How can clients cancel their Marketplace plan outside of Open Enrollment?

Clients can cancel their Marketplace plan outside of Open Enrollment by requesting a Special Enrollment Period (SEP) due to qualifying life events. This is correct because qualifying life events, such as losing other health coverage, moving, getting married, or having a baby, create opportunities for individuals to make changes to their health coverage. During a Special Enrollment Period, clients can enroll in, modify, or cancel their Marketplace health plans as their circumstances change.

In contrast, contacting an insurance provider directly typically pertains to issues such as claims or policy details rather than the termination of a Marketplace plan, which must go through the Marketplace itself. Submitting a written application to cancel a policy is not a recognized method within the Marketplace guidelines, and canceling a plan is not permissible simply by waiting until the next Open Enrollment Period, as that would not effectively address immediate changes in circumstances that encompass qualifying life events. This process ensures that clients have flexibility and access to health coverage in alignment with their life changes.