There are certain questions that come up all the time…actually on a daily if not hourly basis. If you\’re like us, you want a quick way to look over the common questions you might have as a California health insurance shopper before getting into more specific questions and our Common Questions section was created for you. So let\’s jump into it. Why is the 1st month\’s premium required up front and what does it \”buy\” you?

It\’s a very common question and it usually comes with a certain amount of suspicion. When a new shopper gets into the California online health application, without fail, they will come to a section requiring payment information. We\’ll get into the options available but the application won\’t proceed unless they enter the payment information with credit card being the most common, at least for the 1st month\’s premium. What\’s gives? Is this some kind of racket and does it mean you are automatically approved? No and no. Health insurance in California is very different from most other products you\’ll buy (we\’ll avoid the sarcastic comments on how much it costs but feel free) in that you submit the payment information up front for at least the 1st month\’s premium. Way back when, we actually had to submit a check for one month\’s premium with the application but that was back in dark ages of hard copy apps and even a memory of triplicate. When online California health applications came on the scene, the carriers became more laxed with the advent of credit card or auto-deduction options and at the height of California carrier flexibility, they would underwrite the application and just generate a bill. If you wait long enough, everything always comes back full circle and that\’s where we are today. They now require 1st months payment means (credit card or auto-deduction information or actual check) before they will either underwrite the application or finalize it. So how does this work?

By definition, health insurance applications require your 1st month\’s premium as your part of the contract. This does not guarantee coverage (children can be guaranteed issue but potentially at higher rates). You must still go through the underwriting process and be approved based on health. The payment just allows you to go through the underwriting process and be considered. So what protects you? In California, you have a 10 day free look window which means that when the carrier comes back with a written decision to you of their offer, you have 10 days from then to cancel the policy never effective for a full refund of your 1st month\’s premium. There is no application fee to apply for individual California health insurance so avoid any \”carrier\” or \”broker\” that requires one. It\’s bogus. When will the carriers actually hit the credit card or checking account?

The major California carriers will generally hit the credit card immediately or within a few days of approval. You can generally expect approval about 2-3 weeks following the submittal of the online application. It can go longer than this if the carrier requests medical records from a doctor but these so-called \”APS\”s are less common. So in a nutshell, payment information for the 1st month\’s premium is required up front with the California health application but you have the 10 day free look recourse to cancel the policy never effective for a full refund of this paid amount. We promise…no conspiracies and no solicitations from Nigerian princes.

Dennis Jarvis is a licensed California health insurance agent with extensive knowledge of the Individual California health market. affordable California health insurance

Dennis Jarvis is a licensed California health insurance agent with extensive knowledge of the Individual and Small Group California health insurance market. http://www.calhealth.net

Author Bio: Dennis Jarvis is a licensed California health insurance agent with extensive knowledge of the Individual California health market. affordable California health insurance

Category: Finances
Keywords: california health insurance, california health quote,individual california health insurance quote