Paying your monthly health insurance premium on time is extremely important to maintain your coverage and ensure that your plan’s benefits and claims are paid in a timely manner. Health insurance companies, like other organizations, allow various methods of payment, including online, over the phone, or through the mail via check. Let’s take a look at some of the advantages and disadvantages of the payment options provided by insurance carriers:
Automatic deduction from a bank account or charge to a credit/debit card (autopay).
Pros
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Cons
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- With automatic payments, you will never forget to pay your premium. These consistent payments will ensure the insurance company will pay claims properly and allow members to access benefits.
- Some insurance carriers may discount the premium if you choose autopay. Additionally, setting up autopay on a credit card every month may help with reward points on your credit card.
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- If you cancel a policy, sometimes the autopay may stay active for an extra month or two before it stops. Insurance companies are usually good about refunding these premiums, but you may have to call the company and contest the charges.
- Even with autopay, it’s still a good idea to keep an eye on your payment statements to ensure you aren’t over or underpaying.
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Proactive online payment.
Pros
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Cons
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- Making online payments each month gives you more control over your payment schedule. Based on your finances, you can make early or later payments prior to the due date.
- You can make multiple months’ worth of payments at once. Some companies allow discounted premiums if you pay a full year’s premium all at once.
- Once your payment is submitted, the payment information is in the company’s system, so processing can begin sooner and more efficiently than mailing a paper check.
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- You run the risk of missing premium payments if you don’t actively keep up with your account.
- Most insurance companies have secure sites for submitting payments, but it is always a good idea to make sure.
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Proactive payment over the phone.
Pros
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Cons
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- Paying your premium through a representative allows you to document the interaction. You can keep track of the name of the representative, the time of the call, the phone number, and possibly even a confirmation number.
- It is often easier to speak with a live representative rather navigating the insurance carrier’s online portal.
- Rather than speaking with a representative, some companies provide an automated over-the-phone payment option.
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- Hold times are unpredictable.
- With automated phone options, you will need to speak slowly and clearly enough to ensure the system understands you. This may be a challenge for some people.
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Sending a paper check via postal mail.
Pros
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Cons
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- This traditional method is beneficial for those who do not have computer access or who are hesitant to input their payment information online.
- This is also an ideal option for those who want to bypass a phone call.
- Members who write paper checks are able to make hard copies of those checks for tracking purposes.
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- Paper checks run the risk of getting lost in the mail.
- Paper can also be easily torn and damaged.
- It is possible that the insurance company may lose your paper check in the shuffle of the thousands of letters they receive.
- An insurance company can choose not to process a paper check if it’s deemed illegible or if the wrong account number is mistakenly written on the check.
- All of these errors can lead to your account being deemed “delinquent.”
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Regardless of the pay method you choose, it’s always a good idea to keep track of your payments and question any unusual charges. If you need assistance setting up a payment routine that works well for you, please contact your ARC representative for help.
