What Happens When My Health Insurance Isn’t Renewing?

healthmarkets.com: It’s becoming more common for insurance companies to announce that they will no longer be offering plans or doing business in certain areas during the next year’s Open Enrollment period, or that they are going out of business. Recently, the insurance companies below have made such announcements.

• UnitedHealthcare will no longer be offering individual health plans in most states.
• Blue Cross Blue Shield of Arizona and Health Net will no longer be offering plans in Maricopa and Pinal counties.

These co-ops will no longer be offering any plans for 2017 and are going out of business.

You may have received a notice that your 2016 plan was not being renewed from a company not on this list.

If your insurance company isn’t renewing your plan, we want you to know that you have nothing to worry about—your current policy most likely can still be used through the end of 2016, and you will have time to replace it before it expires. If your coverage is ending before the end of 2016, you will have a Special Enrollment Period (SEP) due to loss of coverage. This will give you time to find a new insurance company.

Why can’t I keep my plan?

Sometimes insurance companies decide that selling certain Obamacare plans in the individual markets no longer works for their business model. And some Affordable Care Act co-ops are going out of business because of financial issues. According to the Washington Post, “fewer than a third of ACA co-ops will still be open for business this fall.” You may have one of these plans. While the insurance company will most likely honor your original contract term, it has no obligation to renew your 2016 plan once it expires.

But what does it mean if you received a notice that your insurance company isn’t renewing your health plan?

• If you have an affected plan, it means that you will have to pick a new 2017 health plan during Open Enrollment this November, unless your insurance company is going out of business sooner. If your coverage is expiring before the end of 2016, you will have a Special Enrollment Period due to loss of coverage. The health insurance company should tell you when the SEP ends so you can choose new coverage before that date. For example, Land of Lincoln Health in Illinois has issued an important notice to its members to explain that there will be 2 SEPs: 1.) The “Advanced Availability” SEP is August 2–September 30, 2016, for coverage that begins October 1, 2016. 2.) The “Normal SEP” is October 1–November 29, 2016, for coverage that begins on the first day of the following month.
• If have any other kind of plan, such as a group plan through your employer or a Medicare Supplement plan, your coverage may not have been affected by this announcement. Be sure to call your insurance company if you have any concerns about your other plans.
• There is no way to avoid getting a new plan for 2017 if your plan isn’t being renewed. You can, however, keep your plan for the rest of 2016—as long as you continue to pay your monthly premiums. There are exceptions to being able to keep your plan through the end of 2016 if the insurance company or co-op is going out of business sooner. If you aren’t sure how long your current coverage will last, be sure to call your insurance company.

What can I do (and when)?

The Open Enrollment Period (OEP) for 2017 health coverage begins on November 1, 2016. The plan details for 2017 won’t even be available until OEP starts. It won’t be possible to replace your plan until then, unless you have an earlier Special Enrollment Period due to loss of coverage. If your policy expires on December 31, 2016, like most plans, you will have an SEP that won’t begin until 45 days before your policy’s termination date. If this is the case, your SEP may mostly line up with OEP.

When do you need to enroll? The answer depends on when you want your coverage to begin.

Open Enrollment ends January 31, 2017, so don’t forget to mark your calendar. While you can’t get your 2017 coverage squared away before November 1, 2016, (unless you qualify for an earlier SEP) you will be able to replace your 2016 policy before it ever expires, or if you want, you can wait. But, if you are uninsured for more than 2 months of the year, you will have to pay the tax penalty that keeps increasing in cost.

Where can I turn for help?

Turn to us! We can help, and our service is free!

HealthMarkets understands that receiving a notice that your plan is not being renewed is unexpected and maybe even frustrating. We can get you through this and make sure you’ve got new coverage for 2017, or sooner if you need it.

As a licensed agent with HealthMarkets, I (Robert Morgen) am sharing this article with my LinkedIn community. I serve Nevada, California, Arizona, Texas, & South Carolina as a Health Benefits Adviser.