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By Park Je-cheol, Fordham Univ. MBA, Financial Advisor
Photo credits: Unsplash
Obamacare enrollment for 2021 is set to commence from November 1 to December 15 this year. Existing policyholders may need to take specific actions to renew their health insurance.
COVID-19's Impact on Health and Finances
The year 2020 has seen significant damage to health, finances, and business due to the COVID-19 pandemic. Obamacare subsidies are calculated based on estimated income, and later adjusted to align with actual earnings. Reduced income may result in refunds on insurance premiums, providing some comfort. Conversely, individuals who experienced income increases due to unemployment benefits may need to return the excess subsidies received.
Automatic Renewal Process
For current enrollees, Obamacare health insurance will be automatically renewed for one year if no action is taken. The Health Insurance Marketplace will use previously submitted information to generate a new application, maintaining consistency in family details and income data. As a result, most subscribers will continue with their prior-year insurance and similar subsidy conditions.
Without substantial changes in family composition or income, and with satisfaction in current insurance, remaining inactive might be a favorable option. The renewal process acknowledges previously verified information, avoiding the need for additional documentation. This automatic renewal starts in January, irrespective of the enrollment time in the previous year.
Considerations for Changes
Policyholders experiencing significant changes in family status or income, or those wishing to switch health plans, can modify their information during the renewal period. Notably, changes to health insurance plans are restricted outside this window, necessitating a thorough review. Given its heightened importance during the pandemic, now is the time to carefully ensure the maintenance of your health insurance.
For direct consultation and assistance with Obamacare, contact (201) 981-0025.
