How To Cancel Medicare - Disenrolling From Parts A & B

If you’re part of the majority of Americans, chances are you’ll automatically be enrolled in Medicare when you become eligible. While convenient, automatic enrollment proves to have some drawbacks, especially for those who prefer getting their health insurance elsewhere. Luckily, there is a way for you to cancel your Medicare, but make sure you weigh your options carefully before disenrolling from both Parts A and B.

Cancelling Medicare

When you decide to cancel Medicare, there are some important steps you need to follow. For example, you must opt out of Part A and Part B individually. Here's how to begin:

1. Visit the Social Security Office:
   • Locate your nearest Social Security office to speak to an agent in person. You can call Social Security to speak to an agent, but you can't cancel over the phone.
   • The Social Security agent will explain the consequences and process of canceling your Medicare benefits and send you the correct form to disenroll.
2. Complete the Disenrollment Form:
   • Visit the Social Security office to fill out the necessary disenrollment form (CMS 1763). This form is not available online.
   • The agent will guide you through the process and explain the consequences of disenrolling from Medicare.
3. Receive Confirmation:
   • After submitting the form, Social Security will send you a letter detailing the consequences of withdrawing from Medicare Part B.
   • Your disenrollment will be effective at the end of the month in which you filed the CMS 1763 form.

For assistance, you can contact the Social Security Administration at 1-800-772-1213 or TTY at 1-800-325-0778.

How to Cancel Medicare Part A?

You can’t cancel Medicare Part A if you’re receiving Social Security. However, if you choose to stop your social security benefits, then you would stop receiving Medicare benefits. You need to know that if you stop your social security benefits, then you will have to repay the money you have already received. If you still think Part A isn’t for you, you can cancel at any time by using the disenrollment form CMS 1763. It’s also important to note that you can re-enroll at any time.

How to Cancel Medicare Part B?

If you want to cancel Medicare Part B, you will still have to use the disenrollment form CMS 1763. When you fill out this form you will select what Medicare Part you are canceling and explain why you are choosing to cancel. If you do not cancel Medicare Part B before you turn 65, the premiums may automatically be deducted from your Social Security check.

What Happens When You Disenroll?

There are consequences if you disenroll from Medicare. If you cancel Medicare Part A, you may be penalized. If you can receive Part A without paying premiums, there is no late penalty for canceling. However, you will have late penalties if you can buy into Medicare Part A and cancel.

If you cancel Medicare Part B, you are responsible for the cost of out-of-hospital healthcare costs. You can re-enroll during the open enrollment period for Part A and Part B. Open enrollment is the first quarter of every year. You will receive a penalty for late enrollment. The penalty is for each year you were out of the Medicare Part B program. You will pay this as long as you have Part B.

Why You Would Want To Disenroll From Medicare

There are few reasons to cancel Medicare Part A. However, if you continue to work while enrolled in Medicare and are contributing to your health savings account funded by pre-tax dollars, you should consider disenrolling from Part A. Cost is usually the primary reason for canceling Part B, as you must pay a monthly premium. You may choose to disenroll from Part B if you are covered under an employer group plan.

Finding New Health Coverage

Medicare is designed to become your insurance provider when you retire. If you are trying to find new health coverage, you need to be aware of the rules.

For Medicare beneficiaries your only option is an employer plan. That's because it is illegal for someone to sell you an individual health plan if you are already receiving Medicare benefits. This rule also applies to an individual market policy outside the health insurance marketplace. If you, or your spouse, are still working, then you may purchase a plan under the Small Business Health Options Program Marketplace.

If you are eligible to enroll in Medicare but are not yet signed up for Original Medicare or a Medicare Advantage Plan, you may be able to get private health insurance.

Additional Resources:

• For more information, visit the Social Security Administration website.
• For details on Medicare enrollment and options, visit the Medicare website.