Automatic renewal is a common feature of most individual health insurance plans, because it’s convenient and you won’t have to worry about forgetting to re-enroll. There is a catch in some cases, though – your plan may undergo changes you aren’t comfortable with, or you may be switched over to a different plan.
First, we will look at the benefits of automatic renewal, then discuss instances in which you shouldn’t let a plan automatically renew.
Why Automatically Renew?
Automatic renewal serves one main purpose – convenience. Plans don’t often go through drastic changes, and when you enroll in a plan you like, you’re not likely going to consider dropping your plan. An automatic renewal makes it so that you don’t have to worry about forgetting to enroll and losing coverage altogether.
In most cases, letting your individual health insurance automatically renew is the right choice. But there are instances where it’s better to do the opposite.
Why Not Let Your Plan Automatically Renew?
There are a couple of reasons for going against automatic renewal:
- Lack of satisfaction with your coverage during the year
- You dislike the changes your plan will make in the next year
Your health insurance provider will mail you a document in which you’ll see what your health plan covered and what you paid for. You should stay in contact with your insurance provider due to the possible changes your plan may go through.
Awareness Is Key
When it comes time to choose between automatic enrollment and switching plans entirely (between November 1 and December 15 in the majority of states), you should get in contact with your insurance provider to compare what’s available to you. If you don’t take action before the open enrollment period ends, you’re going to be automatically enrolled in your plan, which you may not have been happy with.
You should also be aware because you may be enrolled in something else entirely. If your plan no longer exists, your health insurance provider will enroll you in what’s closest to the policy you had. But you may not like the new plan, despite the similarity.
Premiums are especially known to fluctuate from year to year. This is also true if your plan has subsidized premiums where the premiums are in part covered by the government. Automatic enrollment could result in you owing the government more money depending on changes in your financial situation over the previous year.
Be Aware and Prepared to Take Action
Acting in response to changes is more important than simply being aware of them. As mentioned before, if you don’t act within the given amount of time during open enrollment, you’ll either be stuck with a plan you don’t like, or be enrolled in a plan similar to the one you had but with undesirable differences.
As for deciding whether you should or should not choose automatic enrollment depends on your set of circumstances. There are many variables at play and not every insurance policy will be subject to the substantial changes mentioned above. Either way, be aware and proactive.
The Right Choice Starts Here!
The world of health insurance is constantly evolving into something different. We’re always evolving into something better. The best way to provide accurate insight into this evolving world is to give you the truth. The truth enables us to make things easier on your finances out of the best interest of your coverage and overall quality of life. That’s why we’re called Trusted Senior Specialists.
Today is the best day to begin your road to better insurance. Call us today at (855) 952-1941. We also give you the option to schedule a video chat with us for free.