Can I change employee health insurance mid-term?

Is it possible to change employee health insurance mid-term?

It’s one of the most common questions I hear. Most people assume that once you sign a healthcare contract, you’re locked into that plan for the next 12 months. Well, I’ve come bearing good news: that’s not necessarily true. Actually, switching healthcare plans during the term year is extremely easy (and also pretty common).

As I’m sure you’ve noticed, you pay health insurance premiums on a monthly basis (compared to annual commercial insurance premiums). Why? Although health insurance appears to be a 12-month commitment, it’s still essentially a month-to-month product. So while health insurance commits you to a payment plan for 12 months, it doesn’t guarantee you coverage or lock you into a full-year commitment to keep that coverage.

So how do I change my employee health insurance plan if I’m unhappy?

Once you’ve found your new plan of choice, make sure your new coverage begins on the same date as you plan to terminate your old one (because you don’t want to be without any health insurance, even for a day).

Once that’s locked up and ready to go, simply write a letter to your carrier (don’t forget your group ID number), explaining that you’re terminating your plan at the end of that billable month and will no longer be paying premiums. That’s it. You’re good to go!

If you find yourself in the midst of a PEO transition and have filed multiple claims within the first few months of your term, navigating this process may seem a bit more challenging. However, as long as you haven’t been misusing your benefits, rest assured that this transition can be remarkably smooth. It serves as a lifeline for many companies, allowing them to gracefully extricate themselves from a complicated situation and embark on a fresh start.

 

The takeaway

Don’t fear changing your health insurance plan if it’s not a fit for you. Why settle when the changes are simple?  Talk to us to learn more.