5 Reasons Why Your Health Insurance Provider Can Drop You

 If you feel the need to terminate your health insurance policy, there are various circumstances that may force you to do so. Although open enrollment is the most common time to switch health insurance, there may be other factors that may lead you to cancel your current health insurance plan.

If you recently started a job with different health benefits, turned 65 and are now eligible for Medicare, or have been laid off, you can enroll in or cancel your current health plan. can take advantage of a specific time frame.

The process of canceling your health insurance coverage varies depending on a number of factor
s. These factors include the requirements and procedures set by your health insurance provider, the specific reasons for your cancellation, and the extent to which your plan covers your dependents.

This article aims to provide knowledgeable readers with a comprehensive description of the process involved in canceling medical insurance. It will cover five essential steps that one typically takes when changing their health insurance coverage.

Is it possible to terminate your health coverage at any given point?

If you acquired individual health insurance coverage, either for yourself or for your entire family, you can terminate the policy at any given time. Nevertheless, you may only be allowed to choose another health plan within the open enrollment period, which usually takes place from November 1 to January 15.

If you currently have health coverage under a group insurance plan through your employer, you are unable to terminate your policy at will. In order to cancel your employer's health coverage plan outside of the designated open enrollment period, you must undergo a qualifying life event that would then trigger a special enrollment period.

If you meet the requirements for a unique enrollment opportunity, you have the option to cancel your existing healthcare plan and opt for new individual or family coverage without having to wait for open enrollment. Typically, this period extends for about 60 days beginning from the day that your qualifying life event happens.

After the expiration of the 60-day period, you will not be able to enroll in a new plan or modify your current coverage until the open enrollment period of your state commences, unless you experience another life event that qualifies you for enrollment. If you intend to enroll in an individual marketplace plan, it would be advisable to verify if you are entitled to savings through premium tax credits or other means of savings. 

Guidelines for modifying or canceling your existing health insurance plan

1. Contact your healthcare provider or insurer to learn more information. 

If you want to cancel your state or federal marketplace plan, you can easily do so by terminating the policy's coverage through your online account. In case you encounter any issues or have trouble doing this, you can also reach out to the customer service team for assistance.

If you need to discontinue a privately purchased health insurance policy, you can directly reach out to your insurance provider. The contact number of your insurance provider can be found on your health insurance policy, health insurance card, and premium bills.

It is possible for your health insurance provider to allow cancellation via phone, but they may require additional documentation, such as a confirmation letter, through fax or mail.

2. Confirm the insurance representative's instructions by taking these steps

Each health insurance provider has a set process for cancelling your policy. To avoid having a gap in your coverage, it is important to verify that your policy end dates are accurate while following their cancellation procedure.

When terminating your insurance plan, whether it's through an online cancellation or a phone call, an insurance agent will review all the necessary procedures you need to follow to cancel your policy effectively.

It's crucial to make a note of the name of the representative and any cancellation confirmation numbers to avoid any administrative issues that may arise during the process.

3. Inquire regarding reimbursement and review your financial statements for any refunds

If you purchased a one-year individual health insurance policy and decide to terminate it before it concludes, you can contact your insurance provider and inquire about receiving a refund for the monthly premiums that have not yet been utilized. The majority of companies will issue a reimbursement for the remaining duration of the policy.

Once your new health insurance coverage starts, it is recommended that you review your bank statements to ensure that the old plan has been cancelled and your new coverage is in effect with the updated monthly payment amounts.

4. Ensure your current health policy is active before buying a new one. 

Before canceling your old insurance policy, it is important to ensure that you have acquired a new policy and reviewed its effective coverage date. Additionally, it is crucial to ensure that the active coverage periods of both policies do not overlap, as it is illegal to file claims with two different major medical insurance policies.

If your employer compensates you for your health insurance premium or any other medical expenses that are not covered by insurance through a program like HRA or health stipend, it is important to carefully review your monthly health allowance. This can impact the cost of your policy that you choose and the medical expenses you may face.

Make sure to verify the type of Health reimbursement arrangement (HRA) offered by your employer. Integrated HRAs add support to the health insurance policy provided by the employer to cover medical expenses, such as deductibles, copays, and other out-of-pocket costs. However, they cannot cover the premiums for health insurance.

5. Understanding the Statutes on Health Insurance Cancellation and Your Rights

Every state offers consumer protection laws and insurance regulatory bodies that can provide assistance and address any inquiries or concerns you may have regarding your personal coverage.

State laws may include regulations surrounding health insurance, such as coverage requirements, timely payments for claims, access to specialized healthcare providers, and coverage of specific medical treatments and services. These protective laws apply to all types of health insurance plans, whether they are provided by an individual or an employer.

If you provide incorrect information on your health insurance application, the insurance company has the right to terminate your policy. However, in the case of an honest error, the insurance company is not authorized to terminate your coverage.

If you fail to pay your premiums, your health insurance company may cancel your coverage. Typically, you will receive a notice at least a month in advance of the cancellation due to missed payments. This gives you a chance to dispute the cancellation or search for an alternative policy that fits your budget.


Although it's possible to cancel your health insurance plan at any time, enrolling in a new one may not always be an option. If the open enrollment period has passed, it's important to ensure that you meet the eligibility criteria for a special enrollment period before canceling your current coverage. By doing so, you can avoid a gap in your medical services and ensure you have proper coverage in place.