Can You Cancel Your Health Insurance Policy?

The time has come and you have decided that you want to part ways with your health insurance plan. But can you actually cancel your policy? To answer the question, yes and no. You can cancel your health insurance policy, but if you do it at the wrong time, you can end up with a fine.

When To Cancel Your Plan

timer with the word :deadline" on it.
If you are outside of the Open Enrollment Period, you will only be able to get a new health insurance plan during a Special Enrollment Period.

It is best to cancel your insurance plan when you have another one ready to take its place. If you don’t, you will have a gap in coverage, which will leave  you vulnerable in case of an emergency. If you are outside of the Open Enrollment Period, you will only be able to get a new health insurance plan during a Special Enrollment Period. 

You can cancel your insurance company outside of Open Enrollment if:

  • You just got married.
  • You’ve just finalized a divorce.
  • You just had a baby.
  • You adopted a child.
  • Your spouse got a new job.
  • Your spouse’s coverage has changed.
  • It’s currently your spouse’s Open Enrollment period.
  • You’re entitled to Medicare and/or Medicaid.
  • You’re taking FMLA leave.
  • You’re relocating outside of your coverage network.
  • You’re eligible to enroll in marketplace insurance.

How To Correctly Cancel Your Plan

When cancelling your health insurance plan, it is important to do it the right way so there is no confusion or loose ends. The different steps you can take to cancel a plan are:

  • Call Your Insurance Company– Call your insurance company and speak to a representative. They should be able to cancel your policy without any issues.Writing or emailing the company is not sufficient, because the company can claim they never got the message. 
  • Write Down Confirmation Numbers– Once you have spoken to an insurance rep, make sure you follow their instructions for completing the cancellation process. After this is done, write down the name of the rep you spoke to and the cancellation confirmation number. This protects you in case there are any future problems.

    woman sitting outside on the phone, holding a coffee mug in the other hand.
    When you cancel your policy, make sure to call, and write down confirmation of the cancelation.
  • Get A Refund On Pre-Payments– If you have chosen to pre-pay your insurance premiums, ask the insurance rep to reimburse you for the remaining months that you will not be using their coverage.
  • Talk To Your HR Representative– If your plan is an employer-based plan, talk to your HR department in order to ensure your policy is cancelled correctly.

Purchasing A New Plan

When you decide it is time to move on from your current plan and find a new one, it is best to seek help from an insurance professional, or agent. An agent is able to compare all the plans available in your area and custom fit one to your financial and medical needs. EZ.Insure offers highly trained, licensed insurance agents who will provide those services to you for free. 

At EZ.Insure, we provide accurate quotes within seconds. We make sure you work with one (and only one) agent who is there to make your life easier. Our purpose is to provide the best products and services at a fair price. We will provide you with quotes of all available plans, without any hidden fees. Just instant, upfront information about exactly what the plan covers. This will help you make the best decision regarding your own healthcare, and also alleviate further headaches like unexpected bills for medical expenses. Save your money and time. To get started, enter your zip code in the bar above, or to speak to a specialized agent within your area, call 888-350-1890.

About The Author: Cassandra Love

With over a decade of helpful content experience Cassandra has dedicated her career to making sure people have access to relevant, easy to understand, and valuable information. After realizing a huge knowledge gap Cassandra spent years researching and working with health insurance companies to create accessible guides and articles to walk anyone through every aspect of the insurance process.
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