How to Cancel Marketplace Insurance

Updated

Marketplace insurance is one of the best ways to find affordable coverage to suit your needs, especially if you meet specific requirements. However, there are a lot of valid reasons you might choose to cancel your healthcare marketplace insurance for yourself or a deceased loved one. Whether your healthcare coverage is no longer needed, affordable, or your best option, you need to proceed carefully. 

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Depending on your type of coverage, there are different steps you need to take to cancel coverage. You want to make the smartest decision possible during this time, and you don’t want to risk your health and wellness. 

It’s no secret that healthcare can be complicated. In this guide, we’ll share step-by-step how to cancel marketplace insurance for you or a deceased loved one. Whether you’re acting as your own healthcare agent or on your executor duties, our health is one of the most important things we have. 

When Should You Cancel Marketplace Insurance?

To begin, when is it a good idea to cancel marketplace insurance? Because insurance coverage is complicated and confusing, you might not understand the best time to cancel. There are a lot of instances where it makes sense for your health or wallet to cancel. 

  • Change jobs: If you’ve changed jobs or gotten laid off, your income situation changed. You might be eligible for a new plan through the healthcare marketplace, or you might get coverage through your employer. 
  • Medicare: Another reason to cancel marketplace insurance is if you recently turned 65. This means you now qualify for Medicare through the government, and this low-cost solution is an alternative to marketplace insurance. 
  • High cost: If you’re facing high costs with your marketplace plan, you’re not alone. You might decide to lower or cancel your coverage to save money each month.
  • Death: Lastly, if you’ve lost a loved one who was covered under a marketplace plan, you need to know what to do when someone dies. This means canceling unused plans to avoid charging their estate for unused expenses. 

If any of these situations apply to you, it’s time to cancel your marketplace health insurance plan. However, before you begin, consider alternative coverage options to make sure you have a plan for the future. Your health is the most important thing you have. Though coverage can be costly, don’t risk your safety. 

What Do You Need in Order to Cancel Marketplace Health Insurance?

Before you cancel your marketplace health insurance plan, you need to prepare a few things. The more documents you have on hand, the easier it is to complete this process. First, you need your marketplace login information. Depending on whether you applied through the federal marketplace or a state marketplace, you will need a username and password to access your details.

Next, you also need to know the date you’d like to cancel your coverage. In most cases, you need to give 30 days notice. Consider any healthcare needs you might have in the coming months and determine the date that works best for you. In the case of a deceased loved one’s account, you might find their healthcare details saved on a password manager.

When in doubt, contact your healthcare marketplace provider directly. They can direct you to the right department to cancel, and they can list the specific things you need to proceed. Each state has its own protocol for marketplace insurance, so it is often location-dependent. 

How to Cancel Your Own Marketplace Health Insurance

If you’re trying to cancel your own marketplace health insurance plan, it’s easy to take matters into your own hands. As soon as you’ve decided to cancel your plan, act quickly. It can take several weeks for the cancellation to take effect, and you’ll be responsible for any costs until then. 

1. Log into your online portal

The easiest way to cancel your own marketplace insurance plan is through the online portal. Though not always an option, it is if you’ve purchased your plan through an online marketplace like Healthcare.gov. Once you log into your active marketplace account, go to your plan information page. There should be an option to end or terminate coverage. 

From here, enter the date you wish to cancel your coverage. This usually has to be at least 14 days into the future. Lastly, follow any final instructions to make sure your healthcare plan is canceled successfully. 

2. Contact your provider by phone

Another option is to contact your provider directly by phone. You can cancel federal coverage by calling the ACA help center and confirming your identity. Similarly, you can call the number on the back of your insurance card. 

If you purchased a healthcare marketplace plan from a private insurer, you’ll need to follow their instructions. This usually involves calling them by phone and submitting a form. 

3. Talk to your employer

Lastly, if your marketplace plan is through your employer, contact HR. This is the only way to cancel your plan from your employer. There is usually a colleague or third party who specifically handles employee benefits. Let them know you wish to cancel coverage and why, and they’ll lead you in the right direction. 

How to Cancel a Deceased Loved One’s Marketplace Health Insurance

If you’re canceling a deceased loved one’s marketplace health insurance plan, this is a bit more complicated. You want to cancel their coverage as soon as possible to avoid their estate paying unnecessary premiums and fees. Follow these steps below when you’re ready. 

1. Log in to the online portal

First, if your loved one was a part of your covered household, you can log into your own online portal to remove them from your coverage. This is only true if you’re the household contact. Once you log into your online portal, go to your coverage screen. From here, click “Report a life change” from the menu. 

Report a change in the size of your household. You can remove specific individuals from your coverage and save your changes. This adjusts the cost of your premiums and tax benefits. However, if your loved one wasn’t a part of your household coverage plan, continue to the next steps. 

2. Notify Medicare

If your loved one had a plan under Medicare, you can report this death directly to Social Security. Do this as soon as possible to gain access to any survivor benefits. You can call Social Security directly at 1-800-772-1213. To confirm their identity, you will need their social security number. 

3. Contact their employer or insurance provider

Last but not least, contact their insurance provider directly. If they were covered under a private healthcare marketplace plan or their employer, you will need to reach out to these entities to cancel their marketplace insurance. 

You will need a copy of the death certificate to proceed with this request. Learn how to get a death certificate in just a few steps. You should contact any insurance company with which your loved one had an active policy. They’ll provide you with the next steps for canceling the account. 

Frequently Asked Questions About Canceling Your Marketplace Plan

Because most people don’t cancel insurance plans often, it’s normal to have questions about this process. There is a lot of confusion around marketplace health insurance. Here are some of the most frequently asked questions and their answers to consider. 

Can you schedule a date to end your coverage?

It’s possible to schedule a date in the future to end your coverage with a healthcare marketplace plan. In fact, it’s a good idea to think about this date carefully. If you know your new coverage begins on the first of the month, for example, setting your last date to this same day ensures you don’t have any gaps in coverage. 

Can you re-enroll after you cancel?

While the healthcare marketplace allows for some flexibility if you face a life change, you typically can’t re-enroll after canceling a plan. You will need to wait until the next annual Open Enrollment Period. This usually is at the end of the year. This is why it’s important to think carefully before canceling your plan. 

Can you buy a marketplace plan from a private company?

You can change your health insurance plan to one from a private insurance provider, but there are some limitations. If you want a premium tax credit and savings, you’ll need to purchase this plan directly through the marketplace. While many private companies are offered through the marketplace, you need to buy coverage through this platform to get the most savings. 

Do you need to have health insurance?

Lastly, there is no penalty for not having health insurance. However, health insurance is a very good idea, especially if you live in a country with a high cost of healthcare. Without coverage, a serious health issue could result in extreme financial stress or even bankruptcy. If you’re unable to afford a plan, consider low-cost options in your state. Many qualify for free or low-cost plans to get the coverage they need. 

Understanding Marketplace Healthcare Coverage

Ultimately, it’s up to you if you wish to keep your healthcare marketplace coverage into the next year. There are a number of life events that could result in changes in coverage, like job loss, job change, or a death in the family. Healthcare coverage is optional, but your health is not. Make sure you’re prepared for everything that lies ahead by getting the coverage that’s right for you.

The more you know about healthcare coverage, the easier it is to stay on top of your health. Everyone deserves access to the care they need at a price they can afford.

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