Understanding the Health Insurance 90 Day Waiting Period: What You Need to Know
Have you ever wondered why there’s a waiting period before your health insurance coverage begins? If you’re new to the health insurance world, or even if you’ve been a policyholder for a while, it’s important to understand what the 90-day waiting period is all about.
What is the 90-Day Waiting Period?
The 90-day waiting period, also known as the “probationary period,” is a span of time during which you are ineligible for health insurance coverage after enrolling in a plan. It’s a way for insurance companies to mitigate the risk of someone enrolling in a plan solely to receive treatment for an existing condition, only to cancel the policy shortly thereafter. This helps insurance companies avoid adverse selection, which refers to the tendency of sicker individuals to enroll in coverage at a higher rate than healthy individuals.
When Does the Waiting Period Begin?
The clock for the 90-day waiting period starts ticking on the effective date of your coverage. For example, if you signed up for health insurance coverage to begin on January 1st, your waiting period would end on March 31st. The waiting period is typically a one-time event, meaning that if you were to switch plans, you wouldn’t have to go through another waiting period if you’ve already gone through one before.
Are There Exceptions to the Waiting Period?
Yes, there are some exceptions to the 90-day waiting period. Under the Affordable Care Act (ACA), insurance companies cannot apply the waiting period to individuals who are under 19 years of age or to those who are enrolling in employer-sponsored health plans. Additionally, insurance companies must provide a grace period of up to three months for individuals who are having difficulty paying their premiums.
What Should You Do During the Waiting Period?
Although you may not have access to health insurance coverage during the waiting period, there are still steps you can take to protect your health. You can schedule routine check-ups with your doctor, fill prescriptions, and even seek out low-cost health services at clinics or community health centers. You may also want to consider short-term health insurance policies, which can provide temporary coverage for unexpected medical needs.
The Bottom Line
Overall, the 90-day waiting period is a necessary component of health insurance coverage. While it may be frustrating to wait for coverage, it’s a way for insurance companies to keep premiums affordable for everyone. By understanding the ins and outs of the waiting period, you can make informed decisions about your health and prepare for unexpected medical costs.
