When You Can’t Pay Your Health Insurance Premium

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When You Can’t Pay Your Health Insurance Premium

January 5, 2016
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This site is all about giving you advice, tips and news about affordable health insurance so that you will be able to buy coverage at a price that won’t leave you bankrupt. In this day and age, no one should go through life without health insurance coverage because the bills can really stack up, but what happens when you can’t pay your monthly premiums? What then?

There are a couple of reasons for why you may not be able to pay for your health insurance anymore, a topic that we will discuss at a later date. Regardless of what the reason may be, being unable to maintain coverage is quite common. Knowing what happens after you stop paying your health insurance premiums is important so that you can prepare yourself and so you will understand just how important it is to maintain your health insurance plan.

Losing Your Coverage

Obviously, if you can no longer pay your insurance premium, you will eventually lose your coverage. The time that it takes for this to happen is important to pay attention to though, as this can give you the window you need if ever something happens. For example, if you paid the whole month last time, you will have that whole month to be covered before you are no longer protected. If you get sick during that time and the health insurance is processed, you’re good.

There is also the matter of qualifying for assistance with your premium where you will be given a grace period of 90 days. If you are qualified, and chances are you should be, you will have that much time to pay your premium so that you continue to have coverage. Past that, your plan will be terminated.

ACA Penalty

As if not having health insurance coverage isn’t enough, it seems that you will have to deal with more expenses that comes in the form of ACA penalty. Yes, the Affordable Care Act will penalize you for not having health insurance coverage in the form of shared responsibility payment. This particular nuisance will occur if you go for three months and over without coverage. Unless you qualify for exemption, you will need to shell out two percent of your household income which would generally be at about $325/person.

This amount will be part of your yearly tax returns. The good news is that you will only need to pay this once a year, but if you are already struggling, that money can mean a lot. Heck, it could mean food to last for a month if you manage it right.