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Health insurance rights & protections

Cracking down on frivolous cancellations

Insurance companies can't cancel your coverage just because you made a mistake on your insurance application.
In the past, if your insurance company found that youโ€™d made a mistake on your insurance application, they could:
  • Take away your coverage
  • Declare your policy invalid from the day it started
  • Ask you to pay back any money theyโ€™ve already spent for your medical care
Itโ€™s now illegal for insurance companies to cancel your coverage simply because you made an honest mistake or left out information that has little bearing on your health.

Does this apply to my plan?

Yes. These protections apply to all health plans, including grandfathered plans, whether you get coverage through your employer or buy it yourself.

Does this mean that my plan canโ€™t be canceled for any reason?

No. Your insurance company can still cancel your coverage if you put false or incomplete information on your insurance application on purpose. They can also cancel your coverage if you donโ€™t pay your premiums on time.

Will I be notified before my plan is canceled?

Yes. Your insurance company must give you at least 30 days notice before they can cancel your coverage for the reasons stated above. This gives you time to appeal the decision or find new coverage.