We’re just a few weeks away from the start of the holiday season and you’re probably thinking about whether you’ve got enough in your savings account to cover gifts and everything else you need to buy. But don’t forget to budget a little time to review your health insurance needs, as well.
The annual open enrollment period will begin in November. For most people, this is your only chance to change your health insurance plan for 2025. Here are a few key things you should know.
The open enrollment period runs for two months
The open enrollment period for plans through Healthcare.gov typically runs from Nov. 1, 2024 to Dec. 15, 2024, if you want your coverage to begin on Jan. 1, 2025. You can technically select a new policy for 2025 as late as Jan. 1. However, if you choose your plan after Dec. 15, your coverage won’t begin until Feb. 1, 2025.
If you miss this window, you’ll have to stick with the plan you have unless you qualify for a special enrollment period. These typically relate to major life events, like:
Getting marriedHaving a babyGetting divorcedSomeone on the policy dyingMoving to a new residenceLosing your existing coverage (for example, insurance you had through an employer)
Since most people probably won’t experience one of these events during the year, it’s best to take some time during the open enrollment period to review your existing health insurance policy to decide if it’s right for you.
Focus on what you need in a health insurance plan
To avoid being overwhelmed by all the options, it helps to go into this process with a clear understanding of what matters most to you in a health insurance policy. Most people will probably say cost is at the top of their list, but that might not actually be the case.
If you need to see a certain specialist, you’ll want to make sure the plan you choose covers visits to that specialist. And if you’re on a particular medication, you want a plan that will cover it so you don’t have to pay for the full cost out of pocket. These concerns generally rank above premium cost for most people. So you may want to start by ruling out any plans that don’t offer the particular features you need.
Then, you can focus on cost. Even here, you’ll have to make some choices. Health insurance can have three different costs — premiums, deductibles, and coinsurance. This is different from home and auto insurance, which generally only have the first two.
Premiums are the monthly costs you pay. Deductibles are out-of-pocket amounts you must pay before insurance will pay anything. And coinsurance is how much you pay even after meeting your deductible. It’s often listed as a percentage.
Deductibles and premiums usually move in opposite directions. Choose a high deductible and you’ll get lower premiums, or vice versa. A high deductible option could be a good fit if you think you and anyone else on your policy will be pretty healthy that year. However, if you expect a lot of doctor visits, you may prefer a policy with a lower deductible.
Your plan choice will affect your health savings account (HSA) eligibility
Those who save in a health savings account (HSA) may want to make sure they choose a plan that preserves their HSA eligibility. Generally, this means a high-deductible plan. The definition of a high-deductible plan varies by year, and we don’t have this exact figure for 2025 yet. However, the government should announce it by the start of the open enrollment period.
If it helps, in 2024, a high-deductible health insurance plan is one with a deductible of $1,600 or more for an individual or $3,200 or more for a family. If your plan doesn’t meet the high-deductible criteria, you won’t be able to make new HSA contributions in 2025. However, you can still use existing HSA funds to cover healthcare costs as needed.
Researching health insurance plans may not be the most exciting way to spend an afternoon, but it can have a huge effect on your finances in 2025. Take your time with it and contact the plan providers if you have any questions about what a plan does or doesn’t cover.
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