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Why you should consider putting your health insurance payment on "automatic"

12-21-2017 by Colleen King

I don't always like the idea of 'auto-pay'--to me, 'they' will get my money when I'm good and ready to send it. But when it comes to your health insurance, here's the problem. If you miss a payment, it is nearly impossible to get coverage reinstated--this make no sense to me, especially if you missed a month and you are willing to pay it. But in the new post 'ACA' world, the carriers just can't do it. We used to be able to get this done most of the time, but now, no. Not unless it's due to a mistake on the insurance company's side. And when it comes to taking money, they don't usually mess that up too often. Though I do have a situation now where a payment was credited to someone else's account--that's being fixed, the client will be reinstated, but this is not a mistake that happens a lot.

If you have payment set up on a credit card, and that card expires, often times that bumps you to a paper bill being sent. And what blows my mind, I have a lot of clients that ignore mail from their insurance carriers. I've had people tell me over the years, 'I never open stuff from them, it's just junk.' Well maybe, but not if it's a bill. If you have the payment set up as an EFT from a bank account, and the carrier attempts to draft payment and it's short, that usually will also generate a letter.

So my suggestion to you, even though having something set up on an automatic payment is convenient, and most of us do it so we don't have to think about it, please check the account it's coming from and make sure it's being done. Correctly. Because 'loss of coverage due to non-payment' is not a qualifying event to apply for new coverage.


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