Following your enrollment and receipt of your first payment, it may take up to 3 weeks for your application to be reviewed and approved. Applying for significant health insurance during the first fifteen days of a month will usually result in coverage beginning on the first of that following month. How long does it take for health insurance benefits to start? Let us look further.
The start date of your health insurance coverage also known as the “effective date” of your plan is the day on which your insurance provider begins paying for your medical costs. They will not before that date. In the majority of instances, your effective date will be delayed.
Indeed, depending on the date of your health insurance enrollment, your effective date may be more than a month away. The day your health insurance policy takes effect is determined by the month in which you purchase it.
Here is a straightforward explanation of how coverage commencement dates operate in the majority of states.
During a time of open enrollment:
If you enroll in a plan between the first and fifteenth days of the month and pay your premium on time, your coverage will begin on the first day of the following month.
If you purchase a plan between the 16th and the end of the month, you will be required to skip a month and your coverage will begin on the first day of the next month—that is, on the second following month.
For instance, if you purchased a plan on January 3, 2015, you would begin receiving coverage on February 1, 2015. If you purchased a plan on January 16, 2015, it would take effect on March 1, 2015.
If you qualify for an exception to open enrollment, the effective dates usually operate the same way. After open enrollment concludes, you may still get health insurance if you have a qualifying event, such as a divorce or a relocation to another state. Therefore, if you purchase a plan on May 1, coverage will begin on June 1. If you purchase your plan on May 16 (or any other day after the 15th), your coverage will most likely begin on July 1.
Bear in mind that in order for your coverage to begin, you must complete two steps: Completion of the registration form and payment of the first month’s fee is required. Your insurance coverage will begin after you have completed both steps enrolling and making your first payment. It’s never a bad idea to contact your insurance provider to ensure that everything is in order and to check the effective date of your policy.
The waiting time or elimination period during which an insured may make claims varies according to the insurer, policy, and kind of insurance. Premiums may be somewhat less expensive for longer waiting periods before coverage becomes active. There are many kinds of waiting periods in health insurance.
Employer waiting periods force employees to wait a certain amount of time, for example, three months, before receiving company-subsidized health care. Often, a clause like this would be in place for a business that anticipates a high rate of staff turnover. After an employee enrolls, he or she may be subject to an extra waiting time before making a claim under the plan.
Meet Krishnaprasath Krishnamoorthy, a finance content writer with a wealth of knowledge and experience in the insurance, mortgage, taxation, law, and real estate industries.