agents/brokers may also offer help when necessary.
Most health plans provide a list of doctors, hospitals and other providers who contract with their plan in order to offer services. Consulting an “in-network” provider usually means paying less for care; if in doubt about whether your provider falls under this category, simply ask or check their directory on your health plan’s website.
Once your application or enrollment process is complete, your health insurer should send you a membership packet with important details about your new coverage, such as an identification card for use when seeking care. Make sure to keep this information in a safe place so it can be easily located if necessary later on. Your insurer should also include a payment schedule detailing your monthly premium payment; failing which your health plan could be cancelled.
Under COBRA, you may also qualify to extend your employer-sponsored coverage for a short time after job loss, reduced work hours, divorce or the death of a family member. In order to be eligible, certain criteria must be met such as having been employed at your previous company for at least 18 months within 30 years and offering coverage.
If you choose to cancel your Marketplace health plan, if eligible you should still enroll in Medicare or another public plan such as Medicaid or CHIP (such as CHIP or Medicaid). Canceling before this coverage starts may result in you forfeiting federal cost sharing reduction subsidies that helped lower out-of-pocket expenses associated with that plan.
If you are uncertain whether to cancel your Marketplace plan, seek advice from an authoritative source to assist in making an informed decision. A healthcare professional may also be helpful with canceling their health insurance and finding more appropriate options that match up to your needs.
