There may be a possibility that the contract house can refuse to cancel the medical plans bought through them. First, review the contract if it states a specific coverage set term. If this is the case, even after only one payment has been made, the company may require the enrollee to pay for the rest of the premium of the medical plan. There are some companies that offer a “free look” period for medical plans. The enrollee may cancel a medical plan contract within the said period or when the premium is considered “earned” by the company. The free look period usually takes effect after the enrollee received the policy otherwise it hasn’t started yet. The enrollee may epect a full refund and may be able to cancel without so much trouble. If the said medical plan is bought as a Small Business, ask the employer or the company that enrollee be ecluded from it because he or she can no longer pay for it. Some insurance companies offer a certain grace period where you can cancel medical plans. Still, reimbursement is not guaranteed. And there are also times that the enrollee has to pay a penalty for cancellation. If the cancellation fee is higher or at least the same as the premium, why not just honor the contract of the medical plan? The enrollee can also inquire about the state’s law on consumer protection and if it is applicable to such medical plans “purchases”. - June 19, 2009 @ 6:09 pm