How to Cancel Group Health Insurance

Group health insurance is a type of health insurance an employer purchases on behalf of its employees. The insurance is offered to the employees as a benefit for working for the company. If you are an employer offering your employees group health care coverage and you no longer want to provide insurance or can no longer afford to offer the plan, you may want to cancel your group health insurance policy -- a simple undertaking.

Instructions

• 1

  Call your health insurance provider and ask about its cancellation policy. Your group health insurance policy is likely a unilateral contract, meaning you can cancel anytime during the year. However, your plan may require 30 days notice for cancellation.

• 2

  Cancel the policy at least 30 days ahead. This gives your employees enough of a transition period to obtain individual health insurance.

• 3

  Notify your employees as soon as possible. Many insurance companies allow individuals to have their policies backdated to the first day of the month in which they apply, but you should attempt to give your employees as much notice as possible so they can shop around for replacement coverage.