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You may be able to drop your group insurance, depending on your employer, and the provisions of the policy. However, often, you are required to keep coverage until the next Open Enrollment, which is typically towards the end of the year.
It is possible that your plan may offer exceptions that allow you to terminate coverage. You can check with the HR Department of your employer, and they will be happy to review your benefits and contract, and make a determination regarding canceling the policy.
An IRS Section 125 plan is often utilized by employers, which may involve tax-favored dollars used to pay premiums. In these situations, as earlier mentioned, early cancellation of the policy may be a bigger challenge.
Keep in mind that if you end benefits, you may not be eligible to obtain a subsidized Marketplace plan since you voluntarily ended your health insurance coverage.
This question was answered by Ed Harris, one of the nation's premier health insurance gurus with more than 34 years of experience.
If you are contributing towards the cost of your health insurance through your employer (and most people are these days) and if those dollars are being taken out of your paycheck on a pre-tax basis that is an indication that your employer has an IRS Section 125 plan in place (which is extremely common). There are tax advantages to both the employee and the employer for using a Section 125 plan as it saves both of you money. However, one of the catches is that you are essentially locked into your plan selection until the next open enrollment period at your employer. So, this generally prevents an employee from changing their coverage status outside of the annual open enrollment period. There are exceptions allowed for what are referred to as change of life status events such as getting married, divorced, having a child or loss of other insurance coverage.
If your employer does not have a Section 125 plan in place and is not paying 100% of the premium cost for their group health insurance then you would not be prohibited from dropping your coverage.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Can you drop your employers health insurance at any time? Well, it will depend on the plan options. Usually in the case of financial hardship a person can waive off a health plan. But if you were to do this, you cannot return until the plan renews or offers a open enrollment period.
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It is possible that your plan may offer exceptions that allow you to terminate coverage. You can check with the HR Department of your employer, and they will be happy to review your benefits and contract, and make a determination regarding canceling the policy.
An IRS Section 125 plan is often utilized by employers, which may involve tax-favored dollars used to pay premiums. In these situations, as earlier mentioned, early cancellation of the policy may be a bigger challenge.
Keep in mind that if you end benefits, you may not be eligible to obtain a subsidized Marketplace plan since you voluntarily ended your health insurance coverage.
This question was answered by Ed Harris, one of the nation's premier health insurance gurus with more than 34 years of experience.
If your employer does not have a Section 125 plan in place and is not paying 100% of the premium cost for their group health insurance then you would not be prohibited from dropping your coverage.