Completing your enrollment is a critical step in activating your health coverage
Selecting a health plan is an important milestone, but your enrollment is not finalized until your first premium payment is received. Without this step, your plan cannot be effectuated, which means you will not have active coverage.
What is effectuation?
Enrollment effectuation is the date when your health plan becomes active and functional. It involves completing the required steps, such as making your first premium payment and submitting documentation to guarantee the enrollment is entirely processed and becomes effective.
Your first payment, called your binder payment, is an industry term for the initial payment that secures your health coverage and is usually your first month's premium. The deadline for this payment can vary based on your policy and enrollment details.
It's important to check your policy documents to know when your binder payment is due to keep your coverage active. Typically, this deadline is given when you enroll or briefly after.
The cost of not being covered
If you do not complete the final step of enrollment, your coverage will not be activated. This means you could be responsible for paying out-of-pocket for costly medical expenses, including doctor visits, prescriptions and hospital stays. Just fixing a broken leg can cost up to $7,500, and a 3-day hospital stay is around $30,000 when you are not covered.1 These unexpected medical emergencies could place a huge financial burden on you and your family.
In addition to facing high medical expenses without coverage, you might also overlook preventive care. Skipping regular check-ups and screenings, which can detect health issues early on, could lead to potential health problems in the future if you are not covered.
Take the final step
Many assume that once they've selected and enrolled in a plan, their enrollment process is complete. However, the final step is making your first payment, which ensures your enrollment is finalized.
If you have a MyPriority® health plan, paying your monthly premiums is convenient and flexible. The most reliable way to ensure your coverage is activated is to set up autopay during your health plan application. You can also make payments by mail, online or by phone.
If you need health coverage, get a free quote and see if you qualify for financial assistance.
1Protection from high medical costs | healthcare.gov