How to Cancel Marketplace Insurance

Marketplace insurance, also known as the Affordable Care Act (ACA) or Obamacare, provides a way for individuals and families to purchase health insurance through government-sponsored exchanges. However, there may be various reasons why you need to cancel your marketplace insurance. In this article, we will guide you step-by-step on how to do it and what you need to consider before taking this decision.

Why Cancel Marketplace Insurance?

There are several reasons why you may need to cancel your marketplace insurance:

When Can You Cancel Marketplace Insurance?

If you want to cancel your marketplace insurance, you can do it during the open enrollment period or a special enrollment period.

The open enrollment period is typically in the fall, and it’s the time when you can enroll in or change your marketplace plan. You can also cancel your plan during this period. If you miss the open enrollment period, you may qualify for a special enrollment period if you experience a qualifying life event, such as getting married or having a baby.

How to Cancel Marketplace Insurance

To cancel your marketplace insurance, follow these steps:

1. Log in to your marketplace account. If you don’t have an account, create one using your personal information.
2. Select the “End/Terminate Coverage” option.
3. Choose the effective date of cancellation. This can be the last day of the month or a future date.
4. Provide a reason for cancellation, if required.
5. Submit your request to cancel your marketplace insurance.

You should receive a confirmation email from the marketplace once your plan is cancelled.

What to Consider Before Cancelling Marketplace Insurance?

Before you cancel your marketplace insurance, here are some things to consider:

1. Do you have an alternative health insurance plan? Make sure you have a new plan in place before cancelling your marketplace insurance.
2. Are you incurring any medical expenses? If you have any ongoing medical treatments or procedures, cancelling your insurance could result in out-of-pocket expenses. Make sure you consider this before cancelling.
3. Will you be subject to a penalty? If you don’t have any other health insurance plan for the year and you cancel your marketplace insurance, you may be subject to a penalty called the individual shared responsibility payment.

FAQ

1. Can I cancel my marketplace insurance anytime?

No, you can only cancel your marketplace insurance during the open enrollment period or a special enrollment period.

2. Do I need to provide a reason for cancelling my insurance?

It depends on the marketplace you’re enrolled with. Some marketplaces may require a reason for cancellation, while others don’t.

3. Will I receive a refund if I cancel my marketplace insurance?

It depends on when you cancel your insurance. If you cancel your insurance before the effective date, you’ll receive a refund for any premiums you paid. If you cancel your insurance after the effective date, you won’t receive a refund.

4. Can I cancel my marketplace insurance if I’m not satisfied with it?

Yes, you can cancel your marketplace insurance if you’re not satisfied with it. However, make sure you have an alternative health insurance plan in place before cancelling.

5. Will cancelling my marketplace insurance affect my credit score?

No, cancelling your marketplace insurance won’t affect your credit score.

Conclusion

Cancelling your marketplace insurance can be a simple process if you follow the steps outlined in this article. However, before taking this decision, make sure you consider all the factors involved and have an alternative health insurance plan in place.