COBRA (Consolidated Omnibus Budget Reconciliation Act) insurance is meant to keep people safeguarded who have had their employer based health insurance stripped from them. Nevertheless, you may reach a point when you require to dropped the COBRA. If you have a new job with health benefits, if you are wishing to change the insurance plan, or if you do not require insurance anymore then it is vital to know how to cancel COBRA insurance. In this article, you will find out how to cancel COBRA insurance, the procedure and further possibilities.
How to Quit COBRA Insurance
Check the Particulars of Your COBRA
COBRA insurance plan information should be consulted prior to cancellation so that the coverage date and any conditions to cancellation are known by the patient.
Contact Your COBRA Administrator
Contact the person or company managing your COBRA administration or your COBRA benefits if need be. This is usually courteously your ex-employer’s human resources section or a company that the COBRA administrator employs.
Submit a Cancellation Request
Write a general notice informing your intention to discontinue the payment of COBRA insurance. Such a request should incorporate your personal details, your policy number and the cancellation date that takes effect from.
Provide Necessary Documentation
Some of the documents that may be needed include; proof of new insurance coverage or a formal request form as offered by the COBRA administrator.
Completion of Cancellation request and getting the written confirmation
This should be in writing from the COBRA administrator to confirm that your cancellation has been granted. These annotations are for your reference and to establish that coverage has ceased on your case.
Search/look for Refund/Adjustment
If you have pre-paid your premiums, ask if you should receive any refund or if there will be any adjustment according to the cancellation date.
Timing and Conditions
Under which circumstances can the COBRA Insurance be canceled ?
Typically, you may opt out of COBRA insurance at any point while you are still X. However, you should know your coverage end date, and any terms about early cancellation that apply to you.
Are There Penalties for Early Cancellation?
COBRA insurance does not usually penalize the subscribers when they decide to cancel the policies in the middle of the coverage period. However, it is important to have some other type of health cover so that you do not sometime fall between the cracks and have no insurance cover at all.
If yes, how long does it take to cancel:
COBRA cancellation may take a shorter or longer time in processing. To avoid continued charges on the account after cancellation, speak with the COBRA administrator to confirm the cancellation process.
Documentation and Confirmation
What Documents Are Needed?
A written cancellation request, confirmation of proof of other coverage if any, other forms that may be required by the COBRA administrator.
Next, how can one get confirmation of cancellation?
It is recommendable you get a written communication from the COBRA administrator to confirm the cancellation of your request. Please note that this confirmation is your copy your copy.
Impact and Consequences
What Happens After Cancellation?
At the time that COBRA insurance is terminated, the services of that plan will no longer be available to you. It is vital to have other health insurance plans for you in case you are searching for an organization that can give astounding nonstop care.
To what extent does it affect Your Healthcare Coverage?
Taking a cancellation of COBRA implies that the individual requires another health insurance. Employer-ponsored health insurance, the Affordable Care Act health plans purchased through the Health Insurance Marketplace or other individual health insurance plans.
What are the Options Available If One Does Not Take the COBRA Insurance?
Check if it is possible to get a better health insurance through the Marketplace, Medicaid or a new producer’s plan.
Conclusion
COBRA insurance can be discontinued if the previous employee knows the right procedure and the new employee is aware of the policies. With the knowledge of how this cancellation process is done, as well as making sure you have appropriate backup health insurance policy, you can easily make the switch from using COBRA insurance to the preferred policy. Individual advice concerning COBRA can best be obtained from health insurance adviser or the COBRA administrator.