Pre-tax insurance -- usually health -- is a service offered by many employers in the United States. This type of insurance is a benefit to most employees as it offers a larger paycheck each pay period. Employees who are dissatisfied with the employer-provided insurance have the option to opt out of the program and find individual coverage elsewhere. There are, however, guidelines specific to each employer and health provider that must be followed for opting out.
Things You'll Need
- Benefits information
- Evidence of employment
- Social Security card
Find other insurance coverage elsewhere before canceling your employer-provided coverage. It's important to remain fully covered -- in case of an emergency or serious accident -- with no gaps when you cancel your coverage.
Speak with your human resources department about COBRA coverage if you're unable to find individual coverage in the time necessary to cancel your pre-tax insurance. COBRA will cover all employees for roughly sixty days after cancellation -- for a hefty surcharge.
Review your benefits information provided by your human resources department. This package of information will cover all insurance options available to employees. It will also cover cancellation procedures.
Wait until the open enrollment period. Normally, employers open up benefit enrollment two times a year. This allows employees to switch, add or eliminate coverages. In nearly all cases you'll need to wait for open enrollment to cancel your pre-tax insurance.
Speak with your human resources representative about getting premiums back retroactively from the time at which you initially discussed canceling your insurance. Not all employers and health insurance companies will honor this request, but it's in your best interest to try.