Could I, at any point, drop my health insurance without a qualifying event?

There are plenty of questions about health insurance. You must have come across a few as well if you have enrolled in a health insurance policy.

One of the most popular questions is– Can I drop my health insurance without a qualifying event?

Before answering the question, let’s understand what qualifying events are. These occasions in health insurance are occurrences that modify the amount of health insurance you need or change what health policies you can purchase. A qualifying life event is a necessity for access to special enrollment periods.

In this period, you are permitted to pick another health policy or update your existing insurance coverage. To take advantage of a special enrollment period, you typically need proof of the qualifying life event so that your health insurance changes can be approved.

Now to respond to the inquiry, you can discontinue existing medical, dental, or vision coverage outside of your company’s initial or open enrollment period if you have an adequate reason.

Let this insightful blog discuss the topic in detail.

What is considered a qualifying life event (QLE)?

You could experience a situation where you wish to end your existing health insurance without a qualifying event. You can drop your health insurance at any time. In any case, dropping charges completely relies upon your insurer.

The IRS expresses that a qualifying event should have an impact on your insurance needs or change what health insurance plans you meet all requirements for. In either case, the qualifying life event would trigger a special enrollment period that would make you eligible to choose a new individual insurance policy through the state marketplace.

Qualifying life events can be separated into four classifications. (These are a couple of examples; there isn’t a complete list).

Category	A few examples of qualifying life events
Loss of health insurance coverage	Existing health coverage, such as job-based, individual, and student insurance, is being phased out Loss of Medicare, Medicaid, or CHIP eligibility When you reach the age of 26, you can no longer be covered under your parent’s plan.
Changes in the family	Getting married or divorcing is a big decision Having a kid or adopting one A family member has passed away.
Changes in address	Moving to another ZIP code or county A student who is moving to or from their current school A seasonal worker who is migrating to or from the place where they reside and work Moving to or from a shelter or other temporary lodgings.
Other events that qualify	Changes in your pay can affect the coverage you are eligible for Turning into a member of a federally recognized tribe or a stakeholder in the Alaska Native Claims Settlement Act (ANCSA) Corporation Obtaining citizenship in the United States Getting out of jail (jail or prison) Members of AmeriCorps who are beginning or completing their service.

Qualifying events are assessed on a case-by-case basis by an underwriter. You can check the complete list of qualifying life events on HealthCare.gov.

Know about the special enrollment period (SEP)?

Under the Affordable Care Act (ACA), a special enrollment period is a set period wherein you would be permitted to sign up for or change your health insurance coverage. The special enrollment period typically lasts two months from the date of a qualifying life event. During these 60 days, you would be permitted to sign up for another health insurance plan.

Once the 60 days have expired, the SEP will be over. By then, you would have had to submit an application for a new policy to receive coverage. If you did not choose a policy and don’t have existing coverage, then, at that point, you would have no health insurance or could sign up for state-run programs like Medicaid if you are eligible.

Could I at any point, cancel my health insurance without a qualifying event?

Be assured that you can cancel your individual health insurance plan without a qualifying life event at any time. Yet, essentially remember that once you cancel your policy, you cannot enroll again until the next open enrollment period. During this time, you will have no health insurance coverage, which could be costly if you happen to get injured.

On the contrary, you cannot cancel an employer-sponsored health policy at any time. If you wish to cancel an employer plan outside of the company’s open enrollment, it would require a qualifying life event. Under Section 125 of the Internal Revenue Code, if you make a decision to drop without a QLE, then you and your employer will incur tax penalties.