Question: What does initial debit mean in health insurance?
I got a mail for recently applying for health insurance from Blue Shield of California. It says: Your coverage (individual) is currently paid 12/12/10. Effective 01/01/11, your monthly dues/premium will automatically be debited from your account on the first of each month.Your first debit will be in the amount of $142.09 to cover the period from 12/12/10 to 02/01/11. After this initial debit, regular withdrawals of $87.00 will be made on the first of each month. Ok, so I understand I am supposed to pay $87 each month. But I don't understand the initial debit where it says I have to pay $142.09. What is that amount for? What does it mean? Why is it covering from December to February? Almost about 1 to 2 months. Is that some sort of special payment everyone has to pay for health insurance? Can someone please explain this to me? I never applied for health insurance, so I'm not familiar with how things work. Thanks.
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