White House extends insurance enrollment deadline by one day

White House extends insurance enrollment deadline by one day

This Dec. 20, 2013, file image shows part of the HealthCare.gov website in Washington, that notes to enroll by Dec. 23 for coverage starting as soon as Jan. 1, 2014.

Anticipating heavy traffic on the government's health care website, the Obama administration effectively extended Monday's deadline for signing up for insurance by a day, giving people in 36 states more time to select a plan. Photo: Jon Elswick, AP

The official deadline for signing up through the website for coverage that would begin January 1 was to be 11:59 p.m. last Monday. But, according to The New York Times, an unnamed senior administration official who is familiar with the move confirmed that the deadline has been extended by one day.

There was a record amount of traffic on Healthcare.gov on Monday, the Times reported, and health officials wanted to make sure that people who are looking for coverage can get it, the Times said.

The newspaper said the official asked to remain anonymous because the shift in the deadline has not been formally announced, and the Obama administration is concerned about another record surge of visits to the website on Tuesday.

In most states, Monday, December 23 had been the deadline for selecting a plan that takes effect on the first day of the new year.

"We would really encourage people to start now. Don't wait until the deadline to enroll," Cheryl Fish-Parcham, deputy director of health policy at Families USA in Washington, D.C., said last week.

People need to leave themselves enough time to gather the information they need to complete an insurance application, select a health plan and pay the premium by the health plan's deadline, she said.

The pre-Christmas race to buy health insurance is another consequence of the troubled launch of the Affordable Care Act's HealthCare.gov website and website difficulties in a number of state-run health insurance exchanges. Since the October launch of the health exchanges, sign-up and premium-payment deadlines have been extended to give people more time to enroll for coverage, but the new cut-offs come amid the holiday rush.

Many people aren't aware of the various deadlines under the law, sometimes called Obamacare. What's more, the deadlines may vary by state and by health insurer, health insurance agents and brokers said.

"There is a lot of confusion," said Anna Causey, vice president of Combined Insurance Services Inc., a Pensacola, Fla.-based benefits broker.

Some people mistakenly believe they have until December 31 to enroll in a plan that takes effect on January 1, Causey said. Others don't realize they could pay a federal tax penalty if they don't have health insurance in place by March 31, she said.

Under the Affordable Care Act, most adults will pay a $95 penalty -- or 1 percent of income -- in 2014 if they don't have health insurance coverage. The penalty rises to $695 -- or 2 percent of income -- by 2016.

To avoid the penalty, people must enroll in a plan by February 15 or qualify for an exemption from the penalty, Causey said.

If you're in the market for health insurance, here are some key dates to keep in mind:

What's the latest I can enroll in coverage for January 1?

Consumers shopping on HealthCare.gov, the federal portal serving individuals in 36 states, have until 11:59 p.m. ET on Monday, December 23, to enroll if they want coverage to take effect on the first day of the new year.

What if I enroll through my state health insurance exchange?

Deadlines for January 1 coverage may differ in states that operate their own health exchanges.

Health insurers in Maryland, for instance, have agreed to extend the sign-up deadline through December 27, state officials announced Tuesday. Consumers must pay their premiums by January 15, the officials said.

Make sure to check with your state health exchange.

Can I enroll after January 1?

Open enrollment for 2014 runs through March 31. If you buy coverage, say, on February 10, it won't kick in until March 1. If you wait until March 31, your policy will take effect May 1.

There is no deadline for signing up for Medicaid or the Children's Health Insurance Program.

If I enrolled in a private health-exchange plan by December 23, when is my premium due?

Recently, the federal government directed insurers to accept payment by December 31 and encouraged health plans to push the deadline further.

Consumers who sign up by December 23 and pay the first month's premium by January 10 will have coverage on January 1, the industry group America's Health Insurance Plans announced Wednesday.

However, the federal government cautions that not all health insurers are extending the payment deadline, and some may require payment on or before Dec. 31, 2013.

"Once you've enrolled, check with your plan that they've received your enrollment and what is the premium payment deadline and how do you go about paying your first month's premium," Fish-Parcham advised.

Is it better to enroll now or sometime before March 31?

Insurance brokers say it depends on your situation.

"The (health plan) options will not change," said Karen Sweeney, benefit consultant with PIT4 Medical Insurance Consultants, in Mesa, Ariz.

She recommends that individuals who are uninsured or who are losing coverage on January 1 "get with an educated insurance broker and make a selection by December 23."

People who have coverage that carries over into 2014, however, don't necessarily need to rush to meet the December 23 cutoff, brokers said.

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