Health Insurance Premium Payment Grace Periods: What You Need to Know

Tue, 03/31/2015 - 11:15am

An insurer expects premiums to be paid prior to a member’s specified due date. Exchange rules require a payment grace period. Although this is not a new term, the grace period for Exchange premium payments will differ between non-subsidized and subsidized members.

A grace period is the period of time after a premium payment becomes due in full without policy cancellation.

Members should pay before their due date. Beyond these grace periods if a member has not paid their outstanding premium in full, their coverage will be terminated and they will not be allowed to re-apply for Exchange insurance until the next Open Enrollment Period. Members will be notified if they are in a past due premium situation.

Grace periods: • Non-subsidized members: A non-subsidized member will have a 1-billing-month grace period from their billing due date to pay in full. • Subsidized members: A subsidized member will have a 3-billing-month grace period.

If you have questions, please call Anna Moorman.

Allen Insurance and Financial is an independent, employee-owned insurance and financial planning services agency with offices in Rockland, Camden, Belfast and Southwest Harbor.  Online: AllenIF.com. Call 800-439-4311.