At North Ridge Wealth Advisors, we believe you should live a bold and fearless life. A crucial part of that is having the right financial and health coverage to support your needs. As you embark on the open enrollment journey, one that can be daunting, stay focused and don’t procrastinate!  Just like mapping out your path before a hike or planning your gear for a camping trip, selecting the right health insurance plan is essential for ensuring your journey is smooth and well-supported. 

Open enrollment is your annual opportunity to review and adjust your health insurance plans, whether choosing from the Affordable Care Act Marketplace or navigating the Medicare landscape. Open enrollment is your chance to ensure that your coverage aligns with your current needs, goals, and the exciting adventures that lie ahead. 

Grab your compass and check your map! Let’s explore the ins and outs of open enrollment to ensure your well-being for the year ahead. 

Open Enrollment Basics

Before we discuss how to navigate Open Enrollment confidently, let’s consider some essential basics. 

When Does Open Enrollment Occur? 

The timing of open enrollment depends on the type of insurance you’re seeking. Marketplace plans typically have open enrollment from November 1 to January 15. Your state marketplace may differ, so check specific deadlines in your area. 

For Medicare, if you have a Medicare Advantage Plan, the annual enrollment period is from October 15-December 7. If you have a Medicare Supplement, your open enrollment period depends on where you live. For example, in both Oregon and California, the open enrollment period is the 30 days before your birthday to the 30 days after your birthday each year. In Washington, you can change your Medicare Supplement carrier throughout the year.

The dates for employer-sponsored plans may vary but often fall within the last quarter of the year. Check with your employer for specific deadlines and details. 

These are essential windows to be aware of because changes made outside of this period are only allowed under specific circumstances, known as qualifying life events (e.g., marriage, divorce, birth of a child, loss of coverage, move to another state, etc.). 

Why is Open Enrollment Important?

Open enrollment is your chance to: 

• Review your Current Coverage: Has anything changed in your life? Significant milestones like the birth of a child, marriage, or a job change may affect your insurance needs.

• Consider Cost Changes: Your current plan may need more cost-effective coverage. New options may offer richer better benefits or lower premiums that better suit your financial strategy. 

• Ensure Adequate Coverage: Your coverage needs to evolve, as does your life and health. This is the time to ensure your insurance reflects your current anticipated health needs. 

Now, with all this in mind, let’s dive into the details.

Marketplace Open Enrollment: Charting Your Route

Step 1: Assess Your Current Health and Financial Needs

Before you start exploring your options, take a moment to assess your current situation - just like checking your gear before a big hike: 

• Health Needs: Reflect on your health status. Are there any expected changes or ongoing conditions you need to account for? For example, if you’re planning to expand your family, have a chronic condition needing regular attention, or have a planned procedure, ensure your plan effectively covers these needs.

• Financial Situation: Your anticipated income for 2025 will influence your subsidy eligibility. Understanding your financial landscape helps you choose a plan that fits your budget, ensuring you’re not caught off guard. 

Step 2: Review Available Plans

Explore the available Marketplace plans with your health and financial needs in mind. This is akin to studying different trails and routes before an expedition. 

• Coverage Options: Compare plans based on their coverage and provider networks. Ensure that your plan will include necessary services, such as visits to specific doctors or specialists. 

• Cost Structure: Evaluate the premiums, deductibles, copayments, coinsurance, and out-of-pocket maximum. The out-of-pocket maximum is the most critical element of any health insurance plan, as it defines the limit of your financial exposure. A plan with a lower premium might have higher out-of-pocket costs, so balance these according to your anticipated healthcare use and budget. 

• Prescription Coverage: Check if your medications are covered and what your financial responsibility will be. This can help you avoid unexpected pharmacy costs and ensure you’re not left scrambling.

Step 3: Consider Provider Networks

Just as you’d check for accessible paths on your adventure, ensure the plan includes your preferred healthcare providers. Out-of-network care, if available in anything but an emergency, can be significantly more expensive, so ensure your plan covers the providers you need without extra costs. 

Step 4: Study Key Dates and Enrollment Periods

Just like knowing your departure time on your adventure, keeping track of dates is crucial. The Open Enrollment period runs from November 1 to January 15. This is your window to make changes for 2025. Missing it could mean waiting until the next cycle or facing gaps in coverage. 

Marketplace Misconceptions

• “I make too much money to qualify for Marketplace subsidies.”

• Many middle-income individuals and families can qualify for premium subsidies and cost-sharing reductions on the Marketplace, depending on their household size and income. 

• “I have to enroll in the same plan every year.”

• Marketplace enrollees can (and should) review their options and switch plans during each open enrollment period to ensure they have the best coverage for their needs and budget. 

• “My current plan will automatically renew.”

• Marketplace plans do not automatically renew. Enrollees must actively select a plan during open enrollment to maintain coverage for the next year. 

• “Marketplace plans are more expensive than employer-sponsored plans or private insurance.”

• Marketplace plans can be more affordable than other options, especially with the help of subsidies. 

• “I don’t need health insurance because I’m healthy.”

• Even healthy individuals can benefit from having comprehensive health insurance to protect against unexpected medical expenses and access preventative care. 

• “I can wait until I get sick to enroll in a plan.”

• There are penalties for not having qualifying health coverage, and even if you get sick, you might have to wait until the next open enrollment period to sign up. 

Medicare Open Enrollment: Navigating the Medicare Landscape

For those nearing Medicare eligibility or currently enrolled, understanding your options is as important as choosing the right gear for a high-altitude climb. 

Step 1: Evaluate Your Current Medicare Plan

Ensure your plan still meets your healthcare needs. Consider any health changes or medications. With the Inflation Reduction Act’s impact on prescription costs starting in 2025, be prepared for potential shifts in Part D Plans.

Step 2: Understand Your Options: Medicare Advantage 

Medicare Advantage (Part C): Bundles Part A, Part B, and often Part D coverage. Benefits include lower premiums but higher out-of-pocket costs and some limited, extra services (like vision and dental). However, it has a more restricted provider network. 

Step 3: Check Provider Networks and Coverage

Ensure your preferred providers are included in Medicare Advantage plans, or, with Medigap, ensure that your providers “bill Medicare directly.” Out-of-network care, if available with a Medicare Advantage plan, will lead to higher costs, so check that your healthcare needs are met without unexpected expenses. 

Step 4: Avoid Common Pitfalls

Just as you’d avoid hazards on a trek, steer clear of these Medicare mistakes: 

• Missing Enrollment Periods: Don’t miss critical deadlines, which can result in coverage gaps or penalties. 

• Assuming no changes: Medicare plans and costs can change annually. Review your options each year to ensure they still meet your needs. 

• Not Accounting for Future Needs: Plan for your health and potential changes. Being proactive can prevent surprises down the road. 

Medicare Misconceptions

• “Medicare covers everything.”

• Medicare has significant coverage gaps, including deductibles, copays, and un-covered services like long-term care.

• “I don’t need to enroll in Medicare if I have other health insurance.”

• When they turn 65, most people must enroll in Medicare Part A and B, even if they have other coverage through an employer or spouse.

• “Medicare is free.”

• While Medicare Part A is premium-free for most beneficiaries, Part B and D have monthly premiums that must be paid. 

• “Medicare Advantage plans have limited provider networks.” 

• While some plans have more restricted networks, many Medicare Advantage plans offer broad provider access, including out-of-network coverage.

• “I don’t need to sign up for Medicare Part D if I have prescription drug coverage through another source.”

• Part D enrollment may still be required to avoid late enrollment penalties, even if you have drug coverage elsewhere.

Case Studies: Real-Life Examples of Open Enrollment Decisions

Through a few case studies, let’s explore how Open Enrollment decisions can impact real people’s lives.

Case Study #1 - Growing Family Needs

James, a 45-year-old professional, had a healthcare plan with a low premium but high deductible, as his family’s medical needs were minimal. However, with the addition of a third child, James realized that his plan wouldn’t adequately cover maternity and pediatric care without significant out-of-pocket costs. 

During Open Enrollment, James switched to a plan with higher premiums but lower out-of-pocket expenses. This change ensured his family’s medical needs would be met more affordably throughout the year, showing the importance of adjusting coverage as life evolves. 

Case Study #2 - Balancing Costs

Sarah, a mid-career executive, had been on the same health insurance plan for five years. After a job change and relocation, she reviewed her plan during Open Enrollment. She discovered she could switch to an insurance company with lower premiums and a better network in her new city. 

By evaluating her current needs, Sarah found a plan with cost savings that allowed her to invest additional funds into her retirement account. This decision aligned better with her financial goals and health coverage requirements. 

Case Study #3 - Saving For The Future

Maria, 50, is in good health with no immediate medical needs. During Open Enrollment, she reviewed her employer’s insurance options. She noticed she could opt for a high-deductible health plan (HDHP) with a Health Savings Account (HSA). 

Given her low expected healthcare costs, Maria chose the HDHP and maxed out her HSA contributions. The pre-tax savings and tax-free growth of the HSA funds allowed her to build a reserve for future healthcare costs, illustrating the benefits of choosing the correct account for your situation. 

Case Study #4 - Avoiding Automatic Re-enrollment

John nearly let his health plan automatically renew during last year’s Open Enrollment. Fortunately, he reviewed his options and discovered that his plan’s premiums had increased significantly without any additional benefits. 

By exploring alternatives, John found a comparable plan with a lower premium, saving himself several hundred dollars over the year. This case highlights the importance of actively reviewing and comparing plans to avoid unnecessary costs. 

Final Tips for a Smooth Open Enrollment

1. Review Annual Updates: Both Marketplace and Medicare plans can change yearly. Stay informed about updates or changes in coverage and costs to ensure you’re always prepared.

2. Consult Professionals: Expert advice can be invaluable, whether it’s for Marketplace plans or Medicare. Don’t hesitate to seek guidance to make the best choices for your health and finances. 

3. Plan Early: Start your review process early to avoid last-minute stress and ensure you make the best decisions for your health coverage journey. 

Open Enrollment allows you to set the course for your health coverage adventure. By carefully evaluating your options, considering your needs, and seeking professional guidance, you can ensure that your plan supports your health and financial goals for the year ahead. 

Like any grand expedition, thorough planning and the proper support will lead you to a successful outcome. Talk to your broker if you have any questions. If you don’t have a broker, North Ridge can help connect you with a professional. 

At North Ridge, we’re here to help you confidently navigate this process. Embrace the journey and live boldly. 

Always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any rates of return are historical or hypothetical in nature and are not a guarantee of future returns, which may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions and security positions, when sold, may be worth less or more than their original cost. Specific examples shown are not necessarily representative of the experience of North Ridge Wealth Advisors clients.