Is Annual Renewal of Health Insurance Necessary?

You probably believe you need to enroll in a new health insurance plan each year. But that might not always be the case at the time. There are some instances in which you may be able to continue your current insurance policy for longer than a year. In that case, the looming question here is how can you determine when you need to make changes to your plans? Does it make any difference if plans are changed? Perhaps even more importantly, should we change them at all?

For better understanding, let’s take a closer look at the benefits and possible pitfalls of keeping your existing health insurance plan rather than switching to a new one.

For anyone wishing to enroll in an insurance offering or update their policy, the healthcare.gov website is a valuable resource. However, it is not always simple to determine how much coverage would cost and what kind of benefits are offered at each employer, based on offerings from previous years. Please keep in mind that price levels could fluctuate. This will significantly impact the cost of monthly premiums. To get the most out of your experience with this website, updating applications every 12 months is necessary. 

Why Enrolling in a New Plan is Beneficial? 

Admittedly, it can be troublesome to sign up for a new health insurance plan every year, but you still need to do it anyway because it has important advantages. One benefit is that this gives you the opportunity to compare rates and coverage options. In addition, it allows you to stay on top of any new health insurance regulations. This way you can be assured that you are absolutely compliant with all the requirements of the ACA. 

When you sign up for a new insurance plan each year, you can reassess your coverage requirements. Your healthcare requirements will evolve in tandem with your changing life situations. Thus, it is crucial to plan accordingly. When you evaluate your health insurance policy on a regular basis, you can be confident that you’re receiving the greatest available coverage for your current life situation and the present condition of your overall health. 

But there are possible pitfalls also when you acquire a new health insurance. 

A new health insurance plan each year has its downsides, of course. Potential interest rate hikes are one of the biggest drawbacks. As the year draws to a close, you may find yourself paying much more for health insurance than you did the year before. Furthermore, obtaining coverage at a reasonable price may be difficult if you have a pre-existing medical condition.

Changes in your primary care physician are another possible drawback to switching health insurance plans every year. You may have to change primary care doctors if your existing one isn’t covered by the new insurer’s network of providers. Changing your insurance coverage might have a negative impact on your health and should be taken into account before doing so.

No matter what, it is ultimately up to you whether or not to enroll in a new health insurance plan each year. Evidently, considering all of the factors before making a decision is imperative, as there are pros and cons to doing so. 

When is the Proper Time to Change Your Plans? 

Changing your coverage and rates is not necessary if you are happy with your current healthcare plan. But, if your needs have changed or you’re looking for a better deal, enrolling in a new plan may be worthwhile.

If you purchased your healthcare plan directly from a carrier rather than via Healthcare.gov and did not get any tax credits in exchange for signing up to maximize coverage, don’t worry! You may still renew your insurance from the previous year. 

Alternatively, if necessary, you may be put on a similar plan you had. Please be reminded that those clients will be contacted by the healthcare provider to tell them of the situation. Plan holders who want to change or switch coverage should do so before open enrollment on December 1st starts. They can only do so (switch/change plans) within this time frame.

Changes in economic status (such as a new job or a raise in salary) that might affect your eligibility for subsidies should be disclosed even if you intend to retain your current plan during the next enrollment period. Although your circumstances may not have changed, it will still work to your advantage to go in and make sure your information is up to date, just in case.

The decision to remain with your current plan or switch plans can be a complicated and stressful one, regardless of what you decide. Healthcare.gov provides a few simple tools that can help you make the most informed decision for your unique situation. Don’t settle for anything less than the best! Do your research, consider all of your options thoroughly and make the right choice!

So, do you need to enroll in health insurance every year? The answer depends on several different factors, including your current healthcare plan, the cost of coverage itself, and your personal situation.

If you’re on the fence on what to do or if you have questions about your specific case, we encourage you to reach out to our team of experts at Skyline Insurance. Call us at 801-396-8200 for further help and assistance. We always look for simplified solutions for our valued clients.