With rising costs in the healthcare industry, health insurance is crucial for every individual and family throughout the U.S. The idea of losing that coverage can be a scary one, especially if it is unexpected.
While an insurance provider dropping your health insurance policy may be rare, it can happen.
Reasons an Insurer Might Cancel Your Health Insurance Policy
Non-Payment of Insurance Premiums
Perhaps one of the most frequent reasons a health insurance policy may be cancelled is due to unpaid premiums. If you fail to pay your premiums on time, you will generally receive a notice. If you do not pay your premiums after being notified, the insurer has the right to cancel your policy. To avoid this type of cancellation, it can help to set up auto draft payments. If you are having trouble coming up with money for your premiums, ask your insurance agent about possible discounts and look for other assistance you may qualify for.
False Information or Fraud
Insurance providers operate under the assumption that policyholders will be honest when providing their information. However, if there are inconsistencies in your information on your application or claims are incomplete, you may have your policy cancelled. Make sure to provide complete and accurate information at every step when purchasing a health insurance policy, reporting injuries and filing a claim.
Insurance providers cannot cancel your policy for any reason, however. There are now restrictions on policy cancellation based on false information that is borne from an honest mistake. They also cannot cancel your policy simply because your health status changes, such as if you are diagnosed with a disease or illness. Insurance providers are not allowed to deny coverage due to pre-existing conditions, either. It is important to know your rights as a health insurance customer so that you can ensure that you and your family are getting the right coverage and treatment.
Do Insurance Providers Notify You if Your Policy is Cancelled?
Insurance providers must notify policyholders before cancelling a policy. They must generally give a 60 day or 90-day notice before the policy is cancelled to give the policyholder time to plan or rectify the issue. If you have any questions about your health insurance policy or any notices you may receive, be sure to contact your insurance agent immediately. Waiting too long after a notice or a missed payment can lead to a cancelled policy.
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