insurance

open enrollment

A designated annual period during which employees can enroll in or make changes to their employer-sponsored health, dental, and vision insurance plans.

Example

“She missed open enrollment and couldn't switch to the higher-deductible plan until next year.”

Memory Tip

OPEN ENROLLMENT = annual window to change health insurance. Miss it and you're locked in for the year.

Why It Matters

Open enrollment is critical because it is typically the only time during the year when employees can make changes to their health insurance coverage without experiencing penalties or waiting periods. Missing this window means you may be locked into your current plan for an entire year, which could result in paying more out-of-pocket costs or having inadequate coverage for your healthcare needs.

Common Misconception

Many people believe that open enrollment applies to individual health insurance plans purchased outside of an employer, but it actually refers specifically to employer-sponsored benefits. While the Affordable Care Act does have its own open enrollment period for individual plans, the rules and timing are different from employer-based open enrollment.

In Practice

Suppose your employer offers open enrollment from November 1 to November 30 each year. If you currently have a plan with a $1,500 annual deductible but anticipate needing more medical care next year, you could switch during open enrollment to a plan with a $2,000 deductible but lower monthly premiums. Without open enrollment, you would be unable to make this switch until the following November.

Etymology

OPEN (available, unrestricted) ENROLLMENT (signing up). A period OPEN for ENROLLMENT changes.

Common Misspellings

open-enrollmentopen enrollmntopen enrollement

More in insurance

Other insurance terms you should know

deductibleThe amount you pay out-of-pocket before your insurance begin…insurance premiumThe amount paid periodically to an insurance company in exch…deductibleThe amount a policyholder must pay out of pocket before insu…copayA fixed amount paid by an insured person at the time of a me…coinsuranceA cost-sharing arrangement where the insured pays a percenta…out-of-pocket maximumThe most an insured person will pay for covered healthcare s…