Are you thinking of changing your insurance company but you don’t know how to cancel your health insurance, or what the consequences are?
Your birthday and the insurance premium skyrocket in the price?
Have they made you an offer for better and cheaper insurance?
In this article, you will find an answer to how to cancel health insurance, if you prefer to live without it or decide to change your insurance company.
We take out insurance with the intention that it lasts over time. Sometimes for one reason or another, we think that the time has come to change. They have raised the price, the service has not been what we expected or they have offered us better coverage. In short, we want to cancel health insurance and do it well so as not to have problems.
Like any other contract, its cancellation is subject to the stipulations established by law or by one of the parties. Therefore, to cancel it, you must do it correctly, acting according to the established procedure.
But also, if you plan to take out other insurance, you must take into account a series of circumstances so as not to have unpleasant surprises.
Are you starting to have doubts about how to do it? To solve them, I will tell you the 5 things that I would do before canceling health insurance.
How to cancel health insurance to avoid problems.
The first thing you should know is that health insurers establish that, in a generalized way, the contract ends on December 31. The duration of the insurance contract is usually 12 months, in the case of health, it is from its signing until the end of the calendar year. On this date, the insurance is automatically extended for one year and so on until its conclusion.
Once we know the date on which the insurance contract expires, these are the 5 things you should take into account before canceling it.
1. The contract cannot be terminated after it has been extended.
Once the insurance has been renewed for one more year, it cannot be terminated. You have to wait until the next expiration to be able to cancel it.
Only in certain cases is it possible to do so in advance: when the insurer, during the current period, modifies the conditions of the contract.
An unjustified increase in the price of insurance, modification of benefits, or a change in healthcare services are grounds for early termination.
If your company has you insured in a group health policy, terminate the employment relationship.
After informing the insurer of a decrease in risk and it does not lower the renewal premium.
2. The insurer has two months to report the new conditions.
Health insurers review the insurance premium every year. This review is carried out taking into account 3 factors: the age of the insured, the profitability of the policy, and the increase in the cost of services.
The more medical care you need, the lower the profitability of the insurance. And the companies are not an NGO, so they try to correct losses immediately by raising the insurance premium. If your contract is also part of a group, you are subject to the accident rate that the group has, with which premiums can skyrocket from one year to the next.
Finally, there is an increase in the CPI (health), the increase in the cost of medical assistance. In recent years this has been around 2%, while insurance companies increased premiums by 4.6%.
The insurer is obliged to notify the policyholder two months in advance of any change in the conditions of the contract. Non-compliance does not exempt you from complying with the rule, but it does give you the possibility of canceling the insurance when it expires.
3. Notify the cancellation at least one month before the renewal.
We have seen how the insurer is obliged to communicate any variation of the contract two months in advance of expiration. You also have two months if you want to rescind it.
And the policyholder or the insured?
Article 22.2 establishes that you must communicate at least one month in advance of the conclusion of the current insurance period, your desire to cancel the contract. And you must do it in writing.
A special mention deserves online recruitment. If this is your case and after purchase to change your mind, you have 14 calendar days to withdraw.
When your relationship with the insurer is through group insurance, where the policyholder anticipates the payment of the premium, you should only communicate your desire to cancel the contract.
Communicate the cancellation through a means of which you have a record. Try to avoid doing it through the customer service phone or the contact form on the web.
4. The beginning of a grace period.
One of the conditions that health insurance has is the establishment of deficiencies when it is contracted. The grace period is the period of time between contracting and the entry into force of certain insurance coverage. I recommend reading How to choose good health insurance: 15 tips to do it right.
When you change your insurance company, it can include new grace periods in your policy that you have already passed. It is very important that you take this into account before making the decision to cancel the insurance.
5. What happens with preexistence or if I am in treatment?
Surely when you first purchased health insurance, you had to fill out health questions. In it, you informed the insurer of your medical history. Now, when you change companies, you will be subjected to a new evaluation with which diagnosed pathologies or illnesses can be excluded from coverage. It is also possible that you will be excluded from the assistance that may be related to pathologies that have already been cured.
Currently, insurers, when it comes to group insurance or in certain commercial promotions, do not include deficiencies or preexistence in their proposals. But be careful, don’t trust the large print on commercial brochures.
If you want to change your insurance policy or do without it, you just have to follow a few simple steps to cancel health insurance.
Inform you of the new conditions that they offer you. Analyze the coverage, the limitations, if you have grace periods or how many years the price is guaranteed.
After the decision is made, the next step is to inform the company that you are canceling the contract. I remind you that you must do it at least one month before the expiration date of the policy, that is, before November 30.
And finally, leave us your answer in the comments to the question:
Are you happy with your health insurer or have you thought about switching to another?