Notification Requirements for Employees Dropping Health Insurance

If you are currently covered under your employer's group health insurance policy and need to remove yourself from that plan, you must follow the proper procedure. To avoid complications and eliminate the potential for unnecessary additional payroll deductions, notify the appropriate parties involved of your desire to withdraw from group coverage.

However, in many states there are restrictions placed on the time frame within which you must make these changes, unless you experience a significant "life event." This is an event that creates a significant and substantial change to your living situation, such as a birth or death, marriage or divorce, or a change of jobs.

Inform your employer

• In addition to verbally explaining your wishes to your employer, write a letter to your company's human resources department detailing the same thing. Make a photocopy of the letter for your records before mailing it to your company's home office.

Inform the insurance carrier

• Call the toll-free telephone number on the back of your health insurance identification card. Explain your wishes to the customer service representative who fields your call and ask that a note be placed into your file in anticipation of your coverage termination form. The customer service representative will be able to provide you with the necessary documents and forms to withdraw yourself from your employer's group plan.

Complete the forms

• Fill out the coverage termination form and submit it to your employer's human resources department. Make sure you have properly completed all relevant sections and indicated the date you want your coverage to terminate. Maintain a photocopy of the form for your records.