What To Do When Your Insurance Policy Is Cancelled - Affordable Health Plans

One of the last things you want to receive in the mail is a notice saying that your health insurance has been terminated. Suddenly, you have no medical coverage, and you may need it to save your life. If you received health insurance cancelled notice, don’t panic. There are steps you can take to turn this around.

Here is what to do when your health insurance policy is cancelled:

 

The Why’s of Health Insurance Policy Termination

If you hadn’t already guessed, an insurance company is a business, one that operates based on the funds it receives from the people or groups it covers. When you don’t meet specific conditions, they may terminate your contract. It is the same as a phone company dropping you, or the electric company shutting off your energy.

But what insurance companies do best is assess risk. But if they deem you, as a policyholder, too risky, then they have to make a decision based on the survival of their company.

In other words, you could have gotten that health insurance cancelled statement for the following reasons:

  • You made too many claims
  • You have a criminal record or are deemed a moral hazard
  • You were cancelled due to non payment, also known as non payment liability

However, there is more to getting notice that your policy was dropped. Usually, that is considered a last resort from the insurance carrier.

 

What to do About Cancelled Due to Non Payment

Missing a monthly payment on the premium will not end your policy on the day it is due, but health insurance carriers will certainly terminate your coverage if you miss payments repeatedly.

However, before you are dropped, your insurer gives you a “grace period,” or a short period where you can pay.

The grace period defined by the Affordable Care Act (ACA) is 90 days, if you meet the following conditions:

  • You are enrolled in Marketplace medical insurance plan and have qualified for advance payments on premium tax credit
  • You have paid at least one premium that benefit year

If you don’t have a premium tax credit, the grace period allotted to you may change. Be sure to contact the Department of Insurance for your state to learn more about grace periods.

Those who have insurance through a private insurer may also receive a grace period. Most plans are protected by the Affordable Care Act and have the 90 day window for payment, but even if your plan doesn’t have that, your insurer usually offers time for you to make the missed payment.

30 days is the typical grace period for private insurers, but there are no strict regulations on private carriers. If you want to disrupt the cancellation, then you need to get in touch with an insurance representative as soon as you can to explain your circumstances.

 

End of the Grace Period

But what happens if you miss the grace period or didn’t know you even had one? It is best to pay your premiums during the grace period so your insurer does not cancel your coverage. You could still be dropped in the following hypothetical situation:

  • You miss your payment for August
  • You submit a premium payment for September and October on time, but you didn’t pay for August
  • The grace period for August’s payment will end 90 days from August 1, meaning November 1
  • Because you haven’t paid for August by November, you lose your insurance retroactive to the final day of August.

Obviously, if you ignore your missed payment, it will have a negative impact on you in the long run.

Now, here is something many people do not realize: For the first 30 days of a missed payment, the insurance company will continue paying any claim you make. Once those initial 30 days are up, the insurance company is not obligated to process them. Rather, they will deny or hold up claims until the payment has been made.

 

Health Insurance Cancelled—Now What?

There are three main options for you to select in the event of health insurance policy termination:

  • You can appeal the cancellation
  • You can utilize open enrollment
  • You may be eligible for a special enrollment period (SEP)

There is also another option: short term health insurance. For now, let’s dive a little further into the three main choices.

 

Appeal Your Insurance Policy

If you believe that your termination was unfair or unwarranted, you have a right to appeal. Contact the insurance company to see what can be done. If the appeal is denied and you do not qualify for a special enrollment period, then you will need to wait until the next open enrollment window (November 1 to December 15 annually) to see about obtaining a major medical insurance plan.

 

Utilize Open Enrollment For Cancelled Health Insurance

Let’s say your policy cancellation comes prior to or during the open enrollment season. You can then enroll into another qualifying medical plan through the Marketplace. You may also be eligible for subsidies or other federal programs. Optionally, you can apply for a policy through a private insurer.

Keep in mind that missing payments and losing your insurance because of that could make insurance policy reenrollment or even approval from a new carrier difficult.

Don’t wait until open enrollment to search for new policies. Compare health insurance policies today.

 

Use a Special Enrollment Period

Losing health insurance because of missed payments means that you are ineligible for a special enrollment period. That said, there are other reasons you could use an SEP, such life changes, like having a baby, adopting a child, a change of residential address, getting out of jail, or losing health insurance because your spouse lost their job-based policy or you aged off your parents’ plan.

 

What About Insurance Policy Reenrollment?

The fastest way to get reenrolled into your current policy is to pay your premiums within the grace period. The sooner, the better. Remember, an insurer will continue paying your claims for up to 30 days, but after that, they could deny you. However, once you pay up, your insurance coverage will continue on as before.

There are some situations where enrolling into the same policy through the same insurance company is impossible, such as getting dropped entirely. Once you receive that cancellation notice, it usually means that the insurance company no longer wants your business. You will have to find another carrier to accept you.

Always read through the details of the consequences of the cancellation. Sometimes, the carrier is willing to enroll you once again—with conditions. For instance, you may find that the health insurance company will ask that you pay past-due amounts from your old policy before you get a new one.

As mentioned earlier, termination will go on your record—and that limits things. Many insurance carriers share information with one another, so when you apply for another plan after getting dropped from your previous insurer, the new company may see that as risky behavior; they could deny your application.

 

What Do I Do If I Can’t Find Coverage?

Finding yourself getting denied again and again? Then you may want to try short term health insurance. Not available in every state and not considered minimum essential coverage as outlined by the ACA, short term health insurance can be helpful when you are in a pinch. Short term plans can assist with payments of various medical services, including surgery, hospitalization, and emergency care.

You can enroll into a short term plan any time throughout the year, and the policies are customizable and budget-friendly. If you are struggling to currently make high premium prices, then you can get past due payments under control while still remaining covered.

 

Keep Yourself and Your Family Protected

It is a scary thing to lose your medical coverage, especially during times when viruses and other illnesses seem to be multiplying rapidly. At the same time, people make mistakes. If you know that your insurance will soon be canceled or if you already received the notification, don’t panic. You now know that you should call the insurance company to see how you can make amends, and if you can make that late payment during the grace period, you should be able to retain your coverage without any pauses.

Ready to buy health insurance today? All you need is your zip code to get started. With AffordableHealthPlansUSA.com, you get instant quotes for dozens of plans from carriers in your area, so you can get the best deal whenever.

 

What To Do When Your Insurance Policy Is Cancelled

 One of the last things you want to receive in the mail is a notice saying that your health insurance has been terminated. Suddenly, you have no medical coverage, and you may need it to save your life. If you received a health insurance cancelled notice, don’t panic. There are steps you can take to turn this around.

Here is what to do when your health insurance policy is cancelled:

 

The Why’s of Health Insurance Policy Termination

If you hadn’t already guessed, an insurance company is a business, one that operates based on the funds it receives from the people or groups it covers. When you don’t meet specific conditions, they may terminate your contract. It is the same as a phone company dropping you, or the electric company shutting off your energy.

But what insurance companies do best is assess risk. But if they deem you, as a policyholder, too risky, then they have to make a decision based on the survival of their company.

In other words, you could have gotten that health insurance cancelled statement for the following reasons:

  • You made too many claims
  • You have a criminal record or are deemed a moral hazard
  • You were cancelled due to non payment, also known as non payment liability

However, there is more to getting notice that your policy was dropped. Usually, that is considered a last resort from the insurance carrier.

 

What to do About Cancelled Due to Non Payment

Missing a monthly payment on the premium will not end your policy on the day it is due, but health insurance carriers will certainly terminate your coverage if you miss payments repeatedly.

However, before you are dropped, your insurer gives you a “grace period,” or a short period where you can pay.

The grace period defined by the Affordable Care Act (ACA) is 90 days, if you meet the following conditions:

  • You are enrolled in Marketplace medical insurance plan and have qualified for advance payments on premium tax credit
  • You have paid at least one premium that benefit year

If you don’t have a premium tax credit, the grace period allotted to you may change. Be sure to contact the Department of Insurance for your state to learn more about grace periods.

Those who have insurance through a private insurer may also receive a grace period. Most plans are protected by the Affordable Care Act and have the 90 day window for payment, but even if your plan doesn’t have that, your insurer usually offers time for you to make the missed payment.

30 days is the typical grace period for private insurers, but there are no strict regulations on private carriers. If you want to disrupt the cancellation, then you need to get in touch with an insurance representative as soon as you can to explain your circumstances.

 

End of the Grace Period

But what happens if you miss the grace period or didn’t know you even had one? It is best to pay your premiums during the grace period so your insurer does not cancel your coverage. You could still be dropped in the following hypothetical situation:

  • You miss your payment for August
  • You submit a premium payment for September and October on time, but you didn’t pay for August
  • The grace period for August’s payment will end 90 days from August 1, meaning November 1
  • Because you haven’t paid for August by November, you lose your insurance retroactive to the final day of August.

Obviously, if you ignore your missed payment, it will have a negative impact on you in the long run.

Now, here is something many people do not realize: For the first 30 days of a missed payment, the insurance company will continue paying any claim you make. Once those initial 30 days are up, the insurance company is not obligated to process them. Rather, they will deny or hold up claims until the payment has been made.

 

Health Insurance Cancelled—Now What?

There are three main options for you to select in the event of health insurance policy termination:

  • You can appeal the cancellation
  • You can utilize open enrollment
  • You may be eligible for a special enrollment period (SEP)

There is also another option: short term health insurance. For now, let’s dive a little further into the three main choices.

 

Appeal Your Insurance Policy

If you believe that your termination was unfair or unwarranted, you have a right to appeal. Contact the insurance company to see what can be done. If the appeal is denied and you do not qualify for a special enrollment period, then you will need to wait until the next open enrollment window (November 1 to December 15 annually) to see about obtaining a major medical insurance plan.

 

Utilize Open Enrollment For Cancelled Health Insurance

Let’s say your policy cancellation comes prior to or during the open enrollment season. You can then enroll into another qualifying medical plan through the Marketplace. You may also be eligible for subsidies or other federal programs. Optionally, you can apply for a policy through a private insurer.

Keep in mind that missing payments and losing your insurance because of that could make insurance policy reenrollment or even approval from a new carrier difficult.

Don’t wait until open enrollment to search for new policies. Compare health insurance policies today.

 

Use a Special Enrollment Period

Losing health insurance because of missed payments means that you are ineligible for a special enrollment period. That said, there are other reasons you could use an SEP, such life changes, like having a baby, adopting a child, a change of residential address, getting out of jail, or losing health insurance because your spouse lost their job-based policy or you aged off your parents’ plan.

 

What About Insurance Policy Reenrollment?

The fastest way to get reenrolled into your current policy is to pay your premiums within the grace period. The sooner, the better. Remember, an insurer will continue paying your claims for up to 30 days, but after that, they could deny you. However, once you pay up, your insurance coverage will continue on as before.

There are some situations where enrolling into the same policy through the same insurance company is impossible, such as getting dropped entirely. Once you receive that cancellation notice, it usually means that the insurance company no longer wants your business. You will have to find another carrier to accept you.

Always read through the details of the consequences of the cancellation. Sometimes, the carrier is willing to enroll you once again—with conditions. For instance, you may find that the health insurance company will ask that you pay past-due amounts from your old policy before you get a new one.

As mentioned earlier, termination will go on your record—and that limits things. Many insurance carriers share information with one another, so when you apply for another plan after getting dropped from your previous insurer, the new company may see that as risky behavior; they could deny your application.

 

What Do I Do If I Can’t Find Coverage?

Finding yourself getting denied again and again? Then you may want to try short term health insurance. Not available in every state and not considered minimum essential coverage as outlined by the ACA, short term health insurance can be helpful when you are in a pinch. Short term plans can assist with payments of various medical services, including surgery, hospitalization, and emergency care.

You can enroll into a short term plan any time throughout the year, and the policies are customizable and budget-friendly. If you are struggling to currently make high premium prices, then you can get past due payments under control while still remaining covered.

 

Keep Yourself and Your Family Protected

It is a scary thing to lose your medical coverage, especially during times when viruses and other illnesses seem to be multiplying rapidly. At the same time, people make mistakes. If you know that your insurance will soon be canceled or if you already received the notification, don’t panic. You now know that you should call the insurance company to see how you can make amends, and if you can make that late payment during the grace period, you should be able to retain your coverage without any pauses.

Ready to buy health insurance today? All you need is your zip code to get started. With AffordableHealthPlansUSA.com, you get instant quotes for dozens of plans from carriers in your area, so you can get the best deal whenever.

           

What To Do When Your Insurance Policy Is Cancelled

One of the last things you want to receive in the mail is a notice saying that your health insurance has been terminated. Suddenly, you have no medical coverage, and you may need it to save your life. If you received a health insurance cancelled notice, don’t panic. There are steps you can take to turn this around.

Here is what to do when your health insurance policy is cancelled:

 

The Why’s of Health Insurance Policy Termination

If you hadn’t already guessed, an insurance company is a business, one that operates based on the funds it receives from the people or groups it covers. When you don’t meet specific conditions, they may terminate your contract. It is the same as a phone company dropping you, or the electric company shutting off your energy.

But what insurance companies do best is assess risk. But if they deem you, as a policyholder, too risky, then they have to make a decision based on the survival of their company.

In other words, you could have gotten that health insurance cancelled statement for the following reasons:

  • You made too many claims
  • You have a criminal record or are deemed a moral hazard
  • You were cancelled due to non payment, also known as non payment liability

However, there is more to getting notice that your policy was dropped. Usually, that is considered a last resort from the insurance carrier.

 

What to do About Cancelled Due to Non Payment

Missing a monthly payment on the premium will not end your policy on the day it is due, but health insurance carriers will certainly terminate your coverage if you miss payments repeatedly.

However, before you are dropped, your insurer gives you a “grace period,” or a short period where you can pay.

The grace period defined by the Affordable Care Act (ACA) is 90 days, if you meet the following conditions:

  • You are enrolled in Marketplace medical insurance plan and have qualified for advance payments on premium tax credit
  • You have paid at least one premium that benefit year

If you don’t have a premium tax credit, the grace period allotted to you may change. Be sure to contact the Department of Insurance for your state to learn more about grace periods.

Those who have insurance through a private insurer may also receive a grace period. Most plans are protected by the Affordable Care Act and have the 90 day window for payment, but even if your plan doesn’t have that, your insurer usually offers time for you to make the missed payment.

30 days is the typical grace period for private insurers, but there are no strict regulations on private carriers. If you want to disrupt the cancellation, then you need to get in touch with an insurance representative as soon as you can to explain your circumstances.

 

End of the Grace Period

But what happens if you miss the grace period or didn’t know you even had one? It is best to pay your premiums during the grace period so your insurer does not cancel your coverage. You could still be dropped in the following hypothetical situation:

  • You miss your payment for August
  • You submit a premium payment for September and October on time, but you didn’t pay for August
  • The grace period for August’s payment will end 90 days from August 1, meaning November 1
  • Because you haven’t paid for August by November, you lose your insurance retroactive to the final day of August.

Obviously, if you ignore your missed payment, it will have a negative impact on you in the long run.

Now, here is something many people do not realize: For the first 30 days of a missed payment, the insurance company will continue paying any claim you make. Once those initial 30 days are up, the insurance company is not obligated to process them. Rather, they will deny or hold up claims until the payment has been made.

 

Health Insurance Cancelled—Now What?

There are three main options for you to select in the event of health insurance policy termination:

  • You can appeal the cancellation
  • You can utilize open enrollment
  • You may be eligible for a special enrollment period (SEP)

There is also another option: short term health insurance. For now, let’s dive a little further into the three main choices.

 

Appeal Your Insurance Policy

If you believe that your termination was unfair or unwarranted, you have a right to appeal. Contact the insurance company to see what can be done. If the appeal is denied and you do not qualify for a special enrollment period, then you will need to wait until the next open enrollment window (November 1 to December 15 annually) to see about obtaining a major medical insurance plan.

 

Utilize Open Enrollment For Cancelled Health Insurance

Let’s say your policy cancellation comes prior to or during the open enrollment season. You can then enroll into another qualifying medical plan through the Marketplace. You may also be eligible for subsidies or other federal programs. Optionally, you can apply for a policy through a private insurer.

Keep in mind that missing payments and losing your insurance because of that could make insurance policy reenrollment or even approval from a new carrier difficult.

Don’t wait until open enrollment to search for new policies. Compare health insurance policies today.

 

Use a Special Enrollment Period

Losing health insurance because of missed payments means that you are ineligible for a special enrollment period. That said, there are other reasons you could use an SEP, such life changes, like having a baby, adopting a child, a change of residential address, getting out of jail, or losing health insurance because your spouse lost their job-based policy or you aged off your parents’ plan.

 

What About Insurance Policy Reenrollment?

The fastest way to get reenrolled into your current policy is to pay your premiums within the grace period. The sooner, the better. Remember, an insurer will continue paying your claims for up to 30 days, but after that, they could deny you. However, once you pay up, your insurance coverage will continue on as before.

There are some situations where enrolling into the same policy through the same insurance company is impossible, such as getting dropped entirely. Once you receive that cancellation notice, it usually means that the insurance company no longer wants your business. You will have to find another carrier to accept you.

Always read through the details of the consequences of the cancellation. Sometimes, the carrier is willing to enroll you once again—with conditions. For instance, you may find that the health insurance company will ask that you pay past-due amounts from your old policy before you get a new one.

As mentioned earlier, termination will go on your record—and that limits things. Many insurance carriers share information with one another, so when you apply for another plan after getting dropped from your previous insurer, the new company may see that as risky behavior; they could deny your application.

 

What Do I Do If I Can’t Find Coverage?

Finding yourself getting denied again and again? Then you may want to try short term health insurance. Not available in every state and not considered minimum essential coverage as outlined by the ACA, short term health insurance can be helpful when you are in a pinch. Short term plans can assist with payments of various medical services, including surgery, hospitalization, and emergency care.

You can enroll into a short term plan any time throughout the year, and the policies are customizable and budget-friendly. If you are struggling to currently make high premium prices, then you can get past due payments under control while still remaining covered.

 

Keep Yourself and Your Family Protected

It is a scary thing to lose your medical coverage, especially during times when viruses and other illnesses seem to be multiplying rapidly. At the same time, people make mistakes. If you know that your insurance will soon be canceled or if you already received the notification, don’t panic. You now know that you should call the insurance company to see how you can make amends, and if you can make that late payment during the grace period, you should be able to retain your coverage without any pauses.

Ready to buy health insurance today? All you need is your zip code to get started. With AffordableHealthPlansUSA.com, you get instant quotes for dozens of plans from carriers in your area, so you can get the best deal whenever.

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