New York State Extends Grace Period for Health Insurance Premium Payments
/On April 7, the New York State Department of Financial Services released 11 NYCRR 52 (Insurance Regulation 62). An insurer, HMO, and student health plan must now extend premium pay periods for individual, small group and student blanket comprehensive health insurance plans to June 1, 2020 (unless the premium payment date is later, in which case the later date will still be applicable). During this extension, all claims must still be paid by the insurer, HMO, or student health plan. This extension applies to any policyholder who can demonstrate financial hardship as a result of COVID-19. This demonstration may be in the form of a written attestation by the policyholder.
Furthermore, demonstration of financial hardship due to COVID-19 provides these protections for the above-mentioned policyholders:
Protection from the imposition of late fees due to delayed premium payment:
Protection from being reported to a debt collection agency or a credit reporting agency (for premium payments protected under this regulation)
Information regarding these more generous payment alternatives and contact information for the NY State of Health.
Insurers, HMOs, and student health plans affected by this rule has ten (10) business days (April 17, 2020) following the enactment of this rule to do the following:
Deliver information under this regulation to policyholders along with contact information a policyholder may use to discuss future payment arrangements
Notify insurance producers and third-party administrators the insurer does business with of the provisions of this section.
This regulation only provides postponement for the specified reason of financial hardship due to COVID-19 and does not constitute forgiveness of such premium payment. All insurance brokers of affected policies should send this notice to all of its insured policyholders as soon as possible.
