What can happen if an individual does not pay their health insurance premium?

If an individual does not pay their health insurance premium, they may face cancellation of their insurance policy. Health insurance is a contractual agreement where the insured pays a premium in exchange for coverage. When the premium is not paid, the insurer does not receive the consideration it required for coverage, leading to potential policy cancellation.

Insurers often provide a grace period during which the policyholder can make the payment without losing coverage, but if the premium remains unpaid after this period, the insurer has the right to cancel the policy. This process ensures that the insurance provider can maintain a sustainable business model while also protecting the interests of all policyholders.

In contrast, the other options suggest outcomes that are not standard practices in health insurance. For example, individuals do not receive additional coverage benefits for non-payment, nor are they automatically enrolled in a lower-cost plan. Additionally, while there may be grace periods, those do not guarantee extra time without consequence, as non-payment can ultimately lead to policy cancellation if the account remains unresolved.