What You Need to Know About Open Enrollment Years

Your Guide to Understanding How Open Enrollment Years Work

Health insurance is a notoriously complicated subject in the United States. Whether you're purchasing it for the first time or switching plans, keeping track of the Open Enrollment Period is critical. Here are the answers to your top questions about Open Enrollment Period (OEP) and how they affect your healthcare decisions.

What Are Open Enrollment Periods?

OEPs are the times when you can switch to a different health insurance policy. They happen once a year, and most major health insurance providers follow the same OEP schedule. Whether you purchase your own insurance plan or use your company's, the OEP is your chance to make any changes.

When Do New Open Enrollment Periods Happen?

OEPs for the next year's individual health insurance begin on November 1 each year. They close sometime in mid-December. For example, the OEP in 2019 ended on December 18, and the OEP in 2020 ended on December 15. 

Why Are Open Enrollment Periods Named The Way They Are?

OEPs are named after the year in which the new healthcare plan will take effect, not the year in which plans are purchased. The OEP that closed on December 18, 2019, was OEP 2020, and the one that closed on December 15, 2020, was OEP 2021. If you're ever confused about what OEP year you're registering for, double-check when your plan starts providing coverage.

What Is Open Enrollment Period 7?

Although the OEP between November and December 2019 can be called OEP 2020, it's also called OEP7. This phrasing is common with legislators because it refers to how many years have passed since the Affordable Care Act took effect. OEP1 (also known as OEP 2015) happened in 2014, and OEP8 (also known as OEP 2021) took place in 2020. Either naming system is correct, but you're more likely to see the actual year when you're choosing health insurance.

How Long Do Open Enrollment Periods Last?

In the early years of Medicare, OEP lasted for 26 weeks until it was reduced to a few months. In 2017, the Department of Health and Human Services declared that the federal government's OEP would only be six weeks long. As a result, each official OEP follows these guidelines, but states may extend their periods as long as they like.

What if You Don't Enroll in Healthcare During Open Enrollment Period?

Although the ACA is still in effect, the part that required all people to have health insurance or face penalties has been repealed. As a result, if you don't have health insurance and you don't enroll during the OEP, you won't face any federal fines. Your state may have its own penalties to encourage residents to get coverage, though.

Some states, including California and Massachusetts, offer longer OEPs so that it's easier for people to sign up for insurance. If you're unsure when your deadlines are, reach out to your employer or state government. Keep in mind that Medicare and other federal programs are probably unavailable outside of the official OEP.

What Is the Special Enrollment Period?

If you're still not insured and a major change happens in your life, you may qualify for the ACA's special enrollment period. If you move, lose your insurance plan, get married, get divorced, have a baby, start a job, exit the military, or leave your parents' healthcare plan, you're eligible for this period. Regardless of which OEP year it is, you have 60 days to sign up for Medicare without facing fines.

When Is Medicare's Open Enrollment Period?

Medicare does not follow the same OEP schedule as other major plans. Its enrollment session is called the Annual Election Period, and it starts on October 15 and ends on December 7. This period overlaps with the OEP but ends earlier, so you have plenty of time to make an informed decision.

If you don't like your Medicare plan, the Medicare Advantage Open Enrollment Period happens every year from January through March. Unlike the normal AEP, you can't make whatever changes you want. You can, however, move from an Original Medicare plan to an Advantage plan. You can also switch between different Medicare Advantage policies.

Why Do You Need to Keep Track of Open Enrollment Period Years?

If you don't remember that the OEP for each year takes place in the fall of the previous year, it's easy to miss your opportunity to get insurance or switch plans. For example, if it's 2022 and you hear about new offers for OEP 2023, you might think that you can wait until January 2023 to take advantage of them. Some healthcare providers may allow you to sign up outside of this period, but there are often penalties or fewer plans to choose from.

Staying informed about OEP years allows you to make informed decisions about your health insurance policy. For more information on how to sign up for individual health insurance, contact our team at Sackett & Associates Insurance Services. Call us at 707-823-3689 or use our online form to ask your questions.