Open Enrollment
by Amerus Financial, 14 Dec 2020
What is Open Enrollment?
Open enrollment is the period when you must enroll in or make changes to your healthcare, dental, and vision coverage for the coming year. It can be a confusing time as you sort through updated plans, compare costs, and determine how much coverage is right for you and your family.
Once open enrollment closes, you typically cannot make changes to your coverage for the upcoming year unless you qualify for a special enrollment period due to a life event such as marriage, having a child, or other qualifying changes.
When Is Open Enrollment?
If you receive health insurance through your employer, your HR department will provide details about your company’s specific enrollment window. For many organizations, open enrollment takes place between October and December.
Missing your enrollment window generally means you must wait until the next year to make changes unless you experience a qualifying life event.
When Does Open Enrollment End?
Enrollment deadlines vary by program and employer. For Medicare’s annual enrollment period, coverage changes are typically due by early December, with new coverage beginning January 1 of the following year.
What Are Qualifying Life Events?
Qualifying life events allow you to enroll in or modify your health coverage outside of the standard open enrollment period. These may include:
- Marriage or divorce
- Birth or adoption of a child
- Loss of other health coverage
- Significant changes in household income
Medicare Open Enrollment
Medicare is a federal program designed primarily for individuals age 65 and older, though some younger individuals with disabilities may also qualify.
During Medicare’s open enrollment period, eligible individuals can switch between Original Medicare and Medicare Advantage plans, adjust prescription drug coverage, or make other plan changes.
What Benefits Should You Review Each Year?
Health plans often change from year to year. Deductibles, provider networks, covered services, and monthly premiums may all be updated. Even if you plan to keep the same coverage, reviewing your benefits carefully ensures there are no surprises.
If you expect minimal medical expenses, a high-deductible health plan paired with a Health Savings Account (HSA) may help lower your monthly premiums. If you anticipate ongoing medical costs, a lower-deductible plan may provide more predictable out-of-pocket expenses throughout the year.
Should You Open a Health Savings Account?
Health Savings Accounts (HSAs) are available to individuals enrolled in qualified high-deductible health plans. HSAs allow you to set aside pre-tax dollars for eligible medical expenses.
Contributions reduce your taxable income, and unused funds can roll over year after year. In many cases, HSAs can also function as a long-term savings tool for future healthcare needs.
