QUESTION

Is it legal for a health insurance company not to let me cancel the expensive medical plan during open enrollment?

Asked on May 13th, 2014 on Bankruptcy - North Carolina
More details to this question:
I have no current medical deduction. I enrolled in a medical plan with pre-tax deduction starting in June, during open enrollment which closed 9th day of May. I want to cancel the expensive plan. I was told they cannot and now I must pay for the expensive plan. Is this legal?
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1 ANSWER

I have not heard of plans that cannot be cancelled but health insurance is a specialized area of law and perhaps there is something in the Affordable Care Act which governs this or if the plan is through your employer it may be part of the contract. Start off by reading the contract. What does it say about cancellation? What if you simply do not pay the premiums? Why do the premiums have to be deducted from your pay pre-tax? Won't you be cancelled if you do not pay? Do you have other insurance? I would talk to the Human Resources/Employee Benefits person at your employer and get the answers to these questions. I would also seek to rescind the pre-tax withholding.
Answered on May 15th, 2014 at 3:11 AM

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