‘This is just ridiculous’: An unpaid 5-cent bill ended one woman’s health plan

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HealthFirst, according to KFF Health News (1).Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's howDave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAPRobert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a yearThe plan, purchased through the federal government’s health insurance marketplace operating under the Affordable Care Act (ACA) — initially subsidized her premium, which covered the cost of previous scans and appointments (2) .But then Hill started receiving bills: doctor visits ranging from $200 to $300 and an MRI for nearly $3,000. When she investigated further, she discovered that her insurance had been cancelled for “non-payment of premiums.”That’s because her monthly premium went up from $0 to $0.01. Over the following months, her unpaid premiums had accumulated to $0.05. Her insurance was then cancelled, triggering retroactive medical bills.Hill’s situation isn’t uncommon. About 81,000 subsidized ACA policies were terminated in 2023 for outstanding debts of $5 or less, according to KFF Health News, and nearly 103,000 more were cancelled for debts of less than $10.Certain life events can trigger a recalculation of a person’s health insurance premium, such as getting married, changing jobs or a child turning 26 and no longer qualifying for coverage under a parent’s insurance. In Hill’s case, it was because she removed her mother from the family plan after her mother turned 65 and became eligible for Medicare.Though Hill did receive notification of the change, she thought the one-cent difference was a rounding error. Plus, she says her insurance broker told her the plan was still active.“Stepping back from what’s legal, this is just ridiculous,” Sabrina Corlette, co-director of the Center on Health Insurance Reforms at Georgetown University, told KFF Health News.One factor leading to these “ridiculous” situations is the automation of health billing systems, which flag unpaid premiums (even if they’re only one cent).The impacts can be severe. It can leave policyholders without coverage — and retroactive medical bills they thought were covered. 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