Can I Unenroll From Health Insurance?

Unenrolling from health insurance involves ending your current coverage. The process varies significantly depending on the type of plan you have, and whether you can unenroll at a specific time depends on annual enrollment periods and qualifying life events.

Enrollment and Unenrollment Periods

The most common time to make changes to health insurance coverage is during the annual Open Enrollment Period. This period allows people to sign up for new plans, adjust existing ones, or cancel coverage without needing a special reason. For Health Insurance Marketplace plans, this period generally runs from November 1 to January 15 in most states, while employer-sponsored plans often have their open enrollment in the fall.

Outside of open enrollment, changes to health insurance, including unenrollment, are usually limited to Special Enrollment Periods (SEPs). These periods are triggered by specific “qualifying life events.” Common qualifying life events include losing existing health coverage, such as due to job loss, turning 26 and aging off a parent’s plan, or losing eligibility for government programs like Medicare or Medicaid.

Changes in household composition, such as getting married, divorced, having a baby, or adopting a child, also qualify for a SEP. Moving to a new service area where your current plan is unavailable is another qualifying event. You typically have a 60-day window, either before or after the event, to make changes to your health plan, and documentation may be required. Medicaid and the Children’s Health Insurance Program (CHIP) allow enrollment and unenrollment at any time of the year, not being restricted to these specific periods.

Unenrolling from Employer-Sponsored Coverage

To unenroll from employer-provided health insurance, contact your company’s human resources (HR) department or the designated benefits administrator. This department can provide specific guidance on required forms and internal procedures for terminating coverage. Ensure all necessary paperwork is completed accurately and within any specified deadlines for correct processing.

For many employer-sponsored plans, especially those with pre-tax premiums through a Section 125 plan, changes or cancellations outside of open enrollment generally require a qualifying life event. This is due to IRS regulations for “cafeteria plans.” If premiums are not deducted pre-tax, voluntary cancellation might be possible at any time, though this is less common for comprehensive group health plans. When transitioning from an employer plan, align the cancellation date of your old coverage with the start date of your new plan to prevent coverage gaps.

Unenrolling from Health Insurance Marketplace Plans

If you obtained health insurance through a Health Insurance Marketplace, such as Healthcare.gov, you can typically unenroll by logging into your online account. Navigate to the “My Plans & Programs” section or similar, where you will find an option to “End (Terminate) All Coverage” for your plan.

When canceling online, you can often specify a future end date for your coverage. While there might be a typical 14-day delay before coverage officially ceases, some situations, like removing a spouse or dependent, may result in immediate termination for that individual. Alternatively, you can cancel your Marketplace plan by calling the Marketplace Call Center at 1-800-318-2596. Report any changes in your income or household composition to the Marketplace immediately, as these changes can affect your eligibility for subsidies and potential tax liabilities. To avoid any lapse in coverage, ensure your new health plan is active before canceling your Marketplace enrollment.

Unenrolling from Government-Sponsored Programs

For Medicare Part A, if you pay a monthly premium, you can cancel it at any time by submitting Form CMS-1763 to the Social Security Administration. However, premium-free Medicare Part A generally cannot be canceled.

For Medicare Part B, unenrollment requires a personal interview with a Social Security representative and submission of Form CMS-1763. If you drop Part B but keep Part A, you will receive a new Medicare card reflecting only Part A coverage. Coverage for both premium Part A and Part B typically ends on the last day of the month following your request. Canceling Medicare parts without replacement coverage or a qualifying Special Enrollment Period for re-enrollment can lead to significant late enrollment penalties and coverage gaps. If you have a Medicare Advantage Plan (Part C) or a Prescription Drug Plan (Part D), you must contact the private insurance provider directly to disenroll.

For Medicaid, the unenrollment process is managed at the state level, so you will need to contact your state’s Medicaid office or health department. You can report changes in your circumstances, such as an increase in income, which may lead to your disenrollment from the program. Some states offer online portals through their state marketplace websites where you can manage and potentially cancel your Medicaid coverage. Voluntarily terminating Medicaid coverage typically involves completing and submitting a specific form. If you lose Medicaid eligibility, you will generally qualify for a Special Enrollment Period, providing a window of approximately 60 days to enroll in a health plan through the Health Insurance Marketplace.