Minneapolis, MN, Dec. 10, 2024 (GLOBE NEWSWIRE) -- The clock is ticking for health insurance shoppers: Dec. 15 is the final day in most states to enroll in Affordable Care Act (ACA)-compliant coverage that begins Jan. 1, 2025. Missing this deadline could leave you starting the new year without health coverage — or facing extra costs and disruptions.
“Enrolling before Dec. 15 in an ACA Marketplace plan ensures a seamless start to coverage in 2025 and can help you avoid costly surprises,” said Louise Norris, health policy analyst for healthinsurance.org and author of its ACA Open Enrollment Guide.
Open enrollment for 2025 ACA coverage, also known as Obamacare, has already drawn millions of consumers. During open enrollment for 2024 coverage, more than 21.4 million people signed up for Marketplace plans nationwide.
In all but a handful of states, the current open enrollment period ends Jan. 15, 2025. But there are crucial reasons to secure coverage by Dec. 15, including to:
1. Start the new year with coverage and avoid extra costs
Enrolling by Dec. 15 ensures insurance coverage will be effective beginning Jan. 1, 2025. If you wait and enroll between Dec. 16 and Jan. 15, your coverage won’t begin until Feb. 1 –– potentially leaving you to pay full price for medical services and prescriptions in January.
“Procrastinating through the holiday season could mean starting the new year with a gap in coverage,” said Norris. “And short-term health coverage solutions may end up costing more in the long run.”
Another reason to not wait is that starting over with another plan in a single calendar year can mean starting over with your deductible and out-of-pocket maximum partway through that same year.
2. Avoid unwelcome surprises
Many consumers who have a 2024 Marketplace plan could just let it auto-renew for the coming year without doing anything during open enrollment. However, renewing your plan without reviewing for changes risks a rude awakening, since a plan’s details can change from year to year.
By not actively participating in open enrollment –– reviewing and comparing other Marketplace plans –– you may be surprised to find your benefits or costs are different than expected come Jan. 1.
For example, numerous insurance carriers are entering and exiting state Marketplaces for 2025, including in Arizona, Florida, Illinois, Iowa, Indiana, Kansas, Maryland, Michigan, Nebraska, New Hampshire, New Mexico, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Washington and Wyoming.
“If your insurer is exiting your state’s Marketplace, the Marketplace will likely automatically select a replacement plan for you if you don’t choose your own replacement coverage,” Norris explained. “It’s better to take an active role in selecting your coverage now than be assigned a plan that might not suit your needs.”
3. Budget better for 2025
Starting your coverage in January can give you a clearer picture sooner of healthcare costs for the year ahead, including potential savings through federal subsidies.
Through the 2025 coverage year, most consumers will continue to qualify for enhanced federal subsidies, thanks to the American Rescue Plan and the Inflation Reduction Act. Approximately 19.7 million people enrolled in a 2024 Marketplace plan received premium subsidies.
In addition to premium subsidies, consumers may qualify for additional savings through a cost-sharing reduction. However, eligibility for this subsidy depends not only on your income but also on the specific plan you select.
“Understanding and selecting your coverage early helps you budget confidently. Take charge by shopping around and enrolling ahead of the holidays," Norris said.
Find more detailed information about open enrollment in healthinsurance.org’s ACA Open Enrollment Guide.
Healthinsurance.org provides online resources for consumers about individual and family health insurance. Healthinsurance.org, owned by HealthInsurance.org, LLC, has been providing consumer information about health insurance and health reform for over 25 years.
