How Long is My Health Insurance Coverage Effective?

In general, health insurance policies are effective for 12 months, and the period during which coverage is provided is called the plan’s benefit year.

For individual health insurance policies — whether purchased on or off the exchange — the benefit year runs on a calendar basis, from January 1 – December 31.

However, not all policies will be effective for the full 12 months.  This is because the start date of an individual policy could be later than January 1 for one of two reasons:

• Open enrollment extends past January 1.  For example, open enrollment for 2014 plans ran through March 31, 2014, meaning consumers could enroll several months beyond Jan 1. The same will be true in 2015 and subsequent years, when open enrollment is scheduled to run through February 15.
• Special enrollment periods are available throughout the year, meaning consumers may enroll in a new policy whenever they have a qualifying event.

Regardless of a plan’s start date, however, the benefit year for all non-group plans ends on December 31 and a new benefit year begins on January 1. This means the cost-sharing features of a plan (e.g., deductibles, out-of-pocket limits, etc.) start over each January 1.

January 1 is also the date when premium rates on a non-group policy can change.

What Will Happen on December 31?

Your health insurance carrier will most likely give you the option to automatically re-enroll in coverage at the end of your benefit year.

But since premiums and plans can change from year to year, it will be important to carefully compare your options for next year’s coverage.

Open enrollment for 2015 health insurance begins on November 15, 2014 and runs through February 15, 2015.  During these dates, you can switch to a new 2015 individual or family plan for any reason.  Your new coverage effective date will be determined based upon the date you enroll.  Click here to learn more.

Help Choosing the Right Health Insurance

Virginia Medical Plans is available to help you make the transition from 2014 to 2015 health insurance coverage.  Contact our office as open enrollment approaches so we can help you choose the right plan to meet your specific needs.

Reach us by phone 1-800-867-0800 or email jkatz@vamedicalplans.com.