How to Properly Cancel a Marketplace Plan

The Health Insurance Marketplace (ACA Marketplace) offers health coverage options for individuals and families. There are times when an individual may need to end their Marketplace plan. Properly canceling coverage requires attention to specific steps for a smooth transition and to avoid potential issues. The process involves gathering information, understanding cancellation steps, comprehending the effective date, and coordinating new coverage.

Gathering Necessary Information

Before canceling a Marketplace plan, gather specific account and identification details. This streamlines the process and prevents delays. You will typically need your Marketplace account username and password to access your online portal.

In addition to login credentials, your application ID and policy number are often required for verification purposes. These identifiers help locate your specific coverage details within the system. Personal identification information, such as your Social Security Number (SSN) and date of birth, may also be requested to confirm your identity.

If canceling due to new health coverage, know its exact start date. This detail is crucial for timing your Marketplace plan cancellation. You should also ensure your contact information, including your current address, phone number, and email, is up-to-date in your Marketplace account. These details are typically found on your Marketplace account dashboard, previous billing statements, or enrollment confirmation emails.

Steps to Cancel Your Marketplace Plan

You can proceed with canceling your Marketplace plan. The most common method for cancellation is through the online portal, but phone options are also available. For online cancellation, log into your HealthCare.gov account or your state’s specific exchange website.

After logging in, navigate to “My Plans & Programs” or “End All My Health Coverage.” Follow the prompts to select and confirm the plan termination.

Alternatively, call the Marketplace Call Center at 1-800-318-2596, available 24 hours a day, 7 days a week. Be prepared to answer verification questions and provide your personal and plan details. Regardless of the method, obtain a confirmation number or email verifying your cancellation for your records.

Understanding Your Cancellation Effective Date

After submitting a cancellation request, understanding when your coverage ends is important to avoid gaps or overlaps in health insurance. For Marketplace plans, the effective date of cancellation varies depending on when the request is made and if you are ending coverage for everyone or just some individuals. If you are ending coverage for everyone on the application, your coverage can end as soon as the day you make the request, or you can set a future end date. This flexibility allows you to align the termination with the start of new coverage.

If ending coverage for only some household members, their coverage typically ends immediately. The Marketplace Call Center can adjust the end date if immediate termination is not desired. Generally, if you remove coverage, the last day of coverage will be the last day of the current month. Confirm the exact end date with the Marketplace when you submit your cancellation request.

Coordinating Coverage to Avoid Gaps

Coordinating your Marketplace plan cancellation with new health coverage is important to maintain continuous protection. A slight overlap in coverage is preferable to a period without insurance, as a coverage gap means you are fully responsible for any medical expenses incurred during that time.

Before finalizing your Marketplace plan cancellation, confirm the exact start date of your new health insurance plan. You can set a future termination date for your Marketplace plan to align with this new coverage. This ensures your new plan begins precisely as your old one ends, preventing any lapse in coverage. It is advisable to ensure your new coverage is fully active and confirmed before concluding your Marketplace plan.