Canceling Previous Insurance Coverage Before New Application Approval

When an employee enrolls in their company's health insurance plan, it's recommended that they do not cancel any existing coverage until they have their official approval from the insurance carrier.

  • Delays can happen for a variety of reasons (missing information, etc.), so waiting until approval has come through is the best way to avoid any accidental lapses in coverage.
  • Once the employee receives confirmation that their application has completed processing, they should reach out to their previous insurance carrier to cancel their old coverage retroactively.

Note about retroactive cancelation

Carriers may or may not allow employees to cancel their coverage retroactively if they have used that coverage that month. It is recommended that employees do not use their previous coverage if possible while their application is being processed.

In the event that the employee needs to use their previous coverage, the carrier may deny the retroactive cancellation, or otherwise may process it and bill the employee for claims that were paid for that month. The employee should discuss their options with their insurance carrier.

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