Changes to 2022 Open Enrollment
With 2022 open enrollment quickly approaching, a lot of individuals are up for renewals on their current health plans or now have an opportunity to seek coverage. There has been a lot of major changes to this year’s enrollment period and we will list that information for you here. The first thing is, when is the open enrollment period and when does it end?
Nov 1st - Jan 15th
Enrollment before Dec 15th coverage starts Jan 1st
Enrollment between Dec 16th and Jan 15th coverage will start Feb 1st
This gives individuals an extra month to get health coverage in place for the year, 30 extra days to shop for a plan that meets their needs and budget. Speaking of budgets, this year there will be increased subsidies offered on the marketplace as well. To qualify for a subsidy, your household income must be below 138% of the federal poverty level of $26,500 to qualify. To qualify for a premium tax credit, your household income must be between 100% and 400% of the federal poverty level. Great news for a lot of people. However, if you do not qualify, or are not satisfied with the plans on the marketplace you are not limited to just securing coverage on the marketplace. I always advise speaking to a benefits specialist to determine which plan is best for you.
For 2022 health coverage, the Max out of pocket limit is $8,700 for a single person and $17,400 for a family. This applies to in-network care for essential health benefits. This is the most an insurer is allowed to offer regarding max out of pockets. Now, not all plans will have such high max out of pockets, and there are plans outside the marketplace that do offer lower out-of-pocket exposure as well.
With all the changes this year, it has made it attractive for a lot of major carriers who left the marketplace to return, most notably is United HealthCare, Expanding a massive footprint nationally for individuals who can now obtain their plans on the marketplace. Carriers such as CVS/Aetna have returned to the marketplace as well. Anthem has increased its presence in multiple states along with Avmed. This is great news as some of the largest insurance carriers now offering coverage on the marketplace exchange.
Some other notable changes for 2022 is an involuntary loss of coverage is a qualifying life event that allows a person to enroll in an individual/family plan outside of the annual open enrollment period and receive a subsidy. This is great news as if you lose your job any time of the year this will allow them to take advantage of the ACA’s premium tax credits if they’re eligible, rather than having to pay full price to keep their COBRA coverage in place.
Individuals and families with household income under 150 percent of the poverty line are eligible for a monthly SEP if their premiums would be $0 after applying for tax credits. This will be the case in 2022 when the ARP enhanced tax credits reduce premiums to $0 for those in this income group. This SEP is only available through the marketplaces.
Each year, rules and regulations covering the Affordable Care Act and health insurance marketplaces/exchanges are updated. The process to do this update for 2022 was complex but resulted in several favorable changes for consumers or rolled back proposed changes that would have negatively impacted consumers. With the multiple changes to this year’s enrollment, it’s very important to make sure you speak to a state-licensed benefit specialist that can help you navigate the marketplace and all other options, in addition to answering any questions you may have. Understanding things such as what type of network you are in, what a deductible is, what is max out of pocket, are imperative to understand before choosing your health plan for the year. Reach out today to window shop the available 2022 plans.
