Automatically renewing your enrollment in the same health plan means no choice or flexibility in coverage options.
The most important thing to remember each year during open enrollment is to consider all your options instead of just letting your coverage automatically renew.
Ask yourself: Are your needs different? Has the plan changed for the upcoming year? Is this the right plan for my budget?
These questions and considerations apply whether you have a choice of plans through your employer, purchased an individual plan or have a private Medicare Advantage Plan.
The most important thing to remember each year during open enrollment is to consider all your options instead of just letting your coverage automatically renew.
Insurance companies are required to send renewal letters outlining “significant changes” to coverage, including premium and benefits. It’s important that you read the letter to understand what, if anything, is changing with your plan.
Why is this so important?
Benefits change every year. Insurance companies make changes to their portfolios on an annual basis, including adding and deleting plans. Your coverage may not be the same as the previous year and it’s important you understand what’s different. Some possible changes include:
- Annual deductibles could be higher. Or lower.
- Premium price may have been raised. or decreased.
- Copayments for doctor’s office and specialist visits may change.
- The cost to fill a prescription might be different.
- Coverage options might have changed – for example, specialist visits may now require a referral in order to be covered.
Your health care needs might change. If you know you’ll need new or different health care services, it’s good to shop around. Things to consider:
- Are you planning to add to your family in the coming year?
- Will a dependent be turning 26 and no longer need coverage?
- Do you have a planned surgery?
- Has your overall health changed?
Your doctor might not be in your current network. A lot of carriers restrict individual buyers to ‘limited’ or ‘narrow-access’ networks. Evaluate the network of your current (and future) plan:
- Some plans that come with a low monthly premium also restrict you to using a smaller group of doctors and hospitals. Did you run into this issue with your current plan?
- If you know you’ll need specialist care in the coming year, the provider you want to see may not be in your current carrier’s network.
- With annual changes from the insurance companies, the network on your current plan might have changed and might not be satisfactory anymore.
With health care reform came the advantage of tax credits and subsidies to make health care more affordable for some individuals and families. However, you need to update your information annually and check whether you are still eligible for a financial aid.
Not convinced? This issue of “auto-renewing’ is also getting a lot of attention in the national media:
The New York Times tells consumers not to “put their insurance renewal on autopilot.”
Consumer Reports strongly recommends that you should “check out your options before re-enrolling.”
A Wall Street Journal article cautions “first-timers currently enrolled in a health plan through a public exchange must be especially vigilant.”
Take the time to weigh your options annually. Don’t get stuck in a health plan that isn’t meeting your needs. Even if you end up in the same plan, at least this way you are confident that your health care will be covered correctly for you and your family in the upcoming year.
