This video explains the rules and regulations regarding canceling health insurance coverage outside of your open enrollment period:
- If you receive health insurance from your job and your monthly premiums are paid on a pre-tax basis, you cannot cancel your plan at any time.
- Group health insurance plans with pre-tax premiums are considered “cafeteria plans” by the IRS, and there are specific rules around when you can start and stop coverage.
- To cancel your coverage during the year, you would typically need a “qualifying event” that allows you to make changes to your plan.
- If you don’t pay for your health insurance premiums on a pre-tax basis, technically, you are allowed to drop your insurance coverage at any time.
- INDRMD advises against canceling health insurance coverage, as you are required to have health insurance even though there is no longer a penalty for not having it.
It’s important to check with your specific insurance provider and employer for the exact rules and options regarding canceling health insurance coverage.
