Renewing Health Insurance: Understanding and Evaluating Your Options
If you want to renew your health coverage for the coming year, mark your calendar for November 1, because that’s when Open Enrollment for health insurance begins. You’ll have until January 15 (or a little longer in some states) to renew your current health plan or switch to another.
But how do you know which new option is right for you? That depends on what’s changed in your life this year — and what other plans are available in the coming year. Here’s what you need to know to keep or switch health insurance plans during Open Enrollment.
How does Open Enrollment affect your current plan?
Open Enrollment is the time of year when you can renew your health insurance. You can do so in one of two ways:
Active renewal: You personally cancel the insurance you had last year and pick a new health plan for the coming year.
Passive renewal: Your insurance company will automatically re-enroll you in the same plan (if it’s still available) or a similar one.
If you plan to actively renew this year and you’re ready to find new coverage, enter your ZIP code below to get your personalized plan recommendations in five minutes or less.
Not sure whether you should actively or passively renew? Here are some important things to know about each option.
Passive renewals: What you should know
If you don’t choose new health insurance for the coming year, you will likely get auto-renewed in the same or a similar plan. The way this works is different for each individual, so be aware of these details when it comes to passively renewing health insurance:
1. Your insurer can leave your ZIP code.
Insurance companies constantly change where they offer their plans. So if your insurer decides to stop covering your ZIP code, you may or may not be auto-renewed. It all depends on where you bought your plan last year.
If you enrolled through HealthCare.gov or your state exchange, you will be auto-enrolled in a plan that is similar to your previous selection.
If you enrolled directly through an insurance company, you will NOT be auto-renewed and will need to actively select a new plan.
2. Passive renewal may not work if you’ve moved.
Have you moved since enrolling in your most recent health plan and didn’t enroll in coverage in your new ZIP code? Be sure to let your insurance company know. Many states are on the federal marketplace (that’s HealthCare.gov), but some sell subsidized health plans on their own state exchange.
You moved from one HealthCare.gov state to another: You will be auto-enrolled in a similar plan if your current plan is no longer available.
You moved from a HealthCare.gov state to a state with its own exchange: You will NOT be auto-enrolled and will need to actively select a new plan for the coming year.
You move from one state exchange to another: You will NOT be auto-enrolled and will need to actively select a new plan for the coming year.
You move from a state with its own exchange to a HealthCare.gov state: You will NOT be auto-enrolled and will need to actively select a new plan for the coming year.
Keep in mind that all important life changes (known as qualifying events in fancy health insurance lingo) like moving, having a baby, or a change in income should be reported to your insurance company. If you do experience some of these changes, chances are you’ll want to consider actively renewing health insurance instead — so keep on reading!
Insider tip
If all those scenarios sound confusing, we get it. Stride is here to make it simple. As a partner of HealthCare.gov and state marketplaces, you can use Stride's customizable search tool to effortlessly find the best new plan for your needs at the best possible price.
3. Your plan may not look the same next year.
Insurance companies do not have to keep plan prices or details the same from year to year. In fact, the monthly premiums for some plans could rise as much as 51 percent in the coming year! So if you want to auto-enroll in the same coverage or let your insurance company automatically switch you to a similar plan, you may see a change in:
The price of your monthly payments
Your deductible amount
Your doctor network
Your prescription coverage
If it’s important to you that your health plan covers certain doctors or drugs, or if you are very price sensitive, be sure to look into whether or not your plan’s details are changing next year.
The cost of your health insurance could rise by as much as 51 percent next year.
- Peterson-KFF Health Systems Tracker
Active Renewals: What you should know
1. Shopping around for a new plan could save you money.
Let’s face it: Life changes from year to year, so your health insurance should, too. Picking a health plan that is up-to-date with your income, health needs, and family size can help you save money throughout the year. We suggest active renewal if any of these situations apply to you:
Your insurance company stops selling your existing plan
Your current plan’s premium, deductible, and/or coinsurance are increasing
Your current plan’s doctor networks and/or prescription coverage is changing
New insurers or plans are being offered in your state’s marketplace
Your income is going to change
You experienced a change in household (for example, you got married or had a child)
Your health needs have changed
2. You will need to cancel your existing plan if you want a new one.
Your current health plan is likely set to auto-renew. If you decide to actively switch to a new plan, be sure to let your current insurance company or marketplace know — that way, you won’t be double-enrolled and receive two bills in January.
Ready to renew?
For most states, Open Enrollment for health insurance for the coming year starts Nov. 1 and runs through Jan. 15 (in most states). Unless you have a qualifying event during the year (such as having a baby or moving), this is the only time when you can renew your plan or pick new coverage for the following year.
So if you plan to actively renew your coverage, start by entering your ZIP code below to get personalized plan recommendations that suit your most up-to-date needs and budget.
