The deadline for enrolling in a Covered California insurance plan is ending. Californians must choose a plan from one of the many Covered California insurance carriers. After enrolling, it is essential to pay your premium before your coverage begins.
Moreover, once enrolled in a plan, you must pay your monthly premium regularly to stay on the plan and avoid any penalties or disenrollment. In case you miss your monthly payment due date, what are the consequences?
What is a Grace Period?
A grace period is a period after the premium payment due date during which you can make your payment without any penalty or cancellation of the policy. Typically, health insurance providers offer a grace period of 30 days. However, Covered California has extended the grace period to 90 days for those who receive federal subsidy assistance in the form of an advanced premium tax credit and who have paid at least one full month’s premium within the benefit year.
For those without a subsidy, the grace period is generally one month.
What Happens if You Miss the Payment Deadline?
- If you do not pay within 30 days on a subsidized individual and family plan, your health plan will be suspended. After an additional 60 days, your plan will be terminated. During the grace period, your coverage will remain in effect, but you cannot use it until you pay your premium. Moreover, using your health insurance during the grace period will make you responsible for all the costs incurred.
- If you are on an individual and family plan that Covered California does not subsidize and do not pay within 30 days, your plan will be terminated. And you will need to wait for the next open enrollment period to get coverage again.
How Can I Retain My Coverage?
To ensure continuous coverage, it’s necessary to fully pay any outstanding balances by the end of the grace period. This means you must pay on or before the last day of the grace period to avoid suspension. For instance, if your grace period ends in May, you must pay the full amount by May 30 to reinstate your coverage from June 1.
What are the consequences if I Lose my Coverage?
Once the grace period ends, you will lose your coverage and be subject to a Health Insurance Penalty in California.
Can I Rejoin My Health Plan After Being Disenrolled?
If you have not paid your premiums and have been removed from your Covered California health coverage, unfortunately, you will not be able to rejoin your plan until the next open enrollment period unless you experience a qualifying event. Therefore, making timely payments for your health coverage is essential to avoid waiting until the next open enrollment period to get coverage again.
Conclusion
Timely payment of your monthly health insurance premium is crucial to ensure uninterrupted coverage and avoid penalties or disenrollment. Remember that Covered California offers an extended grace period of 90 days for those who receive federal subsidy assistance, but this is not a reason to delay your payments. To retain your coverage, it’s essential to pay your premiums on time, and if you face any difficulties, reach out to our experts for guidance on what to do or Covered California for assistance. Take charge of your health coverage, and stay protected against unforeseen medical expenses.
Looking for Assistance with Covered California ?
Skyline Benefit is a certified insurance agency with Covered California. Act now and get the premium subsidy and coverage that you deserve.
Our agents can review your medical needs and budget, and tailor your health insurance options during Covered California Open Enrollment.
Call us now at (714) 888-5112