How to cancel Marketplace insurance

To cancel your Marketplace insurance, contact your insurance company directly — not Healthcare.gov. Call the customer service number on your insurance card or policy documents, tell them you want to cancel, and ask when your coverage ends. Most insurers let you cancel effective immediately or on the first of the next month. You will receive a cancellation confirmation by mail, usually within two weeks.

If you enrolled through Healthcare.gov during open enrollment or a may have access to life event, canceling the policy does not affect your Marketplace account. Your account remains active, and you can enroll in a different plan anytime you have a may have access to event — such as losing employer coverage, moving to a new state, or getting married.

Canceling before your policy year ends may leave you without health coverage. If you are canceling to switch to a different plan, make sure the new coverage starts before the old one ends. If you are canceling because you can no longer afford premiums, look into whether you may have access to for a lower-cost plan or a different program before you cancel.

Key Takeaways

  • Contact your insurance company directly by phone to cancel — use the number on your insurance card or policy letter.
  • Cancellation usually takes effect immediately or on the first of the next month, depending on the insurer's policy.
  • You will receive written confirmation of cancellation by mail within two weeks.
  • Canceling your policy does not close your Marketplace account, so you can enroll in a new plan if you have a may have access to event.
  • If you cannot afford your current premiums, explore lower-cost plans or other programs before canceling to avoid a gap in coverage.

What happens to your Marketplace account when you cancel

Your Marketplace account and your insurance policy are separate. When you cancel the policy, your account stays open on Healthcare.gov. This means you can log back in anytime to enroll in a different plan — but only if you have a may have access to event, such as losing job-based coverage, moving states, getting married, having a child, or turning 26 and aging off a parent's plan.

If you cancel outside of open enrollment and do not have a may have access to event, you cannot enroll in a new Marketplace plan until the next open enrollment period, which usually runs from November 1 to January 15. The exception is if your cancellation itself triggers a may have access to event — for example, if you cancel because you are losing Medicaid coverage, that loss counts as a may have access to event and opens a 60-day window to enroll in a Marketplace plan.

Canceling to switch to a different Marketplace plan

If you want to switch to a cheaper or better-fitting plan, do not cancel first. Instead, log into your Marketplace account during open enrollment or within 60 days of a may have access to event, and select a new plan. Your new coverage will start on the first of the following month. Your old plan cancels automatically once the new one begins.

Switching this way avoids a gap in coverage and keeps your enrollment record clean. If you cancel the old plan before the new one starts, you could end up uninsured for days or weeks, which may trigger penalties or leave you exposed to medical bills.

Canceling because you cannot afford premiums

If your premiums have become unaffordable, canceling is not your only option. First, check whether you may have access to for a lower premium by updating your income on your Marketplace account. If your income has dropped, you may may have access to for a larger tax credit, which lowers your monthly payment. You can update your income anytime, and the change takes effect the first of the following month.

You can also shop for a cheaper plan during open enrollment or after a may have access to event. Marketplace plans vary widely in price and coverage, and switching to a lower-tier plan (like a Bronze plan instead of Silver) can cut your premium significantly.

If you are uninsured or underinsured and have very low income, you may also may have access to for Medicaid, which is free or nearly free in most states. Contact your state Medicaid office or call 211 to find out whether you may have access to and how to enroll.

What to do if you need coverage after cancellation

If you cancel and then realize you need coverage, your options depend on whether you have a may have access to event. A may have access to event is a major life change — job loss, moving, marriage, birth, loss of other coverage, or turning 26. If you have one, you have 60 days from the date of the event to enroll in a new Marketplace plan.

If you do not have a may have access to event, you must wait until the next open enrollment period to enroll in a Marketplace plan. In the meantime, you may be able to enroll in Medicaid if your income is low enough, or you can look into short-term health plans, though these offer limited coverage and are not considered Marketplace plans.

Canceling Marketplace insurance while on Medicaid

If you have both Marketplace insurance and Medicaid, canceling the Marketplace plan does not affect your Medicaid coverage. Medicaid is a separate program run by your state, and it continues until your state determines you no longer may have access to or until you request cancellation.

However, if you cancel your Marketplace plan because you enrolled in Medicaid, make sure Medicaid approval is final before you cancel. If Medicaid denies your application later, you will have a gap in coverage. Contact your state Medicaid office to confirm your enrollment is active before you cancel Marketplace insurance.

Canceling Marketplace insurance if you move out of state

Moving to a new state is a may have access to event. If you move, you have 60 days from your move date to enroll in a Marketplace plan in your new state. You do not have to cancel your old plan first — your new state's plan will take over on the first of the following month, and your old plan cancels automatically.

If you move to a state where your current plan does not operate, your insurer may cancel your plan for you on the date you move. Check your policy documents or call your insurer to confirm whether they cover your new state. If they do not, you must enroll in a new plan in your new state within 60 days to avoid a gap in coverage.

Frequently Asked Questions

Can I cancel my Marketplace insurance anytime, or only during open enrollment?

You can cancel anytime by calling your insurance company. However, you can only enroll in a new Marketplace plan during open enrollment (usually November 1 to January 15) or within 60 days of a may have access to event. If you cancel outside those windows without a may have access to event, you will be uninsured until the next open enrollment period.

Will canceling my Marketplace plan affect my tax refund?

Possibly. If you received tax credits to lower your premiums, the IRS will reconcile those credits when you file your taxes. If you cancel mid-year, you may have received more credits than you were may have access to to, which could reduce your refund. Report the cancellation date to your Marketplace account so the system can calculate your credits correctly.

What if my insurance company will not cancel my policy?

Insurance companies are required to cancel when you request it. If your insurer refuses, file a complaint with your state's Department of Insurance. You can find contact information on your state's insurance commissioner website. Include your policy number, the date you requested cancellation, and documentation of the request.

Do I have to pay my premium for the month I cancel?

That depends on your cancellation date and your insurer's policy. If you cancel on the first of the month, you typically do not owe that month's premium. If you cancel mid-month, you may owe a prorated amount for the days you were covered. Ask your insurer for a final bill or confirmation that no payment is due.

Can I cancel my Marketplace insurance if I have a pre-existing condition?

Yes. Marketplace plans cannot deny you coverage or charge you more because of a pre-existing condition, and they cannot refuse to cancel your policy for that reason either. You can cancel anytime, though you should have new coverage lined up before you do to avoid a gap.