HR Fast Facts: When Can Employees Cancel Their Health Insurance Coverage?
There are valid reasons for employees to cancel their health insurance coverage outside of open enrollment. Find out what they are here.
Here’s a list of valid reasons for employees canceling their insurance coverage outside of open enrollment.
- They just got married.
- They’ve just finalized a divorce.
- They just had a baby, or adopted a child.
- Their spouse got a new job.
- Their spouse’s coverage has changed.
- It’s currently their spouse’s open enrollment period.
- They’re entitled to Medicare and/or Medicaid.
- They’re taking FMLA leave.
- They’re relocating outside of my coverage network.
- They’re eligible to enroll in marketplace insurance.
- They’re part of a federally recognized tribe.
Why can’t employees just cancel coverage?
Per Section 125 regulations, subscribers may not alter their plan selections mid-year without a valid qualifying life event. Even if an insurance carrier does not require any documentation to cancel coverage, an employer may follow-up with an employee directly to verify the event.
