What Happens If You Do Not Pay On Time
Life happens, and while you should make every effort to pay your health insurance premium on time, health insurance plans generally will have grace periods. Your bill due date will vary by insurance company, but generally all insurance companies’ premiums are due on the 1st. It is important to check with your insurance company. You may have a grace period of 30 days, or if your insurance plan is “ON Exchange” meaning, through Nevada Health Link, it may be up to 90 days. It is NOT a good idea to get behind, however. Most people that get behind end up losing their coverage back to their last payment made, because coming up with 90 days of premium is not feasible for most. If it is a new policy, nearly all insurance companies will need to be paid before the policy starts, or it will not start. And insurance companies do consider you “late” on the 2nd of the month if the bill was due the 1st of the month. It is especially important that if you cannot make your premium payment on time, speak with your insurance broker/agent to see what flexibility your policy may have.
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What Is a Grace Period?
The grace period is a short period after your monthly health insurance payment is due. As long as you make your payment during the grace period, you will avoid losing your health insurance coverage.
If you have a Marketplace plan through Nevada Health Link and you qualify for advance payments of the premium tax credit and you have paid at least one full month’s premium during the benefit year, then your grace period is usually 90 days. If you are behind on your payments, however, benefits may not be covered until the full payment has been caught up. If you do not qualify for a premium tax credit, your grace period may be different. Your health insurance agent can give you information on the grace period for your policy.
What If I Miss My Grace Period?
If you do not make your payment during your grace period, then your health insurance policy is canceled retroactive to the last date your plan was paid for. In other words, if you miss your July, August and September payments and your policy is canceled, then no medical expenses incurred since the end of June are covered.
It is important to note that if you want to keep your health insurance beyond the grace period, you must completely catch up on payments. You cannot just stay three months behind on payments and maintain your coverage.
Can I Re-Enroll During Open Enrollment?
If your health insurance plan was terminated due to non-payment, then you will have the opportunity to re-enroll in a health insurance plan only during the next “Open Enrollment” which is usually November 1st through December 15th of each year. There is a catch, though. According to market stabilization rules that were finalized in 2017, health insurance companies may be able to recoup past-due premiums.
If you enroll in a plan offered by the same health insurance company within 12 months of your policy having been canceled, then the health insurance company can require that you pay the past-due amount before your coverage is in effect. This may be either one month or three months of premiums, depending on the length of the grace period. Alternately, if you are re-enrolling within the grace period, the health insurance company may require you to pay your past-due premiums.
The grace period does not reset at the end of the policy term if it auto-renews. This means that if you miss November and December payments and your plan auto-renews in January, you still need to catch up on payments to keep your coverage.
Finding Affordable Coverage with Nevada Insurance Enrollment
Your monthly health insurance premium does not need to be a burden. At Nevada Insurance Enrollment, we can help you understand what you owe your health insurance company and get you signed up for affordable health insurance. Call anytime of the year for options.