Health Insurance Articles
Why It Is Important To Adjust Medical Insurance Coverage As Life Changes
2010-10-22
If you participate in a medical insurance program from your employer or you purchase HMO cover from a major provider, you're probably familiar with the concept of open enrollment. Typically, policyholders have a two-week period once a year to make changes to their benefits and coverage options with the exception of qualifying life events, such as marriage and birth. In the case of life changing events, it's prudent to apply for health insurance coverage quotes with your updated details. Depending on your situation, informing your provider about a change in personal circumstances can reduce your medical insurance premium or ensure all of your family members are covered in case of a medical emergency.
Because many health insurance policies are purchased through employers and cover families, it's important to apply for updated health insurance coverage quotes when changes affect employment or covered individuals. Marriage, separation, birth, adoption, and changes in a dependent's status are all eligible life changing events that allow policyholders to change coverage terms outside the period of open enrollment. If your spouse is changing employers or switching to a part-time work schedule, it's a great time to compare health insurance coverage quotes and find the insurance company and employer who offers the best deal.
In case of birth, death or a legal adoption, it's important to notify your medical insurance provider within 30 days of the qualifying event. Changes in the status of dependents also qualify as a life changing event. If a dependent graduates or reaches the maximum age for eligibility, they can be removed from the policy. To qualify, primary policyholders must submit formal documentation, such as a birth certificate, death certificate or legal document proving the change in status.
Important life changing events, such as marriage, divorce, birth, adoption, and changes in employment status must be reported to your medical insurance provider or your employer's human resources department within 30 days. If the change is not made within the 30-day window following an eligible life event, you will have to wait until the next period of open enrollment, which could be almost a year away. Staying on top of your insurance information, dependent status, and employment information is important to ensure you are only paying for the benefits you need while keeping everyone in the family covered.
If you are getting married, having a baby or experiencing a change in circumstances, policyholders should anticipate qualifying life events and update their medical insurance or shop for health insurance coverage quotes in advance. With a limited time-frame to report qualifying life events, it's important to find competitive quotes before it's too late.
