Why is my Deductible Plan Yearr Different from my Health Plan Year?

Oct 26, 2016

  1. Ifloaton2010
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    Ifloaton2010 New Member

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    My health plan from my employer starts on March 1 and ends the following March 1. However my deductible plan year starts on January 1 and ends on December 31. Could someone explain why both plans aren't on the same schedule? I'm new to health insurance and am just trying to understand why?
     
  2. kgmom219
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    kgmom219 What's Next?

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    You are going to love this answer...that's how HR set it up. (And they may not have a choice, depending on your state and the size of the employer)

    Words of advice....its HEALTH INSURANCE. Its not logical. If it was logical, it wouldn't be health insurance. (That's what I tell all my IT guys when they get frustrated with the system)
     
    kgmom219, Oct 26, 2016
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  3. LostDollar
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    LostDollar Guru

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    :D

    (And I didn't realize Health plans could be based on fiscal years. More administration problems for both employees and providers.)
     
  4. Botboy141
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    Botboy141 Expert

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    Not necessarily coordinated to fiscal year either. The plan year is arbitrary and only signifies when open enrollment will take place (assuming plan anniversary and open enrollment are at the same time). Typically the plan year and anniversary (renewal coinciding with open enrollment) are when the plan first begins.

    Most plans used to follow a plan year deductible, many carriers changed fully insured groups to calendar year deductible and max OOP resets a number of years back.
     
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