3 signs you should change your health insurance coverage, according to a financial planner

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3 signs you should change your health insurance coverage, according to a financial planner

health insurance open enrollment

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Having a baby may qualify you for a special health insurance enrollment period.

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  • Health insurance isn't the type of financial decision that you set and forget.
  • Having a baby, starting a new job, getting married or divorced, changes in your health, and shifting financial priorities are good reasons to review your health coverage.
  • The government-run Health Insurance Marketplace begins its open enrollment period for 2020 healthcare coverage on November 1, 2019, though certain events may qualify you for a special enrollment period throughout the year.
  • Workers covered by an employer's group healthcare plan will typically have a different open enrollment period.
  • Visit Business Insider's homepage for more stories.

Having health insurance is critical when you live in America. As we age our health needs evolve, so coverage is usually not the type of financial decision you can set and forget.

"In general, anytime you experience a significant lifestyle change, it's a good idea to take a moment to review your health insurance coverage and compare what you currently have to other options that might better suit your new circumstances," says Eric Roberge, a certified financial planner and the founder of Beyond Your Hammock.

Some 158 million Americans get their health coverage through their employer or a spouse's employer, according to the Commonwealth Fund. Others can utilize the government-run Health Insurance Marketplace to shop for private coverage.

Established by the Affordable Care Act, the Marketplace is available to most US citizens and can help narrow down private health insurance coverage options, and find out whether tax breaks are available. Open enrollment for 2020 coverage runs from November 1, 2019 to December 15, 2019, but certain life events may qualify you for a special enrollment period.

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Below, Roberge shares a few signs that it may be time to review and change your health insurance, whether you are insured through your employer or the Marketplace.

1. You've made a significant life change

You may qualify for a special enrollment period throughout the year when major events take place that would change your coverage, including having or adopting a baby, getting married or divorced, or losing other health coverage.

"Other changes, like buying a house or having your spouse start a business, probably don't qualify you to make a change outside of open enrollment but they can still affect your financial situation enough where changing up your insurance coverage makes sense," Roberge says.

2. You can save money on coverage

The cost of health insurance is skyrocketing in the US. Whether you're insured through your employer or the Marketplace, annual enrollment periods are an opportunity to review how healthcare fits into your larger financial picture.

"Even if nothing major changed in your life over the past year, you still want to take a look at your health insurance options and compare costs," Roberge says. "You might want to switch to a new policy if it offers some cost savings, or provides more value for your needs than your old plan."

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He adds: "You'll want to compare various items, including premium costs, deductibles, and what the plan covers and doesn't cover - and how any upcoming changes might influence your decision." If you're planning to start a family in the next year, for example, it could be worthwhile to consider new coverage options now.

3. Your health needs have changed

Our health is ever-evolving and the coverage options that satisfied our needs in the past won't always match the future.

"Perhaps in the past, you had a reason for scheduling more doctor's visits and you needed a plan with low co-pays and deductibles because you frequently needed to use healthcare services," he says. "But maybe now your health has improved and it might make more sense to take a plan with a higher deductible but lower monthly premium to help you save money."

If ramping up your retirement savings has become your top priority, he says, perhaps it's time to find a high deductible health plan that offers a health savings account, which you can use to invest savings to pay for future medical expenses.

Ultimately, Roberge says, "the right health insurance coverage for you is highly dependent on your specific situation - both health-wise and financially speaking."

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