How Do I Change My Health Insurance Plan?

Posted in Health Insurance

April 13th, 2010

Recently President Barack Obama signed the Healthcare Reform Bill into law. Those happy with their current health insurance plan will not be greatly impacted and will still be in control of their plans and can feel free to choose betweenPPO or HMO policies. That initial choice is usually locked into by a contract for a minimum time period of a year.

When You Can Change Insurance Plans

If over that time a person decides that they want to swap the type of coverage they selected for themselves or for their loved ones via a family health insurance plan, open enrollment periods are that sweet window of opportunity for changing the type of health insurance coverage previously selected.

Some states, but not all, have laws on the books that require insurance providers to offer a month-long open enrollment time span in which people can make changes to their existing health coverage or opt for a new provider entirely.

This opportunity only comes once a year, so those trying to find options for a cheap health insurance plan need to investigate the specific time periods from health care providers of interest and make note.

The rest of the process includes:

• Research It will be up to the insured to conduct their due diligence in investigating all the health insurance options available and choose which one best works into their plan and budget. It is also important to find out exactly when your new policy will begin and ensure your old one is in place to prevent any lapse of coverage.
• Application Individuals will be required to complete a lengthy application regarding the medical history of all those who will be covered.
• Acceptance Until 2014, health insurance providers can still reject health insurance plans for those with pre-existing conditions. Until that point, you are encouraged to keep your existing health care coverage until you have received acceptance into the new plan selection.
• Proof of Insurance Make sure that your new health insurance plan provider gives you documentation in the form of “proof of insurance.” This may be required to cancel your old policy.
• Cancellation If you are switching from a HMO to PPO within the same health insurance provider, this step may not be necessary. If, however, you have opted to choose a completely different health insurance plan, writing a letter stating the date of new coverage and the cancellation of the old may be in order. Proof of insurance may be required to let you out of your contract agreement.
• Pay Up If you have any old debts that need to be settled, do so now and make sure to keep any documentation proving you have done so.

Organization and dedication to the task are the two key attributes that will make your health insurance policy change go through without a hitch.