ACA Auto-Enrollment: What Happens If You Cancel Late?
The Affordable Care Act (ACA) is designed to help people get health insurance. One way the ACA does this is by offering tax credits to help people pay for their insurance. In some cases, people may be automatically enrolled in an ACA plan if they are eligible for tax credits.
However, what happens if you cancel your ACA plan late? If you cancel your plan after the open enrollment period ends, you may have to pay back the tax credits you received for the month you were covered.
What is Auto-Enrollment?
Auto-enrollment is a process in which people are automatically enrolled in a health insurance plan if they are eligible for tax credits. This can happen even if the person does not apply for an ACA plan.
Auto-enrollment is designed to help people get health insurance who might not otherwise have it. However, it can also lead to people being enrolled in plans they do not want or need.
What to Do if You Are Auto-Enrolled
If you are auto-enrolled in an ACA plan, you have several options. You can:
Keep the plan and pay the premiums.
Cancel the plan and pay back the tax credits you received.
Switch to a different ACA plan.
If you cancel your plan, you will need to do so before the end of the open enrollment period. The open enrollment period for 2023 runs from November 1, 2022, to January 15, 2023.
If you cancel your plan after the open enrollment period ends, you may have to pay back the tax credits you received. You will also be responsible for paying the premiums for the month you were covered.
How to Cancel Your ACA Plan
You can cancel your ACA plan by calling the health insurance marketplace or by going online to the marketplace website.
When you cancel your plan, you will need to provide the following information:
Your name
Your Social Security number
Your date of birth
The name of your health insurance plan
The date you want your plan to end
You will also need to pay any outstanding premiums.
Getting Help
If you have any questions about ACA auto-enrollment, you can call the health insurance marketplace or go online to the marketplace website. You can also get help from a licensed insurance agent.
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