How to Cancel Health Insurance

When someone decides to cancel health insurance on themselves or their family, it is usually because they cannot afford to continue making payments on premiums.  It also could be due to the death of a spouse or some other major event in their life which prevents them from carrying health insurance. However, it is never wise to be entirely without some kind of health insurance, whether it is private, employer-sponsored, or governmental in nature. When someone cancels a health insurance plan, he or she should always intend to obtain some other health insurance in the near future

Cancellation Procedures

To cancel health insurance that is being carried by an individual or family, the first thing to do is to call the customer service phone number printed on the insurance ID card; the number can also be found on the actually policy. Only the policyholder will be authorized to cancel the health insurance, so it is the policyholder who should make the call. The representative is going to ask for the policy number, along with the social security number of the policyholder to verify the identity. Depending on the carrier, there may also be additional questions asked of the policy owner.

Other Cancellation Procedures

Another method someone can use to cancel health insurance coverage it to simply stop paying the monthly premium and allow the plan to automatically cancel for non-payment. This usually occurs 30 days after a payment is missed if no attempt is made for a late payment. A notice of cancellation is then mailed to the person wishing to cancel their insurance. One advantage of utilizing this cancellation method is that you can always reinstate the policy by simply making the unpaid payment. Automated payments can also be easily stopped and started again by contacting the bank where the account being effected is established.

Ensuring a Smooth Cancellation

When a phone call is used to cancel health insurance, the person canceling should always write down the customer service representative’s name.  He or she should also note the specific confirmation number corresponding to the cancellation application. While there is rarely a problem when canceling a health insurance policy, it is always better to have documents which substantiate a transaction as important as canceling health insurance. Also, some health insurance companies will give a full refund if a plan is canceled within the first ten working days from the time it was purchased.

What Shouldn’t be Done

As a rule, someone who wants to cancel health insurance coverage should not ask a relative or insurance agent to handle the process. Only the person holding the policy will legally be entitled to cancel the policy, and he or she should never attempt to cancel a policy by email or by regular mail.  Also, you should not cancel an insurance plan until the new health insurance policy has been received in the mail and thoroughly reviewed. Be aware that is it illegal to carry two major health insurance policies at one time or to submit claims to two different insurance agencies.

Terms of Cancellation

Any health insurance plan purchased by someone either privately or through their employer is considered a contract between the provider and the insured individual. This contract will affirm under what sort of terms that person can cleanly cancel the coverage. To successfully cancel health insurance, a telephone call is necessary, along with receipt of a confirmation by the health insurance company in writing. Sending a letter of cancellation to the carrier by the policy holder can also be done just to record this action in writing and ensure that it indeed was properly canceled.