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.

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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.

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