What is Open Enrollment—A Guide | Senior Finance Advisor

What is Open Enrollment? If you're a senior, use this guide to help you understand the OE period and how to sign up for Medicare.

What is Open Enrollment?

Open Enrollment gives people who don't have healthcare coverage a chance to get health insurance and make sure they are protected in case something happens like an accident or injury.

Employees in the United States have open enrollment season, which is a time when they can choose or change their employer's benefit options, such as health, dental, and life insurance. Some benefits may be fully paid by the employer, while some are employee-paid only (usually through salary deferral). Typically, the cost of insurance is shared between the employee and employer, with the employer covering a certain percentage of the cost and the employee paying the rest through their paychecks.

When is the Open Enrollment Period?

In most states, the open enrollment period is a certain time of year when employees can sign up for health insurance. This window typically lasts about three months and workers have a limited amount of time to make changes or updates to their coverage before they lose access until next season.

Different states and companies may have different open enrollment periods, but they all generally occur around the same time. For 2022 non-employer provider insurance plans, enrollment began on November 1 and will continue through January 15. These dates are for both individual and family insurances plans purchased through the marketplace.

If you enroll before or on December 15th, your coverage will begin on January 1, 2022. If you enroll between December 16 and January 15th, your coverage will begin on February 1, 2022.

Remember, these dates are for plans that are purchased through the health insurance marketplace, NOT Medicare or employer-provided programs.

Seniors should know when their Medicare options will be available:

• Medicare: Medicare open enrollment runs from October 15–December 7, 2021.

Many Americans are given the option to sign up for health insurance through their job. Employer health insurance varies depending on the company, so be sure to stay up-to-date on the Open Enrollment period that your HR department will set.

How to Sign Up for Medicare?

A Medicare beneficiary can sign up for a new plan or make changes to their existing one during the Open Enrollment period, which begins on October 15 through December 7th. During this time, beneficiaries are also able to switch from one Part D prescription drug plan (PDP) to another PDP with lower out-of-pocket costs.

During this yearly period, Medicare plan members have the option to reevaluate their coverage and make adjustments or enroll in new plans if they so choose.

During the Medicare open enrollment period, you can:

• Switch from Original Medicare to Medicare Advantage (as long as you’re enrolled in both Medicare Part A and Part B, and you live in the Medicare Advantage plan’s service area).
• Switch from Medicare Advantage to Original Medicare (plus a Medicare Part D plan, and possibly a Medigap plan).
• Switch from one Medicare Advantage plan to another.
• Switch from one Medicare Part D prescription drug plan to another.
• Enroll in a Medicare Part D plan if you didn’t enroll when you were first eligible for Medicare. If you haven’t maintained other creditable coverage, a late-enrollment penalty may apply.

Open Enrollment Shouldn't Be Complicated

Health insurance can be complicated, it's true. But that doesn't mean that the Open Enrollment period should be overwhelming for you. Look into your employee-sponsored plans, understand your options if you are buying through the marketplace, and know what's provided if you are a senior signing up for Medicare. If you are planning on signing up for or changing your Medicare plan, there are many financial advisors who can help you determine the right choice for you.

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