Understanding Your Options: How to Drop Health Insurance Coverage
So you’ve signed up for a new health plan and have received your policyholder card. What happens if you drop health insurance coverage now? If you cancel your policy, we can help you review your options. And, not surprisingly, you won’t receive any insurance benefits or reimbursement for out-of-pocket healthcare expenses. Plus, you may likely not be able to re-enroll in your employer plan or replace your Affordable Care Act (ACA) until the next enrollment period.
Can I Disenroll From My Health Insurance?
Yes, in many cases you can disenroll from your ACA health insurance and cancel your policy. Here are a few things you should consider before ending your health coverage, though:
- Having an insurance card does not necessarily count as proof of insurance. You have to maintain active health coverage. Unless you are paying your premiums, you are not considered to have active coverage.
- If you cancel your ACA marketplace plan, you will not be allowed to re-apply until the next annual Open Enrollment Period unless you qualify for a Special Enrollment Period (voluntarily dropping your coverage does not count as a “qualifying life event”).
- If you decide to drop health insurance coverage, you will not have access to free preventive care, which can include (but is not limited to) diabetes screening, vaccines, and cancer screenings.
- While there is no federal penalty for not having health insurance as of 2019, you may still face a fine depending on your state of residence.1
Can I Cancel My Health Insurance Without Penalty?
Yes, usually you can cancel your health insurance without a penalty. However, if you reside in a state that has its own coverage mandate, you may face a tax penalty.1 Your cancellation may take effect beginning the day you cancel, or you may set a date in the future, such as when your new coverage will start.
Can You Drop Health Insurance At Any Time?
Yes, you can drop health insurance at any time. If you need to cancel your health insurance policy, contact your HealthMarkets agent, or give us a call at (800) 827-9990 and we can help you with your options. We can also help you compare plans if you need coverage to help hold you over until the Open Enrollment Period. Additionally, you can also review your options now for coverage that may be available.