Although Medicare offers very good coverage for most beneficiaries, there are various reasons why you may want to drop your Medicare Part B coverage. Whether you’ve found some other insurance that you think works better for you or have some other personal reason why you’d rather not keep your enrollment in Medicare, we will run through your options for canceling your coverage.
Medicare Part B helps beneficiaries pay outpatient health care costs for a monthly premium. Although it is another half of Original Medicare, not everyone needs it, so those that do not need Medicare Part B are allowed to disenroll from it.
How To Cancel Medicare Part B
The cancellation process of Medicare Part B begins with printing Form CMS 1763. You will need that form for an interview with a representative of the Social Security Administration, and you will fill it out during the interview process. You can take an interview in person or over the phone. During this interview, you will fill out Form CMS 1763 as directed by a representative. If you possess a Medicare card, you are required to return it during your interview, or mail it back after an over-the-phone interview has been over.
Reasons for Medicare Part B Cancellation
Here are some common reasons for canceling your Part B coverage:
- Because you were automatically enrolled – some people are automatically enrolled in Original Medicare – Parts a and B – when they become eligible for Medicare coverage.
- Because you got a job with insurance – if you were enrolled in Part B but you do not longer need it because you started working and the employer gives you sponsored health insurance, you will probably want to drop Part B coverage. But before you do it, check if your new coverage through the employer is primary or secondary to Medicare. Because if it is a secondary, that means that it will cover only costs left over after Medicare gives its share. And in that case, maybe it is not a good idea to drop out of Medicare Part B
- Because you cannot afford premiums – If you cannot afford your Part B premiums, consider other options before canceling your coverage. You can apply for Medicaid coverage if you’re in a low-income household or have few assets. Medicare also offers Savings Program, which helps qualified individuals pay their Medicare expenses.
How Do I Fill Out CMS-1763 Form?
Form CMS-1763, or Request for Termination of Premium Hospital and/or Supplementary Medical Insurance, is the only way to terminate Medicare Part B insurance. It is a single-page document consisting of several items that need to be filled in. Let`s see how to fill out CMS 1763 Form:
- Name of Enrolee – write down the beneficiary`s name
- Medicare Number – write down your Medicare number (you can find it on your Medicare card)
- Name of the Person who is executing the request – if other than the beneficiary
- This is a request for termination of hospital insurance/medical insurance – choose the type of coverage that you want to terminate. You can select either hospital insurance (Part A) or medical insurance (Part B), or both of them
- Date hospital insurance will end – indicate the date when you want your insurance to end.
- Reasons for termination request – here you are required to elaborate on the reasons for termination of insurance. Feel free to go deep in detail, describe your situation and indicate what made you make this decision.
- Provide correct information about you – address, phone number, date fields, and signature
Medicare Part B Cancellation Consequences
The Medicare program could apply late-enrollment penalties onto your Part B premiums if you decide to re-enroll in coverage again later in life. Avoid this situation by working with your human resources department at your employer to ensure that your company’s insurance is indeed creditable. You may need to provide documentation of creditable coverage during your Part B cancellation interview.
A gap in coverage could also adversely affect your health if you avoid seeing the doctor because you do not have health insurance. And you may have to go without other forms of coverage too. Without Medicare Part B, you cannot enroll in other parts of Medicare, such as Medicare Part D prescription drug coverage, Medicare Supplement plans, or Medicare Advantage.