The experience underscores two practical lessons for people with individual health insurance: confirm that automatic payments are actually active, particularly after an insurer changes its payment systems, and understand exactly how long the policy’s grace period lasts.
For 12 years, Cord Silverstein paid for health insurance without interruption. Then one missed monthly payment turned into a coverage crisis for his entire family and forced him to postpone a medical treatment costing as much as $20,000, states a report by American web portal AOL. Later, Blue Cross Blue Shield of North Carolina notified him on July 7 that his policy had been canceled, states the report.
The Morrisville, North Carolina, resident believed he had enrolled in automatic payments, but the arrangement failed and after paying his May premium, he missed the June payment. Six days later, Silverstein contacted the insurer, prepared to settle the outstanding bill. By then, however, reinstatement was no longer an option under the terms of his policy. Scroll down to read what happened next.
Paying for the treatment himself would cost approximately $15,000 to $20,000, prompting him to cancel his next scheduled transfusion. Because silverstein requires a blood transfusion every three months, that became particularly consequential. In the meantime, Silverstein purchased temporary insurance intended to protect against major emergencies such as hospitalization following an accident or stroke. However, the policy does not cover pre-existing conditions. Healthcare advocates say cases like this illustrate how complicated insurance rules can create serious financial and medical consequences. Patients may struggle to understand payment deadlines, reinstatement rules, enrollment periods and coverage exclusions, even when they have maintained insurance for years.