- Posted by Canopy KC
- On February 12, 2016
- 0 Comments
Do you still need healthcare coverage for 2016, and you missed open enrollment? If you are not familiar, open enrollment is the federally mandated time period, November 1, 2015, to January 31, 2016, that you are able to purchase new health insurance coverage or make adjustments to an existing coverage plan. The good news is that you are still eligible to purchase healthcare coverage for 2016. The not so good news is that your options are limited and these options do not defer the tax penalty for not signing up for a qualified health insurance plan; however, signing up for coverage should still be a priority. So, if you still need healthcare coverage for 2016, keep reading.
Short Term Insurance Plans: If you still need healthcare coverage for 2016, and you have missed the deadline for open enrollment, you can still obtain a limited benefits short term insurance plan. Short term insurance plans range in coverage duration but are generally never more than twelve (12) months or to the next open enrollment period. It is true that you cannot be denied health insurance coverage based on pre-existing conditions, but short term insurance plans have limited benefits including prescription coverage, hospital stays, and providers that are covered. Regardless of the limitations, purchasing a short term plan is still better than remaining uninsured for 2016.
Exception to the Rule: The exception to the open enrollment period rule is if you experience a life changing qualifying event. Some examples include a change in marital status including marriage or divorce, a change in dependents including birth, death or adoption, a change in employment, or a move to another state. Qualifying events open a special enrollment period where you can purchase a new health insurance plan or make changes to an existing plan.
Tax Penalty: Because short term insurance plans are not considered to be qualified health insurance coverage, you will still be responsible to pay a federally mandated tax penalty. Paying the tax penalty and being covered outweighs paying the tax penalty and remaining uninsured.
It may be too late for open enrollment, but if you still need healthcare coverage for 2016, the professionals at Canopy are here to help you with your short and long term insurance needs because at Canopy: you’re covered.