Under the federal mandate and state of Connecticut law, does an insurance company registered in Ct. have the right to terminate a ACA policy prior to the 31 days given (as quoted below) and 3 days before “open enrollment ” ends (in fact blocking the customer from getting coverage elsewhere), solely based on ‘not received payment , taking into consideration their invoice has following discloser :
“NOTICE: Full payment of the amount due must be received within 31 days of your due date or your benefit will be terminated. Our deposit of late or partial payments does not constitute acceptance or continuation of coverage. This invoice may also reflect a prior balance from a previous invoice. Failure to pay this prior balance by the of the current month may cause your coverage to be terminated.”
Keep in mind that this is related to 1st invoice under this policy so there are no ‘’previous invoice’’ .
Would I then be open for penalty for not having coverage until next enrollment period?
It's legal to cancel coverage, but they have to give you 30 days notice. Considering there has been no first payment, this may technically count.
Plans can be cancelled. Generally cancellations due to non-payment can prevent you from qualifying for a special enrollment period. However, if the non-payment was an error you may be able to get around this. Losing Minimum Essential Coverage for any reason other than non-payment activates a special enrollment period that starts 60 days before the cancellation and extends 60 days after.
A hardship exemption may also qualify you for a special enrollment period.
You have lots of options, and a few ways you might be able to trigger special enrollment. Even just signing up for the Marketplace triggers a 60 day special enrollment period. Other options include just enrolling in the same plan again before open enrollment ends. Probably worth simply calling HealthCare.Gov on this one given the fact you have so many choices.
If you are upset because your plan got cancelled, or just want to help us make a difference, check out: Health Insurance Cancellation Reform for Non-Payment.