We all know that carrying some sort of health insurance is required in the USA now. With so many different plans that are available, finding the perfect fit is so much easier.
We talked about qualified life events in a past article and how they can help you obtain health insurance during other times other than open enrollment. But did you know that not having insurance for three months or more can cause you to be penalized in tax liabilities?
Changing plans does not have to be a difficult task. If you have a qualified life event, you can easily change plans, add or drop dependents, and make other changes any time during the year. Or you can use open enrollment to make your changes. Either way you do it, you must plan your modifications or changes in order to not have gaps in your insurance coverage.
There are a few reasons that you want to plan your changes to avoid gaps. The main ones are:
- Moving from one plan to another may cause pre-existing conditions to not be covered
- Having a gap in coverage could cause a tax implications
So what do you need to do to make sure that your health coverage in full effect?
- Monitor your plan changes and determine when the best time is to make changes if you need to make changes mid stream.
- Utilize open enrollment to its full potential.
- Utilize qualified life events to make changes.
No one wants to pay more in taxes. Make sure that you have some sort of coverage for at least 9 or more months of the year (less than 3 consecutive months).
Not sure if you are required to have health insurance? Check out the article on tax penalties and see if you are exempt. Or call me and together we can make sure!