Breaking Insurance News: Insurers Extend Premium Due-Date Deadline*

Dec. 18, 2013 - The Associated Press (AP) just reported that Insurers have extended the premium deadline from December 31, 2013 to January 10, 2014. Previously, first premium payments had to be paid in full by New Year's Eve so that enrollee's 2014 health insurance coverage could take effect by Jan. 1st. But, Insurers are citing both a tight deadline around the holidays - as well as lingering computer problems - as the reason they are bucking the original government due-date of the 31st and giving those who sign up on healthcare.gov, the extra time.*

Insurers Aren't Getting Correct Enrollment Information

Essentially, Insurers don't want these issues to thwart someone's efforts to get health insurance coverage on the website under the Affordable Care Act (ACA), but according to the AP, Insurers have complained that a significant number of the enrollments they have gotten from HealthCare.gov have problems that could prevent a consumer from getting covered on Jan. 1. These issues include:

• Missing / Incomplete Information
• Duplicate Entries
• Garble / Corrupt files still getting through

Is Time On Your Side?

According to the AP, Wednesday's announcement does more than grant extra time. It also reduces the risk that consumers switching plans could suffer an interruption in coverage because of technology woes still afflicting HealthCare.gov, the federal online sign-up system, as well as some state-run websites.

That's particularly important for at least 4 million people whose existing individual plans were canceled because they did not meet standards under Obama's law.

Insurance Extension Re-Cap:

• Consumers who select a plan by Dec. 23rd will now have until Jan. 10th to pay their first month's premium.
• For coverage to take effect, consumers must make sure they pay their initial premium on time.
• Without the extra time granted, a consumer who paid in early January would have had to wait until Feb. 1 for coverage.
• Under the industry announcement, consumers still must select a plan by Dec. 23 — next Monday.

Source Associated Press (AP) *This article applies to plans purchased on healthcare.gov