Health insurance is a priority for most people, especially if you have a family. However, some circumstances may cause your insurance carrier to cancel your health insurance policy and discontinue your coverage. This can be stressful if you urgently need coverage to help care for your family. Fortunately, some laws can prevent your insurance agent from canceling your health insurance. Understanding these laws will help you find and keep the right health insurance coverage you need.
Reasons for a Cancelation
There are valid reasons that can lead to the cancelation of your insurance policy. They include providing false information on your application or committing fraud to gain coverage benefits. While most people won’t intentionally falsify their health information on the application, your policy can be canceled due to the slightest of a mistake on your part. Your policy might also get canceled if you fail to pay your premium timely. Apart from this, there may be times when you agree that your insurance coverage should be canceled as you have received another coverage through work or you have reached the age where you can finally draw Medicare.
Know Your Rights
You have the right to appeal if your carrier chooses to cancel your coverage. There are certain periods when your carrier can legally cancel your policy. The first two months after your policy is instated, they can cancel your policy without giving you any reason or notice. After that, a letter must be sent stating the cancellation. In the past, false information provided on your application could shut down your policy at any time. However, now a review is performed to determine if your mistake was intentional.
Filing an Appeal
If you find out that your coverage is being canceled, you can file an appeal. If there is no valid reason to cancel your policy, you will win your case. During the appeal process, the investigators will look at your application and any current medical issues you may have. They will also look at your past claims as well as those made by your insurance carrier.
What Are Your Options?
Once you have received the cancellation notice, you have 30 days to appeal the decision. You can also choose to look for alternative coverage. If you choose to purchase another policy, you have multiple policies that you can consider. You can choose to buy a new policy through an agent or the marketplace, whatever suits you.
If you have received a cancellation letter, and don’t know what to do, contact us today. At Weaver & Associates in Arcadia, CA, our team of experienced and professional insurance agents will help you take the right steps and find the best health insurance policy. We will ensure you get the adequate health coverage you need for your family.