Big Life Changes? Here’s Why You Should Call Your Health Insurance Broker ASAP!

Why Updating Your Health Insurance Coverage is Crucial

Life is full of changes, and your health insurance should keep up. Many people don’t realize that certain life events require updating their coverage—or risk overpaying or losing benefits. Whether it’s a new job, marriage, or a change in income, knowing when to update your policy can save you from unexpected costs and ensure you’re properly covered.

Income Changes & Your Health Insurance

One of the biggest mistakes people make is forgetting to update their income with their health insurance broker. If your income increases or decreases, it can impact the tax credits you receive for your health plan. For example:

• Got a raise? If your income goes up and you’re still receiving tax credits based on a lower income, you could end up owing money when tax season comes around.
• Lost income or a job? You may now qualify for a higher subsidy or even free or low-cost coverage, but you only have 60 days to enroll in a new plan.

New Job? Employer Coverage Might Affect Your Plan

If you start a new job that offers health insurance, you’ll need to evaluate your options:

• Most employer-sponsored plans are more cost-effective than marketplace plans, especially if your employer contributes to your premium.
• If you qualify for employer coverage, you likely won’t be eligible for a government tax credit on a marketplace plan. This means you could owe money when you file your taxes.
• Once your employer coverage begins, notify your broker immediately to cancel your existing plan. You cannot get refunds for premiums already paid if you wait too long!

Major Life Events That Require an Update

Life happens, and your health insurance should reflect that. You should always notify your broker if you experience:

✔ Marriage or Divorce – Your coverage options and eligibility may change.

✔ Moving to a New State or Zip Code – Health plan costs and availability vary by location.

✔ Having a Baby or Adopting a Child – Your child needs to be added to your policy within 60 days.

✔ Losing Employer Coverage – You have 60 days to enroll in a new plan before you lose access to health insurance.

Avoid Costly Mistakes—Call Your Broker, Not the Marketplace

Many people assume they should call the health insurance marketplace to make changes, but this can often lead to errors. Working directly with a knowledgeable broker ensures your coverage updates are handled correctly and in your best interest.

Don’t Pay for Insurance You Can’t Use

Some people forget to cancel their marketplace plan after getting employer coverage—especially if they’re not paying out-of-pocket for their premium. But if you continue receiving tax credits while also having employer coverage, you will owe that money back when filing your taxes.

Final Reminder: Update Your Insurance ASAP

If you’ve had a recent change in income, employment, or life situation, don’t wait—update your health insurance now. Missing the 60-day window could leave you uninsured or stuck with unexpected costs.

📅 Need to update your coverage? Schedule a consultation today at jkappconsulting.com