There are many reasons you might find yourself needing to change or cancel the Health Insurance Marketplace® plan you chose during annual Open Enrollment. Many people want to swap theirs out for another plan, and some choose to opt out of selecting another Marketplace plan entirely, or at least at the time they’re cancelling their current one.
In this section, I provide instructions for how to cancel Marketplace coverage, either for everyone in the household or only select individuals. (Remember that you don’t need to end your coverage if you’re enrolling in a new or different plan during Open Enrollment.)
Internet searches are filled with people trying to find information on ending a Marketplace plan without replacement. My goal for the Obamacare? Marketplace? The Exchange: A Comprehensive Guide (COMING SOON!) has always been to answer the questions from consumers that were most searched on the web, and this was definitely in the top 3 when I was completing my research for the project.
My goal for this section is to present this information as clearly and quickly as possible so people can get their coverage sorted out before being charged and paying for a plan that isn’t what they want and that won’t work for them. If you have any questions or are still having trouble after checking out the resources and info presented here, please contact the Marketplace Call Center at 1-800-318-2596 for the most up-to-date information possible. They know everything about the Marketplace and have access to news about changes as soon as possible, often before other agencies or agents/brokers.
Note: It is important that you contact both the Marketplace and your health plan to end coverage.
The date your plan coverage ends depends on whether you’re ending it for everyone or for some people on the application.
How do I cancel my Marketplace plan? | HealthCare.gov
IMPORTANT: Do not just stop paying the premium for your Marketplace health plan as a way to terminate coverage. This will eventually cause your coverage to end, but your insurer might still try to collect from you. In addition, if the government continues to pay premium tax credits (PTCs) on your behalf, you might end up having to repay some or all of that amount to the IRS when reconciling your taxes.
What happens if I want to quit a Marketplace health plan during the year? | KFF
It’s important to understand the difference between “terminating” coverage and “cancelling” coverage and it surrounds creating a possible gap in coverage.
In simpler terms, "canceling" is stopping enrollment before it begins, while "terminating" is ending an active insurance policy.
Marketplace policies can be terminated by the consumer at any time, for any reason.
Reasons consumers might terminate their policy include getting a new job with employer-sponsored coverage (ESC), or perhaps becoming eligible for Medicaid or Medicare. Some simply want to end their coverage without providing a reason and this is totally acceptable.
Whether or not to terminate coverage for one person vs. the entire household
Possibility of wait time if need arises to re-enroll
Cancel your Marketplace plan | HealthCare.gov
According to the Centers for Medicare and Medicaid Services (CMS), if you want to end coverage for your entire household (everyone on the plan) or if you’re the only one on the plan, you should follow these steps to terminate coverage:
You can also end coverage for everyone on the plan over the phone with the Marketplace Call Center at 1-800-318-2596 (TTY: 1-855-889-4325).
You can end coverage for only some household members on your Marketplace plan (i.e., a spouse or dependents).
If you are ending coverage for just some household members on the application, in most cases, coverage for these individuals will end immediately. The best way to ensure that you receive your desired coverage end date is by requesting the change by contacting the Marketplace Call Center at 1-800-318-2596 (TTY: 1-855-889- 4325).
In some cases, coverage will not end immediately, including when the household members staying on the Marketplace plan qualify for a Special Enrollment Period (SEP). For example, if you update your household income after ending coverage for one or more people and the amount of premium tax credits or other cost savings changes, the remaining enrollees may qualify for an SEP.
If a consumer is removed, their last day of coverage will be the last day of the current month. Regardless of the day of the month the consumer removes their coverage, their new coverage effective date will be the first date of the following month.
If you need your Marketplace coverage to end immediately, you can contact the Marketplace Call Center at 1-800-318-2596 (TTY: 1-855-889-4325) to have the coverage end-date adjusted.
I hope this section has cleared up some things surrounding ending Marketplace coverage. I wish you all the best in getting your coverage set up the way you need it or ended if you don’t need it. Thank you for learning with me!
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