What is a Grace Period?

A Grace Period is a period of time in which a person has the right to purchase health insurance coverage after a qualifying event. In Texas, if a person loses health insurance coverage due to a job loss or other qualifying event, they have a 60-day Grace Period to purchase new coverage. During this time, they are allowed to purchase health insurance coverage without being subject to medical underwriting or pre-existing condition exclusions. During the Grace Period, the person can compare plans and decide which plan best meets their needs and budget. After the 60-day Grace Period has ended, the person must purchase health insurance coverage or they will not be covered and may be subject to a penalty. It is important to note that in Texas, the Grace Period only applies to people who are losing health insurance coverage due to a job loss or other qualifying event. It does not apply to those who are attempting to purchase new health insurance coverage for the first time.

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