The Affordable Care Act (ACA) makes health insurance more accessible and affordable by prohibiting insurers from denying coverage to those with preexisting conditions, eliminating lifetime dollar limits, and permitting individuals to select plans that best meet their lifestyles.
Before the Affordable Care Act was implemented, many Americans were denied health coverage unless they could pay an extremely expensive premium.
Can I Cancel My Coverage?
Before the Affordable Care Act was put into place, some individuals with preexisting conditions were either denied coverage altogether or only available for limited amounts of time. Now though, thanks to this reform measure, insurers cannot deny them coverage or increase premiums unfairly.
If you qualify for COBRA after losing your job and qualify, COBRA allows you to continue group health coverage for an indeterminate period – but at an increased cost as your employer no longer contributes towards it; rather, you must cover both full costs plus an administrative fee of 2%.
Privately purchased major medical plans can be cancelled at any time, although certain rules must be observed first. Contact your insurer for details and review bank statements regularly to make sure there are no further bills being generated by an uncanceled policy.
Can I Cancel My Premiums?
Before the health reform law went into effect, insurance companies could cancel your coverage if you were late paying premiums, potentially depriving you of medical treatment until your policy was back up and running again. Now this no longer happens – simply contact your provider as usual when late premium payments come due for assistance with coverage reinstatement.
One of the many reasons you might wish to cancel a marketplace plan could be that you have become eligible for virtually free job-based insurance or Medicaid, someone in your household became eligible for Medicare, or it no longer fits within your budget. When cancelling, follow all steps carefully so your coverage is properly cancelled – make sure that bank statements and confirmation numbers arrive regularly as a check against accuracy.
Can I Cancel My Subsidies?
Obamacare (officially the Patient Protection and Affordable Care Act) offers subsidies to assist people in affording their health insurance premiums. Payments may either be made upfront or included as deductions on your tax return at year’s end.
As part of the Open Enrollment Period (OEP), when enrolling in a plan during OEP you can estimate your income to determine if any subsidy assistance applies. Furthermore, at any point throughout the year you can update this estimate should circumstances change or it simply needs updating to reflect actual results.
If you miss the Open Enrollment Period (OEP), but experience an event qualifying as qualifying (such as losing your job or moving), special enrollment periods offer another way for signing up – although at an increased cost.
Can I Cancel My Plan?
Your Affordable Care Act marketplace plan may be cancelled at any time, though any subsequent enrollment period (typically November 1-January 15) won’t allow for selection until your state opens for enrollment again.
Reasons to cancel Marketplace coverage vary; perhaps you have made the switch to an employer-based plan, reached 65 and qualify for Medicare, or someone in your household becomes eligible for Medicaid or CHIP coverage.
Canceling your plan as soon as possible is crucial; typically there is a 14-day cancellation delay and you’ll owe premiums during that timeframe. Also important: cancelling before losing your subsidy.
Can I Get a Full Refund?
The Affordable Care Act, more commonly known by its nickname Obamacare, was signed into law by President Barack Obama in 2010. The purpose of the ACA is to make health insurance more cost-effective for Americans.
The Affordable Care Act includes several provisions designed to make health insurance more accessible, such as premium tax credits for those earning incomes below 400% of poverty level. These subsidies can only be claimed by those with incomes exceeding 400% poverty threshold.
If a person receiving premium subsidies decides to cancel their coverage and use up all or some of their subsidy, they could owe one month’s past-due premiums as it will be reconciled on their tax return.
However, if an individual receiving no premium subsidy cancels coverage without first officially cancelling their plan, any outstanding premiums will not be due as these payments were already occurring every month and they hadn’t formally cancelled it.
