During the grace period, when a health insurance claim is filed, what happens to any unpaid premium?

• A. The claim is denied while the premium is outstanding
• B. The entire claim is paid with no adjustment
• C. The unpaid premium is deducted from the reimbursement
• D. The insurer waives the premium during the grace period

Answer: (C)

During the grace period, coverage continues even if the premium hasn’t been paid yet. When a claim is filed in this period, the unpaid premium is deducted from the reimbursement. This means you still receive the benefit of the claim, but part of the payment goes toward covering the overdue premium. If the claim amount is larger than the overdue premium, the remaining balance is paid to you; if the claim doesn’t cover the full amount due, the remaining premium still remains owed.