What You Need to Know about the Enrollment Period of 2021?
The open enrollment period under Covered California is the time that allows the citizens to buy Affordable Care Act (ACA) health insurance. The usual open enrollment period for California stretches for about three months starting from November 1 to January 31. Due to COVID-19, the open enrollment period has been extended through May 15, 2021. Read the article further to know the details and what this special enrollment period means for you.
What Is the Open Enrollment Period?
During the open enrollment period, any person can buy federal government–regulated medical health insurance plans. These plans are often known as Obamacare or ACA plans.
When you join these health insurance plans in the open enrollment period, you will benefit from getting it from the insurance companies at the same cost even if you are suffering from pre-existing medical conditions. Also, the insurance companies cannot reject anyone applying for the plans.
The open enrollment period ensures that people do not wait to get sick to consider buying medical health insurance plans. This limited period pushes both the sick and healthy to buy health insurance at the same time frame. The open enrollment period can benefit:
- First-time health insurance buyers
- People who want to change their insurance company
- People who want to change their health insurance plan
Why Does California Get a Three-month Enrollment Period?
California has the longest open enrollment period thanks, to the state-run insurance website. Most of the states depend oin the federal government's healthcare.gov platform and thus do not have much control over things like local insurance, signups, and deadlines.
This long enrollment period has greatly contributed to reducing the state's uninsured rate. California has an uninsured rate of 7.2%, which is far less than nearly half of the nation's averages 13.7%.
Why the Special Enrollment Period (SEP) of 2021?
In the face of a pandemic, the premiums in California increased only by 0.8% between 2019 and2020. This has been the lowest chance since the launch of Coverer California. Thus to encourage enrolments, President Biden signed an executive order declaring the special enrollment period (SEP) starting from February 1 to May 15, 2021, for the states served by federal marketplace.
Key Factors of SEP
- Any uninsured person or family can apply for 2021 health insurance coverage with the help of SEP.
- In SEP, you can apply for new health plans but cannot apply for a change of existing plan. This is subjective of state since many are debating on flexibility. It will be best if you get the advice of your insurance broker for the condition in your state.
- Only qualified persons can get financial help through Covered California
- The plan comes into effect on the first of the month when you enroll in the previous month.
- For example, if you enroll by April 30, the plan will be effective by May 1. If you enroll by May 15, then the effective date will be June 1.
Before We Go
Insurance by Allied Brokers is a full-service insurance brokerage having experience of 50+ years in the industry. If you have any doubts about medical health insurance plans or SEP, contact us at the toll-free number of 1-888-505-7988 or visit us at https://alliedbrokers.com.
- Apr 27, 2021