We know that having your insurance carrier go out of business half way through the year can be very stressful, and unexpected.
If your insurance carrier goes out of business, there will be a (SEP) Special Enrollment Period for all enrolled clients with that carrier. Deductibles, and max out of pocket will carry-over to the new plan you select.
The insurance carrier should reach out to you, and notify you that the plan your on will no longer be available by certain date. Insurance carrier’s for individuals when they go out of business carriers will have the deductible carry-over and have plans with other carriers to select from to have the your deductible carry over.
Insurance carriers going out of business can happen for many reasons, but main reason is they do not have enough funds to back the amount of money out in the field.