When it comes to applying for health insurance, the fall Medicare open enrollment period only occurs between October 15 and December 7. But what happens if you lose your job on January 5 and suddenly lose your essential health benefits? Will you be stuck without insurance coverage for the next 10 months?
The answer is no. Under the law, specific life changes qualify you for a special enrollment period. Insurance providers understand that life happens and circumstances can change in a moment’s notice. Fortunately, if something big happens in your life, causing you to lose coverage, you will be able to choose from the same selection of health insurance policies. But what exactly qualifies as a “major life event” to health and life insurance companies?
Here are a few of the most common events that can make you eligible for enrollment outside of the open enrollment period.
- Job change
Whether you are laid off or you leave your current job voluntarily, if you had employer-based health insurance coverage, you will lose it. Since you will need to get new coverage, insurance providers will allow you to enroll within 60 days of losing your employer-based insurance. - Aging out
By law, you are able to stay on your parent’s health insurance plan until you turn 26. As soon as you reach that 26th birthday, however, you’re on your own. Insurance providers will allow you to select your own policy under your own name no matter what time of year your 26th birthday falls. - Relocating
Health plans typically operate within a particular geographic area or state. If you move to a new city, you will need to choose a new insurance plan. This is certainly considered a qualifying life event, and insurance providers will open up enrollment to you in your new location. - Family change
Changes in the size of your family or household income can affect your eligibility for tax subsidies. Therefore, your insurance costs may change or you may lose insurance altogether. For instance, if you get married or have a new child, you may want to add a new family member to your insurance plan. If you get divorced and consequently lose your insurance, you will qualify for a new policy as well.
Keep in mind that you have 60 days from the date of your “life event” to enroll in a new insurance policy. You may be distracted by whatever is happening in your life, but do not forget to take care of your health insurance situation ASAP. If you wait too long, you may end up uncovered until October.
