The open enrollment 2021 period for health insurance coverage can be confusing. Whether you’re enrolling in a plan, opting-out, or examining changes made for the year, it gets complicated. Because of the uncertainty that open enrollment can bring, there is a lot of information to sift through in so little time.
Unfortunately, it’s necessary to make decisions within a certain timeframe. Once open enrollment closes, individuals can’t make changes to their plan until the next open enrollment. That is, unless specific conditions apply, such as a life event.
To help navigate the open enrollment process, look at the following information to ensure you’re making the best choice for your affordable health plans. This time is an opportunity for people who do not have access to health insurance, especially the uninsured population, to find their types of insurance or even affordable health insurance.
What is Open Enrollment?
An open enrollment or ACA-compliant health insurance plan is the period in which individuals can choose health insurance coverage for themselves and their family through the health insurance marketplace as preventive care. During the annual enrollment, individuals can enroll in health insurance plans that are available to them through their employer, purchase individual health insurance from the health insurance experts, or enroll in Medicaid services. Then, they need to pay for the health insurance costs.
It’s important to note that open enrollment does not apply to Medicare. You must have already enrolled for this care before open enrollment starts. The deadline for doing so is October 15th of the year you turn 65.
2021 Open Enrollment Dates
Typically, the open enrollment window falls between the months of October and December. This year, the official dates for the enrollment schedules are
November 1st through December 15th. If you’re applying for insurance or making changes through your employer, pay attention. The company might choose to initiate open enrollment at a specific time within this window.
What if I need more time?
Open enrollment timelines are strict, though some events allow an individual to enroll in or opt-out of coverage outside the window. These
emergency circumstances are also known as “qualifying life events.”
- Loss of coverage: due to loss of work, qualification for Medicare or Medicaid, or aging out of a parent’s coverage plan.
- Changes in household status: including childbirth, adoption, maternity care, death, marriage, or divorce.
- Moving to a new region that is outside your current coverage area.
- Miscellaneous circumstances: becoming a US citizen, release from incarceration, joining/leaving the military.
2021 Open Enrollment Considerations
Every year, it’s important to be aware of coverage changes and benefits that affect your ability to obtain or afford coverage. During the 2021 enrollment period, there are several pieces of information to consider before deciding on a plan.
Changes Made To Current Coverage
Because of changes made to the Affordable Care Act (ACA-compliant health plan), individuals might have more options to choose from when it comes to access to health coverage benefits. In the upcoming year, states can choose from 50 essential health benefits so that individuals have access to more flexible plan selection, such as prescription drug plan, etc.
For this reason, it’s crucial to examine the changes made to the current coverage plan as well as compare what’s included in the new options available.
Lack of Individual Healthcare Coverage Requirements
Unlike the issue that uninsured Americans faced in 2018, there is no longer a federal tax penalty for uninsured individuals in 2021. Though it’s ideal to have insurance, the federal government will no longer penalize uninsured individuals.
If you live in New Jersey, Washington D.C., or Massachusetts, you’re still subject to state mandates that may still penalize you for not having coverage.
Medicare and CHIP Enrollment
Individuals and families who qualify for Medicaid or the Children’s Health Insurance Program (CHIP) can apply at any time. They do not have to wait for the 2021 open enrollment period.
These programs help low-income or disabled individuals with their healthcare needs via public aid. To determine your qualification, visit
healthcare.gov and answer the questions in the initial survey. You can also check the detailed overview of the eligibility.
Medicare Open Enrollment
For seniors 65 or older,
Medicare is the default health insurance provider. Younger individuals with disabilities may qualify as well for the application eligibility policy.
Unlike the free enrollment of Medicaid, Medicare has an open enrollment period that begins on October 15th and ends on December 7th of 2020. Like traditional healthcare, this health coverage begins on January 1st of 2021.
During open enrollment, seniors are typically enrolled in Medicare Part A and B automatically. During the open enrollment period, covered individuals can make changes to their existing plans. This may include switching from Original to Advantage plans (or vice versa), or applying for Medicare Part C or Medicare Part D. The exchange can be done through a special enrollment period.
Health Insurance Coverage Review
Even if you expect your health insurance coverage to remain the same, it’s a good idea to review your benefits package. This way, you can ensure that you’re not going to run into any issues before the open enrollment period ends.
Pay attention to your premiums, deductibles, and network providers offered for your current plan in the coming year. Should you notice anything concerning, it’s in your best interest to examine other plan choices. This can help you determine whether there is a plan available to better fit your needs.
Cost Assistance During Open Enrollment
If you’re concerned about the cost of paying for your insurance coverage, financial assistance help may be available. You should not only examine your plan options for the best price but also consider setting up a Health Savings Account.
Health Savings Accounts can help those with high-deductibles cover out-of-pocket healthcare costs.
Those who do not qualify for Medicaid or CHIP, government aid may be available to help cover the cost of coverage.
Health insurance plans can be difficult to choose, especially when it comes to planning for the costs. Use the information about Open Enrollment 2021 to weigh your options. Then, determine which savings plan you qualify for before the open enrollment period closes. Making an informed decision is one of the smartest
financial choices you can make.
What Happens If I Enroll In The Wrong Health Insurance Plan?
There are a number of situations in which individuals can end up with the wrong health insurance plan. Some of these include:
Paying too much for health insurance coverage during open enrollment. It’s important to remember that the amount you pay for health insurance coverage is based on your household income. If you have a high household income, you may be charged more than what you’re entitled to under your plan. If this happens, contact your insurance company and ask them to fix the issue before the open enrollment period ends, or you will be charged a penalty fee by the government.
Failing to sign up for Medicare before open enrollment begins. Individuals who do not enroll in Medicare before open enrollment begins will be required to pay a penalty fee if they decide to purchase it after this time period has passed. For those who are under 65 years old, Medicare is mandatory and cannot be delayed until later in life. For those who are over 65 years old, it’s still possible to enroll in Medicare after open enrollment has ended, but only if they qualify for an extension of time through their state’s Medicaid program and fulfill the eligibility requirements.
