The $5 Mistake That Could Cancel Your Health Insurance—Here’s How to Avoid It
Big Changes Are Coming to Health Insurance Renewals—Here’s What You Need to Know
This week, let’s dive into a major update that could affect anyone who gets health insurance through the Marketplace: starting this year, passive renewals are no longer risk-free.
In the past, if you liked your plan and didn’t mind a small premium increase, your coverage could simply auto-renew without any action on your part. While I’ve always recommended actively reviewing and renewing your plan (so we make sure your information is accurate), this year, it’s not just a suggestion—it’s a must.
Why Active Renewal Matters in 2025
For this upcoming Open Enrollment (November 1–December 15), if you let your plan auto-renew without updating your application, here’s what could happen:
- You’ll be charged a $5 monthly penalty by the Marketplace until you update your application.
- If your premium was previously $0, and now there’s no payment method on file, missing even a $5 bill for three months could cancel your policy.
- You could lose tax credits or financial assistance if your application isn’t updated, leading to higher monthly premiums.
In short, a simple oversight could cost you your health insurance coverage.
No More Zero-Dollar Premiums for Most People
Another important update: 93% of those who had a $0 premium last year won’t qualify for that this year due to the expiration of extended tax credits. That makes it even more important to log in, update your application, and make sure your plan is still affordable and fits your needs.
The Clock Is Ticking
The 2025 Open Enrollment window is shorter this year—ending December 15th. That means we have just 6 weeks to:
- Review your current plan
- Explore better or more affordable options
- Submit an updated application
- Avoid unnecessary fees and potential cancellation
Whether you’re keeping the same plan or switching, you need to update your info to stay compliant and covered.
Let’s Make It Easy
I’ll walk you through the process so you don’t miss any critical steps. My calendar is now open for November appointments—don’t wait until the last minute, especially with the shorter deadline this year.
Need help renewing or switching your health plan? Schedule your appointment today at jkappconsulting.com and let’s make sure you stay covered, stress-free.
