I have been actively searching for jobs since I was terminated in September (never thinking it would be more than a month before I found something). In my career, healthcare is always provided as a benefit, so I have optimistically waited to enroll. Assuming I get a job within the next few months (I have several interview lined up), can I cancel insurance bought through the marketplace, when my new employer provides it as part of my benefits?

 


Answer

You can and should cancel your Marketplace health plan when your new employer coverage starts. Make sure to drop your plan so that the employer plan starts when the old plan ends. You won't want a gap in coverage. You won't lose cost assistance eligibly until the employer plan starts.

Keep in mind that if your marketplace coverage extends past your start date for the employer, you could face one month where you pay for two plans... and the Marketplace plan wouldn't be eligible for cost assistance!

To cancel your coverage, log in to your Marketplace account and select the red “Terminate/end all coverage” button. Make sure to cancel after you have paid the last premium you need to pay to avoid coverage gaps.

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Rebecca on

In addition to canceling Marketplace insurance, what about when i do my taxes and my gross income amount has changed from what i estimated before i had a new job. How does one fill out tax forms to reflect this?

ObamaCareFacts.com on

When you file form 8962 you will calculate your actual tax credit based on your actual income. You will then request a tax refund or pay back advanced tax credits as per the instructions on 8962. Learn more here: https://obamacarefacts.com/premium-tax-credit-form-8962/

MK on

I started a new job, in which I receive health insurance. I quit paying the premiums for my insurance through the Healthlink, but I forgot to actually terminate the plan until recently. The payment for my premiums are due and failure to pay will result in loss of coverage. However, I don’t need this coverage anyway since I now have it through my employer. If I do not pay the premiums, will this be able to affect my employer-paid coverage?

Deborah Bogle on

I want to see in writing the rule for a health plan to charge me when I don’t pay due to gaining coverage through Oregon health plan. I want to know if it is legal for them to charge me for the month my coverage ended. I need to see a rule in this they have sent me to collections.

Adam on

conflicting statements:
You won’t lose cost assistance eligibly until the employer plan starts.

Keep in mind that if your marketplace coverage extends past your start date for the employer, you could face one month where you pay for two plans… and the Marketplace plan wouldn’t be eligible for cost assistance!

If I am making money at a new job but don’t have insurance for some waiting period, then what is my situation?

ObamaCareFacts.com on

So what we mean here is that you want to avoid overlap. So you want to make sure your coverage is canceled as close to your employer start date as possible.

If you hold two plans in one month, you are essentially paying for two plans. It can be hard to avoid this, but with cost assistance considered, you can see how it would get messy. So when you know your new insurance will start coordinate your old insurance to cancel. Try to avoid a gap in coverage, but keep in mind that a gap can be better than an overlap in many cases.

An ideal system is probably less complex, but this is the gist. Make sense? Feel free to ask a followup.

AJ on

I had an ACA plan for a couple of months at the beginning of 2018 because my employer didn’t offer group insurance. I got a different job in 2018 with higher income and with group insurance, and canceled my ACA plan right away. Now my tax software says I need to pay back premiums, even though my increased income was only after I cancelled my ACA plan. Is that right?

ObamaCareFacts.com on

In general yes, if it happened in the same year then it could be. Assistance is based on annual income, not just income while you have the marketplace plan. The tax credits are actually just “tax credits taken in advanced based on annual income and then accounted for at tax time.” That said, it is still subject to repayment limits. https://obamacarefacts.com/advanced-tax-credit-repayment-limits/

Jason on

I had marketplace insurance for 10 out of 12 months in 2018, started a new job in October of 2018 one of the benefits being employer paid insurance. I notified my health exchange in October to terminate the marketplace plan prior to my new employers plan starting in November. The health exchange did not manage to do that, and paid an APTC to the insurance company for November, which the insurance company was not entitled to, for I had employer paid insurance in effect for November and December. Is the the insurance company obligated to return that extra month’s credit to my health exchange?

ObamaCareFacts.com on

You can generally appeal a marketplace decision or action.

If you notified them with enough time to cancel the plan, then this should not have happened.

Learn more about appeal rights: https://www.healthcare.gov/marketplace-appeals/what-you-can-appeal/

Tony on

Hi. This is a tough one I hope you can help. I applied for and received ACA coverage for 2018 during open enrollment 12/17 as a single unmarried person who made $27k/yr and working multiple PT jobs, so I qualified for Advanced Tax Credits in order to offset the cost of coverage. 3 things happened after. 1) I got a FT job w/ employer health insurance. 2) I forgot to cancel the ACA coverage and it overlapped so once I realized it I cancelled but it still has me receiving ATC on my 1095 even though I was paying for health insurance through my employer, dumb but honest mistake. 3) I was unmarried on 1/1/18 but got married on 12/15/18 and we filed married jointly and were both on separate employer health coverage for all 12 months of the year. Our combined AGI has us outside the federal poverty line by a large % but I’m curious if I’m eligible to bring the reconciled APTC $ repayment down at all from the full amount based on “alternative calculation for your year of marriage.” Please help!

ObamaCareFacts.com on

You are right, that is not a simple one.

First and foremost the rule that you can’t have access to employer coverage and ACA tax credits probably takes precedent over all else.

So logically you will have to pay back some credits.

From there it is about applying the alternative calculation. You got married the last month in the year, so I would very much think you have room to do this. That could potentially qualify you for some limits on the repayment.

That said, this is beyond what I can do in my head and without specifics. I would 1000% see a CPA on this one myself, and thus it would be silly for me to try to play CPA.

I will only say that, depending on your income alone and your total income there may be a way. Also, maybe just maybe there is some sort of special exemption you can take based on your confusion (especially if a marketplace assister pushed you in the wrong direction given your employment status). Again though, you likely need a tax professional on this one.