Can I drop my health insurance without a qualifying event?

A lot of questions are always around concerning health insurance. You must have come across a few as well if you have taken a health insurance policy. One of the questions is – Can I drop my health insurance without a qualifying event? You can discontinue existing medical, dental, or vision coverage outside of your company’s Initial or Open Enrollment period if you have a sufficient cause. Let the article discuss the topic in detail.

What is considered a qualifying life event (QLE)?

You might face a situation where you wish to discontinue your existing health insurance without a qualifying event. You can cancel your health insurance at any time. However, cancellation charges entirely depend on your insurer.
Qualifying life events are those situations that cause a change in your life that affects your health insurance options or requirements. The IRS states that a qualifying event must have an impact on your insurance needs or change what health insurance plans that you qualify for. In either case, the qualifying life event would trigger a special enrollment period that would make you eligible to select a new individual insurance policy through the state marketplace.
Qualifying life events can be divided into four categories. (These are only a few examples; there isn’t a complete list.

1. Loss of health insurance coverage

• Existing health coverage, such as job-based, individual, and student insurance, is being phased out
• Loss of Medicare, Medicaid, or CHIP eligibility
• When you reach the age of 26, you can no longer be covered under your parent’s plan.

2. Changes in the family

• Getting married or divorcing is a big decision
• Having a kid or adopting one
• A family member has passed away.

3. Changes in address

• Transferring to a new ZIP code or county
• A student who is transferring to or from their current school
• A seasonal worker who is relocating to or from the location where they live and work
• Transferring to or from a shelter or other temporary lodgings.

4. Other events that qualify

• Changes in your income can have an impact on the coverage you are eligible for
• Becoming a member of a federally recognized tribe or a stakeholder in the Alaska Native Claims Settlement Act (ANCSA) Corporation
• Obtaining citizenship in the United States
• Getting out of jail (jail or prison)
• Members of AmeriCorps who are starting or finishing their service.

What is a Special Enrollment Period (SEP)?

You can drop your health insurance during SEP. A special enrollment period is a designated period under the Affordable Care Act (ACA) during which you can enroll in or alter your health insurance coverage. The 60-day special enrollment period begins on the date of a qualifying life event and ends 60 days afterward. You would be able to enroll in a new health insurance plan within these 60 days.

The SEP would end once the 60 days is passed. You would need to apply for new insurance at that point to be covered. If you do not choose a policy and do not have existing coverage, you will be without health insurance and may be eligible for state-run programs such as Medicaid.

Instead of canceling health insurance, you can consider switching providers or changing your level of cover, or canceling extra insurance. It will allow you to stay covered within your pocket.