Did you switch health insurance carriers during Open Enrollment, only to find that you were charged a premium by your previous carrier for January? You’re not alone!
This can happen due to timing overlaps in coverage notifications between the Marketplace (if you’re on a Marketplace plan) and the insurance companies.
The good news? You can resolve this and get a refund for the extra premium charged by your old carrier.
Here’s how this situation happens and what you can do to address it.
Why Does This Happen?
When you switch health insurance carriers during Open Enrollment, the change often takes effect on January 1 of the new year. However, there can be a delay in the notification process between the Marketplace and your old insurance carrier, resulting in the old carrier still charging you for January coverage.
Essentially, your old carrier doesn’t immediately receive confirmation that you’ve moved to a new plan, so they assume your coverage is ongoing.
This delay can lead to what feels like double billing: one premium for your old plan and one for your new plan.
What Can You Do to Get a Refund?
1. Contact Your Old Carrier Directly
The quickest way to resolve this issue is to be proactive. Here’s what you need to do:
- Call your old carrier as soon as you notice the extra charge.
- Tell them you switched carriers and that your new coverage started on January 1.
- Request a refund for the January premium.
Most insurance providers are prepared to handle this type of situation and will process your refund more quickly if you initiate the request.
2. Let the Marketplace Notify the Carriers
If you don’t take action yourself, the Marketplace will eventually notify your old carrier that you’ve switched plans. Once the old carrier receives confirmation of your new coverage, they should automatically process the refund for the extra premium.
However, this route can take up to 60 days or more, depending on how quickly the notification and refund are processed. While it’s an option, it’s not the fastest one.
3. Keep Documentation Handy
When dealing with refunds, it’s always smart to have your documentation in order. Make sure you have:
- A copy of your new insurance card or confirmation letter.
- Any emails or notices from the Marketplace about your new plan.
- Proof of the premium charge from your old carrier (e.g., a bank statement or invoice).
This information can make the process smoother if your old carrier requests verification of your new coverage.
How to Prevent This in the Future
While this situation can’t always be avoided, there are a few steps you can take to minimize the likelihood of double charges:
- Submit Open Enrollment Changes Early: The earlier you finalize your new coverage, the more time there is for notifications to process before January.
- Verify Coverage End Dates: If you know you’re switching carriers, contact your old carrier in December to confirm that your coverage will terminate on December 31.
- Check Your Bank Account Regularly: Review your bank or credit card statements in early January to catch any unexpected charges quickly.
If you’d like assistance with these and other insurance related matters, give our office a call!