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.