What Happens If I Cancel My Health Insurance? 
First of all , you become uninsured and are at financial risk for any injuries or illnesses you may incur . If you are cancelling individual health insurance after April 1 , 2014 you will be unable to apply for new major medical insurance until the next open enrollment period for coverage effective January 1 , 2015 -LRB- absent of a change of life status event such as marriage or divorce for a couple of examples , getting sick is not a change of life status event under the law -RRB- . This is one of the aspects of the Affordable Care Act -LRB- ObamaCare -RRB- that many individuals are unaware of . In addition , for the period in 2014 that you are not coveredby amajor medical policy that meets the requirements of the ACA you will be subject to a prorated tax penalty of $ 95 or 1 % of your Modified Adjusted Gross Income -LRB- whichever is greater -RRB- when you do your 2014 taxes in 2015 . If you have found the cost of major medical coverage that is ACA compliant to be unsustainable -LRB- and many individuals are struggling with this issue -RRB- and coverage for pre-existing conditions is n't a concern and you are relatively healthy then you might want to consider a Short Term Medical policy as an alternative to provide you with protection at what may be considerably lower cost . You should consider the consequences before cancelling any existing individual health insurance policy you may have and explore your options with an experienced , competent health insurance broker . If you need assistance in this regard please feel free to contact me . 