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Canceling ACA Health Insurance in Texas

You can cancel your ACA insurance at any time in Texas. Your decision may be because you got another health coverage or for personal reasons. You can either cancel your ACA coverage (including dental) entirely or cancel your stand-alone dental plan and keep your ACA plan. Make sure that when you are canceling your plan, you consult a state-licensed insurance professional, who can explain the impact of canceling your plan and provide you with options after cancellation, if you need them.

How Do I Cancel an ACA Health Insurance Plan?

You can either cancel your ACA insurance online or by telephone.

For the Individual Marketplace :

  • You can cancel your plan online by logging into your HealthCare.gov account. Browse to the "My Plans & Programs" tab and select the option to "End (Terminate) All Coverage). Provide the date that you want your coverage to end and follow the instructions to cancel the policy.
  • You can also cancel your plan by calling the Marketplace Call Center on (800) 318-2596 and your health plan provider. Let them know that you want to cancel your coverage.

For the employer-sponsored ACA health insurance in Texas:

  • You are usually able to cancel coverage over the phone, unless your employer's Human Resources department requires additional documentation, to acknowledge your decision.

Note that if it is a household plan, you can simply remove a person from the plan and keep the coverage for other members.

Other tips to note when canceling your ACA insurance plans include:

  • When you terminate your ACA coverage for yourself or your entire household, you can make it take effect immediately or later. This later date can be when your new coverage will start. To ensure that your coverage ends on the correct date, make sure you call the Marketplace Call Center at (800) 318-2596 and request the change. Or you can use an agent to effect the cancellation.

  • If you have chosen to cancel your Marketplace plan, do so as soon as possible. Typically, there is a 14-day delay before coverage expires, which means you will be liable for premium payments throughout that period. However, there is an exception if you are terminating coverage for your spouse and other dependents. In such instances, the cancellation is usually immediate.

  • If you are not getting new coverage outside the ACA, try to cancel your plan during an open enrollment period. If you do this, you can easily move to a new plan. However, if you cancel outside an open enrollment period, you will not get a new ACA plan until the next open enrollment period. Although if you have a life-changing event, you may get another ACA plan during the special enrollment period.

  • Check your bank statements to ensure that you have not been charged for your canceled insurance. When you cancel insurance, you usually get a refund check of unused premium.

  • Talk to a licensed insurance agent in Texas if you have any questions about canceling your ACA insurance and how this decision affects your health insurance needs.

  • You should not purposely stop paying your monthly premiums because you are trying to cancel your ACA plan. While nonpayment will cause your coverage to end, it will have a bad effect in the future. For example, that insurer can stop you from signing up for that coverage again.

Is it Bad to Cancel ACA Health Insurance Policy?

It is not exactly bad to cancel your ACA insurance. What is bad is when you have no health coverage at all. So, whenever you want to cancel your insurance policy, you should have another coverage to replace it. It could be from your job or a government program. Also, you should know when the coverage will begin because you do not want to have a period where you will be without health coverage.

Having no health coverage has disadvantageous effects because while no one plans on getting sick or hurt, people still do. Having health insurance can financially protect you during serious medical emergencies. Even a minor sickness can cost you a lot of money to treat. Also, depending on your insurance coverage, you may have access to preventative services. As the saying goes, "prevention is better than cure." With preventive services, you can take care of a medical condition before it even happens. ACA insurance provides you with covered preventive health services, such as vaccinations, counseling, and check-up tests.

If you must pay for every medical procedure out-of-pocket, without insurance coverage, you may make healthcare decisions primarily on cost rather than what is best for your health. And if you are unable to cover your medical expenses, you may go into medical debt, which can further limit your options.

Can I Cancel ACA Insurance Without Penalty?

Yes, you can cancel your ACA insurance in Texas without penalty. Your cancellation can happen immediately or at a later date. When it comes time to discontinue your insurance coverage, consulting a Texas insurance professional is your best option.

Ensure that you do not cancel your insurance because of nonpayment of premiums. Forcing your ACA insurance to cancel because of nonpayment premiums has a few disadvantages. For example, the insurance company may bar you from buying any of their plans in the future.

When Should I Drop ACA Coverage?

You should drop your ACA coverage only when you are able to get health insurance from a different source:

Do I Get a Refund of Unused Premiums if I Cancel Texas Obamacare Insurance Coverage?

Generally, premiums for ACA (Obamacare) insurance coverage are paid every month in Texas. Hence, you will most likely not have any "unused" premiums when you cancel your ACA insurance.

However, if you cancel coverage partially unfinished, Texas insurer is required to refund all unused premiums back to you, usually via a paper check through the mail

Also, since 2013, people whose insurance company has not spent at least 80% of their premiums on medical care have gotten refunds from their insurer. You can check if you qualify for such end-of-the-year refunds.

How Can I Reinstate Canceled ACA Insurance?

You cannot reinstate a canceled ACA insurance plan. However, you may be able to enroll in it again during the open enrollment or special enrollment periods, if you qualify for it, and if the insurer offers this exact plan at the time of enrollment.

If you have any questions about selecting health insurance that meets your specific needs, talk to a state-licensed insurance professional

For employer-sponsored group insurance, discuss the start of a new ACA plan with your employee benefit department.