In most cases, you can only apply for a new health plan once a year during a period called “Open Enrollment,” which runs from November 1 through January 31. The enroll-by window is meant to help keep the cost of health insurance down. Without a limited enrollment period, healthy people might wait until they’re sick or injured to purchase a plan, driving up costs for everyone. Imagine if you could purchase car insurance after an accident — car insurance would likely cease to exist. By establishing a limited window to sign up for insurance, companies are assured that they’re serving both healthy and sick members — and that premium costs don’t skyrocket.

If you experience certain life changing events, such as losing health insurance due to job loss, getting married, having a baby, moving, you may be eligible for special enrollment outside the annual open enrollment window.

When it comes to the total cost of health insurance, there are typically three components: premiums, deductibles and copays. The premium is your monthly payment to secure a health insurance plan, the deductible is the amount you’re responsible for before full coverage kicks in — similar to car insurance where you might need to pay a deductible to cover part of a repair — and copayments are set amounts you pay per visit or treatment.

Many insurance plans include both deductibles and copays. A general rule is that policies with higher premiums have lower deductibles and copays, while those with lower premiums have higher deductibles and copays. By offering a diversity of plan options, health insurance companies provide consumers the opportunity to choose a plan that best suits their needs.

There was a time when people who had pre-existing health conditions were denied health insurance coverage or penalized with higher premiums. The Patient Protection and Affordable Care Act changed that.

If you have a pre-existing medical condition, you can’t be denied health insurance coverage — and you won’t have to pay more because of it.

Health insurance is a smart move for your overall health — plus, it’s the law. Starting in 2020, uninsured individuals may face financial penalties come tax time.

Penalties aside, having health insurance is a critical part of maintaining a healthy lifestyle.
Preventive measures such as tests, injections, and screenings are often covered at no cost, and may head off costly health issues that could otherwise go undetected. Also, even if you are in good health, eat well and exercise, no one is immune to accidents. Remember that $7,500 hospital bill for a broken leg? Invest in health insurance to give yourself a safety net and to help you stay healthy for many years to come.