What is an Insurance Election Period?

 Because of the nature of insurance plans, you cannot simply enroll or unenroll whenever you wish. Every insurance plan as an annual period called the Open Enrollment Period where you may add, drop, or change the plan without penalty. Generally, if you receive your insurance through your employer, you don't have to do anything to maintain your enrollment--it will continue automatically, but if you would like to change or tier level, switch from HMO to PPO, or unenroll entirely, the Open Enrollment Period is your annual opportunity. Open Enrollment also applies to those who are enrolled in Medicare, Medicaid, or TriCare plans. 

But you do not always have to wait for Open Enrollment to change your insurance plans. Legally, there are a series of qualifying life events that will provide a time frame--generally 30 to 60 days--in order to make any necessary changes without penalty for adding or dropping a plan.  These qualifying life changes include: 

1. Marriage or Divorce
2. Gain or Loss of Employment
3. Birth of a Child
4. Turning 65
5. Losing coverage from the loss of spouse or domestic partner
6. Loss or change of residence
7. Leaving Incarceration
8. Starting or Ending AmeriCorps Service

If you have had a sudden life change, you may qualify for benefits or insurance coverage that you did not previously qualify for. Remember, if you are eligible for a health insurance plan and you choose not to enroll in one, you may be taxed for failing to have coverage. Be sure you understand your eligibility and requirements when you've had a qualifying life event.