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How to Cancel a Health Insurance Policy

January 1, 2010

The procedures in this article may apply to all health insurance policies but is specifically intended for use by MedSave.com policyholders.

Normal Cancellation Procedure

1.  To cancel a health insurance policy, call the customer service number that is listed on your ID card and in the policy document.  Call during east coast business hours, usually 8AM to 5PM eastern time, Monday to Friday.  Call volume is lower during mid-day hours on Tuesday, Wednesday or Thursday.

2.  The phone call should be made by the policy owner.  The insurer may not accept a cancellation request made by another person. 

3.  If you do not have the policy or the ID card, the customer service number may be obtained at http://www.medsave.com /contact.htm.  (Please note that MedSave.com and OnlineAdviser service can not cancel your policy).

4.  Have the policy number and your social security number available for verification of identity.

Alternate Cancellation Procedure

An alternate and often preferred method of cancelling insurance is to stop making premium payments and allow the policy to cancel for non-payment of premium 30 pays after the last premium payment was due.  If you pay on an automated month-to-month basis, then you can cancel the automated payment without actually cancelling the insurance.  This gives you additional time to allow the policy to cancel for non-payment, usually 30  days from the last payment date.  The advantage of this method is that it allows you to change your mind and reinstate the coverage if necessary simply by making the next premium payment.

Other "DOs"

1.  Record the name of the customer service representative and the confirmation number of the cancellation request.  Problems with cancellation requests are extremely rare, but it makes sense to document your actions.

2.  If your policy was paid by automatic bank draft and you cancelled coverage within 10 days of the next scheduled draft, please allow up to 30 days for the insurance company to refund the unearned premium.

3.  Understand the laws controlling short health medical insurance and travel health insurance differ from those of other policies.      In some states it is not possible to obtain a refund of a previously paid policy.

4.  Cancel a new policy within the first 10 days in order to obtain a full refund.  Cancellations after that date may be processed at the one month renewal date.

Other "DO NOTs"

1.  Do not ask an agent, employer, relative or premium payer or any other person to cancel your policy.

2.  Do not cancel your old insurance until you have received a new policy and reviewed the new coverage.

3.  Do not try to cancel your policy by e-mail or regular mail.

4.  Do not overlap major medical policies.  It is not allowed by law and you cannot submit claims to two different major medical policies.

4.  Do not cancel supplemental type health insurance when other major medical insurance is obtained because this supplemental coverage pays cash benefits to the policy owner in addition to other insurance that is available.

 

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