How Can I End a Marketplace Plan When I Get a Job-Based Plan?
Getting a new job calls for celebration, especially if you’ve been looking for work for some time. However, when you get a new job, there’s a lot of things to take care of and some paperwork to handle. This is especially true with regards to your health insurance.
If you get a job-based health insurance plan, then you’ll typically want to end your marketplace coverage. While this is fairly simple and straightforward, you’ll need to handle things properly to ensure you don’t have any coverage gaps and your family stays covered.
Don’t Cancel Too Soon!
First and foremost, do not jump the gun when canceling your marketplace coverage. If you cancel your policy before your new coverage ends or before you officially have a job, you won’t be able to re-enroll until the next open enrollment period.
As such, you could be without health insurance for some time. This is a huge risk for families and individuals alike. Plus, you could be forced to pay fines due to the Affordable Care Act mandates.
Wait until you officially have a job and know the exact date your health insurance from your new employer will kick in. Then cancel your marketplace coverage after that effective date. This will ensure you don’t have any gaps in coverage.
Out With The Old, In With The New
So, how do you end your marketplace coverage once you have health insurance from your new job? It’s fairly simple, no matter the situations. Here’s how to do it:
Removing or Changing Household Contact
A household contact is typically the individual that created the account in the marketplace. This individual usually filled the application for themselves, their spouse, and dependents.
If the household contact is leaving the plan, but others are staying (one example of such a change could be a divorce), then you cannot change or remove the household contact online. This would cancel coverage for all individuals on the plan.
Instead, you’ll want to contact the marketplace call center. The staff at the call center will help you change the contact or remove the household contact from the policy.
Canceling the Plan For All Involved
Changing or removing a household contact in a marketplace plan can be confusing, but canceling the plan for all involved is a little more cut and dry.
If you want to cancel coverage for everyone on the plan, that’s easier. It doesn’t matter if all have coverage from a different source or for some other reason. The termination can begin 14 days after you apply for cancellation.
You can also set termination to begin more than 14 days after you apply for it. It all depends on when your new coverage begins. To begin, just log into your account on the exchange.
Locate the update an existing application tab and click it.
Next, click your name and select the “My application & coverage” option. Then select the “Your existing applications,” option.
After, you’ll the select, “My plans & programs.” Scroll to the bottom of the page and you select the “End all coverage” button.
You’ll then type in the date you’d like coverage to end, which can be from 14 days after the current day.
Mark the “attestation” box and then click the big red “Terminate coverage” button.
You will then be informed that your coverage was terminated. You should see a red button that says, “Terminated” above the coverage you ended in the portal.
It’s important to note that you can end coverage for an individual in this manner, too. If need be, you may also cancel coverage by phone.
Ending Coverage for Certain Individuals on the Plan
If you want to keep coverage as the household contact, but a dependent or spouse needs to end their coverage, you can do so. Many families do this when a dependent gets a new job that offers benefits.
If you’re ending coverage for an individual on your plan, then the coverage will typically end immediately As such, you’ll want to wait until their new plan kicks in before ending the coverage.
If you need a desired end date for the individual, you’ll want to contact the marketplace call center and arrange it.
To end coverage for certain individuals on the plan, log on the marketplace account.
Click the, “Update existing application” button. Then select your name and the, “My applications & coverage” option.
Next, select “Your existing applications.”
Choose “Report a life change” from the menu. Then click, “Report a life change” at the bottom.
You’ll then choose, “Report a change in my household’s income, size, or other information.”
Mark the attestation box and then “Save & continue.” You’ll continue filling out the application with the correct information.
Click “Remove” for any individuals you want to cancel coverage for. Answer the questions that follow. Then confirm all removals.
It’s important to note that you must remove each individual one by one. Then confirm each removal individually.
Once you have removed everyone you’d like, click “Save” and the changes will be applied. Just make sure to fill out everything and answer all questions until the changes have been confirmed.
Transitioning to a Job-Based Plan
Use the information above as a guideline when transitioning to a job-based plan or removing individuals from your coverage in the marketplace. With the instructions above and the easy to use marketplace portal, you should have little issue managing your health insurance. If you have any questions or need assistance call 1 800-793-3803 now to speak to one of our agents.