Medicaid is an important healthcare program that gives millions of low-income people and families access to needed medical services. But there could come a time when you want to cancel Medicaid insurance. But whether you have additional insurance, don’t qualify anymore because of your income, or just don’t want it anymore, effectively canceling Medicaid insurance is important.
Read on for our in depth guide to canceling Medicaid insurance covering the reasons for cancellation, how to cancel Medicaid insurance step by step, and things to consider before canceling Medicaid insurance.
What is Medicaid Insurance?
Before diving into the cancellation process, it’s important to know what Medicaid insurance is and why people need it. Medicaid is a federal and state program that helps pay medical costs for some people with very low incomes. There are several different Medicaid programs throughout the country—each state administers its own program, and eligibility criteria may differ from one state to another.
Medicaid typically includes a wide range of medical services, including hospital visits, doctor consultations, preventative care, prescriptions, and even long-term care. In general, Medicaid insurance eligibility is largely based on household size, income, age, pregnancy, and disabilities.
The healthcare services that Medicaid beneficiaries once enrolled are at little or no cost, depending on their income level. Medicaid is a lifeline for many, it is how many people can get the medical attention they need in their lives, regardless of their financial situation. Yet, there are many reasons why a person would want to stop “Medicaid insurance” and move to other coverage.
Why Might You Need to Cancel Medicaid Insurance?
Some people may want to cancel Medicaid insurance for any number of reasons. Knowing these reasons will also help inform you if you should cancel Medicaid or not.
1. Others Health Insurance Qualifying
And one of the most common reasons for abandoning Medicaid insurance is getting another kind of insurance. If you are hired, your employer offers employer-paid health coverage or you buy health insurance on the Health Insurance Marketplace, you will no longer need Medicaid. Other people may prefer private insurance because it may offer more extensive coverage or provide better access to specialists or networks preferred by the individual.
You want to cancel Medicaid when you do qualify for other insurance so that you don’t have unnecessary coverage. Insurance plans can often overlap so they cause the confusion, delays in medical billing and other administrative challenges.
2. Changes in Financial Status
Income largely determines whether or not someone will qualify for Medicaid. If you make more than your state’s Medicaid program allows, your financial situation changes or you receive a raise, you may not be eligible for coverage.
An example is if you do get a salary increase, get a new job with more pay, or no longer qualify for other reasons you must cancel Medicaid insurance. Failure to do so could mean you don’t get coverage or are overpaid benefits you no longer qualify for.
3. Change of Address to Another State
While your Medicaid coverage will follow you if you move the state you live in may change depending on your residence. Medicaid is a program of benefits for low income people run by each state, and each state has its own variations in eligibility criterion, benefits, and coverage. When you cross over state lines and no longer meet the requirements in the state you are in to qualify for Medicaid, then you must save your previous Medicaid insurance and reapply for coverage under that state’s program. You can also decide to apply for a different form of health insurance in the state you are residing in.
4. Coverage Needs and Personal Preference
However, some choose to stop using Medicaid insurance because they think that the coverage doesn’t suit them or other healthcare options. Medicaid plans, for instance, may have fewer benefits or no network of doctors available within the plan — this is something some people would prefer private insurance had. For some, they might switch to a more comprehensive plan quality.
Medicaid is a life saver in many cases — but not always. If you know that you no longer need Medicaid, then you should think of switching to other options.
Understanding the Process of Canceling Medicaid Insurance
After you know the reasons that Medicaid insurance can be canceled, it is necessary to know how to do this. If you want to cancel your Medicaid coverage effectively, read on:
1. Review Your Eligibility
Before you do anything about canceling your Medicaid insurance, make sure you’re still Medicaid-eligible. If you think your income or situation has changed, verifying you are still not entitled to benefits will stop you from losing entitlements you are still entitled to.
If you’re doubtful of your status, your Medicaid office should be able to confirm. This helps you from prematurely canceling coverage you still are entitled to.
2. Contact your state Medicaid Office
To cancel your Medicaid insurance you should contact the Medicaid office in your state. There is one Medicaid office for each state and you should call that office for help. Your state’s Medicaid office’s contact information is usually posted on your Medicaid card, or you can search online.
If you’re calling, let them know you want to cancel your coverage. The chances are good you will be asked to supply basic information like your Medicaid number, address, and date of birth. Be ready to add in documentation of any other health insurance forms you have.
3. You need to submit the request in writing
Some states will let you call and cancel your Medicaid insurance but others may require a formal written request. Submitting the written request often can be done via email, mail, or online via your state’s Medicaid portal.
Asking nicely to cancel your Medicaid and giving the reason, if applicable, is good, but make sure to be crystal clear, you want to cancel your Medicaid coverage. If you need to, they might want proof that your insurance has changed, or moved to another state, or that you’ve gotten another job so you can support yourself.
4. They’ll need you to finish up with the Required Paperwork
Failing that, some states may require you to complete the specific forms to cancel your Medicaid insurance. Make sure you fully and accurately fill all of these forms. If you don’t know how to do them, get help from a Medicaid rep. This paperwork may even ask you income, employment and other relevant questions.
5. Verify Cancellation
After requesting cancellation and submitting your forms, be sure to check in with your state’s Medicaid office. You’ll need to make sure that your request has been processed, and your coverage has officially been canceled. You should receive written notice of your Medicaid cancellation.
Once you retract a Medicaid choice, you will be confirmed, which will help ensure you can’t be billed for services and you no longer need to be billed.
6. Change policy of New Insurance
You don’t want gaps in the coverage if you are moving from one health insurance plan to another. If you are going from Medicaid to private insurance, work to arrange the dates so that your new health insurance starts on the date the Medicaid ends.
However, if you have a job with employer-sponsored insurance then make sure the coverage provided by your new insurance plan starts as soon as Medicaid health coverage ends. If you’re switching to a plan from the Health Insurance Marketplace, be sure to apply during open enrollment or a special enrollment period.
Things to Consider Before Cancelling Medicaid Insurance
Before you cancel your Medicaid insurance, there are several things to think about.
1. Other Coverage Eligibility
If you’re not sure if you have the option to change health insurance, or if you’re not eligible to cancel your current plan, it may be helpful to consider the other health insurance options first. If you are switching to a private insurance plan compare different plans so that you are getting the best coverage to meet your needs at a price that is the most cost-effective.
2. Calculated Cost of Alternative Health Insurance
A Medicaid plan is very inexpensive, and private insurance plans are much more expensive. If you have just a little income, you may struggle to pay the premiums, copays and deductibles of private insurance. The alternative plan you choose ought to be within your budget.
3. Potential Gaps in Coverage
But if your Medicaid is canceled and your new insurance doesn’t begin on the same day, you may have a gap while you’re uninsured. In a case of an unexpected illness or emergency, it can be very risky indeed. If you can, have your insurance plans start overlapping so you don’t have has in coverage.
4. Your Health Needs
Think before you cancel Medicaid – about your current health needs. Your new insurance plan had better cover if you have chronic conditions or ongoing care. And if your new insurance plan has fewer benefits and higher out of pocket costs, Medicaid may be a more affordable option for those with costly medical needs.
Conclusion
The final conclusion of the article is that cancellation of Medicaid insurance should not be made without thinking about it deeply. While you might be moving to another state, qualifying for a different form of insurance, or you may no longer need coverage, the process needs to be understood so that you can transition smoothly.
If you are one of those working hard to find new ways to cancel Medicaid, you should just follow the steps mentioned in this article. Before you cancel your Medicaid insurance, always make sure you verify the status of your eligibility, contact your state’s Medicaid office for guidance, and, if you have it, ensure you have alternate insurance in place. Taking these into account you’ll know what decision is best for your healthcare needs and your budget.