Quick answer
Yes, job-based health insurance is voluntary, so you can decline it or drop it. But because your share is usually paid before taxes, you can generally only drop it during your employer’s open enrollment or after a qualifying life event, like getting married or gaining other coverage. Some employers also let you drop it mid-year to switch to a marketplace plan during the marketplace’s enrollment window.
Key takeaways
- You can waive job-based coverage when you’re hired or at open enrollment.
- Mid-year changes usually need a qualifying event, such as marriage, a new baby or gaining other coverage.
- Employers may allow you to drop coverage to enroll in a marketplace plan, if their plan permits it.
- If your job’s plan is affordable, you usually can’t get a marketplace tax credit after dropping it.
- Dropping job-based coverage on purpose doesn’t open a marketplace special enrollment period.
On this page
When you can drop your employer’s plan
| Timing | Can you drop it? |
|---|---|
| When you’re hired | Yes, you can decline to enroll |
| Your employer’s open enrollment | Yes, for the next plan year |
| After a qualifying life event | Yes, if the change fits the event, like joining a spouse’s plan after marriage |
| To enroll in a marketplace plan | Often, if your employer’s plan allows it and you’re in a marketplace enrollment window |
| Anytime, just because it costs too much | Usually not, if you pay premiums pre-tax |
See qualifying events and the open enrollment period.
Common reasons people drop job-based coverage
- Joining a spouse’s plan. Marriage lets you change coverage. See covering all family members under the same policy and can a spouse be dropped from health insurance while still married.
- Turning 65. You can drop job-based coverage and sign up for Medicare. If your employer has 20 or more employees, you can also keep it and delay Part B.
- Finding a better plan. If your job’s plan is unaffordable, you may qualify for a marketplace tax credit.
Before you drop it, check
- Whether you’ll get a tax credit. If your self-only coverage costs no more than 9.96% of household income in 2026 (10.22% in 2027), you won’t get a marketplace tax credit, so an individual plan may cost much more. See is it cheaper to get health insurance through your employer.
- Timing. Line up your new coverage so there’s no gap. Dropping job-based coverage voluntarily doesn’t give you a special enrollment period, so plan around open enrollment.
- What you’ll lose. Your employer’s contribution and pre-tax payments go away, and your deductible starts over on a new plan.
- Your options. Compare types of coverage, including plans sold outside the exchanges, and insurers.
If you’re leaving your job
When you leave a job, your coverage usually ends, and you can keep it through COBRA, usually for 18 months at up to 102% of the full premium. Losing job-based coverage also gives you 60 days to pick a marketplace plan, which may cost less with a tax credit.
Compare marketplace plans before you decide: see quotes by ZIP code.
Frequently asked questions
Can my employer make me keep their health insurance?
Generally no. You can decline coverage, though you may need to sign a waiver.
Can I drop my employer’s plan in the middle of the year?
Usually only after a qualifying life event, or to enroll in a marketplace plan if your employer’s plan allows it.
Will I get paid more if I drop my employer’s plan?
Some employers offer cash for waiving coverage, but many don’t. Ask HR.
Sources
This article is general information, not tax or insurance advice. Check your employer’s plan rules before making changes. Last reviewed September 2026.