Can Health Insurance Drop You?

Can Health Insurance Drop You?

In short, yes — health insurance providers have the ability to terminate your coverage. Whether the issue is on the provider’s or holder’s end, there must be a reason for the cancellation. Otherwise, it is considered frivolous, and there are laws in place to protect holders from those actions.

Understanding Health Insurance Terminations

Your health insurance can be terminated for several reasons. Whatever the cause, most reasons can fall under either voluntary or involuntary terminations.

Voluntary Terminations

Voluntary terminations are those from the holder’s end of the equation, like when a policy holder decides to stop making payments during or after the end of a contract.

Involuntary Terminations

Involuntary terminations are those where the health insurance provider decides to drop your plan. This can happen on the anniversary date or in the midterm. Midterm cancellations are coverage cancellations done any time before your policy’s contract renewal period. These are possible if you are found to have:

  • Unpaid monthly premiums within a determined grace period
  • Intentionally filled out your insurance application with false or incomplete information

Legal Protections for Health Insurance Holders

In any termination situation, your provider must notify you at least 30 days before coverage is lost. If the reason why this is happening isn’t explicitly stated in the notice, you have a right to find out why. If you agree with the reasoning, you also have a right to get new health insurance. If you disagree, you can file an appeal.

You can choose to appeal through two different options — internal and external appeals. Internal appeals are a full and fair review from your insurance company. External appeals are processed through a third-party company.

Preventing Health Insurance Termination

The Affordable Care Act is a policy put in place to prevent health insurance termination for frivolous reasons, including a holder’s preexisting health conditions or economic status. While this law is in place to offer protection, it is important to stay on top of your monthly premiums and pay them on time. These combined efforts can help keep you safe from health insurance terminations.

Let Health for California Be Your Guide

If you are currently in this position or fear you may be in the future, Health for California can help you navigate your rights and find a new health insurance provider, if necessary. Contact us today to get started.

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