This is completely insane! Learned about this today reading this article in the Propublica.
“Under the rule interpreting the law, insurers offering plans on the exchanges must provide a three-month grace period to individuals”
Typically insures only give you 30 days. Giving individuals 90 day grace period is a disaster. Let me explain:
- January 1st: Sign up through the Exchange and pay one month premium.
- February-March-April: Don’t pay premiums unless you have a claim. You will get cancelled at the end of April.
- May: Go back into the exchange sign up with another company pay one month premium.
- July– July-August: Don’t pay premium unless you have a premium. You will get cancelled at the end of September.
- September: Go back to Exchange pay one month premium.
- October-November-December: Don’t pay premiums unless you have a claim. You will get cancelled at the end of December.
An individual can theoretically receive 12 months of coverage and only pay for 3 months of premiums. Grace period needs to be reduced to 30 days!