Qualifying events that can get you coverage

New spouse, new job, new baby, new home? They're all good news for you ... if you missed Obamacare's open enrollment deadline.

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Now that open enrollment has ended, there are very few options for coverage that can be purchased before open enrollment begins again in November. In general, the plans currently available are not regulated by the ACA, and most are not a good choice to serve as stand-alone coverage.

There are a few exceptions: In Nevada, off-exchange carriers are required to offer year-round enrollment, but they can impose a waiting period of up to 90 days before benefits become effective. In Arizona, Meritus (an ACA-created, not-for-profit CO-OP health plan) is planning to continue to offer coverage outside of open enrollment, but they are awaiting approval from the Arizona Department of Insurance.

These are very rare exceptions however. The vast majority of ACA-compliant plans, both on and off-exchange, are not available for purchase outside of open enrollment.

Qualifying events

That is, unless you have a qualifying event that triggers your own special open enrollment window.

People with employer-sponsored health insurance are used to both open enrollment windows and qualifying events. In the employer group market, plans have annual open enrollment times when members can make changes to their plans and eligible employees can enroll. Outside of that time frame, however, a qualifying event is required in order to enroll or change coverage.

In the individual market, this has never been part of the equation – people could apply for coverage any time they wanted. But policies were not guaranteed issue, so pre-existing conditions meant that some people couldn’t get coverage or had to pay more for their policies.

All of that has changed thanks to the ACA. Individual coverage is now quite similar to group coverage. As a result, the individual market now utilizes annual open enrollment windows and allows for special open enrollment triggered by qualifying events.

So even if you missed the general open enrollment, you could still have an opportunity to enroll in an ACA-compliant plan this year if you experience a qualifying event. In that case, you have a special open enrollment period – generally 60 days – during which you can enroll in a new plan on or off-exchange, or switch to a different plan.

What counts as a qualifying event?

What counts as a qualifying event? In many cases, they’re the same things that count as a qualifying event for employer-based plans. But some are specific to the individual market under the ACA.

In most cases, the effective date follows the same rules that it does during regular open enrollment. So for states using HealthCare.gov and most of the state-run exchanges, that means that applications completed by the 15th of the month will be given a first-of-the-following-month effective date.

Applications received between the 16th and the end of the month will have an effective date of the first of the second following month. (Marriage, loss of other coverage, and birth/adoption have special effective date rules, described below.)

10 special open enrollment triggers

  • Involuntary loss of other coverage that is qualified as minimum essential coverage. (Cancelling the plan or failing to pay the premiums does not count as involuntary loss).  Loss of coverage that isn’t minimum essential coverage does not trigger a special open enrollment, but new regulations do provide one exception in the case of loss of pregnancy-related Medicaid coverage.  Women who become ineligible for pregnancy-related coverage do have access to a special open enrollment period.Your special open enrollment begins 60 days before the termination date, so it’s possible to get a new ACA-compliant plan with no gap in coverage. (See details in Section (d)(6)(iii) the code of federal regulations 155.420, and the updated regulation that makes advance open enrollment possible for people with individual coverage as well as employer-sponsored coverage.)You also have 60 days after your plan ends during which you can select a new ACA-compliant plan. In that case, the effective date will be the first of the following month.
  • Individual plan renewing outside of the regular open enrollment.  HHS issued a regulation in late May 2014 that included a provision to allow a special open enrollment for people whose health plan is renewing – but not terminating – outside of regular open enrollment.  In early 2014, the Obama Administration announced that non-grandfathered pre-2014 individual plans could be extended for up to two more years, and it was left to states and carriers to decide whether or not to do so.  The result is that many health plans that were scheduled to terminate at the end of their plan year in 2014 will instead be eligible for renewal.  Insureds with these plans may accept the renewal but are not obligated to do so.  Instead, they can select a new ACA-compliant plan during the 60 days prior to the renewal date and 60 days following the renewal date.
  • People who are enrolled in COBRA – even if their plan is not exhausted – have a one-time special open enrollment period that runs through July 1, 2014.  If you’re on COBRA, you can select a marketplace plan instead and then drop your COBRA coverage.  This could be particularly beneficial for people who qualify for subsidies in the marketplace, since the subsidized premium is likely to be lower than the unsubsidized cost of COBRA.  This special open enrollment period technically only applies in the HHS-run exchanges, but most state-run exchanges have followed suit.  If you’re in a state with a state-run exchange, check with them to see if they’re allowing this one-time open enrollment (Kentucky, DC, and Nevada are not).
  • Becoming a dependent or gaining a dependent as a result or birth, adoption, or placement in foster care. Coverage is back-dated to the date of birth, adoption, or placement in foster care (new regulations also allow parents the option to select a later effective date).

    The current regulation states that anyone who “gains a dependent or becomes a dependent” is eligible for a special open enrollment window, which obviously includes both the parents and the new baby or newly adopted or fostered child.

    But the Federally Facilitated Marketplace accepts applications for the entire family (including siblings) during the special open enrollment window. If you live in a state that is running its own exchange, check with your exchange to see how they have interpreted the regulation.

  • Marriage. If you get married, you have a 60 day open enrollment window that begins on your wedding day. Your policy will be effective the first of the month following your application, regardless of what date you complete your enrollment.
  • Divorce. If you lose your existing health insurance because of a divorce, you qualify for a special open enrollment based on the loss of coverage rule discussed above.
  • Becoming a United States citizen.
  • A permanent move to an area where different qualified health plans (QHPs) are available. A permanent move to a new state will always trigger a special open enrollment period, because each state has its own health plans.  But even a move within a state can be a qualifying event, as some states have QHPs that are only offered in certain regions of the state.

    So if you move to a part of the state that has plans that were not available in your old area, or if the plan you had before is not available in your new area, you’ll qualify for a special open enrollment.

  • An error or problem with enrollment (or non-enrollment) that was the fault of the exchange, HHS, or an enrollment assister. In this case, the exchange can properly enroll the person (or change plans) outside of open enrollment in order to remedy the problem.
  • Employer-sponsored coverage reducing benefits such that it no longer provides minimum value, or becomes unaffordable (defined as requiring the employee to pay more than 9.5 percent of income for just the employee’s portion of the coverage) for the upcoming plan year.

    In this case, you’ll have access to a special open enrollment window both before and after the date that your employer plan renews (similar to the scenario described above for people losing coverage).

What if you’re already enrolled?

Additional qualifying events apply to people who are already enrolled in the exchange:

  • If your income changes and makes you newly eligible (or ineligible) for premium tax credits or cost-sharing subsidies, you qualify for a special open enrollment. Previous versions of the federal register stated that this open enrollment applied even for people who were not already enrolled in a QHP, but that is incorrect.

    The most recent version of the regulation notes that this special open enrollment period only applies to “enrollees” – which means people who already have a plan in the exchange.

  • A special open enrollment is available if the insured is enrolled in a QHP that “substantially violated a material provision of its contract in relation to the enrollee.” This does not mean that enrollees can switch to a new plan simply because their existing carrier has done something they didn’t like – it has to be a “substantial violation” and there’s an official channel through which such claims need to proceed.

Who doesn’t need a qualifying event?

In some circumstances, enrollment is available year-round, without a need for a qualifying event:

  • American Indians – as defined by the Indian Health Care Improvement Act (See page 11) – can enroll anytime during the year. Enrollment by the 15th of the month (or a later date set by a state-run exchange) will result in an effective date of the first of the following month. American Indians may also switch from one QHP to another up to once per month.
  • Medicaid enrollment is also year-round. For people who are near the threshold where Medicaid eligibility ends and exchange subsidy eligibility begins, there may be some “churning” during the year, when slight income fluctuations result in a change in eligibility.

    If income increases above the Medicaid eligibility threshold, there’s a special open enrollment window triggered by loss of other coverage. Unfortunately, in states that have not expanded Medicaid, the transition between Medicaid and QHPs in the exchange is nowhere near as seamless as lawmakers intended it to be.

  • Employers can select SHOP plans year-round (employees on those plans will have the same sort of annual open enrollment windows as regular employer group plans).