Can I cancel FEHB outside of open season?

Yes, you can keep your Federal Employees Health Benefits (FEHB) instead of enrolling in Medicare Part B.

How It Works Without Medicare Part B

• Primary Coverage: Your FEHB plan remains your primary health insurance.
• Same Benefits: Your copays, deductibles, and provider networks stay exactly the same as they were. Your FEHB carrier will not drop you or reduce your coverage.
• No Extra Cost: You only pay your standard FEHB premium without adding a monthly Medicare Part B fee.

Important Risks and Rules

• No Out-of-Pocket Cap from Medicare: Original Medicare helps cap catastrophic costs when combined with FEHB, but FEHB alone handles claims under its own rules.
• Late Enrollment Penalties: If you decline Medicare Part B at age 65 and decide to sign up later in retirement, you may face a permanent 10% late-enrollment penalty for every 12 months you delayed.
• The Exception: Postal Service retirees fall under Postal Service Health Benefits (PSHB) rules, which may have different mandatory Part B requirements.

You can cancel your FEPblue (Federal Employees Health Benefits) coverage through your employing agency or retirement office during the annual Open Season or within 60 days of a Qualifying Life Event.

When You Can Cancel

• Open Season: Typically runs from the second Monday of November through the second Monday of December, with changes taking effect the next year.
• Qualifying Life Event (QLE): Major life changes like marriage, divorce, or gaining other health coverage allow you to cancel within 60 days of the event. Your cancellation must match the specific QLE.

How to Submit the Cancellation

• Active Federal Employees: Log in to your agency's official employee benefits portal (such as Employee Express, EBIS, or HR Links) to waive or cancel your enrollment electronically. You can also submit a standard Health Benefits Election Form (SF-2809) through your human resources or personnel office.
• Retirees / Annuitants: Contact OPM's Retirement Services or call OPM's Retirement Information Office at 1-888-767-6738 to process the change or request the appropriate cancellation paperwork.

Most users on Reddit r/fednews agree that if you are retiring, you should carefully consider suspending your coverage instead of permanently canceling it if you are moving to TRICARE or CHAMPVA, because outright cancellation may prevent you from re-enrolling later.

No, you should not just stop paying your health insurance premiums to cancel your plan.

While non-payment will eventually result in your coverage terminating, doing this causes several serious issues:

Risks of Not Paying to Cancel

• Ongoing Collection Efforts: Your insurer may still try to collect unpaid premiums or late fees for the months before the policy officially terminates.
• Tax Credit Complications: If you have a Marketplace plan with government premium tax credits, the government might keep paying the subsidy for a month or more before cancellation processes. You could owe that money back to the IRS.
• Grace Period Delays: Many plans have a grace period (such as 30 to 90 days) where your account remains active or pending, meaning the formal cancellation takes much longer than you want.

How to Properly Cancel Instead

• Contact Your Provider: Log into your HealthCare.gov or state marketplace account, or call your insurance company directly to request an official end date.
• Turn Off Auto-Pay: Make sure to manually stop automatic withdrawals so you are not accidentally billed after your chosen end date.
• Watch Out for Re-enrollment Rules: Voluntarily dropping your coverage does not qualify you for a Special Enrollment Period. You won't be able to sign up for a new standard plan until the next Open Enrollment Period.

You cannot sign up for a standard Affordable Care Act (ACA) health insurance plan outside of open enrollment unless you qualify for a Special Enrollment Period (SEP).

Special Enrollment Periods

• Qualifying life events: Major changes like losing a job-based plan, getting married, having a baby, or moving to a new county allow you to sign up.
• Time limits: You typically have 60 days from the date of the event to enroll in a new plan.
• Medicaid and CHIP: You can apply for free or low-cost state programs like Medicaid or the Children’s Health Insurance Program at any time of the year if you qualify.

Alternative Options

• Short-term plans: Temporary coverage is available in some states, but these plans do not cover pre-existing conditions and are not regulated by the ACA.
• Alternative programs: Options like Farm Bureau plans or health sharing ministries exist in certain areas, but they are not official insurance and have strict limits.
• Supplemental policies: You can buy limited-benefit plans for dental, vision, or specific accidents year-round, though they do not replace full health insurance.

Under the Affordable Care Act (ACA), the 90-day rule states that employer-sponsored group health plans cannot impose a waiting period longer than 90 calendar days before an eligible employee's coverage begins.

Key Details of the Rule

• Maximum Limit: 90 calendar days is the absolute legal limit. Employers can choose a shorter waiting period or offer coverage on day one, but they cannot go past 90 days.
• Calendar Days Count: Every single calendar day counts, including weekends and holidays.
• Not "3 Months": 90 days does not equal three months. Waiting until the first of the month after 90 days violates the law if it pushes the start date past the 90-day mark.
• Coverage Start: Coverage must become active no later than the 91st calendar day after the employee becomes eligible.
• No Mandate to Offer: The rule does not force employers to provide health insurance. It only regulates the waiting time when a group health plan is already provided.