For those who want to cancel their individual health insurance policy at any time, it is a possibility. Most individual health insurance policies are paid month to month, therefore you may cancel when you choose. Though the process may not be the most smooth and simple, a policy holder has the right to cancel their plan without a penalty fee. Because with an individual plan there are no contracts, you are permitted to cancel your benefits whenever you decide.
Typically, the health insurance companies will set your premium at a consistent rate for a year and then review the plan to assess if they should adjust your monthly cost. The rate can change based on an individual’s claims history and what services they have obtained.
Upon canceling an individual health plan, the company through which your coverage was purchased will pro-rate the premium and provide a refund on the portion of the month’s premium that was not used. Carriers in many states also give policy holders a ten day period to apply and then decide whether they want coverage or not. If the applicant decides they do not want the policy after all within that time period, they can get a full refund.
How to Cancel your Benefits
Each health insurance carrier has its own cancellation process and policy, which you should be notified about upon purchasing your plan. The insurer you choose must give you information regarding how to cancel your benefits. You can also call East Coast Health Insurance to assist in the process or answer any questions you may have at 888 803 5917.
If you cancel your coverage from one carrier or plan type and are switching to another, make sure your new insurance company has approved your application before proceeding. It is important to take necessary measures to avoid breaks in coverage and secure your new plan so there is no period where you are without insurance.
If you are cancelling your individual plan due to receiving employer benefits at a new workplace, it is essential to find out the exact date when the group plan will become effective before you leave your current plan. There are typically waiting periods involved with employer-sponsored plans, which means you should keep your individual health policy throughout the time they are waiting to process your application forms. This can take between 30 days and three months, depending on the employer.
Also, before you enroll in a health insurance plan, make sure you are completely informed as to the insurer’s cancellation policy. Be aware of the type of commitment you are making, including the processing times and waiting periods associated with your plan. If your plan has any restrictions, you need to find out what they are in advance, as this information may not be readily presented to you.
Processing times for the final decision on an application also vary from company to company, therefore causing potential confusion as to when benefits will start, when you will be charged, and if you have been accepted.