Your health insurance premium is the monthly fee you pay for you plan. It’s almost like a subscription fee: You pay your premium whether you use healthcare services that month or not. Like all bills, it’s important to pay your insurance premium consistently and on time.
Many people get their health insurance through their employer. In this case, their premium may be taken directly from your paycheck. That means you don’t need to think about submitting a payment for your premium.
Otherwise, you need to pay your premium each month just like you would any other bill. Depending on where you get your insurance, you will likely need to go on the insurance website and submit a payment. What happens if you don’t — or can’t — pay your premium on time?
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Will I lose my insurance if I don’t pay my premium?
Missing a payment doesn’t necessarily mean you’ll lose your insurance coverage right away. When you first miss a payment, you’ll likely have a grace period. This means your insurer will give you some time to make a payment. Usually, the grace period is 90 days
If you don’t pay every missed premium within the 90 days, your insurer may terminate your coverage. This has a few major consequences:
You will no longer be able to use your insurance plan for future services
You’ll retroactively lose coverage for any service you received during the grace period
You won’t be able to re-enroll in this plan until the next open enrollment period (because losing coverage from not making payments does not count as a qualifying life event)
How do I get my insurance back?
There are two key things to know if you lose your health insurance because you didn’t pay your premiums. First of all, you can appeal your insurance company’s decision if you think their decision was a mistake. This means you submit paperwork (including proof that you paid your premiums) and ask them to reconsider their decision.
Second of all, you can sign up for new insurance. This might mean waiting until the next open enrollment period (which usually starts in November). You might qualify for certain insurance programs, such as Medicaid. You can sign up for Medicaid anytime of the year.
How can I avoid missing my payments?
Losing insurance because of missed payments is not ideal. Your best bet is to be proactive to avoid missing payments.
Here are tips to help you pay your premiums consistently and on time:
Set reminders on your phone or other devices to remind you to pay on time
Set up autopay on the insurance company website so the payments occur automatically
Here are tips to help you afford your monthly payments each month:
See if you qualify for a premium tax credit, which lowers the cost of your premium based on your household income
Check if you qualify for Medicaid, which might provide a low-cost or free insurance plan
Choose a plan with a lower monthly premium (but keep in mind that this may be balanced by higher out-of-pocket costs)
Talk to a representative from your insurance company for more help affording your premiums. That way, you can maintain the health coverage you deserve.
References
HealthCare.gov. (n.d.). Glossary: premium.
HealthCare.gov. (n.d.). How to apply & enroll: premium payments, grace periods & termination.
HealthCare.gov. (n.d.). Premium tax credit.
Medicaid.gov. (n.d.). Cost sharing.
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