My sister was recently dropped from her healthcare insurance. When she attempted to call her insurance company, the phone menu directed calls for people insured through the affordable healthcare act to one extension (which never connected through) and everyone else to a different extension. After several failed attempts to reach someone though the assigned extension, she attempted through the other extension, which she was put through immediately. She was informed that she had been dropped for lack of payment, which she had not been late. They (the insurance company) then informed her there had been a mistake and she had actually been cancelled several months earlier, thus refunded her $1100.00. She questioned their actions and they were unable to give her an explanation. This feels really fishy on the part of the insurance company. Is this a new technique to eliminate coverage for those enrolled via the affordable care act? Are other people also experiencing being dropped for “late payment”?
Health insurance can only drop you during your policy year for non-payment, fraud, or misrepresentation. You can appeal any insurer decision. As for your specific issue, we haven't heard of it. Hopefully others will comment below and post similar experience. People should note what state are in and what insurer they are using.
UPDATE: Over time we have realized there is a big problem with plan drops on private individual and family plans. We are working on a 12-month continuous enrollment solution. If you have had your plan dropped for a billing mistake join us in the fight by sharing your story. Together we can ensure change.