It’s essential to maintain health insurance coverage. These policies make the cost of health care much more affordable than it would be if you were to pay wholly out of pocket.

However, health insurance isn’t free. You must pay your premium. If you don’t, you could lose your coverage. If your coverage gets cancelled due to non-payment, you won't qualify for a special reenrollment period. You’ll likely have to wait until the next open enrollment period to get your policy again.

Paying your insurance premium requires diligence. Based on how you receive your coverage, your payments may vary.

Employer-provided Insurance

Roughly 49% of Americans get their health insurance from an employer. Through employer coverage, workers can generally cover themselves and their family.

Employer-provided health insurance generally offers different ways for employees to pay their premiums. Frequently, employers deduct the cost of the premium from the employee’s paycheck. The premium then goes to the insurer. Many employees find this automatic payment convenient. It helps ensure the premium payment is always covered.

Some employers do not offer health insurance to their employees. However, they may provide employees with money to help them fund their own insurance or medical expenses. Sometimes employees can use this money to buy a private plan.

Plans Bought Privately

Many Americans buy health insurance from a private provider. A private provider might be a standard insurer, such as Blue Cross/Blue Shield. When buying a private plan, most Americans will pay for them through normal billing—as they do with every other insurance plan. They might pay online, via paper, over the phone or through auto-pay. People will generally pay premiums monthly.

Affordable Care Act (ACA) Plans

Plans offered on the ACA exchanges are private plans offered by private insurers. If you get your coverage through the health exchange, you will still pay your insurer. However, when you first enroll in coverage, you might be able to make your first payment through the online insurance exchange. You will make the rest of the payments directly to the insurer.

Certain ACA plans provide extra savings in the form of subsidies. These might lower your deductibles, copayments and coinsurance. However, you will still pay for your premium using the same methods. Don’t confuse your premiums with your extra savings.

If you need more resources about health insurance, let Heritage Insurance Agency help. Contact us to get started.