Individuals with Medicare Part B can choose to cancel this plan at any time. However, there are risks and considerations they may want to consider before they do.
People with Original Medicare (Part A and Part B) can only cancel (drop) Part A if they pay a monthly premium. However, most people are eligible for premium-free Part A.
Part B is an optional plan that individuals can cancel at any time.
Glossary of Medicare terms
We may use a few terms in this article that can be helpful to understand when selecting the best insurance plan:
- Out-of-pocket costs: An out-of-pocket cost is the amount a person must pay for medical care when Medicare does not pay the total cost or offer coverage. These costs can include deductibles, coinsurance, copayments, and premiums.
- Deductible: This is an annual amount a person must spend out of pocket within a certain period before an insurer starts to fund their treatments.
- Coinsurance: This is the percentage of treatment costs that a person must self-fund. For Medicare Part B, this is 20%.
- Copayment: This is a fixed dollar amount a person with insurance pays when receiving certain treatments. For Medicare, this usually applies to prescription drugs.
Part B is one part of Original Medicare. It covers outpatient medical services, durable medical equipment, and preventive care.
Part B is an optional plan. Individuals with Part B pay a monthly premium for the coverage. In 2024, the standard Part B premium is $174.70. This premium is subject to change annually and those with higher incomes may have to pay a higher premium.
Individuals with Part B have the option to cancel (drop) the plan at any time. There are two ways a person can cancel their Part B plan:
- contact the Social Security Association (SSA) by calling 800-772-1213 or visiting the local SSA office
- follow the instructions in a recently received welcome pack and send their Medicare card back
If an individual keeps their Medicare card, Medicare considers this an agreement to keep Part B. The individual will then be responsible to begin or continue paying the monthly premium.
The SSA may require an individual to have a personal interview to discuss the risks of canceling Part B and for assistance with their request to cancel.
Read more about Medicare Part B.
While individuals have the option to cancel Medicare Part B, there are certain risks they may wish to consider beforehand.
These risks include:
- Healthcare costs: A person who chooses to drop a plan may end up being responsible for the full cost of the services that are covered by that plan. Part B may include doctor’s visits, medical supplies, and preventive care, such as vaccines.
- Coverage gap: If an individual drops Part B and then changes their mind later, they will have to wait until the next general enrollment period to reenroll. The general enrollment period (open enrollment) for Medicare is January 1 to March 31 each year. Coverage begins the month after a person signs up.
- Late enrollment penalty: If a person does not qualify for a special enrollment period, they will have to pay a late enrollment penalty. This penalty is added to their monthly premium for the entire time they have Part B. The penalty gets higher the longer a person goes without Part B coverage. The Part B late enrollment penalty is an extra 10% for each year the individual could have signed up for Part B, but did not.
Read about reenrolling in Medicare Part B.
Typically, an individual can only cancel (drop) Part A if they pay a monthly premium for it.
However, most people with Part A will not be required to pay a premium. This is known as premium-free Part A. To qualify for premium-free Part A, a person must have worked 40 quarters while paying Medicare taxes. This is generally equal to 10 years.
Those who have not worked 40 quarters, but are eligible for Medicare will have to pay a monthly premium based on how long they have worked and paid taxes. In 2024, this premium is between $278 and $505 per month.
Read more about Medicare Part A costs.
Medicare resources
For more resources to help guide you through the complex world of medical insurance, visit our Medicare hub.
Individuals with Medicare Part B can choose to cancel (drop) their coverage at any time.
However, before they do so, they should consider risks, such as medical costs, late enrollment penalties, and coverage gaps.
If they do wish to cancel Part B, they can do so by contacting the SSA or following the instructions on a recently received welcome pack.