To unenroll from Medicaid, contact your state’s Medicaid agency through its online portal, by phone, or by mail and ask that your coverage be terminated. You don’t need to justify the decision, but you do need to time it carefully: your end date determines when your Special Enrollment Period for other coverage begins, and an overlap with subsidized Marketplace coverage can create a tax bill.
Contact Your State Medicaid Agency
Medicaid is run state by state, so the exact agency name, website, and phone number depend on where you live. A search for your state’s name plus “Medicaid agency” will get you to the right place. Before you reach out, pull together your Medicaid ID number, full legal name, date of birth, and current address.
Most states give you three ways to request termination:
- Online portal. Log into your account, find the section labeled something like “report a change” or “end coverage,” and follow the prompts.
- Phone. Call the number on the back of your Medicaid card or your state agency’s main line. Ask to voluntarily end your coverage and write down the confirmation number you’re given.
- Mail or fax. Some states use a specific form. Download it from the agency’s website, fill it out, and send it in. Keep a dated copy.
Whichever route you take, hold onto proof. A confirmation number, a screenshot, or a stamped copy of a mailed form is what you’ll rely on if a processing delay turns into a dispute. Ask how long processing normally takes so you know when to expect written confirmation.
When Your Coverage Actually Ends
Medicaid coverage generally ends on the last day of the calendar month in which your termination is processed, not the day you submitted the request.1Centers for Medicare & Medicaid Services. Temporary Special Enrollment Period (SEP) for Consumers Losing Medicaid or CHIP Coverage Due to Unwinding – FAQ Your state agency will send a written notice confirming the effective date. That date is the anchor for everything that comes next, so don’t schedule your new coverage to start any later than it.
Report Income and Household Changes Within 30 Days
If your income went up or your household changed, you’re required to report it within 30 days, whether or not you’re ready to unenroll.2Centers for Medicare & Medicaid Services. Change in Circumstances That means a new job, a raise, a marriage, a birth, or any change to household size.
Two reasons this matters. First, continuing to use Medicaid after you know you’re ineligible can produce an overpayment the state will try to recover, and intentional failure to report can be treated as fraud with criminal penalties that range from misdemeanor to felony depending on the amount and the state. Second, prompt reporting gives the state time to process your termination cleanly and send you the paperwork you’ll need for taxes and for enrolling in new coverage.
Line Up New Coverage Within 60 Days
Losing Medicaid triggers a Special Enrollment Period on the federal Health Insurance Marketplace, or on your state’s exchange if it runs one. You have 60 days from the date your coverage ends to pick a new Marketplace plan.3GovInfo. 45 CFR 155.420 – Special Enrollment Periods That window applies whether you left Medicaid voluntarily, moved out of state, or lost eligibility because your income rose.4HealthCare.gov. Special Enrollment Period (SEP) – Glossary
Depending on your income, you may qualify for premium tax credits that lower your monthly Marketplace payment. Enter your income on HealthCare.gov or your state exchange to see what subsidy you’d receive. If your employer offers coverage, compare it against a subsidized Marketplace plan. Employer coverage is often simpler, but it isn’t automatically the cheapest option once tax credits are counted.
People leaving Medicaid because they qualified for Medicare (at 65, after 24 months of Social Security disability, or with end-stage renal disease) can use a separate Medicare Special Enrollment Period.5Centers for Medicare & Medicaid Services. Original Medicare (Part A and B) Eligibility and Enrollment Look at all of the options open to you inside the 60-day window so you don’t get locked out until the next Open Enrollment.
If You Have Both Medicare and Medicaid, Stop
This is where people make the most expensive mistake. If you qualify for both Medicare and Medicaid, known as dual eligibility, dropping Medicaid can cost you thousands of dollars a year. Medicaid covers costs Medicare doesn’t, including Part B premiums, deductibles, copays, and services like long-term care, dental, and behavioral health that Medicare largely leaves out.
Those benefits come through Medicare Savings Programs run by state Medicaid agencies. The Qualified Medicare Beneficiary program pays your Part A and Part B premiums along with deductibles and coinsurance for Medicare-covered services. The Specified Low-Income Medicare Beneficiary and Qualifying Individual programs cover Part B premiums.6Medicare.gov. Medicare Savings Programs
Before you unenroll, call your state Medicaid agency and ask specifically whether you’re in a Medicare Savings Program. If you are, leaving Medicaid almost certainly does not make sense.
Watch the Tax Consequences
Form 1095-B
Your state Medicaid agency will send you IRS Form 1095-B for any tax year during which you had Medicaid coverage. It documents the months you had minimum essential coverage.7Internal Revenue Service. About Form 1095-B, Health Coverage Keep it with your tax records. The federal individual mandate penalty is currently $0, but some states enforce their own coverage mandates with financial penalties, and the 1095-B is your proof for those months.
Don’t Let Medicaid and Subsidized Coverage Overlap
Here’s the scenario that catches people out. You sign up for a Marketplace plan with premium tax credits while you’re still technically eligible for Medicaid. Federal rules say anyone eligible for Medicaid can’t receive premium tax credits. If you collected advance credits during months when you were Medicaid-eligible, you’ll owe that money back at tax time. For 2026 and beyond, there is no cap on the repayment, so the full difference between what you received and what you were entitled to is added to your tax bill.8Internal Revenue Service. Updates to Questions and Answers About the Premium Tax Credit
The clean sequence: get written confirmation of your Medicaid termination date first, then activate a subsidized Marketplace plan starting no earlier than the day after that date. If you enrolled in a Marketplace plan because the Marketplace determined you were ineligible for Medicaid, and you were later found eligible and enrolled, the rules are more forgiving for those overlapping months. Confirmation in writing is still the safest way to close out one program and open the next.