Change is inevitable, but growth is optional.
This saying perfectly sums up the journey many of us undertake when moving to a new state.
It is an exciting new chapter filled with opportunities. Still, one crucial detail often gets overlooked: how long it takes to change health insurance after moving to another state.
You might be surprised that not acting promptly can leave you with a significant coverage gap. This can affect your peace of mind and your wallet.
Did you know that nearly 10% of the U.S. population needs to update their health insurance to comply with their new state's rules?
The Affordable Care Act (ACA) has made this process easier.
Moving qualifies as a Special Enrollment Period (SEP) event. It gives you a 60-day window to select a new plan.
However, missing this window can lead to gaps in coverage until the next open enrollment period.
According to a study, those without health insurance are four times more likely to delay or forgo necessary medical care.
This highlights why it’s essential to act quickly and make sure your health insurance aligns with the rules of your new state.
Think of this blog as your roadmap. It helps you check the timeline, steps, and options available so you don’t lose out on your coverage.
Why Do You Need to Change Health Insurance After Moving?
Health insurance plans are regulated at the state level in the U.S.
This means that coverage and networks are typically restricted to specific states.
If you move across state lines, your existing health insurance may no longer be valid.
It requires you to enroll in a new plan that complies with your new state’s regulations and provider networks.
The Affordable Care Act (ACA) defines moving as a qualifying life event that allows you to enroll in a new plan through a Special Enrollment Period (SEP).
Without switching, you risk being outside your coverage area, which could leave you with out-of-network charges.
What is the Special Enrollment Period (SEP)
The SEP is a 60-day window that begins the day you move to your new state.
During this period, you can update your insurance information and select a new plan that is specific to your new location.
This period allows you to not face a gap in coverage.
It’s important to act within this timeframe because missing the deadline could leave you uninsured until the next open enrollment period.
It usually comes from November 1 to January 15 each year.
If you already had health coverage before your move, you are eligible for the SEP.
However, if you were uninsured prior to moving, the SEP does not apply, and you would need to wait until the next open enrollment period.
Steps to Change Health Insurance When You Move
Report Your Move: The first step is to report your move to the health insurance marketplace (HealthCare.gov or your state’s exchange).
This can be done either before or after the move, but the SEP clock starts on your official move date.
Submit a New Application: If your new state uses the federal marketplace, you will update your existing account with the new state’s details.
Some states have their own exchanges, like Covered California or New York State of Health, so you will need to apply directly through them.
Compare Plans: When applying, you will be prompted to compare plans available in your new state.
Health insurance plans vary greatly by state due to regional differences in healthcare costs.
Due to this, the premiums and coverage options may differ from your previous plan.
Select a New Plan: Choose a new health insurance plan that meets your needs and complete enrollment.
Important Considerations When Switching Health Insurance
Health Insurance Moving State Rules: Moving to a new state requires you to get a new plan specific to that state
This is because health insurance providers often do not extend their networks beyond state borders.
Even if you have the same insurance company in your new state, the plans and networks may be different.
Health Insurance Grace Period for Moving: The 60-day SEP grace period allows you to switch plans without losing coverage.
But this is only available if you had previous coverage.
If you miss this window, you must wait until the next open enrollment period.
Short-Term Health Insurance - A Temporary Solution
If you need immediate coverage while you search for a new long-term plan, short-term health insurance could be a viable option.
These plans are available in most states and can be effective the next day after you apply.
It provides emergency and basic medical coverage.
However, they are not compliant with ACA standards and often do not cover pre-existing conditions or preventive care.
Pro Tip: If you know your moving date in advance, you can start shopping for short-term plans before your move to ensure you have coverage immediately.
Employer-Sponsored Health Insurance
If your health insurance is through your employer, which operates in multiple states, you may not need to change plans.
However, it’s vital to confirm whether your plan’s provider network includes healthcare services in your new area.
If your employer doesn’t have coverage options in your new state, you will need to work with them to find a suitable alternative.
Health Insurance Coverage When Moving Out of State - COBRA and Other Options
If your existing plan doesn’t transfer to your new state and you are between jobs or leaving your employer’s plan, COBRA could be an option.
COBRA allows you to temporarily extend your current coverage (up to 18 months).
But you’ll be responsible for the full premium cost, which can be quite high.
Another option is to look into Medicaid if your income qualifies you for coverage.
Medicaid coverage is state-specific, so you would need to reapply in your new state.
How to Avoid Coverage Gaps
It is advisable to time your move towards the end of the month.
By doing this, you can cancel your old plan at the end of the month and start your new plan on the first day of the following month.
It gives you continuous coverage.
Always keep records and documentation of your move (e.g., lease agreements or utility bills) in case you need to verify your eligibility for the SEP.
Tips for Finding the Right Health Insurance Plan in Your New State
Research In-Network Providers: Before choosing a new plan, investigate local doctors, hospitals, and specialists to confirm that they are within your new plan’s network.
Consider Nationwide Coverage Options: If you travel frequently or split your time between states (e.g., snowbirds), choose health insurance plans that offer nationwide coverage.
Review Subsidies and Financial Assistance: If you qualify for ACA subsidies, these will adjust based on the new state’s benchmark plan.
Moving and Health Insurance Deadlines
Missing the 60-day SEP deadline can have significant consequences.
It leaves you without coverage until the next open enrollment period.
To avoid this, act promptly once your move is confirmed.
Remember, even if the open enrollment period is closed, moving qualifies as a life event, giving you access to the SEP.
Health Insurance Deadlines and Requirements
| Requirement | Timeframe | Action Needed |
|---|---|---|
| The report moves to the insurance provider | Within 60 days of the move | Log in to your marketplace account and update your address |
| Special Enrollment Period (SEP) | 60 days from the move date | Select a new plan based on the new state's offerings |
| Short-term insurance option | Anytime | Purchase via private insurers if needed to avoid gaps |
