How to Cancel a Health Insurance Marketplace Plan

Determining Your Cancellation Timeline

Canceling a Health Insurance Marketplace plan is possible at any time, but the effective date of termination depends on when the request is submitted. If a cancellation request is made before the 15th of a given month, coverage concludes on the last day of that same month. This allows for a quick transition out of your current plan.

However, if the cancellation request is submitted on or after the 15th of the month, coverage extends until the last day of the following month. For instance, a request made on August 16th would result in coverage ending on September 30th. Understanding this distinction is crucial for planning and avoiding unexpected coverage gaps or overlapping premium payments.

Aligning the cancellation date with the start date of any new health coverage is important to maintain continuous protection. Many individuals cancel Marketplace plans because they gain new job-based coverage, become eligible for Medicare or Medicaid, or relocate outside their plan’s service area. Planning your cancellation to coincide with these life events helps ensure a smooth transition without periods of being uninsured.

Gathering Necessary Information

Before initiating the cancellation of a Health Insurance Marketplace plan, gathering specific information streamlines the process. You will need your Healthcare.gov account username and password to access your policy details online. This login information is the primary key to managing your Marketplace coverage.

Additionally, locate your policy or plan ID number. Having the effective date of your current plan readily available is also beneficial. You should also prepare basic personal information for all covered members, including full names, dates of birth, and Social Security Numbers.

If you are transitioning to new coverage, knowing its start date will help you select an appropriate cancellation effective date for your Marketplace plan. This preparation ensures you have all the necessary details at hand, making the cancellation request more efficient.

Submitting Your Cancellation Request

The primary method for canceling your Health Insurance Marketplace plan is through your online account on Healthcare.gov. Begin by logging into your account. Once logged in, navigate to the “My Plans & Programs” section, or a similar designation, which displays your current health coverage details.

Within this section, you will locate and select the specific plan you intend to terminate. Follow the on-screen prompts to select your desired termination date. It is important to carefully review all details before confirming your cancellation request to ensure accuracy. Upon successful submission, you should receive a confirmation email or message.

Alternatively, you can submit your cancellation request by contacting the Marketplace Call Center. When calling, have all your personal and policy information ready. A representative will assist you with the cancellation process. Remember to request a confirmation number or an email summary of the cancellation for your records.

Navigating Post-Cancellation Details

After submitting your cancellation request, confirming its completion is an important next step. You should verify the cancellation through official communications, such as an email confirmation, a letter sent via mail, or by checking your Healthcare.gov account for updated status. This verification ensures your request was successfully processed.

If you paid premiums in advance for a period that extends beyond your cancellation date, you might be eligible for a pro-rated refund from your insurance company. Review your insurance statements and contact your insurer directly if you believe an adjustment is due. Any refunds or adjustments would reflect the unused portion of your premium based on the effective cancellation date.

For those who received advance premium tax credits (APTC), these credits will cease once your Marketplace plan is canceled. The total amount of APTC received throughout the year will be reconciled against your actual income when you file your federal income taxes. To avoid any gaps in health coverage, it is important to ensure your new health insurance coverage begins immediately after your Marketplace plan ends. Keep all cancellation confirmations and related documents for future reference.