Can I cancel my insurance coverage mid-year?

Employees with a valid reason for canceling coverage are able to cancel existing medical, dental, or vision coverage outside of their company's Initial or Open Enrollment period.

You may need to provide a Certificate of Creditable Coverage (COCC) if you are canceling because you're already covered on a different plan.

To cancel your personal insurance coverage after a QLE occurs, you can follow the steps below.

  1. Log in to the Zenefits dashboard
  2. Click on the Medical Insurance app
  3. Click Make Changes
  4. Indicate your desired change
  5. Select your Qualifying Event from the Reason for Change dropdown
  6. Input your event date
  7. Select the coverage to cancel, and click Continue
  8. Type and sign your name
  9. Click Cancel my insurance to confirm.

Why do I have to have a qualifying life event to cancel my coverage?

Section 125 requires a valid qualifying life event in order to make any changes to insurance mid-year. Failure to abide by this means that the employer is subject to IRS enforcement actions. Both employer and employee are subject to tax penalties. Allowing election changes based on subscriber request is only permitted when benefits are on an after-tax basis outside a cafeteria plan.

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