When Can You Terminate ACA Health Insurance Coverage?

You may need to cancel your ACA health insurance coverage for various reasons, such as gaining new coverage through your employer or a change in your income. Here’s a detailed explanation of when and how you can terminate your ACA health insurance coverage:

Special Enrollment Periods

You can cancel your health insurance plan outside the Open Enrollment Period if you experience a qualifying life event, such as:

– Loss of previous coverage: If you lose your job-based insurance or Medicaid coverage, you have 60 days to enroll in a new health insurance plan.
– Change in household: If you get married, divorced, or have a child, you have 60 days to make changes to your health insurance coverage.
– Moving to a new state: If you move to a new state, you have 60 days to enroll in a new health insurance plan in your new state.

Terminating Coverage Outside Special Enrollment Periods

If you do not qualify for a Special Enrollment Period, you can still cancel your ACA health insurance coverage, but you may have to pay a penalty. The penalty is based on the number of days you are uninsured and your income.

To terminate your coverage outside a Special Enrollment Period, you must:

– Notify your health insurance company in writing: You can send a letter or email to your insurer, stating your intention to cancel your coverage.
– Provide a termination date: Specify the date you want your coverage to end.
– Return your insurance card: Send your insurance card back to your insurer.

Receiving Refunds

If you have already paid premiums for the month in which you terminate your coverage, you may be eligible for a refund. The amount of the refund will depend on the terms of your plan and the date you terminate your coverage.

Important Considerations

– Call your insurance company: It’s always a good idea to call your insurance company to confirm the termination process and ensure it is done correctly.
– Seek assistance from a licensed agent: If you need help terminating your coverage or finding a new plan, you can contact a licensed insurance agent for guidance.
– Avoid any gaps in coverage: It’s crucial to ensure you have continuous health insurance coverage to avoid paying penalties. If you are terminating your ACA coverage, make sure you have a new plan in place before your current coverage ends.

Remember, terminating your ACA health insurance coverage should be done carefully and with all necessary information. By understanding the rules and deadlines, you can avoid penalties and ensure a smooth transition in your health insurance coverage.