Health insurance is an important aspect of one’s physical and financial well-being. Unfortunately, many people and businesses delay their health insurance policy renewal, risking gaps in coverage and potentially higher costs. When individuals depend on their employers for health insurance, renewal delays can cause great inconvenience. This article explores why timely health insurance renewal is important for employers and employees.
To Avoid Getting Stuck on A Benefit Hold
While some health plans get renewed automatically, others require a paper or electronic form to be filled out and submitted to the insurance provider. This must be done by a specific deadline to avoid losing coverage. Any delay in form submission can lead to the insurance account being placed on a “benefit hold.” This means the person has no health insurance coverage until the policy is renewed. Employees dependent on their employer’s health insurance can’t get medication refills during this period as their insurance is technically inactive. This can become an out-of-pocket expense for individuals.
To Avoid Id Card Delays
The health insurance ID card is an important tool for individuals on their employer’s group health insurance policy. Problems with eligibility verification, billing, or receiving care may arise if the ID card is unavailable.
On busy days like January 1, the health insurance renewal process can take longer. There is generally some gap between the renewal process and a member receiving the insurance ID card. This happens because data needs to be verified and inputted into the carrier’s system before the ID card can be printed and dispatched.
Sometimes, the delays are caused by the United States Postal Service responsible for shipping and delivering the insurance ID cards. Such delays become an inconvenience for individuals who need urgent care.
To Avoid Premium Billing Delays
A delayed bill is a bigger problem than one might expect. Businesses have a standard billing cycle. This means that there is a predetermined amount allocated for specific timeframes. Delays in premium billing can result in cash flow issues for an employer. Hence, businesses should be proactive about timely health insurance renewal.
When multiple organizations renew their group health insurance policy with a particular carrier, it can cause delays. Businesses should consider renewing their policies in advance to avoid delays and hassle.
