How to cancel Medicare?

Although many assume they will enroll in Medicare when they turn 65, some people find that their existing health insurance through their union or job provides the care and coverage they prefer.

In addition, healthcare needs will change over time. Some people wonder if they can cancel their Medicare coverage in favor of another policy. The truth is, canceling Medicare is much different than dropping or changing other kinds of health insurance. 

Can you cancel Medicare Part A? 

Many people do not enroll but are enrolled in Medicare Part A when they begin receiving Social Security, railroad retirement, or disability benefits. In these cases, Social Security automatically enrolls you in Part A and then gives you the choice of opting into Part B or not. As a result, you cannot cancel Medicare Part A unless you are also willing to withdraw your application for Social Security benefits.  

How to cancel Medicare Part A? 

If you decide that you want to disenroll from Part A after you have received benefits for several years, you will have to pay those benefits back. Very few people pay for Medicare Part A, so it is a somewhat arduous process to cancel it and can cost you thousands of dollars in returned SSA benefits.  

Your other option is not to apply for Social Security benefits right away. People continuing to work who have an employer-sponsored health insurance plan may save money by declining to enroll in Medicare Part A if they have a health savings account (HSA). IRS laws prohibit people from contributing pre-tax dollars to their HSA if they are enrolled in Medicare and receiving Social Security benefits. 

Can I cancel Medicare Part B? 

Yes, you can cancel your Medicare Part B. People enrolled in Medicare Part A will receive instructions on how to opt out of Medicare Part B. If they do not follow those instructions, they will be enrolled in Part B automatically. However, canceling Medicare Part B is a serious decision that people should consider very carefully. It may have a cost-savings effect in the short term but be a very costly decision in the long term.

If you were enrolled in Part B and then disenrolled, you may struggle to enroll at a later date. Your coverage may come at a significantly higher cost, with steeper deductibles for the same care you initially had before canceling. 

How to cancel Medicare Part B? 

If you have looked at your options and decide to cancel Medicare Part B, you must disenroll by phone or in person. You can call the Social Security Administration (SSA) or your local SSA office to complete the disenrollment process. It is only possible to disenroll from your Part B plan by speaking to an agent directly in person or by phone, so you will not be able to cancel Part B online. The agent will interview you to ensure you understand how disenrolling can affect re-enrolling in the future.  

Another way to cancel Part B is to opt out of it when you receive your Medicare Part A welcome pack. If you don’t want to be automatically enrolled, you must follow the steps at that time. 

How to cancel Medicare Supplemental Insurance? 

Medicare Supplement Plans, also known as Medigap, help fill in holes in your Medicare coverage. This type of policy helps to reduce the out-of-pocket spending that is left after applying Parts A and B to your care. But unlike the complex process of canceling Medicare Parts A and B, unenrolling from Medigap is more straightforward. With these supplemental policies, you have a right to cancel your policy at any time. The caveat is that if you want to enroll again later, there is no guarantee that an insurance company will accept you. 

To cancel your Medicare Supplemental Insurance plan, call the company that administers your plan and tell them that you no longer want the coverage. The representative will help you through the process. In some cases, they may ask you to send a formal, typed, or written termination letter. However, there is no penalty for canceling your supplemental insurance. 

How can I cancel Medicare Advantage? 

Medicare Advantage, also known as Part C, is not as challenging to cancel as Parts A and B. However, you also cannot cancel at any time. If you no longer want to have Medicare Advantage, you must change or cancel your plan during the Fall Annual Enrollment Period (AEP) or the Medicare Advantage Open Enrollment Period (OEP). The Fall AEP occurs between October 15 and December 7 every year, and the OEP runs from January 1 to March 31.  

But if you enrolled in a Medicare Advantage plan during the Initial Enrollment Period—when you first became eligible for Medicare—then you can switch or cancel your Medicare Advantage plan within three months of that Initial Enrollment Period. 

And finally, some specific life events could cause you to become eligible for a Special Enrollment Period, and you could change or cancel your coverage at this time.  

Weigh your options when canceling Your Medicare 

There are multiple parts to your Medicare, and each one works differently. As a result, you may need to change or cancel some aspects of your coverage. In many cases, canceling coverage is cost-related, but people also cancel because they are moving to a place that doesn’t offer their existing plan network. Or some people are moving out of the country with no plans to move back and can no longer utilize the insurance.  

When considering whether to cancel your Medicare or change your coverage, you must think about your personal situation and overall health, not just currently but what might happen in the future. While it can be impossible to predict your needs five or ten years down the road, it’s important to think about all the possible repercussions of canceling Medicare. If you need help selecting a Medicare plan in the first place, be sure to compare plans in your county.