How To Switch Covered California Plans: When & Why It Makes Sense
Every year during open enrollment, you have the opportunity to review your healthcare coverage and switch your California health plan. But is changing policies the right move for you? There are many factors to consider when exploring alternative Covered California plans, including your budget, health needs, the availability of subsidies, and other relevant factors.
If you’re looking for help so you make the right choice, the bilingual agents at Freeway will help to explore everything you need to know about changing your coverage in California. Just give us a call at 877-423-1508 for this free service.
When Can You Switch Covered California Plans?
Unless you have special circumstances, you can only switch your health insurance plan during open enrollment.
You cannot simply update your insurance plan at will. There are limits to when you can sign up or switch to a new policy. So if you’re wondering “when can I change my health insurance plan?” there are two ways you can qualify to adjust your policy: open enrollment and special enrollment.
During Open Enrollment
Open enrollment is an annual period where anyone who qualifies for an ACA policy can sign up for a new plan, renew their coverage, or change their existing policy. In California, open enrollment lasts from November 1 to January 31 of the following year.
You can change plans at any time during this period. Even if you initially selected a particular option, you can switch to another policy as long as you finalize your selection by January 31. It’s important to note that each state has different deadlines for open enrollment, so make sure you double-check your timeline if you’re moving from another state.
If you want your plan to begin on Jan. 1, you must enroll by Dec. 15.
After a Qualifying Life Event
You can register outside of the open enrollment timeframe if you have certain situations, known as qualifying life events. These situations will trigger a special enrollment period when they occur. Qualifying life events include situations that could impact your health insurance, such as losing coverage through your job, getting married, or having a child. You can also qualify for special enrollment when you turn 26 and age out of your parents’ family policy.
Typically, your Covered California special enrollment period will last 60 days, giving you some time to sort out your new insurance. However, if you lose your Medi-Cal state insurance, you have an even longer 90-day window.
Reasons To Switch Your Health Plan
There are many situations in which you may want to explore new health coverage options in California. Although it may seem easy to just go through a Covered California renewal and stick with your current plans, it’s smart to review your coverage and explore all available options. Here are some of the main reasons you might want to switch:
Cost or Coverage Changes
If your current plan has become too expensive, you may want to switch plans for financial reasons. Additionally, your insurer may not offer the exact same plans from year to year. If their coverage offerings change, you’ll need to explore similar options and types of insurance that still meet your needs.
Network Availability and Provider Access
The health insurance marketplace has offerings from multiple insurers. They all have their own networks of covered providers. You may want to switch policies if your current choice doesn’t cover your preferred doctors or specialists. Luckily, the marketplace website has tools to check if your providers are in-network with different policies or we can help you figure that out.
Family or Income Changes
As your family grows, you’ll need to adjust your medical coverage accordingly. If you get married or have a child, you’ll have the opportunity to switch to a family policy.
Changes to your income can also influence your health insurance choices. If you earn more, you may want to consider upgrading your coverage; if you have a tighter budget, you might need to explore more affordable insurance options or look into ACA subsidies for specific plans.
How To Switch Your Covered California Plan
Changing your health coverage in California is an easy process, especially if you’re already on an ACA plan. Review this simple guide to get started:
Step-by-Step Plan Change Process
Start by visiting the Covered California website. You can also head to Healthcare.gov, which will direct you to your state’s marketplace. Either create an account or log in to your existing account if you already have coverage.
Once you sign in, simply follow the prompts and enter basic personal information and details about your income. After your data is processed, you’ll be able to look at different plans.
The Covered California website will display the option you selected last year; you can either renew this policy or choose a new one. Simply click on your preferred choice and submit your selection. If you change your mind at any point during your enrollment period, just log back in to adjust your choice. After enrollment ends, you’ll be locked into your new policy.
Ensuring There’s No Gap in Coverage
When you sign up, take a moment to double-check the start date for your new policy. You want to sign up in time to avoid any gaps when your old coverage ends. This is especially important if you’re signing up during a special enrollment period, as the start and end dates of your policy can vary.
How Freeway Insurance Can Help You Switch Plans Seamlessly
When your healthcare insurance needs to change, you need to be able to switch your Covered California plan to fit in with your lifestyle. Adjusting your coverage is one of the best ways to safeguard your health and your finances. Whether you’re changing your coverage during open enrollment or picking a new policy after a qualifying life event, choosing the right Covered California plan can set you up for success throughout the year.
Navigating the healthcare marketplace can be confusing, but Freeway Insurance is here to help. The knowledgeable Freeway team will make switching policies a breeze, so you don’t have to worry about selecting the wrong choice for you and your family. Explore your options and get Covered California help today for free by calling 877-423-1508.
FAQs About Covered California
Learn more about how to change your health insurance plan by exploring these questions:
How Long Does It Take for Plan Changes To Take Effect?
Your new policy will typically be activated on the first day of the month after you switch. If you’re switching from a different policy, you’ll still be on that policy until your new coverage starts. For example, if you sign up during by Dec. 15, your insurance will likely take effect on January 1. If you sign up by Jan. 31, your coverage will start in February.
Policy start dates can sometimes vary, especially if you register during a special enrollment period, so it’s essential to double-check the details of your plan.
Can I Switch to a Lower-Tier Plan Mid-Year?
You can’t switch to a lower-tier insurance option partway through the year unless you undergo a qualifying life event. That means if you sign up for a Gold plan, you won’t be able to switch to a more affordable Silver plan until the next open enrollment period.
You can cancel your coverage altogether if it no longer fits in your budget. Then, you can select cheaper insurance during the next open enrollment period. However, this will result in a serious gap in your coverage, during which you won’t have any insurance until the next coverage year. In California, this could lead to a tax penalty.
Does Switching Plans Affect My Subsidy?
Switching plans could affect any cost-sharing subsidies you receive. Cost-sharing subsidies only apply to Silver plans, so moving to a Gold, Platinum, or Bronze plan could disqualify you for assistance. However, changing to a new policy will not affect your ACA premium tax credit. If you qualify for the tax credit based on your income, you can apply for any marketplace policy.
