What happens if my health insurance is cancelled?
“To sum it up…”
- If your health insurance was canceled because of a change in employment status, you can either go on COBRA insurance or enroll in a marketplace plan
- If your health insurance is in danger of being canceled because you missed a monthly premium payment, you have a grace period to get up to speed on your payments
- You also have various appeal options if your plan is canceled due to non-payment
- If your plan is being canceled because it does not meet coverage requirements under the Affordable Care Act, you will have a few options to help you get new coverage
What happens if you lose your insurance because of a change in employment status?
If your health insurance is being canceled because you are leaving your job or you are losing your full-time status, you have two options. You can either buy a plan through the health insurance marketplace or you can sign up for COBRA.
You can apply for marketplace insurance during the open enrollment period which ends on January 31, 2017. However, because you are losing your job-based insurance, you qualify for a special enrollment period outside of open enrollment.
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Your new marketplace coverage can start the first day of the month after you lose your job-based plan, so there is a limited time lapse in coverage. If you are only without coverage for two months or less, you will qualify for a short coverage gap exemption and will not be responsible for paying the penalty fine.
You will also find out if you qualify for any savings on your purchased plan or are eligible to enroll in public insurance programs, such as Medicaid or CHIP. However, eligibility for these programs is based on income, not employment status, so if you are receiving unemployment income, you may not qualify. If you are able to receive insurance through your spouse’s job, you will not qualify for savings or tax credits on a marketplace plan.
If you are starting a new job that has a waiting period before you can enroll in their insurance plan, you can purchase a plan through the healthcare marketplace in the meantime. You can end this coverage at any time if you decide to enroll in your job’s group plan after the waiting period is over.
What is COBRA insurance?
COBRA insurance is another option if your job-based health insurance is canceled. Under the COBRA act, employers that offer group health insurance plans are required to continue offering it to recently terminated employees on a temporary basis. It also applies to employees who recently lost their full-time status.
Those who qualify, which includes the former employee, as well as their dependents, can receive COBRA coverage for up to 18 months after the termination date.
It is available for up to 29 months for any employee who was disabled within the first 60 days of coverage and up to 36 months for spouses and dependents who would lose their coverage because of the employee’s death or in the event of a divorce.
What happens if your insurance is canceled due to nonpayment?
If you miss your monthly payment on your health insurance premium, you are entitled to a grace period that typically lasts 90 days to get up to date on your payments. If you don’t qualify for a tax credit through the health insurance marketplace, the length of your grace period may be different.
If you did not make your payments within your grace period and your insurer cancels your coverage, you may still have options. You can try to appeal the decision, especially if you feel you were terminated unfairly. You will not qualify for a special enrollment period to enroll in a new plan if you were dropped for not paying, but you may qualify for different reasons and try to purchase new coverage. You may even be able to enroll in the same plan, if it is still available, because the insurance company cannot refuse based on your previous nonpayment.
What happens if your insurance is canceled because it does not meet the new requirements under the Affordable Care Act?
If your grandfathered health plan is changing to meet the new requirements under the Affordable Care Act or if it is being canceled, there are a few things you can do. If your original plan was offered through your employer, they are required to offer you a new plan as a replacement. However, you can purchase a plan through the health exchange marketplace or through a private insurance broker, if you find a plan you like better. Some grandfathered plans may not change and you can enroll without the new protections under the ACA.
However, you can purchase a plan through the health exchange marketplace or through a private insurance broker, if you find a plan you like better. Some grandfathered plans may not change and you can enroll without the new protections under the ACA.
If your health insurance is canceled, there are still plenty of things you can do to get covered! If you are losing your insurance due to employment termination, you can purchase a new plan on the marketplace or enroll in COBRA insurance.
If your insurance was canceled due to nonpayment or loss of grandfathered status, look at your options for getting a new plan on the healthcare marketplace website.
You can also enter your zip code below and let us match you with state-based providers who offer various types of private healthcare coverage! Our online health insurance quotes are always free and up-to-date!
