And if you already have an individual plan and make no adjustments before the 15th, you will be automatically re-enrolled in a plan that may no longer suit your needs.
With holiday festivities well underway, it can be easy to put enrolling for health insurance on the back burner. Similar to that ugly holiday sweater, wish as you might, the need to shop for health insurance during December will not disappear.
The Dec. 15 deadline is important for two groups of health insurance shoppers: those shopping for individual insurance for the first time, and those already enrolled in an Affordable Care Act (ACA) plan.
First-time shoppers: Mind the deadline
Choosing health insurance is one of your most important financial decisions of the year. Missing the Dec. 15 deadline will delay the start of your coverage to Feb. 1 or later, and could potentially result in financial tax penalties. However, with the average cost of a hospital stay at $10,000 a day, lack of coverage can lead to dire financial concerns.
Shopping for health insurance can be stressful. And many of us procrastinate the easiest of tasks, let alone the biggies. But if you delay shopping for health insurance, the ramifications could be large and potentially financially crippling, so don’t delay.
Returning shoppers: Compare plans to get richer benefits, lower premiums
Returning ACA plan holders will do themselves a disservice by not actively shopping the marketplace again. If you are currently enrolled in an ACA plan and do not take any action before the Dec. 15 deadline, you will automatically be re-enrolled in a similar plan for 2016.
But you are not guaranteed to be enrolled in the exact same plan as last year. Health insurance companies make changes to their plan offerings on an annual basis. Some policy changes that appear to be subtle may actually be quite significant for you and your situation. While health insurers attempt to re-enroll members into comparable plans, it’s best to be proactive and ensure your plan for 2016 is exactly what you are looking for.
If you decide that the new plan doesn’t meet your needs, you can still choose a different plan as long as it’s before Jan. 31. However, there will be a lapse in your coverage since your start date will be pushed back based on when you sign up.
With the third Open Enrollment Period in full swing, take this time to compare plans and carriers. Richer benefits or lower premiums may await you.
Rather than risk losing benefits or experiencing higher costs, ACA plan members should review their current benefits, evaluate new offerings on the Health Insurance Marketplace and determine if there’s value in switching.
Not sure how to get started? Here’s a few options to begin shopping for your first (or next) health insurance plan.
- Visit the Health Insurance Marketplace
- Call a licensed agent
- Work directly with a trusted health insurance company
