Changing your health insurance doesn’t always happen in a neat, orderly manner. In an ideal world, you’d give two weeks’ notice at your old job, start a new job two weeks later, and have new employer-sponsored health insurance from day one. But that’s not how it works in reality for everyone.
If you lose your job, quit your job, or are between jobs, you might need a different way to get health insurance. This is called a “Special Enrollment Period,” and it’s a federal rule that can let you sign up for health insurance even if you’re outside of the usual time limits for annual enrollment.
Anyone who loses their job-based health insurance, or has certain other events happen in their life, is allowed to get new health insurance anytime with a Special Enrollment Period. This can be a great way to make sure you have the coverage you need, whether you have a new job lined up or not.
Let’s look at what a Special Enrollment Period is, and how it can help you get health insurance — anytime you need it — in 2024.
Special Enrollment Period: What it is and how it works
You’ve probably heard of open enrollment or “annual enrollment” at work, right? It’s a wonderful time of year, usually starting in October or November, when employees can change their health insurance or enroll in other workplace benefits. Open enrollment is important, because — assuming you stay at your current employer for the next 12 months — it’s your one chance each year to make changes in your insurance and other employee benefits.
The whole health insurance system is set up to assume that everyone stays at their job and can keep using the same health insurance for the next full year. But reality is more complicated. Not everyone stays at their job forever; some people unfortunately get laid off, and other people decide to quit their jobs.
If you leave your job or lose your job, a Special Enrollment Period is your chance to get new health insurance on HealthCare.gov. This can help you save big money on monthly health insurance costs, compared to the price of COBRA premiums.
A Special Enrollment Period is like “Christmas in July” for healthcare. Instead of being limited to just one time of year, it lets people have the flexibility to get health insurance coverage when they need it most.
Who can use a Special Enrollment Period in 2024?
Not everyone is allowed to use a Special Enrollment Period. To be able to use this flexible enrollment opportunity, you need to have what the U.S. government defines as a “qualifying life event.” A typical example would be losing your job-based health insurance (by quitting a job or losing a job), changes in your home residence, or changes to your family or household.
Here are a few common qualifying life events that let you get new health insurance with a Special Enrollment Period:
- Change in marital status: Getting married; or getting divorced or legally separated (and losing health insurance as a result)
- Welcoming a new child: Having a baby, adopting a child, or placing a new foster child
- Death of someone in your household who was responsible for your health insurance
- Change of residence: Moving to a new home in a different ZIP code or county, or moving to or from the place you attend school (as a student)
- Loss of health insurance: Whether it’s job-based coverage, individual coverage, or eligibility for Medicaid, state Children’s Health Insurance Program insurance, or premium-free Medicare Part A.
Some of these qualifying life events can happen within the past 60 days or in the next 60 days. So don’t assume it’s too late — you might still be able to get health insurance. There are a few other events and rare circumstances not on the list above that can also help you qualify. If you have a special situation and need to get health insurance, start by going to HealthCare.gov, and click the button that says “Check to see if you can enroll/change.”
If you qualify for a Special Enrollment Period, as you’re looking through the list of health insurance plans, try to get an HSA-eligible plan if you can. A health savings account (HSA) is a great way to pay for healthcare costs and save for future healthcare costs with tax-deductible dollars.
Bottom line: Changing health insurance mid-year can be a little stressful and complicated, but don’t worry. A Special Enrollment Period can give you peace of mind and protect your personal finances. If you lose your job, quit your job, or are between jobs, and don’t want to shell out big money for COBRA, you could get a lower-premium plan on HealthCare.gov. You might qualify for premium tax credits, depending on your income. Choosing an HSA-eligible plan can help you save money on taxes.
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