Can an Employer Terminate Health Insurance Without Notice?

Christian Worstell
In this article...
  • If you're enrolled in health insurance benefits through your employer, you may have wondered whether they can cancel them without telling you. Find out more in this guide.

Whether or not your employer can terminate health insurance without notifying you depends on your employer's size. Large employers are required to provide health insurance to employees under the Affordable Care Act, but small businesses have more discretion.

If your employer is a small business and it provides you with health insurance, it can cancel your health insurance without notice in some cases. The law is unclear as to whether or not small businesses can do this legally.

Have Medicare questions?

Talk to a licensed agent today to find a plan that fits your needs.

Large Businesses Under ACA

In general, a company is considered a large business in the eyes of the ACA if it has more than 50 full-time employees. Full-time employees are defined as individuals who work more than 30 hours a week. If you are enrolled in health insurance through your employer and it fits the definition of a large business, it cannot legally cancel your insurance, with or without notice.

Consider State Laws

While federal law dictates most of what's outlined in the Affordable Care Act, your local state laws may apply as well, so check with your state's marketplace health insurance program or your state's Department of Labor to find out specifics local to your area.

Contact Human Resources

If you discover that your employer has suddenly stopped paying for your health insurance plan, contact your employer's HR department or your supervisor for answers. In some cases, it could be a misunderstanding — for instance, say your employer's health insurance provided coverage for you and your domestic partner, and then you parted ways. When the relationship ends, so does the health insurance coverage for your former partner.

Or suppose your insurance covered you and your spouse, who was previously unemployed. If they get a job, many employers won't provide coverage for a spouse if they're eligible to enroll in a health insurance plan themselves through their own employer. 

If there isn't a valid reason for cancelling your health insurance, you might have a reason for a lawsuit. In this case, contact a lawyer you trust to find out what your options might be.

Have Medicare questions?

Talk to a licensed agent today to find a plan that fits your needs.

Christian Worstell
About the Author

Christian Worstell is a senior Medicare and health insurance writer with He is also a licensed health insurance agent. Christian is well-known in the insurance industry for the thousands of educational articles he’s written, helping Americans better understand their health insurance and Medicare coverage.

Christian’s work as a Medicare expert has appeared in several top-tier and trade news outlets including Forbes, MarketWatch, WebMD and Yahoo! Finance.

While at HelpAdvisor, Christian has written hundreds of articles that teach Medicare beneficiaries the best practices for navigating Medicare. His articles are read by thousands of older Americans each month. By better understanding their health care coverage, readers may hopefully learn how to limit their out-of-pocket Medicare spending and access quality medical care.

Christian’s passion for his role stems from his desire to make a difference in the senior community. He strongly believes that the more beneficiaries know about their Medicare coverage, the better their overall health and wellness is as a result.

A current resident of Raleigh, Christian is a graduate of Shippensburg University with a bachelor’s degree in journalism. You can find Christian’s most recent articles in our blog.

If you’re a member of the media looking to connect with Christian, please don’t hesitate to email our public relations team at

Read More
Infant and mother play with toys on living room floor while mother studies
United of Omaha Life Insurance offers policies designed to protect policyholders and their loved ones ...
A couple smile while she uses her smart phone
There are several different phone numbers to call for help with Mutual of Omaha insurance and investment ...
A couple uses their laptop computer while having coffee
This step-by-step guide can help you compare Medicare Advantage (Part C) plans to find the right type ...