When leaving a corporate job to become a full-time freelancer, there are a lot of arrangements to make. One of these arrangements is looking for new health insurance benefits.
This is considered a life-changing event, and outside of the annual Open Enrollment Period (OEP)( (November 1 to December 15), you can enroll in a new health insurance plan because you recently lost your coverage. As a freelancer, this may be your first time enrolling in a plan, especially if you have always had coverage through an employer.
Avoid these mistakes before enrolling in a plan and you can be more confident in your choice.
Putting your information online
When beginning the process of enrolling in health insurance, it can be difficult to know where to start. Often, putting your information online can be an easy solution to get help. However, you will end up with hundreds of phone calls and texts.
Instead, there are other sources to seek help. For example, ask your auto or home insurance broker if they know anyone who they work with because they often refer their clients to a health insurance broker they know.
You can also Google the results of insurance brokers near you and directly call a local broker in your area. Often, these brokers have Google pages and you can also read reviews.
Finally, you can ask fellow freelancers if they used an insurance broker and to give you their information. Insurance brokers like getting referrals from people they know and will be happy to help. Putting your information online will result in being bombarded with calls from non-local brokers who you may not be able to get into contact with in the future and will just make you frustrated.
Falling for scams
Now that you are working for yourself, your income is uncertain, so wanting to pay as little as possible for a plan is probably one of your main concerns.
However, this is not always the best strategy because there are a lot of scammers out there looking to offer you a plan that is cheap but it is essentially a discount plan that not many doctors accept because these plans are offered by smaller private companies.
Some of these features promised are a $0 deductible, a wide network of providers, and coverage up to a specific dollar amount. While these features are attractive, it could leave you exposed to larger out-of-pocket costs.
These plans are also not considered minimum essential coverage, meaning that they do not meet the same requirements as an ACA plan on the marketplace offered by major insurance companies. They also have long coverage terms for up to 2 years, so it is important to understand what you are being presented with before you give over your payment information because often there are no refunds.
Working with a licensed professional is best to ensure you are not getting a plan that is a scam because they work with all major insurance companies. It is important to get a plan from a reputable source to avoid problems with billing in the future.
Missing deadlines
Once you leave your job, you have 60 days to find a new plan. If you miss this deadline, you will have to wait until the next OEP in order to enroll in a new plan, so it is important not to procrastinate to find new coverage. Get help and enroll as soon as possible!
Not getting the proper documentation
Outside of OEP, you must provide documentation to prove you lost your coverage. This must come from your employer and previous insurance company. It must state your name and the dates covered on the plan. If you forget to submit this information, your start date will be delayed and you could have a gap in coverage.
Not reading the fine print
Oftentimes, you are given quotes from many sources when shopping for a plan. It is important to read the fine print before signing up. Legally, you have 10 days to look things over once you enroll. However, taking time before submitting an application is best because you can know exactly what you are signing up for.
Overall, the process of signing up for a new health insurance plan takes time. Work with a licensed professional to help you with this transition. Not only are their services free but they can help make sure you don’t miss deadlines or submit documents.
Contact me today for a free consultation.