What Is a Grace Period?
A grace period is the time after a missed premium payment during which your health insurance coverage remains active. If you pay the overdue premium within the grace period, your coverage continues uninterrupted.
Grace Period Lengths
- ACA Marketplace plans WITH subsidies: 90-day grace period
- ACA Marketplace plans WITHOUT subsidies: Typically 30 days
- Employer plans: Varies — usually 30 days, check your plan documents
- Medicaid: Varies by state
⚠️ During the ACA grace period for subsidy recipients, your insurer can hold claims during months 2 and 3. If you don't pay by the end of the grace period, these claims can be denied and sent back to providers — meaning you could owe for services received during that time.
What Happens After the Grace Period
If you don't pay the overdue premium within the grace period, your coverage is terminated. You typically cannot re-enroll until the next open enrollment period unless you have a qualifying life event.
What to Do If You Can't Pay
- Contact your insurer immediately — payment plans may be available
- Check if your income has changed enough to qualify for Medicaid
- Report any income change to the Marketplace that might increase your subsidy
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