Did you just get the news that your insurance plan is ending and/or your insurance company is pulling out of your area? It’s okay – we’re here to help! Many are in this boat every year, and if they can navigate it with our insurance know-how, then so can you!
Although this situation is not ideal, it is not unheard of. Insurance companies often make changes, including terminating select plans, ending coverage for a demographic area or discontinuing all insurance plans. Many factors could influence this decision, from business efficiency to government mandates. Think of this change as an opportunity for you to reconsider your needs, and possibly find a plan that suits you even better. Let’s discuss what you need to do now that your insurance company is leaving your area.
When Your Insurance Company Leaves the Market: What Are Your Options?
We’ve all been there – the sinking feeling when you open your mail and see a letter from your health insurance company. The words “we’re leaving the market” are emblazoned across the page, and suddenly, your healthcare future seems uncertain. Rest easy. There are plenty of options out there for you to explore, and we’re here to help you navigate them.
Now, you might be thinking, “Where do I even start?” Here’s a quick list of steps that can guide you through this transition:
- Don’t Panic: It’s natural to feel stressed when you’ve lost the insurance you’re used to, but you can count on a licensed agent at McKnight & McKnight Insurance Solutions to help you find a new plan. For over 20 years, we’ve been helping our clients with simple, fast and friendly insurance solutions.
- Consider Your Needs: Everyone’s health needs are different. Consider what is essential for you in a healthcare plan.
- Compare Plans: We’ll help you shop your coverage and narrow down the best options for your needs.
- Make a Decision: Choose a plan that best fits your needs and budget.
- Enroll in Your New Plan: We make the process easy! Once you’ve made your choice, our licensed agents at McKnight & McKnight Insurance Solutions will assist with your new plan enrollment.
Shopping for a New Policy
Just because one insurance provider is leaving the market, it doesn’t mean there aren’t others ready and willing to offer you coverage. If your current provider is exiting the market, they will typically provide notice well in advance.
Use this window opportunity to start shopping around for a new policy. Be diligent in your research and make sure the new policy you choose meets all your healthcare needs. Don’t forget to compare premium rates, coverage, and out-of-pocket costs.
Take Advantage of the Annual Open Enrollment Period
Every year, there’s an annual Open Enrollment period where all individuals can shop for coverage and select new health insurance plans. This period is a fantastic opportunity to find a new insurance provider if yours is leaving the market.
Special Enrollment Periods May Be Your Lifeline
Outside of the annual Open Enrollment, there are Special Enrollment Periods (SEPs) designed for people who have experienced certain life events. If your insurance company is leaving the market, this can qualify you for a special enrollment period. This gives you the chance to select a new insurance policy outside of the usual enrollment times.
Remember, the SEP typically lasts 60 days from the date you lost coverage.
Explore Government Programs
If you’re struggling to find an affordable option in the private market, consider exploring government programs. Medicaid and the Children’s Health Insurance Program (CHIP) are available for low-income individuals and families that qualify.
Consider Short-Term Health Insurance
As a temporary solution, you may want to consider short-term health insurance. These policies often offer coverage for up to 12 months (which can be renewed for up to 36 months). However, remember that these plans tend to have higher out-of-pocket costs and may not cover all the health care services you need.
Will I Still Receive a Premium Subsidy if My Carrier Exits the Market?
The short answer is, yes, you will continue to receive your premium subsidy. But, as with most things in life, there’s a bit more to it.
Your subsidy isn’t linked to a particular insurance company. Instead, it’s based on your income and the cost of plans available in your area. This means it’s not going anywhere, even if your insurer is.
However, the amount of your subsidy might change. When your insurance company leaves the market, it can affect the average market cost of insurance in your area. Subsidies are calculated based on these average costs.
Therefore, if the departure of your insurance provider leads to an increase in average market prices, you may be eligible for a larger subsidy. Conversely, if average costs decrease, your subsidy could also decrease.
Should I Auto-Enroll in a New Health Plan?
One of the options you have is to auto-enroll in a new health plan. But should you?
First, let’s understand what auto-enrollment means. In the simplest terms, it’s a ‘set-it-and-forget-it’ type of policy where you get automatically enrolled in a new health plan.
- Pros: The most significant advantage is that you won’t experience a lapse in your coverage. The transition is typically seamless, and you don’t have to do the legwork.
- Cons: The downside is that you may end up with a plan that doesn’t precisely meet your healthcare needs. It could be more expensive or lack certain benefits.
While auto-enrollment can save you the hassle of navigating the health insurance market, it isn’t always the best solution. It’s prudent to look at other options, compare different plans, and choose one that best fits your needs and budget. That’s what we’re here to help with!
Read More > When is Open Enrollment for 2024?
“Bob answered all of my questions fast and efficiently. He made sure to get me a quote as fast as possible so I didn’t miss my 2 months from losing my last insurance. He made it very easy.”
Find a New Health Plan
If you find yourself in a situation where your health insurance provider is leaving the market, there is no need to panic. McKnight & McKnight’s team of independent health insurance agents is dedicated to helping individuals like you navigate this transition and find a new plan that meets your needs.
Don’t hesitate to reach out to our trusted agents at McKnight & McKnight for assistance during this time of change. We’re here to support you every step of the way, so let’s start this journey together.