However, insurers can’t cancel your coverage anytime for just any reason. There are laws in place to protect you from frivolous cancellations. Learn more about the current health insurance cancellation laws and what to do if you lose coverage.
When Your Health Insurance Company Can Cancel Your Policy
Your health insurance company can’t just cancel your coverage on a whim. Here’s a closer look at how insurance cancellation laws work.
Anniversary Cancellations
In most cases, individual health insurance policies have a 12-month term with a guaranteed auto-renewal option. However, if your policy has cancellation provisions, your insurer can cancel your coverage on your anniversary date—as long as the required notice is given. The required-notice time frame for cancellations can vary by state but typically ranges from 60 to 90 days.
Midterm Cancellations
In addition to anniversary cancellations, certain circumstances can trigger midterm cancellations. In these cases, your coverage can be canceled before your policy’s renewal or expiration date. You may receive a midterm cancellation notice if you:
Intentionally put false or incomplete information on your application and it’s discovered Don’t pay your premiums within the allowed grace period
If an insurer wants to cancel your coverage midterm, it must provide you with written notice at least 30 days before you’ll lose coverage.
Your Rights When Your Policy Is Canceled
If your insurer decides to cancel your health insurance coverage, it must give you advance notice that adheres to your state’s laws. You also have a right to know why the coverage is being canceled and how to appeal the decision. Further, you have a right to get new health insurance coverage that meets your needs. If you disagree with your insurer’s decision to cancel your coverage or think it’s illegal, you have the right to appeal it.
Filing an Appeal
When you want to appeal an insurer’s decision to cancel your health insurance coverage, you have two options. If you need help with the appeal process, you can check if your state has a Consumer Assistance Program (CAP). You can also reach out to your state insurance regulator for answers. To be eligible for external review, your case should involve being denied due to one of the following reasons:
You or your health care provider disagree with the insurance company about a medical judgment.Your health care plan determines that a treatment is experimental or investigational.The insurer claims that you gave false or incomplete information when applying for coverage.
Health Insurance Options After Cancellation
When you’re unable to successfully appeal your health insurance cancellation or choose not to, you don’t have to go ahead without coverage. You can shop for a new plan that best suits your needs, which may be provided by:
Your current health insurance company A company inside the Marketplace A company outside the Marketplace Your employer Medicare The VA TRICARE
If you need help figuring out your health insurance options after a cancellation, you can call the Marketplace call center at 1-800-318-2596 or head to the Healthcare.gov website. It can also be helpful to start your search with plans from top-ranking health insurance companies.
