Are You Ready for Open Enrollment? Here’s what you need to know.
It’s that time of year again. A period that stokes the anxieties of millions, foments fear and discord for months on end, and arouses the collective consciousness of an entire nation… Okay, probably not. If you’re like most people, you may not even be aware that Open Enrollment for 2018 is right around the corner, which is part of the reason I’m writing this post.
While it may not be circled in your calendar, Open Enrollment is a pretty crucial time of year for millions of Americans, many of whom don’t even realize how important it is. In this post, we’ll dive into everything you need to know about Open Enrollment, what it is, why it exists, and why it matters.
If you want to skip all of the ancillary information and just want help navigating your healthcare, getting coverage for you or your family, or finding the lowest cost insurance plan on the open market, you should really sign up for Orderly now, and just tell our bot Louie, “help me get insurance.”
All right let’s get started.
What is Open Enrollment?
Open Enrollment is simply a period of time each year during which you can choose your health insurance coverage for the following year. If you get your health insurance through your employer, check with your HR team to find out when Open Enrollment is for you and your company. If you are NOT covered by your (or your spouse’s) employer, you likely need to select a government-sponsored plan under the ACA (a.k.a. Obamacare).
This year Open Enrollment is from November 1st through December 15th
This year Open Enrollment is from November 1st through December 15th, which — for a lot of political reasons that we won’t discuss in this post — is the shortest it’s ever been. That means it’s even more important to be sure to educate yourself on your options and your responsibilities when it comes to choosing the best healthcare plan for you.
Shameless plug: Orderly can make navigating your healthcare super easy, providing you everything from savings on medications and services to the ability to talk to a doctor whenever you want. You can even use it to help you choose the best and lowest cost plan personalized for you, making it much easier than shopping for a plan on the open market. To get started with Orderly, click here.
What Happens if You Don’t Sign-up by the Deadline?
Unfortunately, if you forget to sign up for a plan or change your existing insurance plan before Open Enrollment ends, you will not be able to get or change your coverage again until Open Enrollment next year. The only exception is if you have what’s called a “Qualifying Life Event,” which includes losing your job, getting married, having a baby, or otherwise losing coverage. You can find out more about what constitutes a Qualifying Life Event here.
The main point to remember is that this is not one of those “soft” deadlines where if you miss it, you can just ask nicely and update your coverage.
You can’t.
That means if you let the deadline slip and you don’t have coverage, you could be putting you and your family in a lot of financial risk if anyone gets sick or injured over the course of the coming year.
This is not one of those “soft” deadlines where if you miss it, you can just ask nicely and update your coverage.
You can’t.
As if that weren’t enough, the ACA has a provision that requires everyone to have health insurance and penalizes those who don’t comply with a fee that you’ll have to pay when you file your taxes. The amount you will be charged varies based on your income. In 2017 it was 2.5% of your income, up to a maximum of $2,085, a number that is widely expected to increase in 2018 if Congress ever figures out what they’re planning on doing about healthcare next year — again, a topic for another post. Stay tuned ;).
That means, not only will you have to walk around all year helmeted, masked, and bubble-wrapped to ensure you don’t get sick or injured, but you’ll also have to pay an additional penalty on top of all the costs you incur for that bubble-wrap. Point is, make sure you get your insurance before it’s too late.
Now that you know what’s at stake, be sure to sign up for insurance before Open Enrollment is over. Orderly can help.
Why Does Open Enrollment Even Exist?
Unlike with other types of insurance like auto-insurance or home-owner’s insurance, health insurance is a bit of a different beast. For one, what we are actually insuring when we talk about health insurance is the health and well-being of ourselves, our families, our loved ones. These are not cars or homes, which are effectively replaceable commodities. The value we place on our lives and the health and well being of those we care about is (usually) infinitely more than the value we place on our stuff.
As a result, individuals are willing to go to incredible lengths — and rightfully so — to “repair” what is broken when it comes to our health, often irrespective of cost.
And that last part — the fact that in cases of life or death, as a society we often disregard costs completely — is crucial when it comes to understanding how we price, manage, and regulate health insurance. Remember, insurance companies are basically charged with calculating the total cost of that which they are insuring in a given population. In the case of health insurance, they have the unenviable task of putting a total price tag on how much we will spend to keep ourselves and our loved ones healthy over the course of a year.
Calculating the total cost of care within a set population is already a herculean task. Adding in the uncertainty of new entrants and an expanding or contracting population of people with different needs and demographics, would make the feat next to impossible.
That’s why Open Enrollment exists. On one hand, it’s a chance for individuals to get coverage or choose new plans based on their changing needs and expectation for the year to come. But perhaps more importantly, it’s an opportunity for insurance companies — including the biggest insurance company of all, the Federal Government — to re-calibrate by establishing a static (relatively speaking) population of users it will be insuring over the course of the next year and setting about managing the risk presented by those users while measuring the total costs incurred over the course of the year, until it’s time to do it all over again at next year’s open enrollment.
And if you found any of that to be a little confusing, don’t worry. You’re not alone. It is confusing. Fortunately, our team is constantly working to make healthcare easier for you to navigate and understand so you get the best healthcare, at the lowest cost, with the least amount of effort.
What to do Now?
Hopefully you feel a little more informed about Open Enrollment, what it is, and why it matters. And if you’re ready to sign up for health insurance or just want a tool to help manage your care this year, we would love it if you would sign up for Orderly Health today.
Even if you don’t use Orderly, the most important thing is to make sure that you and your family are covered before Open Enrollment closes. We love you and want to make sure you are safe, happy, and healthy, this year and beyond!
If you would like some further materials to read on Open Enrollment, I’ve included a couple good ones below:
