How to move from a health insurance provider to another one?
Maybe you visit the doctor and don’t have the benefits you think you did. Or maybe you’re pregnant and you’re not sure how a new baby might change your coverage or premiums.
Don’t worry – these situations aren’t unusual, and you’re not locked into your health insurance plan forever. In fact, every fall during Open Enrollment Period, you have the opportunity to update your current health insurance plan to make sure it still fits your family’s needs. Or, if you experience certain life changing events during the year, you can make updates sooner during a Special Enrollment Period.
The truth is buying an insurance policy and later realizing that there is a better alternative happens more often than you think.
Situation 1: Cancel your health insurance before applying for another one
Unlike enrolling in health insurance, you can cancel your health insurance at any time. (But if you get your health insurance through an employer, you may have more limited choices – check with them for more details). You may choose to cancel your existing plan if you become eligible for health coverage in another way, like through a new job or through your spouse’s insurance plan.
To cancel, contact your insurance provider or the health insurance marketplace where you purchased your plan. You can usually either cancel immediately or choose a specific date to end your coverage. You may need to fill out some forms to make the cancellation official.
However, it’s very important to make sure you have other plans in place for your medical care. Remember – while you can usually cancel your health insurance anytime, you can’t usually enroll anytime: only during annual open enrollment or a special enrollment period.
Situation 2: Health insurance portability
Health insurance portability is an option through which a policyholder can change the current insurance company and avail better services or possibly better health insurance policy from another insurance company.
Guidelines on Health Insurance Transfer
There are certain guidelines under which your portability clause works. Take a look at them down below:
Type of Policy and Insurance Company: The health insurance plans can only be transferred within a similar type of insurance company and policy plan.
Intimation Time Frame: You must intimate your existing provider at least 45 days prior to the renewal of your existing policy if you would like to port health insurance.
Acknowledgment by the New Insurer: The new insurer is liable to respond to your portability request within fifteen days of your application request.
Underwriting Norms: A new set of underwriting norms is written and shared with the policyholder when a portability request is raised.
Rejection of the Application: The new insurer has all the rights to reject your portability application if they find any false connection or difficulty in your case.
Steps Required for Transfer Your Health Insurance Plan
The following steps will guide you on how to transfer health insurance from one insurer to another:
Intimate your existing insurer about the portability of the policy 45 days prior to the policy expiration.
Apply for portability with the new insurer and fill up all the required forms and keep your existing policy documents ready.
The new insurer will then verify your documents within the next seven working days.
The insurer will add the portability documents on local insurance registry portal.
The new insurer will frame a new policy plan with underwriting norms.
The application will be processed, and a proposal will be sent to you within a 15 day period.
Ready to switch health insurance plans? Here’s what to keep in mind
What’s the right health insurance plan? Everyone wants to know, but the truth is there’s no easy answer. The right plan is different for everyone, and that’s because health is different for everyone.
However, there are a few things you can compare and consider to help choose a plan that’s right for you:
Monthly premiums, deductibles, copays and coinsurance – Usually, higher monthly premiums mean lower deductibles, copays and coinsurance (and vice versa). Would you rather pay more every month? Or would you rather pay more when you see the doctor? How often you get medical care can influence your personal preference.
What kind of coverage you need – You’ll want to look at which preventive care services are covered at 100% and how much you’ll need to pay for specialty appointments. If you’re planning on starting a family soon, you’ll want to review pregnancy and maternity care coverage. If you see a therapist regularly, you’ll want to review mental health coverage. And if you or your family members get prescriptions, you’ll want to review drug coverage. Which parts of your plan matter most to you will depend on your personal situation and might be different from others.
What kind of network you’re looking for – Many people have a preferred doctor or health care system. So when you’re thinking about switching health insurance plans, it’s important to make sure who you see and where you go are covered in-network. If you’re not sure, you can always check with your doctor’s office or review the plan’s documents before you buy.
